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CM-13-11-204ROUND ROCK TEXAS PURPOSE. rit PROSPERITY City of Round Rock Agenda Item Summary Agenda Number: Title: Consider executing a Subscription Agreement with Library Ideas, LLC for public access to their downloadable Music Service. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 11/1/2013 Dept Director: Michelle Cervantes Cost: $10,150.00 Indexes: General Fund Attachments: CMAF Freegal Music Sharing, Freegal Order Form with price -a, USA Freegal subscription agreement -1 Text of Legislative File CM -13-11-204 Freegal is a downloadable music service which provides 3 free songs to Round Rock Library cardholders each week. There is no software to download, and there are no digital rights management (DRM) restrictions. About 3 million songs, including Sony Music's catalog, are available. Staff Approval City of Round Rock Page 1 Printed on 10/31/2013 CONTRACT APPROVAL FORM FOR CITY MANAGER ACTION Required for Submission of Specific City Manager Items Department Name: Library Project Name: Subscription Agreement Project Mgr/Resource: Michelle Cervantes, Director ContractorNendor: Library Ideas, LLC x❑City Manager Approval CMA Wording Consider executing a Subscription Agreement with Library Ideas, LLC for public access to their downloadable Music Service. Approval X❑ Employee EE Bowden Date October 25, 2013 Notes/Comments USA FREEGAL MUSIC SUBSCRIPTION AGREEMENT THIS DOWNLOAD SUBSCRIPTION AGREEMENT (this "Agreement") is made by d betwee n[a 1C 'w\OkiC Li , a Tpxck5 state)Public Library maintdining a physical address at ,110 1=. ka:,'n `D\reet- ,-18 L}, hereafter referred to as (the "Library") and Library Ideas, LLC, a Delaware media company located at P.O. Box 9, Vienna, Virginia 22183 USA, hereafter referred to as (the "Company"). All parties to this Agreement may, from time to time, be referred to as (the "Parties"). RECITALS WHEREAS Company has licenses for a media service specifically targeted to public libraries which provides the Patrons of these institutions access to a site to download music legally via Company's FreegalTM music (the "Service"). WHEREAS Company wishes to sell a subscription and include the right to use the Service to the Library subject to the terms and conditions described in this Agreement. WHEREAS Library desires to purchase a subscription and use the Service from Company subject to the terms and conditions described in this Agreement. NOW THEREFORE in consideration of the provisions contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: ARTICLE I. Definitions Section 1.01 Definitions. The terms defined within this Agreement have the respective meanings attributed to them throughout this Agreement or in this Article I. Any defined term may be used in the singular and in the plural forms, as appropriate in the context. Library Agreement 2/12/2010 v Final c.'�,k-12 1 -2 c'`� Section 1.02. "Service(s)" refers to the Company's downloadable music services known as FreegalTM Music and is related to Library's ongoing access to and use of such service via the Internet. Section 1.03. "Effective Date" Unless otherwise agreed to in writing by the Parties, the "Effective Date" of this Agreement means the date the service is available for use by Library Patrons. Section 1.04. "Subscription Agreement" means the right to access Company's downloadable Music Service ("Subscription Agreement Price") expiring after a specified length of time ("Subscription Agreement Term"). Section 1.05. "Subscription Agreement Price" means the price established for the Subscription Agreement Term. Section 1.06. "Subscription Agreement Term" refers to the right to access Company's downloadable Music Collection for a limited period of time. Except as otherwise specifically agreed to in writing by the Parties, the "Subscription Agreement Term" of this Agreement commences on the Effective Date and continues in effect for one year. Section 1.07. "Library's Website Portal" means the Website operated by the Library and open to its Patrons in order to access and use all materials of the Library. Section 1.08. "Company Website" means the Website operated by Company and open to the Library and its Patrons via the Library's own website portal. Section 1.09. "Patrons" mean Library's registered, authenticated cardholders, and all members of the public who have been issued a library card, including onsite and offsite users. Section 1.10. "License" means a revocable permission to commit some act that would otherwise be unlawful such as downloading the copyrighted works of the rightful owner. 1016 Section 1.11. "Personal Use" is defined, for purposes of this Agreement, as the use which is of a personal nature and used only by the person who is authorized to use such media, i.e. a downloaded song, and prohibits the sharing of said media with the public or placing such media in the public domain, i.e sharing songs on the Internet. This Agreement adopts the definitions of "personal use" as established by the Courts and U.S. Copyright laws. ARTICLE II. FreegalTM Music Services Terms and Conditions Section 2.01. Subscription Agreement Price. Company will charge Library a year's Subscription Agreement Price for the right to access the Company's Service unless otherwise indicated. The price is described herein in Schedule A. Section 2.02. All Purchases are Final. All purchases of subscriptions are final. No refunds are allowed unless the product is not delivered. Section 2.03. Payment Due Date. All fees and charges are due and payable 30 days from the date of the related invoice. The Company may deny Library and its Patrons access to Library's Company Website until the unpaid invoice is paid in full. Section 2.04. Limits on Music Downloads. Registered Patrons of Library may each download up to three (3) downloads per week. Section 2.05. Termination. Subsection 2.05.A. Termination by Expiration of Term. This Agreement will terminate automatically at the end of a one-year Subscription Agreement Term unless otherwise mentioned. on Schedule A. If Library wishes to renew for an additional year, Library may contact Company at any time during or after the end of the current Subscription Agreement Term and renegotiate a new Subscription Agreement Term. Subsection 2.05.B. Termination for Breach of this Agreement. Either party may terminate this agreement for cause at any time by providing the other party with prior written notice of the occurrence of any of the following events: (1) a party fails to timely pay any amounts due and payable, provided that the nonpayment, is not cured within 10 days of the notice; or (2) a party breaches any Material provision of this Agreement provided that the breach cannot be, or is not, cured within 30 days of the notice. Material terms of this Agreement are Sections 2.03, 2.05, 2.06, 2.07, 2.08, 2.09, 2.12, 3.01, and 3.02. Section 2.06. Provision of Audio Services. During the Subscription Agreement Term, the Company will establish, host, and administer Company's Website. Library and Patrons will access Company's music collection through Library's Website Portal. The Library and its Patrons will access the Library's audio music collection either inside the library (if allowed and enabled) using the Library's own Internet connection or remotely from within the United States. Company will deny access to anyone attempting to access Service from outside the United States. Service will have reasonable periods of scheduled maintenance in which the Service is not available. Otherwise Service will be available at commercially accepted standards of operation. Section 2.07. Library and Member Usage - Limiting Access Measures. The Library will be solely responsible for authenticating which Patrons will have access to the Library's Website under this Agreement. However, Library Ideas will facilitate this process. Except for standard fees charged by Library to its Patrons, the Library will not charge any Patron for the use of the Company's Website. Section 2.08. Library's Company Website. The use of the Company's Website by the Library and its Patrons will be governed by the End User Agreement. If Patrons violate the End User Agreement, Company reserves the right, in its sole discretion, to suspend the Library's or the Patrons's access to and use of the Company's Website. The Library acknowledges and agrees that, in the case of repeated or persistent violations, the Company may terminate this Library Agreement 2/12/2010 v Final 2of 6 Agreement and issue a pro -rated refund for unused service. Section 2.09. Copyrighted Works. Library acknowledges and agrees that the copyright to each song is owned by the respective publisher thereof. All Rights Reserved. Section 2.10. No Copyright Conveyed Upon signing this Agreement, Library will receive an annual license to access the Company's Music Collection via the Library's Website Portal and download the music the Library has purchased access to. Library will not acquire any other rights in the Company or the Company's Music Collection and/or its Service. Section 2.11. Offensive Content. Company makes no warranty and no representations against claims of offensive content by Library Patrons and does not have the ability to remove a song for just one library and not all the libraries participating in the Service. Section 2.12. Publicity and Marketing. Library agrees to use only the Publicity and Marketing Material given to it by the Company unless otherwise approved in writing by the Company. The Company will send Library a template press release and marketing kit in advance of the Library going live with the Service. Library will make no public statements on or off the record regarding the financial terms of this service unless required by law. The terms of this Agreement are Confidential, except where disclosure is required by law. The name of the Service is the FreegalTMMusic Service, and the Library will not promote the Service under any other name. ARTICLE III Music Subscription Agreement Services Section 3.01. Member Access & Clean Sweep Protocols. For all Library computers capable of accessing the Company's Website, Library will implement a Clean Sweep or similar type program which functions to log -out or wipe clean the information existing on the computer screen of the previous user. Section 3.02. Reports. Payment of the Subscription Agreement Fee entitles Library to the standard reports offered by Company which gauges the use of Company's Music Collection. ARTICLE IV General Provisions Section 4.01. Governing Law. This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of this Agreement or its formation) shall be governed by and construed in accordance with the laws of the State of Delaware. Section 4.02. Notice to Parties. All notices from either party to the other under this Agreement shall be sent by telegram, overnight courier service, or by registered or certified mail, return receipt requested, or hand -delivered with signed receipt. Whenever in this Agreement reference is made to a Notice to be given, such Notice shall be deemed to have been given when mailed, wired, or hand -delivered to the proper notice address of the party to be notified. Notices shall be addressed in care of the individual representatives identified herein and mailed to the address designated for each Party and listed in the Signature Page of this Agreement. Either party may, from time to time, designate a different address for receiving Notices by giving the other party notice of the change of address in the manner above specified. Section 4.03. Assignment. Library may not sell, assign, transfer or convey this Agreement or any rights and obligations thereto. However, Company may assign or transfer this Agreement to an affiliated company or to a third party that acquires substantially all of its assets upon written notice to the Library. Section 4.04. Successors & Assigns. This Agreement shall be binding on and inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns. Section 4.05. Section Partial Invalidity. If any term, covenant, or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or Library Agreement 2/12/2010 v Final 3 of 6 unenforceable, the remainder of this Agreement, or the application of such term, covenant, or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and every other term, covenant, or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law. Section 4.06. Separability. Each and every covenant or understanding contained in this Agreement shall, for all intents and purposes, be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be found invalid and unenforceable by a court of competent jurisdiction, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is valid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law. It is the intention of the parties hereto that if any provision of this Agreement is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. Section 4.07. Headings. The headings to the various paragraphs and/or Sections of this Agreement have been inserted for reference only and shall not to any extent have the effect of modifying, amending or changing the expressed terms and provisions of this Agreement. Section 4.08. Limited Warranty. Company warrants that Company has the necessary authority to license the Music Collection to Library and, if applicable, to provide Services to Library. Company warrants that it will use its commercially reasonable efforts to provide such Services as described in this Agreement. Section 4.09. Limitation on Liability. Neither party will claim special, incidental, indirect, or consequential damages; including lost profits for breach of this Agreement. This limitation will also apply to any claims brought against Company's content providers. Remedies are limited to claims for amounts due, for injunctive relief only as provided, or for direct damages. A party's aggregate liability for any and all claims, losses, liabilities, and demands arising, whether for breach of contract, in tort or otherwise, are limited to the total amount of Subscription Agreement Fees paid by Library to the Company during the 12 month period immediately preceding the date on which the claim first arose. Section 4.10. Force Majeure. Neither party will be liable for, or have the right to terminate this Agreement as a result of, any delays or failures to perform any of its obligations under the Agreement to the extent that the delays or failures are due to circumstances beyond its reasonable control, including without limit acts of God; strikes; riots; acts of war; power failures; and functions or malfunctions of the Internet, telecommunications services, firewalls, encryption systems, and security devices; or governmental regulations imposed after the Effective Date. IN WITNESS WHEREOF the parties hereto by and through their authorized agents, have duly affixed their signatures under seal as of the date shown herein. Library Agreement 2/12/2010 v Final 4of 6 [SIGNATURES TO FOLLOW] Company: LIBRARY IDEAS, LLC Date: 1 3 Address: P.O. Box 9 Vienna, Virginia 22183 USA Library Agreement 2/12/2010 v Final $ of 6 Library: 3I.)01IC\ a 4\\CA �\OfCtiv Name of Library By: /<� �����. Aut orized Ag Representative Print Name Date: Address: E E. S\YPet- 1 • SCHEDULE A Subscription Agreement Price (Attach order form) Library Agreement 2/12/2010 v Final hof 6 eega 4.0 Freegal Music 4.0 Includes: • 7 million songs (by the end of 2013) • 8,000 music videos • Streaming Option at an extra cost Library IIlideas P.O. Box 9 Vienna, VA 22180 Phone: 571.730.4300 Fax: 571.730.4305 Email: orders@libraryideas.com www.Iibraryideas.com Go Live Dates: ❑✓ As Soon As Possible: 0 No Later Than: Setup Completion Date: Complete the order form below and email to orders@libraryideas.com Date: 10/11/2013 Sales Rep: ADAM CLAY Contact Information: 1) Library Name Round Rock Public Library Street Address* 216 E. Main St. Round Rock TX 78664 City: State: __ Zip Code: 2) Business Contact: Theresa Faris Collection Development & Technical Services Manager Email Address: tfaris@roundrocktexas.gov Phone; (512) 218-3283 3) Technical Contact (Lk -4:1S Sat4c6 Email Address: CSauatt'C foL.t�d roc �,(S Jo I' Phone 512-2-IF-i0L2L1 4) Bill To (if different): Street Address: City: Purchase Order Number: State: Zip Code: co ✓❑ Subscription Plan Setup Fee f 150.00 Total: 0 Freegal Per Usage Setup Fee: 150 00 p Term/Length: 12MNT l Price. s 10,000 J S 10,150 Downloads: '# Price EL p Does the library allow non-residents to obtain library card/access: Category. cf If Yes, describe under what conditions: G in ❑ Renewal UA ONLY Notes: UA ONLY 0 Renewal Total: Authorized Signature: Date- 10' /C-/ 3 Printed Name: _f I h t(e 5A Ki n s Title: Co it toy-) e ���rherl Kokate-