A Beginners Guide to Beat License Agreements

A smiling, punk rock looking home studio recording artist sitting at the computer looking for beats.

Buy Beats Online: Everything You Need to Know About Beat Licenses... Even for Rock and Metal Artists!



New to the world of online beats? 

Understanding licenses is crucial for your success. Whether you're crafting an urban masterpiece or a metal anthem.

With unlimited license options available, there are endless possibilities for your music.

This article will walk you through what you need to know about licensing. From the difference between non-exclusive and exclusive contracts. To the nuances of publishing rights.



Beat Licensing Explained, Why Does It Matter?

Licenses are legal contracts. They grant artists the right to use a beat. These beats are made by a producer or composer.

They define the terms of use, including whether the beat is non-exclusive or exclusive.

Understanding these terms is vital. It helps to avoid legal issues. It also ensures you have the appropriate rights for your music.

With non-exclusive licenses, you can use the beat. There is no restricted ownership.

Exclusive licensing ensures you're the sole owner of the beat's rights. It provides you with complete control over its usage.



What is a Non-Exclusive License?

This is a type of contract where the producer sells the same beat to many artists.

This means that when you buy one of these beats, other artists can also buy and use the same beat. And use it in different projects.

These beat licenses sell at an affordable price. This makes them popular among up-and-coming artists in all genres.

If you want sole ownership and want to prevent others from using the same beat, consider exploring sole ownership options.

Or, some producers offer a free beat option. This allows artists free use without any licensing fees. But, there are certain limitations on how you can use the beat in different contexts.

For those interested in selling beats, understanding licensing is crucial. In the music industry this knowledge is important when offering beats for sale.



What is an Exclusive License?

This is where the artist has sole rights to a beat.

When a producer sells the beat exclusively, they transfer all rights to the artist. The beat cannot be sold to anyone else.

It is more expensive but offers the advantage of unique ownership. Going this option ensures no other artist can use that specific beat from that producer.

With a sole ownership license, you have complete control over the use of the beat. This prevents others from licensing the beat you've acquired.

This level of ownership can be crucial for artists. It helps them establish a truly unique sound. It also helps avoid potential conflicts down the line.



Everything You Need to Know to Buy Beats Online: A Step-by-Step Guide

Getting beats on the internet has never been easier. Platforms like BeatStars and various beat stores (like mine) allow artists to find and purchase beats directly from producers. Here's how to do it:

  1. Find a beat: Browse online beat stores or platforms like BeatStars. You'd be surprised – there are beats for every genre, including rock and metal.

  2. Choose a license: Decide whether you want to go non-exclusive or exclusive.

  3. Purchase: Buy the beat directly through the platform.

  4. Download: Once payment is processed, you'll receive the beat. This often includes a trackout, allowing you to tweak individual elements. Like the drums, bass, guitars, and other elements.



Non-Exclusive vs. Exclusive: Which License Should You Choose?

The choice between these license types plays an important role in your music career. Here's what you need to consider:

Benefits of Non-Exclusive Licenses

These licenses are more affordable because the producer can sell the same beat many times. This makes them ideal for:

  • New artists on a budget, whether you're rapping or starting a band

  • Mixtapes, EPs, or non-commercial projects

  • Testing a beat before investing in sole ownership rights



Advantages of Going Exclusive

When you buy this license, it becomes your property. This is beneficial for:

  • Commercial releases, your band's big album

  • Artists wanting a unique sound

  • Preventing other artists from using the same beat



Understanding Publishing Rights in Beat Agreements

These are a critical aspect of licensing. These rights determine how royalties are divided between the artist and the producer.

How are Publishing Rights Divided?

Typically, rights are split 50/50 between the artist and the producer. This means that when your song generates royalties, half goes to you (the artist) and half to the producer.

This applies whether you're a rapper or a metal band.

The artist may be the author of the music. They may have also composed the underlying instrumental themselves. In this situation, royalties can be paid directly to the artist. This means there is no need to split royalties with a separate producer.

The distribution of royalties depends on several factors. It is based on the specific roles of those involved in creating the musical work. It also depends on the agreements between these parties. These elements ultimately determine how royalties are shared.



Do Publishing Rights Differ in License Types?

The split of rights usually stays the same. This is true for both non-exclusive licenses and restricted access licenses.

But, there are exceptions.

An artist might pay for sole rights to a work. In this case, they could negotiate for a higher percentage of rights.

This situation could be important for some artists. For example, an artist might invest a lot in a unique beat. For them, securing a larger share of rights could be crucial.

Independent artists or producers may compose their own music and instrumentals. In these cases, royalties can be paid directly to the artist. There is no need to split royalties with a separate producer.

The distribution of publishing rights follows different rules. Specific factors generally determine it. These include the roles of those involved in creating the music. The agreements between these parties and the artist also play a part. These elements decide how publishing rights are shared.

An artist may buy a restricted access license. This can give them more leverage. With this leverage, they can negotiate for higher percentage ownership. This ownership applies to the music's rights and royalties. This situation differs from a non-exclusive arrangement. In non-exclusive arrangements, the artist typically has less negotiating power.

An increased ownership stake can be very valuable for certain artists. It benefits those who want to establish a distinctive sound.

It's also valuable for artists making big investments. These investments might be for sole ownership of beat acquisitions. In these cases, having a larger ownership stake is particularly important.



How Much Does it Cost to Get Beats Online?

The cost of beats varies depending on the type of license:

Non-Exclusive Beat Prices

These beats are sold at lower prices, often ranging from $20 to $200. The exact price depends on factors like the producer's reputation and the license terms.

These prices are great for indie artists or bands on a tight budget. When you purchase one you gain the rights to use and exploit the beat subject to the conditions of it's terms.

The cost may be lower. But, it's crucial to review the license carefully.

This review should happen before purchasing. The license is important. It defines specific parameters. These parameters outline your rights to the beat. Understanding these rights is essential.



Exclusive Beat Pricing

These beats are more expensive. Their prices vary widely. They can cost as little as $300. They can also cost several thousand dollars. The price range is broad.

The cost of these beats is high. This high price reflects something specific. It reflects the producer's loss of potential revenue. This loss occurs because the producer can't sell the beat to other artists. The producer compensates for this lost opportunity through the higher price.

Many artists often want unique, high-quality beats. For them, the investment can be worthwhile. The investment serves a specific purpose. It prevents others from using the same beat. This exclusivity is valuable to them. It helps maintain their unique sound.

This agreement has a specific condition. The beat can only be sold once. This single-sale approach has a benefit. It eliminates a risk. The risk it eliminates is improper use of the beat. This improper use could be by other parties. The agreement prevents such misuse.

This selling license is a premium option. It's for artists with specific goals. These artists seek complete ownership of a beat. They also want full control over the beat's usage. Obtaining this license gives them these benefits. It's the highest level of rights an artist can get for a beat.

This option is more costly upfront. But, it offers guarantees. It guarantees you are the sole owner of the beat. As the sole owner, you have freedoms. You can exploit the beat how you wish. You face no competition from other artists. No other artists can use the same instrumental. This eliminates potential competition.



What Rights Do You Get with a Non-Exclusive?

When you buy one of these beats, you gain certain rights:

  • Right to the beat for use in your song

  • Limited distribution rights (often capped)

  • Shared rights

But, you cannot prevent other artists from using the same beat.



Can You Use a Non-Exclusive Beat for Commercial Releases?

Yes, you can use these beats for commercial releases. However, there are usually restrictions:

  • Limited number of sales or streams

  • Restrictions on radio play or sync licensing (like using it in a video game soundtrack)

  • No claim to sole ownership

Always review the agreement terms to understand your limitations. 



What Happens When You Get an Exclusive Beat?

Buying an exclusive grants you full control:

  • Sole rights to the beat

  • Unlimited sales and streams

  • Full control over the beat's use

The producer cannot sell the beat to anyone else after you acquire it exclusively.



How Do Royalties Work?

Royalties are a key part of licensing beats. They are divided into two main types:

  1. Publishing Royalties: These are split between the artist and producer, usually 50/50.

  2. Performance Royalties: These are collected by entities called publishing companies and distributed based on the split.



Do You Get More Royalties with an Exclusive?

The situation is not necessarily as you might think.

Royalties are divided in a specific way. They are split into two parts. This split applies to both exclusive and non-exclusive licenses.

There is a main difference with exclusives. In an exclusive agreement, you don't share royalties with other artists. Other artists can't use the same beat. This affects how royalties are earned.

When your anthem is streamed, it generates royalties. These royalties go to only two parties. They go to you and the producer.



Can You Modify a Beat After Licensing It?

The ability to modify a beat depends on your license:

  • Non-Exclusive: Limited modifications, usually just adding vocals or instruments

  • Exclusive: More freedom to modify, as you own all rights. You could turn a simple beat into a complex prog-rock arrangement.

Always check your license to understand what modifications are allowed.



What If You Created a Beat with Another Producer?

If you make a beat with another producer, both of you jointly claim the copyright. This means:

  • Both producers are considered legal authors

  • Royalties are typically split equally

  • One producer cannot sell the beat without the other's consent

This scenario could happen if your band's drummer collaborates with an electronic producer on a unique beat.



Key Things to Remember When Choosing Beats Online

  • Understand the difference between non-exclusive and exclusive licenses.

    1. Review the terms of your license agreement carefully.

    2. Rights are usually split 50/50.

    3. Non-exclusives can be used commercially, but with limitations.

    4. Exclusive beats offer full control but at a higher cost – worth it for a rock band's signature track.

    5. Always get your license agreement in writing.

    By understanding licenses, you can go through the online beat marketplace with confidence. If you're a rapper, a rocker, or anywhere between, choosing the right license is critical. Make sure you follow the terms to avoid legal issues.

    Even if you produce your own music, understanding licensing is still valuable. These rules can unlock new creative opportunities. You could find an incredible beat from a producer. This beat might inspire you. It could lead you to incorporate something unique into your sound.

    When a producer offers a beat, the license dictates who owns the legal rights. A non-exclusive license lets you use and sell the beat, but others can do the same.

    An exclusive license is different. It makes you the sole owner of the beat. This ownership comes with specific rights. It grants you an exclusive ability. You can use the beat as you wish. You can also sell the beat. No one else has these rights to this particular beat.

    You have different routes to choose from when acquiring beats. Regardless of your choice, one thing is essential. You need a proper license agreement.

    This agreement helps avoid disputes. These disputes could be about beat ownership. They could also be about beat use. When acquiring beats, make informed decisions. You have options. One option is a non-exclusive license. This offers broader access. Another option is an exclusive. This offers unique ownership.

    Consider these choices carefully, and may you make amazing music.



Bobby Manila

Bobby Manila is the resident music maker at Bobby Makes Music. He's a musician, composer, producer, and studio mix engineer. Bobby has over two decades of experience in the music industry. He was once signed to legendary metal label Road Runner Records. Now he's transitioned from touring to the studio and is happy working behind the scenes. He's also a dad, husband, podcast enthusiast and Brazilian Jiu-Jitsu black belt.

https://www.bobbymakesmusic.net
Previous
Previous

What Does Royalty-Free Music mean? A guide to copyright-free and royalty free music

Next
Next

Non Copyright Music, Royalty Free Music and Music Copyright