First important item: The name of the music publisher
Rule: It is important that before you signed the agreement; you are entering an agreement with a music publisher. Music publisher is mandated by law to issue music licenses in behalf of the songwriters involved. You need to ensure that the company is a registered music publishing company if you need to conduct business with a legally accepted entity.Other things to check are the catalog of the music publisher. If the music publisher is ASCAP affiliated, you can checked the registered songs in ASCAP and make sure that the songs you are licensing has been registered by them.You can even checked with the US Copyright records to make sure that what the music publisher is claiming ownership has been registered in copyright office. If there are no other issues above, it can be said that the music publisher is in good standing.

Second important item: Scope of Music Compositions and Recordings
Rule: This can be optional for auto-generated licenses. However if you are asking the music publisher to manually issue licenses for you; you need to ensure that licenses include what songs you are licensing with them. Is it the entire catalog? Or a list of specific songs?

Third important item: The name of the licensee
Rule: This is again optional for auto-generated licenses. The important is that; again if you are asking for manually issued licenses; you need to ensure that the music publisher has listed your correct company name in the contracts.

Fourth important item: Detailed intended song application
Rule: The license must include details how the song will be used. A complete statement is a requirement to avoid confusions on the exact song usage/application. It should answer clearly all possible questions raised. For example, if you are given with a license agreement for the use of music in film production. It should be complete in such a way, it answers the following questions very clearly:
a. Does it mention there that you can use the music in “sync” with the film?
b. Is it mentioned that aside from using the composition in sync, you are also allowed to use the master sound recording?
c. It is mentioned there that if there is a specific movie scene for which you are going to show the complete lyrics on the film screen,; does the license agreement allows it?
d. Are you allowed to make several copies of the videos with the music and film in it?
e. Are you allowed to use the music in porn, racism, hate and terrorism promotion movies?
In relation to this, you need to mention to the music publisher in details about how you are going to use the music.

Fifth important item: Rights granted
Rule: These terms in the agreement should list down all the rights granted by the music publisher to the licensee. This should be based on the fourth important item (Detailed intended song application). For example, if the music publisher is granting you to use music in “sync” with the film. This means that they are granting you “synchronization” rights.

Sixth important item: Limitation of use
Rule: If the music publisher states that “any particular song usage not mentioned in the rights granted, the licensee is not allowed to use the music in those applications”.

Seventh important item: Indemnification and Other terms
Rule: Other than what mentioned, the music publisher will include indemnification clauses in music licensing agreement as well as other terms to be included in the music licensing agreement.