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πŸ“„ What Is the Termination Clause?

In the distribution agreement of UMW Recordings, Inc., there is a specific termination clause based on low earnings activity.

Carlos Holguin avatar
Written by Carlos Holguin
Updated over a week ago

πŸ›‘ What Does This Clause State?

UMW may unilaterally and automatically terminate the agreement if the following condition is met:

πŸ’Έ The user generates less than $5 USD in monthly royalties for five (5) consecutive months.

This means that if your releases do not reach at least $5 per month in earnings over a continuous 5-month period, UMW reserves the right to deactivate your account and terminate the contract.


❓ Why Does This Clause Exist?

πŸ” To keep the platform focused on active music projects
πŸ’° To avoid a buildup of inactive accounts that use system resources
πŸ“Š To help the support and distribution teams prioritize efficiency

This policy is not meant to punish, but to maintain a lean, high-performing ecosystem for artists.


⚠️ What Happens If This Clause Is Triggered?

  • You will receive a notification in advance before termination is processed

  • You will be able to withdraw any pending earnings, if applicable

  • All your releases will be removed from digital platforms (DSPs)

  • Your account will be closed permanently, unless a new agreement is signed


🎯 In Summary:

Termination Condition

Final Outcome

πŸ”» Less than $5/month for 5 straight months

πŸ›‘ Contract termination

πŸ”” Will you be notified?

βœ… Yes, before closure

πŸ’Ό Can the account be reactivated?

🟑 Only with a new agreement

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