Disney entered into a contract with Gilkyson for him to compose the song “The Bare Necessities.” The contract provided that the song would be a work-for-hire to which Disney would own the copyright. Disney was to pay Gilkyson $1,000 up front, plus 5 cents for each sheet music copy sold and “50% of the net amount received by our music publisher on account of licensing or other disposition of the mechanical reproduction rights.” The contract gave Disney the sole discretion to publish, release, exploit or otherwise distribute the song. This decision holds that under the contract Disney was free to license its subsidiaries to use the song, on a royalty free basis, for use in creating DVDs and other digital video formats for home entertainment use and, since “our music publisher” received no net amounts for that use, Disney owed Gilkyson no royalties for that use either.