Beatstars Contract Explained: Choosing the Right License for Your Music Project

December 4, 2024

What are BeatStars Contracts?

BeatStars contracts are legal licenses or agreements that allow artists and content creators to use tracks, beats, or instrumentals under specific conditions, in exchange for compensation to the owner. These licenses are essential for preventing copyright infringement and ensuring that rights holders are fairly compensated.

What Types of Licenses are Available on BeatStars?

BeatStars offers various licenses, each granting different rights and limitations on music use:

  • Non-exclusive License: Allows multiple artists to use the same beat or instrumental. Terms and conditions vary but typically include limits on distribution, sales, and streams.
  • Exclusive License: Provides the buyer exclusive use of the beat or instrumental, meaning the producer cannot sell or license it to others. Terms usually offer more rights and fewer restrictions.
  • Synchronization License: Allows content creators to use the beat or instrumental in audiovisual projects like films, TV shows, commercials, or online videos. Terms vary based on the producer and specific project.

How Much Does a BeatStars License Cost?

Prices vary based on the license type and producer. Non-exclusive licenses are generally less expensive than exclusive or synchronization licenses. It's crucial to review and understand the terms and conditions before purchasing any license.

Can I Get a Free License from BeatStars?

Some producers may offer free licenses or promotions on BeatStars. However, these licenses typically come with stricter restrictions on use, distribution, and monetization.

What Happens if I Use a Beat Without Obtaining a License?

Using a beat without the proper license can lead to copyright violations and potential legal action by the rights' holder. It's important to acquire the correct license to avoid legal issues and comply with copyright laws.

Can I Modify a Beat After Acquiring a License?

Some licenses allow modifications to the beat or instrumental, while others do not. Review the specific terms and conditions of your license to understand what modifications are permitted, if any.

Do I Need a Separate BeatStars License for the Composition and the Master?

Copyright law treats the composition and the master as separate works. Therefore, yes, both require their respective documents, including their own contracts and licenses. Typically, BeatStars licenses cover both the composition and the recording of the instrumental.

What Information is Typically Included in a Non-exclusive BeatStars License?

A non-exclusive license allows the buyer to use the beat or instrumental in their music project but does not provide exclusivity, meaning the producer can continue to sell licenses to other artists. Common elements of a non-exclusive license include:

  • Identification of Parties: Clear identification of the copyright holder (usually the producer) and the licensee (typically the artist).
  • Description of the Beat/Instrumental: Title, genre, duration, and other relevant details.
  • Price, Royalties, and Payment: The buyer pays a fee for the license, with details on whether royalties are shared between the producer and artist.
  • Delivery and Format: Format of the beat delivery (e.g., MP3, WAV, Stems).
  • Duration: Typically, non-exclusive licenses on BeatStars last 10 years.
  • Usage Conditions: Restrictions and permissions granted to the buyer, such as limits on distribution and streams.
  • Ownership of the Recording: The producer retains copyright ownership of the recording.
  • Ownership of the Composition: The producer owns 50% of the publishing royalties, and if the artist registers the song for royalties, they must identify the producer.
  • Credits: How the producer is credited in the project using the beat or instrumental.
  • Territory: Whether the license is valid worldwide or limited to specific territories.
  • Warranties and Representations: Guarantees by both parties regarding the rights to the beat and that it does not infringe on third-party rights.
  • Termination: Conditions under which the license can be terminated, such as breach by any party.
  • Applicable Law and Jurisdiction: The law governing the agreement and the venue for dispute resolution.

What Information is Typically Included in an Exclusive BeatStars License?

An exclusive license grants the buyer exclusive rights to use a beat or instrumental in their music projects. Once sold, the producer cannot license the beat to others. Key elements of an exclusive license usually include:

  • Commitment: The producer agrees to produce a musical composition that remains their property, and the artist will create a master recording from that composition.
  • Rights: The master recording, excluding the composition, is considered a work made for hire for the artist. The artist has exclusive worldwide rights to exploit the master recording but cannot independently modify or use the producer's composition.
  • Fee: Specifies the amount the artist pays the producer for the rights to the recording, typically a fixed, non-refundable, and non-recoupable fee.
  • Controlled Compositions: The producer agrees to issue mechanical and other licenses concerning the controlled compositions included in the master recording.
  • Editorial Rights: How ownership of the underlying composition in the recording is divided between the artist and the producer.
  • Credit and Image Licensing: The artist has the right to use the producer's name, image, and other biographical data in connection with the recording, and the producer will receive appropriate credit on labels, promotional notes, and related materials.
  • Warranties, Representations, and Indemnification: Both parties may make warranties and representations concerning the beat or instrumental, such as the producer having all necessary rights to grant the license and the beat not infringing on third-party rights.
  • Previous Licenses: The artist waives any claims against the producer for any prior license of the composition and agrees not to sue third-party licensees for their non-exclusive use of the composition.
  • Additional Clauses: The license may include various additional clauses related to jurisdiction, notifications, assignments, waivers, remedies, breaches, and the independent contractor status of the artist, among others.

Attorney Drafted
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Alexiomar Rodríguez
Music & Entertainment Attorney