What is an Exclusive Beat License?
A beat license agreement is, as the name implies, a legal document that gives a music producer or beat maker the right to create a recording using a beat that has been purchased from a beat site such as Airbit/Traxsource, Blazetrak, DatPiff, or Soundclick. A beat license is often also called a "beat lease agreement", which is essentially just a generic name for this sort of contract.
A beat license will usually set out the rights granted to the Licensee (the "Artist") and what they are permitted to do with the music under the license. The license will usually be both a "beat copyright license" and an "exclusive license". The terms "copyright license" and "exclusive license" are very similar but have important distinctions. A copyright license gives the Licensee the right to use the underlying copyright of the music (the beats), whereas an exclusive license grants the Licensee exclusive rights to use the underlying copyright of the beats and that they are the only entity that can sell or reproduce songs using the licensed beats at a particular level.
This is an important distinction because copyright licenses and exclusive license are often confused and treated as the same type of license. However, a Licensee could also have a copyright license as well as an exclusive license, which might have restricted the Licensee’s rights even more . For example, a license might provide that the Licensee is allowed to sell and reproduce songs but at a "non-exclusive" level, which essentially means that other people can also purchase a license to use the same music and even the Licensee can only distribute the song according to the terms set out in a complex separate copyright distribution agreement. This is typically avoided because it creates complexities that both parties may want to avoid.
An exclusive music license uses the term "exclusive" to mean that the Licensee is the only party that has the right to use the music and sell and reproduce songs with it. In an exclusive license agreement, the Licensor (the person selling the beat) usually agrees not to sell or make any further licenses regarding the underlying copyrights of the music so that the Artist does not have anyone else competing with him or her trying to sell the same track. The Licensor can retain ownership of the copyrights and sometimes retains some limited rights to use the music, but that is usually covered in a separate agreement.
Exclusive licenses are very important to the beatmaking industry because artists are concerned about making songs using beats that will not be exclusive to them, or sold to some other artist. An exclusive license is sometimes referred to as having negative rights attached to it, which simply means that the Licensor may have some rights to use the music, but only as permitted by the Licensee, or Artist.
We have also created a free exclusive beat license contract template/PDF download that you can use for your own purposes.
Key Aspects of an Exclusive Beat License Agreement
When it comes to entering into an exclusive agreement for a producer’s beat, the licensee should make sure that all the bases are covered in the agreement to safeguard the asset being acquired. Here are key components that should be addressed in a complete exclusive beat license agreement:
Licensee Rights. The licensee should retain the right to control how the licensed material is used, distributed, sold, copied and/or marketed. This right is key in that it also gives the licensee the right to file an infringement action against any entity or individual that uses the copyrighted material in an unauthorized manner and without the licensee’s consent.
Licensee Limitations. The licensor of the beat should not have the right to block or limit the licensee’s sale, distribution, marketing or use of the licensed material, unless the licensee has violated the agreed terms of use.
Distribution & Royalty Terms. Specific terms should be set forth in detail with regards to the distribution of the material and the calculation of royalties, if any.
Dependent Rights. The license should specifically require licensee approval of any claims on any derivative rights of the licensed material, including, but not limited to, synchronization rights or performance rights.
Exclusive License Benefits for Artists and Producers
For the artist, the ability to get an exclusive beat license can help both their creative freedom and commercial success. First, in terms of creativity, beat by beat, they can feel free to explore lyrical and stylistic diversity without self-censoring their lyrics for fear of getting into potential trouble with the producer or losing their right to use the beat. Secondly, in terms of commercial viability, a song released over an exclusive license is more likely to attract licensing deals from film and television or video game studios, or even require you to include your song in a compilation disc with PlayStation or Electronic Arts titles. These lucrative business opportunities can be significantly reduced if other artists have access to the same songs or beats. With an exclusive beat license, an artist creates a definitive and exclusive association between the song and themselves and excludes other artists from registering similar songs and potentially infringing on their copyright.
For the producer, an exclusive license creates some of the same benefits as it does for the artist. If they are successful in selling a lot of their beats or getting them into the hands of successful artists, then they might start to see some of those lucrative licensing deals that are not dissimilar to what the artists are looking for. But, for the producer, because a song is essentially their intellectual property alone, an exclusive license for the beat can also give them a continuing financial interest in the song. A traditional licensing agreement sets a firm time limit on the licensing period (typically a two year period) and, at the end of that period, the artist has to reapply for licensing. Those artist/producer relationships are inherently temporary and risk-long term for the producer. Without ongoing product registration and new licensing application fees, most artist/producer partnerships will break up after a few years, even if the artist is still really trying to pursue that genre of music. An exclusive license can create long-term relationships between artists and producers, more likely excluding producers from dealing with too many artists at once, or at least limiting the number of simultaneous licenses.
How to Write an Exclusive Beat License Agreement
When it comes to any contractual agreement, including an exclusive beat license agreement, it’s always a good idea to seek legal advice before drafting or signing a document. This will help ensure that both parties are protected and that a contract is legally enforceable. If an individual elects to draft their own beat license agreement, the following information will provide them with suggestions regarding what they need to include in their contract. Many times an individual will not have the time or the knowledge regarding the legal process to draft an exclusive beat license agreement. Oftentimes an individual will simply go online and type in an agreement template that is applicable to their needs. It is important to stress that an individual who is seeking an agreement of this type really should consult an attorney in order to have the greatest measure of protection for themselves. Even when a contract template is used, if it suits their needs, an individual would be best served by having an attorney look it over and make any changes that are necessary in order to protect the client’s needs.
The first thing that an individual should do when they are drafting an exclusive beat license agreement is to fully explain the purpose of the contract. Specifically, the contract should explain what the individual is seeking from the other party and what they hope to accomplish by entering into this particular agreement. Each party should also spell out what they expect to receive in return for entering into the contract. It’s important to be as clear as possible so as to avoid any confusion or miscommunication.
Other things that many individuals include in exclusive beat license agreements include definitions of any terms that are used throughout the contract. This is important because there are many terms that can be interpreted in a number of different ways. A definition will go a long way towards clearing up any ambiguity and ensuring that nothing is left to chance.
One of the most important aspects of an exclusive beat license agreement is the type of compensation that is being provided and when it is expected. In virtually every business encounter of these types, it is essential that both parties go into the process and receive what they feel that they are rightfully owed. By including a section that details how and when compensation is to be paid, both parties will take steps to ensure that they honor their end of the bargain.
Depending on the nature of the particular deal, an individual may also want to include a section of the contract that explains what happens in the event that either party does not live up to their end of the bargain. This can also include what happens if the contract is terminated early by either party. Once again, this is a point that both parties should agree to before signing the contract as neither side wants to bear the burden of a broken agreement.
One of the biggest issues that parties to an exclusive beat license agreement will face is whether or not to include an arbitration clause. What this means is that the parties will both agree to have any disputes regarding the contract settled in court instead of turning to litigation. This is often preferable to both individuals as it helps to keep down costs and it can be written into the contract as a condition of being accepted for both entities.
Common Pitfalls to Avoid
There are several common mistakes that artists and/or producers often make when entering into an exclusive beat license agreement. The first and foremost is for the parties to be clear of their intentions from the outset. The terms of the agreement should not be vague, and should clearly define what rights and responsibilities are being granted and owed to each respective party. This will help avoid confusion for either party down the road as to the expectations of the other party. Another common pitfall is failing to negotiate the proper types of royalty splits between the two parties. It is important to be clear of the expectations when it comes to splitting royalties and any other forms of revenue derived from the use of the beat. The parties should explicitly define how much of a percentage each will be receiving from any sales or streaming revenues. It is also important that the parties discuss how sync licensing will be shared with the rights holder to the beat , and how that revenue will be split. Finally, artists will often disregard their rights under the agreement to make modifications to the beats, or upon the request of a third-party, license the beat from the producer to a third-party. The artist should have the right to modify any part of the beat during the term of the agreement, and license the beat to a third-party either with or without the consent of the producer.
Using Exclusive Beat License Agreement PDF Templates
When creating an exclusive beat license agreement, finding a reliable and professionally drafted PDF template is crucial for ensuring that all terms and conditions are properly addressed. Sources for exclusive beat license agreement PDF templates can be found online, through legal software providers, or by hiring an attorney to draft an agreement from scratch. Regardless of the method you choose, it’s essential to ensure that the PDF template you select is current and covers all necessary aspects of your exclusive beat sale process.
When using an online template, search for websites that offer customizable PDF templates for exclusive beat license agreements. Many of these websites allow users to fill in certain sections with their own information, helping to simplify the process of creating an exclusive beat license agreement. In addition to providing the template, some websites also offer resources and articles on how to write an exclusive beat license agreement from scratch or modify an existing template.
Legal software providers often offer PDF templates for exclusive beat license agreements as part of a larger software package. These packages can include a range of features, such as document management, contract negotiation tools, and electronic signature services, to assist in the exclusive beat sale process. When using legal software, make sure to read the documentation carefully to ensure that you understand how to best use the template for your exclusive beat sale.
If you’re concerned about the legality and enforceability of your exclusive beat license agreement, consider hiring an attorney to draft a custom agreement. While this option can be costly, it ensures that your exclusive beat sale documents will cover all necessary exclusions, compensations, and warranties specific for your needs. In some cases, it may also be possible to find an attorney who specializes in music law and offers an exclusive beat license agreement template as part of their retainer services.
Another useful source of exclusive beat license agreement templates are forums and websites dedicated to music production. Music producers often congregate online to share resources and offer advice to one another. Through these communities, you can often find links to free exclusive beat license agreement PDFs or requests for payment in return for a professionally-written template. The advantage of using a forum to locate a free essential license agreement template for exclusive beat sales is that it can allow for peer review and feedback on the quality of the template. Be cautious, however, when selecting this option as you may not have the opportunity to preview the contents of the exclusive beat license PDF before purchase.
Regardless of where you find your exclusive beat license agreement PDF template, make sure to review the document before using it to avoid overlooking any sections. Additionally, if you do choose to modify an existing template, it’s essential to do so without deleting or changing any of the legal jargon or terms. This will help you avoid misunderstandings in the exclusive beat sale process.
Frequently Asked Questions on Exclusive Beat Licenses
1. What is an exclusive beat license?
In simple terms, an exclusive license is the transfer of control and ownership of music composition(s) from the artist to the record label or production company in the form of a legal agreement (in this case, the exclusive beat license agreement). For this, the owner (beat producer) gets a fee and the right to distribute the artist’s music.
2. What is an exclusive beat license agreement?
A major part of the exclusive beat license is the exclusive beat license agreement. The agreement transfers ownership of music from the owner to the signee. This agreement binds both parties when the beat owner delivers (a form of distribution) their music for publishing. In this online media generation, this transfer can be done with little to no paperwork, thanks to the power of the internet.
3. What is the difference between exclusive and non-exclusive beat licenses?
Non-exclusive beat licenses also grant the signee rights to make altered versions of the unaltered master copy. Unlike the exclusive license that transfers ownership of the music through the exclusive beat license agreement to a single person, non-exclusive licenses transfer right (that is not ownership) to multiple people at the same time. It allows a single beat creator to give beat licenses to multiple artists at once. It does not affect the original owner of the beat , but the designated signee will have the right to monetize the music by sharing it on major commercializing platforms like YouTube and Spotify.
4. How do I make sure I’m getting a good deal?
Now that you know what an exclusive beat license is and how it works, you don’t want to go scamming yourself with an unappealing agreement unintentionally. There are several things that denote a bad deal. A very important part of the exclusive beat license agreement is the price. You can get great deals out there for less than $20 dollars over the internet. These prices are extremely low compared to the price of a professional or high quality beat. Make sure to check with other beat producers if you get offers as low as $5 or as much as $50 before getting into a deal.
5. What if I want to break the contract?
For those who want to break an exclusive beat license contract, they should first consider the legality behind breaking contracts. Breaching contracts in the music industry it a crime committed by most new artists. Most artists sign legally binding contracts that contain a duration of 2 years or more. Some contracts can even go up to as long as 10 years. You may want to get out of your contract, but here are some things to consider before you do. First, you could have 10 or more songs out there through various streaming platforms. It is in your best interest to put the relationship you have with the label and your signee first before abandoning it for the long term. Your fans will expect you to drop music, and an exclusive beat license agreement will definitely put you on the radar of major labels.
