I purchased a beat from a third party — what do I need to know?

Purchasing or licensing beats from third-party producers has become a common part of the music industry. However, it’s important to understand the rights and requirements associated with your purchase before releasing a track that uses a beat you didn’t create yourself.

There are two common types of beat licenses:

  1. Exclusive License: An exclusive license gives you ownership of the beat. Once an exclusive license is purchased, the producer can no longer license the beat to other artists, and you become the owner of the beat.
  2. Non-Exclusive License: A non-exclusive license allows you to create and distribute a new composition using the beat, but certain restrictions may apply. A non-exclusive license does not transfer ownership of the beat to you, meaning the producer can continue to license the same beat to other artists for their own compositions. Non-exclusive licenses also do not permit distribution to social media platforms.

Requirements for a non-exclusive beat license:

  • The name of the licensee (you)
  • The name of the licensor (the Producer)
  • The name of the original beat being licensed.
  • The duration of the lease (ideally 5+ years)
  • The permitted terms of use, such as streaming, sales, and monetization rights.

Requirements for an exclusive beat license:

  • The name of the buyer/licensee (you)
  • The name of the seller/licensor (the Producer)
  • The name of the original beat being transferred
  • Clear confirmation that the license is exclusive and that ownership of the beat is transferred to you
  • The date the ownership transfer takes effect
  • The permitted terms of use, including streaming, sales, monetization, and distribution rights
  • Any additional rights or restrictions included in the agreement, such as the right to modify, resell, or sublicense the beat

Please note: Free beats obtained from YouTube, as well as verbal agreements or informal email/text exchanges, do not provide the formal terms required for a beat license. A written licensing agreement will be required.

Proof of payment should be provided when the instrumental or license was purchased.

You can attach the agreement in the licensed content section at the bottom of the track information: 

Recommended Tools: 

Many online beat stores will provide you with a license when you purchase the beat. If not, you and the producer will need to draft a new license agreement. Check out these platforms to draft, sign, and manage your beat licenses: 

  • Send Beats To: Streamlined for music licensing and beat/soundtrack distribution contracts.
  • DocuSign: Industry standard for executing legally binding e-signatures.

Giving Proper Credit:

Beat licenses often include specific credit requirements, so make sure your producer credits match the terms of your agreement.

Enter the producer’s exact credited name in the Producer field of your release metadata. If there are multiple producers, credit each one individually according to your licensing or collaboration agreement.

When in doubt, refer to your agreement before submitting your release.

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