LIMITED COPYRIGHT USE AGREEMENT
BETWEEN ARTIST MEMBER
AND InternetMovies.com Inc. / DRM MOVIE ASSOCIATION
PARTIES: INTERNETMOVIES.COM Inc. and DRM
MOVIE ASSOCIATION (DIGITAL RIGHTS MANAGEMENT MOVIE
ASSOCIATION (hereinafter, "InternetMovies.com Inc.")
c/o InternetMovies.com Inc.
PMB 411-415 Dairy Road
Kahului, HI 96732
(808)283-2885
1.0 RECITALS
WHEREAS InternetMovies.com Inc./ DRMMA ("Digital Rights Management Movie Association") is an
organization formed to assist in making and allow original artists to make selected works
available for worldwide limited consumer use over the internet without relinquishing the
exclusive copyrights held by the original artist to control the sale or re-sale of his or work; and
WHEREAS the Artist Member desires to release certain works for Limited Copyright
Use distribution to InternetMovies.com Inc. members in exchange for packaging by InternetMovies.com Inc.,
monetary compensation, and worldwide exposure; and
WHEREAS the parties wish to create, participate in, and promote a system of intellectual
property distribution that balances the right to fair use of copyrighted materials with the owner’s
right to compensation for his or her works;
NOW, THEREFORE, for and in consideration of the agreements of the parties set forth
below, the parties agree as follows:
2.0 DEFINITIONS
2.1 Artist Member An original artist who joins InternetMovies.com Inc. for the purpose of
releasing selecting works for Limited Copyright Use purposes, in exchange for promotion and
compensation by InternetMovies.com Inc. As used in this Agreement, "Artist
Member" also refers to an authorized Promoter.
2.2 Confidential Information. Any proprietary information of InternetMovies.com Inc., such
as business plans or models, technical data, trade secrets, or know-how, including, but not
limited to, research, product plans, products, services, customer lists and customers, markets and
market strategies, software developments, inventions, processes, formulas, patterns,
compilations, program devices, methods, techniques, technology, designs, drawings,
engineering, hardware configuration information, marketing, finances or other business
information.
2.3 Limited Copyright Use. The pre-defined, limited, non-exclusive use by
individuals of a copyrighted work with the permission of the author.
2.4 Work. A specific original work of visual art capable of being copyrighted under
17 U.S.C. Section 101 et. seq. that is provided by the original artist or the exclusive copyright
holder for Limited Copyright Use under this Agreement.
2.5 Reseller. An individual or entity that pays money to be licensed by InternetMovies.com Inc.
to promote and distribute the parties’ respective website content and
services in exchange for compensation and/or a commission based on new memberships and
referrals.
2.6 User. An individual accessing the internet.
2.7 Packing and Wrapping. The proprietary process of creating a portable media
file of the Artist Member’s Work with security features that allow the Work to be accessed only
by active InternetMovies.com members. Packed and wrapped media files have the Artist
Member’s and/or Promoters personal reseller code(s) embedded, along with the InternetMovies.com Inc.
and InternetMovies.com codes.
2.8 Promoter. An individual or entity to whom an original artist has assigned his or
her intellectual property rights for the purpose of promoting his or her work.
3.0 TERM OF AGREEMENT
From the date of execution of this Agreement by the Artist Member below and
continuing thereafter until terminated by either party pursuant to the provisions of this
Agreement.
4.0 AGREEMENT
4.1 Services Provided By InternetMovies.com Inc..
4.1.a "Packing and Wrapping". InternetMovies.com Inc. has associated with premier
digital rights management company PlayaDRM to develop the ability to "pack and wrap" the Artist
Member’s Work into a Limited Copyright Use InternetMovies.com Inc. for access by InternetMovies.com
members, at a reasonable charge to Artist Member. Both member and non-member visitors to
InternetMovies.com will be able view a list of all Artist Members and their Works, and will be
required to link to the specific Artist Member’s reseller page in order to download or view that
Artist Member’s Work from the location at which the Artist Member has chosen to host his or
her DRM Movie. InternetMovies.com members will be challenged for their username and
password each time they attempt to view the Artist Member’s movie from that particular PC (if
they do not have a thirty (30) day license, as specified hereinbelow). InternetMovies.com
members are allowed to transfer the DRM Movie by any means, whether peer-to-peer, ftp,
newsgroup, telnet, or the like. If the user does not have an InternetMovies.com username and
password, they will be required to link to the Artist Member’s reseller page so they can join
InternetMovies.com (resulting in a commission to Artist Member as set forth herein).
Once an InternetMovies.com member downloads a InternetMovies.com Inc. packaged Work by the Artist
Member onto CD-RW or DVD-RW, the member will be challenged for an InternetMovies
username and password in order to obtain a thirty (30) day license to view the DRM Moive on
that PC (personal computer). All InternetMovies.com members are allocated a "5-PC User
License", and on the sixth (6th) PC their membership is suspended so that they are required
to purchase a new membership for any additional licenses desired. This system exists in order to
protect the integrity of InternetMovies.com usernames and passwords against piracy and sharing.
4.1.b Creation of Re-Seller Website For Artist Member. InternetMovies.com Inc. will
create and InternetMovies.com will host a reseller web page for each Artist Member, with all
necessary links for visitors to join InternetMovies.com and thereby enjoy the right to view and
download the Artist Member’s selected Works as provided for in this Agreement.
4.1.c Promotion of Works. InternetMovies.com Inc. will, as
part of its own marketing, advertise and promote to both members and non-members the Works
of all Artist Members available for viewing and download under this Agreement.
4.1.d Categorization of Works. InternetMovies.com Inc. will not censor or edit any of
the Works submitted under this Agreement. However, InternetMovies.com Inc. will categorize and color
code each Work to assist InternetMovies.com members in accessing Works according to their
personal preferences. Suggestions or objections to any categorization made under this provision
should be submitted in writing to InternetMovies.com Inc. within five (5) business days of notice of such
categorization.
4.2 Services Not Provided By InternetMovies.com Inc.. InternetMovies.com Inc. will not provide legal
representation nor direct technical support to Artist Members, although it will endeavor to
provide helpful links on its website for legal and technical matters of interest to Artist Members.
4.3 Charge for Services Provided by InternetMovies.com Inc.. Artist Members will pay a
monthly membership fee $9.95 (nine dollars and ninety-five cents), which will
automatically recur until cancelled by Artist Member. Artist Members will also be required to
send the movie in .WMV format to InternetMovies.com Inc. so the movie can be packed and wraped.
4.3.a Limited Copyright Use Granted By Artist Member. Artist Member hereby
grants a Limited Copyright Use license to all current and future active InternetMovies.com
members to download, distribute, share, copy and trade submitted Work(s) over the internet.
Artist Member does not hereby relinquish any copyright or other intellectual property rights
other than those expressly granted herein to InternetMovies.com members, including the Artist
Member’s exclusive right to sale or resale of submitted Works. The Limited Copyright Use
rights granted to InternetMovies.com members under this Agreement are not revoked by the
Artist Member’s termination of his or her membership with InternetMovies.com Inc., and InternetMovies.com Inc. can
not be held responsible for the continued Limited Copyright Use of submitted Works by active
InternetMovies.com members after termination of the Artist Member’s InternetMovies.com Inc.
membership.
4.4 Media Provided By Artist Member. Artist Member will provide at least one
Work ("media content") to be packed and wrapped by InternetMovies.com Inc. and subsequent release by DRM
Movies to InternetMovies.com members. Artist Member may provide the media to be unpacked
and unwrapped in .WMV compression scheme, except that there must
be no pre-existing digital rights management packages of any kind attached to the media.
4.5 Warranties By Artist Member. Artist Member hereby warrants and represents
that he or she has full, unencumbered rights in the Work submitted for Limited Copyright Use
under this Agreement, that Artist Member properly registered the subject Work without
committing fraud or misrepresentation, that Artist Member has the sole authority to license the
copyright for the Work for the purposes set forth in this Agreement, and that, to best of Artist
Member’s knowledge, the Work does not infringe the rights of any third party.
5.0 COMPENSATION
5.1 Compensation to Artist Member For Grant of Limited Copyright Use. Artist
Member shall receive sixty-five percent (60%) of each new InternetMovie.com member brought
in through the Artist Member’s reseller page or through the Artist Member’s DRM Movie
content. Each new InternetMovies.com member who joins through the Artist Member’s reseller
page will be permanently associated with the Artist Member’s reseller page so that the Artist
Member will continue to receive sixty-five (60%) of that membership regardless of whether or
InternetMovies.com Inc. Membership Agreement Page 5 of 5
not the InternetMovies.com member continues to view the Artist Member’s Work(s), as long as
the Artist Member continues to be a InternetMovies.com Inc. member. Compensation will be credited
directly to each Artist Member’s InternetMovies.com Inc. account as new membership orders are received
by InternetMovies.com, and reimbursed to the Artist Member weekly through EPOCH payment
service.
5.3 Term of Compensation. Artist Member shall receive the aforesaid
compensation and/or commission for as long as Artist Member continues to be a member of
InternetMovies.com Inc./ DRMMA.
6.0 TERMINATION
6.1 By Expiration Of Membership. This Agreement shall terminate automatically
if Artist Member ceases to make a membership payment within sixty (60) days of the date on
which it becomes due and payable. EpochSystem will bill Artist Member’s credit card
automatically each month. If credit card payment is declined, EpochSystem will make six (6)
attempts to rebill during the sixty (60) day period, after which this Agreement will terminate.
E-mail notice of termination will be transmitted to Artist Member.
6.2 For Cause By InternetMovies.com Inc.. This Agreement may be terminated at any time by
InternetMovies.com Inc. if InternetMovies.com Inc. finds that Artist Member has breached this Agreement, violated
any law(s), does not own the rights purported to be granted under this Agreement, or otherwise
engages in any activity deemed illegal, unethical, or contrary to the purposes and intent of DRM
Movies and InternetMovies.com. Written notice of termination will be transmitted to Artist
Member within five (5) days of termination
6.3 Copyright Policy. InternetMovies.com Inc. does not tolerate copyright infringement and
information about members or users engaging in copyright infringement should be promptly
provided to InternetMovies.com Inc.. Artist Member agrees not to use DRM
Movies or InternetMovies.com websites to download or distribute any copyrighted material the
Artist Member is not authorized to download or distribute, or otherwise infringe any copyright
holder’s intellectual property rights. Pursuant to 17 USCA Section 512(i), InternetMovies.com Inc. hereby
informs the Artist Member that InternetMovies.com Inc. has a policy that provides for the termination of
memberships who are repeat copyright infringers.
6.4 Right of Refusal. InternetMovies.com Inc. reserves the right to refuse to pack and wrap any
material submitted by any Artist Member, Promoter, individual, entity, or organization for any
reason. X-rated, obscene, pornographic, or excessively violent or graphic material will be
refused.
7.0 CONFIDENTIALITY
7.1 Non-Disclosure. Artist Member, for his or her own self, and on behalf of his or
her agents, attorneys, representatives, successors and assigns, agrees that at all times during
which he or she is a member of InternetMovies.com Inc. and for a period of six (6) months from the date of
the termination of that membership, to hold in strictest confidence, and not to use, or to disclose
to any person, firm or corporation without written authorization of InternetMovies.com Inc., any
Confidential Information of InternetMovies.com Inc. acquired during or arising out of that membership, as
that term is defined herein, and will not use any of said Confidential Information except for the
express purpose of meeting obligations under this Agreement.
7.2 Confidential Information. Artist Member hereby acknowledges that he or she
understands that "Confidential Information" means any proprietary information, business plans
or models, technical data, trade secrets, or know-how, including, but not limited to, research,
product plans, products, services, customer lists and customers, markets and market strategies,
software developments, inventions, processes, formulas, patterns, compilations, program
devices, methods, techniques, technology, designs, drawings, engineering, hardware
configuration information, marketing, finances or other business information disclosed or
acquired by Artist Member either directly or indirectly in writing, or orally, or by drawings or
observation of parts or equipment, or through Artist Member’s participation in and/or
observation of InternetMovies.com Inc. business. Confidential Information does not include any of the
foregoing items which have already become publicly known and made generally available
through no wrongful act of any party. Artist Member acknowledges that InternetMovies.com Inc. Confidential
Information is vital, sensitive, confidential, and proprietary to InternetMovies.com Inc.
7.3 Ownership of InternetMovies.com Inc., Internet Movies.com, and Website. Artist
Member acknowledges and agrees that except for the content provided by the Artist Member, the
rights to which belong exclusively to Artist Member subject to this Agreement for Limited
Copyright Use by InternetMovies.com members, InternetMovies.com Inc. and InternetMovies.com owns
all website content associated with the execution of this Agreement, including but not limited to
images, graphic use interface, digital rights management packaging, source and object code,
documentation, and the like, along with all intellectual property rights pertaining thereto,
including all copyrights, trademarks, patents, and trade secrets, whether registered or not.
7.4 Notice of Disclosure. In order for InternetMovies.com Inc. to
effectively protect and prevent the disclosure of its Confidential Information, Artist Member
hereby agrees to notify InternetMovies.com Inc. as soon as possible if he or she is either requested or
subpeonaed to provide documents and/or testimony wherein Artist Member reasonably believes
that the information he or she will be required to disclose contains InternetMovies.com Inc. and/or
InternetMovies.com Confidential Information.
8.0 GENERAL PROVISIONS
8.1 Indemnification. By entering into this Agreement, the parties are not
intending to create nor are in fact creating any legal partnership or other such relationship under
which the parties would share legal liability. Neither party is responsible to the other for any acts
or omissions of the other party, and each party hereby agrees to indemnify, defend and hold
harmless the other party hereto, his or her directors, officers, employees, sublicensees, and agents
from and against any losses incurred through claims of third persons for any matter relating to
this Agreement, or arising from breach by any party hereto of such party’s representations,
warranties or covenants, contained in this Agreement, including, but not limited to, alleged
infringement or violation of any intellectual property laws, confidentiality agreements, and
negligent or intentional acts or omissions.
8.2 Governing Law and Consent to Personal Jurisdiction. This agreement will be
governed by the laws of the State of Hawaii. The parties hereby expressly consent to the
personal jurisdiction of the State and Federal Courts located in Hawaii for any lawsuit filed there
arising from and relating to this Agreement.
8.3 Authority to Execute. Artist Member represents that he or she has the right,
power, legal capacity and legal authority to enter into and perform the obligations under this
release and to bind his heirs, successors, executors, administrators, assigns and agents. Artist
Member understands that he or she has the right to review of this Agreement by legal counsel of
his own choosing, and is fully aware of the contents of this release and the legal effects thereof.
8.4 Modification. No modification of or amendment to this Agreement, nor any
waiver of any rights under this agreement, will be effective unless in a writing signed by the
party to be charged. InternetMovies.com Inc. reserves the right to modify this Agreement at any time, and
acceptance of the modified agreement may be made a condition of continued membership in
InternetMovies.com Inc..
8.5 Severability. Should any provision of this Agreement be declared or determined
by any court of competent jurisdiction to be illegal, invalid, or unenforceable, the legality,
validity, and enforceability of the remaining parts, terms or provisions shall not be affected
thereby and said illegal, unenforceable or invalid part, term or provision shall be deemed not be
part of this Agreement but the remaining provisions shall continue in full force and effect.
Further, if any terms are found to be unreasonable or invalid by any court of competent
jurisdiction, the parties agree to accept as binding, in lieu thereof, the maximum terms
enforceable by law.
8.6 Successors and Assigns. This Agreement will be binding upon heirs, executors,
administrators and other legal representatives and will be for the benefit of the parties, their
successors, and their assigns.
8.7 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which shall constitute together one and the
same instrument. Counterparts containing facsimile or electronic signatures shall be deemed as
binding and enforceable as the original signatures.
IN WITNESS WHEREOF, the PARTIES have read the foregoing Agreement and
acknowledge the receipt and sufficiency of consideration therefor, and have executed the same
on the date set forth below, and hereby agree to each of its terms. ACCEPTANCE OF THIS
AGREEMENT IS REQUIRED IN ORDER TO BECOME A InternetMovies.com Inc. ARTIST
MEMBER.
APPROVED AND ACCEPTED.
InternetMovies.com Inc.
__________________/Michael J. Rossi/_______________________________________________
Date By: President/ MICHAEL J. ROSSI
APPROVED AND ACCEPTED:
__________________ ______/Submited Electronic Signature by Clicking the Submit button/________
Date ARTIST MEMBER