Welcome to our in-depth guide on beat licensing, specifically focusing on the distinctions between Exclusive and Non-Exclusive Licenses. Whether you’re an artist looking to buy beat licenses or a producer interested in selling them, this guide will equip you with the essential knowledge you need.
Take a moment to relax, maybe grab a cup of coffee ☕️, and by the end of this guide, you’ll be well-versed in the world of online beat licensing.
Beat Licensing Explained
Beat licensing is a straightforward concept: producers create beats and upload them to their beat stores, where artists can purchase licenses to use these beats in their own songs. The purchase comes with a license agreement, a document that legally grants specific user rights to the artist, allowing them to create and distribute music using the beat.
Note: When discussing “buying beats” or “selling beats,” it’s important to clarify that what is actually being transacted is the license to use the beat, not the beat itself.
Non-Exclusive Beat Licensing
Non-exclusive licenses, often called ‘leasing,’ are the most common type of beat licensing. Priced between $20-$300, these licenses allow artists to release songs on platforms like iTunes, Spotify, and YouTube, and even create music videos. These licenses are typically available directly from the producer’s beat store, where they can be purchased instantly.
Key Features:
- Automated License Generation: Upon purchase, a license agreement is generated, including the buyer’s details, usage rights, and the producer’s information.
- Usage Rights: Artists can use the beat to create and distribute their music online, but the producer retains copyright ownership of the beat.
- Limitations: Non-exclusive licenses often have limits on the number of streams, sales, or duration (usually between 1-10 years). Once these limits are reached, the license must be renewed or a new one purchased.
Different Types of Non-Exclusive Licenses
Producers typically offer various tiers of non-exclusive licenses, each with distinct user rights and audio quality. For example, options might include Basic, Premium, Unlimited, and Exclusive licenses, with higher tiers offering more rights and better-quality audio files.
Popular Choice: The Premium license is often favored for its balance of cost, quality, and usage rights.
Exclusive Beat Licensing
Exclusive rights offer artists unlimited usage of a beat, without restrictions on streams, plays, sales, or project types. Once sold, a beat cannot be licensed or sold to another artist, and the producer may no longer use it in any form.
Important Consideration: While previous non-exclusive licensees retain their rights as per their agreement, the producer must inform the exclusive buyer of any outstanding licenses.
Selling Exclusive Rights: Two Approaches
- Selling Exclusive Rights: The producer retains the writer’s share and publishing rights, maintaining authorship.
- Selling Exclusive Ownership: The producer transfers all ownership, including copyright and authorship, to the buyer, effectively making the transaction a ‘work-for-hire.’
Understanding Royalties, Writer’s Share, and Publishing Rights
Navigating royalties can be complex, but it’s crucial for understanding financial compensation in the music industry. Here, we simplify the concepts relevant to online beat licensing.
Mechanical Royalties
Generated from physical or digital reproduction and distribution of music (like streams or sales), these royalties are typically collected by the artist, unless otherwise stipulated in exclusive agreements where a percentage may be owed to the producer.
Performance Royalties
Collected by Performing Rights Organizations (PROs) such as ASCAP, BMI, or PRS, these royalties are split into:
- Songwriter Royalties (Writer’s Share): Paid directly to the credited songwriters.
- Publishing Royalties: Paid to a publishing company or administrator.
What are Songwriter and Publishing Royalties?
Songwriter royalties are owed to individuals who contributed to the creation of a song, including producers and lyricists. Publishing royalties, on the other hand, are typically managed by publishing companies and can represent a significant source of income.
The Copyright Landscape: Who Owns What?
Understanding copyright ownership is vital for both producers and artists. Here’s a breakdown of the key aspects:
Performing Arts Copyright (PA-Copyright)
This covers the music (owned by the producer) and lyrics (owned by the lyricist) of a song.
Sound Recording Copyright (SR-Copyright)
This refers to the master recording of a song. Exclusive licensees generally own these rights, while non-exclusive licensees do not.
Understanding Derivative Works
A derivative work involves combining an existing copyrighted work (like a beat) with new original content (such as lyrics). Artists licensing a beat non-exclusively are creating a derivative work.
Beats with Third-Party Samples
Clearing samples is a joint responsibility of both the producer and artist. Unresolved sample clearances can lead to legal complications.
FAQ About Beat Licensing
Q1: Can I buy a beat from an exclusive purchaser?
No, exclusive contracts typically prevent resale or re-licensing of the beat.
Q2: Can I recreate a similar beat if someone requests it?
Yes, but only if the similarity does not infringe on the previously sold beat’s elements.
Q3: What happens if I bought a non-exclusive license and the beat is later sold exclusively?
Your existing license remains valid until its terms are met.
Q4: What if my non-exclusive license reaches its streaming limit?
You must either renew the license or cease distribution if renewal isn’t possible due to the beat being sold exclusively.
Q5: What should I do if someone uses my beat without a license?
First, request that they either purchase a license or remove the song. If necessary, pursue a DMCA takedown for unauthorized use.
Q6: How should publishing and songwriter shares be divided when collaborating with another producer?
This should be agreed upon mutually, often splitting evenly among contributors.
By now, you should have a solid understanding of the complexities involved in beat licensing. Remember, the choice between an exclusive and non-exclusive license depends largely on your career stage and budget. For more detailed guidance, feel free to revisit this guide or seek professional advice.