Exclusive Rights Contract for Beats: Full Breakdown
Exclusive Rights Beat Contract
An exclusive rights contract for beats is an agreement between the composer/producer(s) and the artist/label, where the producer of the instrumental beat gives the artist the exclusive right to use the beat in unlimited recordings and without distribution limits.
Having the exclusive rights or (exclusive) to a beat also means that the producer can no longer sell that instrumental to another artist or any other third party. Not even as a beat lease. Once agreed upon, the exclusive rights agreement does not expire.
Standard Exclusive Beat Contract Inclusions:
Exclusive rights contracts for instrumental beats will include terms and conditions related to the following points listed below.
To help you understand the exclusive rights contract or to ensure that your contract is secure and covering the right areas, I’ll explain these common areas of the agreement.
Master Use
States how the artist may use the instrumental. To use the instrumental to create a song for release, known as the “Master Recording”. This is also where a guarantee ensuring the producer will not sell the beat to anyone else, is included.
Payment/ Compensation
Includes the total amount for the exclusive rights to the instrumental.
In case payment is not made in full or in a timely manner, a statement giving the producer (Licensor) the right to terminate the license upon written notice is included here in the agreement.
Performance Rights
Gives the Artist exclusive right to use the Master Recording in unlimited for-profit performances.
Mechanical Rights
Gives the Artist (Licensee) the right to use the instrumental to create song or Master Recording and reproduce, distribute and sell unlimited copies.
Broadcast Rights
Gives the artist an exclusive right to broadcast or air the Master Recording on unlimited Radio Stations
Synchronization Rights
Synchronization or Sync Rights is a completely different aspect to the contract. It refers to using the Master Recording in sync with film, video, video games, or any motion picture.
This usually gets its own contract where both the producer and artist would make an agreement between the film company wanting to use the Master Recording. Because of this, a non-exclusive license allowing the artist to use the Master Recording in unlimited video projects is given.
Credit
Ensures that proper credit is given to the producer of the song or Master Recording. This area will state how to properly acknowledge the producer, written or verbally
Sampling
Whether any samples used in the instrumental are cleared or who’s responsibility it is to clear samples.
Governing Law
Which state or province is this contract governed.
Publishing & Royalties
Publishing and royalty splits would be explained here. Commonly, publishing is split 50/50 between the producer and songwriter.
Where the producer earns a share from writing the underlying composition or instrumental, and the artist if they wrote the lyrics.
Signature
Have both parties sign the document either electronically or physically and keep the contract for your records.
Conclusion
These are the main areas of your exclusive rights contract. These contracts do vary, but these are some of the most frequently used aspects of an exclusive rights contract.
If you want a safe exclusive rights contract to use for your business/ beats, you can find a template and download below:
As always, if you have any questions, let me know about them down in the comments.
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