A Most Favored Nation (MFN) clause in the music industry is a contractual provision ensuring that a party receives terms no less favorable than those granted to any other party in a similar agreement. For instance, if a record label agrees to pay a certain royalty rate to one artist, an MFN clause would guarantee that another artist with an MFN clause in their contract receives at least that same royalty rate, or better, if the label later offers a higher rate to someone else. This clause is common in licensing, distribution, and performance agreements to ensure fairness and equal treatment among various stakeholders.