fbpx

Beats by KHARMA

When I lease a beat...
"What if my song blows up?!" 💥

When I lease a beat: “What if my song blows up!?”

Share on facebook
Share on twitter
Share on reddit
Share on whatsapp
Share on email
Share on pinterest

Let’s start off with four questions I get asked a lot, concerning leased beats.

  1. What happens when I lease a beat and the song I made with it blows up?
  2. What happens to other people that licensed that same beat?
  3. What if I lease a beat today and the producer sells the exclusive rights tomorrow. How will that affect me?
  4. I leased a beat and the song blew up, but some other artist has the exclusive rights.

Questions 1, 2 and 3 are probably in my top 10 of most frequently asked questions. 
Question 4 is what I consider the ‘ultimate goal + worst-case scenario’ an artist could think of. 

The possibility of this situation to occur is very unlikely if you handle your business the right way. 
Still, I’ll go into the subject, as you would probably want to know the answer to these questions. 

Going forward in this article, I will address all the frequently asked questions mentioned in the list above. 

“What happens when I lease a beat and the song I made blows up?”

When you lease a beat from my website, I’ll always follow up with you after you’ve made the purchase. I really am interested in the music you’re creating and you can expect e-mails from me looking to hear the final result of your song.

I also do this to see if there are any potential hit records out there. If something catches my attention, I’ll keep track of it and see how the song will progress after it’s released. 

In other words, if a song is about to blow up, I’m well aware of it and we can start negotiating a deal.

But that’s just me… Not every (online) producer takes initiative in following up with their customers. If a producer doesn’t follow up with you after you’ve purchased a beat from their store, simply fill them in yourself!

Let them hear the song and keep him up-to-date with everything that’s going on around the release of your song. 

So, “what happens when I lease a beat and it blows up?”

YOU BUY THE EXCLUSIVE RIGHTS AND NEGOTIATE A DEAL WITH THE PRODUCER! 

You’re probably going to need one too since you’re near exhausting the terms in your non-exclusive license agreement. 

Otherwise, the exploitation of the song is limited to the user-rights you get when you lease a beat. You will need the full exclusive rights to exploit it without limitations, whatsoever. 

Reach out to the producer as soon as you can and make a good offer on the exclusive rights. 

“What happens to the other people that licensed that same beat?”

Your song blew up, congrats! Did you buy the exclusive rights from the producer? Awesome!

“Now, what happens to the other people that have a license to that same beat?”

Short answer: Nothing…

Their licenses will still be valid until they’ve exhausted their sales limit or until the contract expires. Non-exclusive licenses are limited to a certain amount of user-rights and are only valid for several years.  

“What if I lease a beat today and the producer sells the exclusive rights tomorrow. How will that affect my song’s potential?”

It won’t affect you!

An exclusive sale of a beat you’ve previously licensed non-exclusively will not affect you in any way.

The exclusive buyer is fully aware of the artists that licensed the beat before him. 

In fact, this is a term in the Exclusive contract that they have to agree upon before getting the exclusive rights. This term is called a ‘Notice of Outstanding Clients’ and it protects non-exclusive licensees from getting struck by the exclusive buyer. 

If you’re in this situation right now, you have nothing to worry about. Essentially, you already know your song’s potential as soon as you purchased the license. 

The rights granted in the license agreement tell you exactly what you can and cannot do. Read your licenses and make sure you fully understand what the user-rights mean.

It will become a different story when you overstep the song’s potential (exhaust the user-rights). In that case, we’ll move on to the next question.

“I leased a beat and the song blew up but some other artist has the exclusive rights.”

I’m not going to try and sweet-talk my way out of this. If this situation would occur to me, I would bang my head against the wall until I knocked myself out. 

Then do it again, till I don’t remember what happened. 😅

Again, I find it hard to believe that this situation would happen to me since I’m very close to my customers (in terms of following up on all purchases made from my site). 

I’m also not that guy that sells exclusive rights to every artist that comes up to me with a bag of money. I need to see (hear) the potential first.

Similar situations did occur with artists like Trey Songz, T.I. and Slim Jesus and I assume it must have been a real mess to sort out.

I don’t have any experience with these situations but I can tell you how to do your best avoiding it.

  • Buy exclusive rights! (n.a. if you don’t have the money)
  • Buy the lease to get the producer’s attention 
  • If you don’t have any money, ask for a payment plan and offer a down payment
  • Get close with the producer, reach out often and send updates about the song – Show him the potential!
  • Ask if they would consider holding on to the rights (Make sure you have something to offer, other than ‘giving credit’.)

On a side-note: You don’t have to make a purchase from my site in order to get my attention. But it could help getting noticed by other producers who may have that ‘about-to-blow-up’ beat in their hands.

If you’re reading this to determine whether to lease a beat or buy the exclusive rights

This might be confronting to some and I’m probably bursting a few bubbles too but please look at your current situation as an artist and ask yourself if you’re on that level that your song could actually ‘Blow Up!?’

For most artists, leasing beats would be far more beneficial. 

I actually wrote an entire article covering “Why you need to lease beats instead of buying exclusive rights”. Read it here. 

Don’t let the ‘Dream’ trick you into spending too much money on the wrong things. Prioritise your moves and re-evaluate your latest releases. 

Keep developing your craft, create new music on a regular basis and build a following with actual fans of your music. 

When that ‘blow up’ is getting near, you’ll feel it. Trust 

zero to radio-ready

"How do some artists make great music, while others still sound average?"

In our Zero to Radio-Ready masterclass we will teach you how to write, record and mix exceptional R&B and Hip-Hop music.

Feeling inspired and want to find some new beats?

If you have a second, drop a comment below and share your thoughts. 👇
Good or bad, it’s all appreciated! 🙏

Subscribe to our newsletter

If you learned something - sign up to our newsletter.

Never miss out on the latest knowledge about the music industry, free gifts and other content appreciated by the independent artist. Excel your career today!

Almost there...

Just one more thing

What type of artist would best describe you?

Are you familiar with buying beats online?

Share this post with your friends

Share on facebook
Share on twitter
Share on email
Share on google
Share on linkedin

Where should we send

the FREE beats?

Fill out the information below and I'll send the beats straight to your inbox! 

I respect your inbox and will never spam!

Almost there... 
Just one more thing 

I respect your inbox and will never spam!

What type of artist would best describe you?
 

Have you ever purchased beats online? 

Hey, before you leave...

You've made sure to get the 7+ FREE BEATS, right? 

00
Months
00
Days
00
Hours
00
Minutes
00
Seconds

 


Price: $50

 

Beginners license that is typically used by beginner artists that do not expect the song to go big.

This license comes with one single industry-quality WAV-file, but not with tracked-out files. (harder to get a better mix).

Radio airplay is not permitted. 

This license does not give the rights to a music video.

 

Allowed on Spotfiy & Apple Music
- but only for up to 50,000 streams combined

 

 

Price: $99 $95

 

Professional license, most popular among artists that are releasing their song on platforms like Spotify, iTunes - or perform with the song in live (paid) performances.

This license comes with high-quality tracked-out files which are essential for mixing songs professionally. 

Allowed 100,000 streams and 10,000 sales - possibility to upgrade if you get above it.

 

We do not recommend this license if you’re looking to create a music video for YouTube. 

 

 

Price: $199 $195

 

Professional license with no limitations on streams, plays or sales.

This license is generally purchased by artists that believe their song has the potential to surpass the streaming caps of other licenses. 

We strongly recommend this license to artists that want to create and monetise a music video for YouTube. 

 

Allows for radio play.

 

This license allows your song to be played on TV/Movies.

Basic License 

Trackouts + Premium License

(Most Popular)

Unlimited License

 


Price: $30

 

Promotional license that is typically used by beginner artists who does not want to profit from their song.

Comes with MP3-file.

Radio airplay is not permitted. 

This license does not give the rights to a music video.


Not allowed on Spotify, iTunes Music, YouTube with monetisation, or any other service with monetisation.

Good for FREE mixtapes and FREE downloads.

Non Profit License

This is a basic-level non-exclusive license agreement (the “Non Profit Agreement”), effective as of (the “Effective Date”) by and between the “Producer” or “Licensor”); and John Doe residing at {CUSTOMER_ADDRESS} (“you” or “Licensee”), regarding all the terms for Licensee’s use of, and the rights granted in, the Producer’s master recording and underlying musical composition entitled Track Title (collectively, the “Beat”). 

1. License Fee: Producer’s receipt of a – licensee fee (the “Non Profit Fee”) from you is a precondition to this Non Profit Agreement. 

2. Delivery of the Beat: Following receipt of the Non Profit Fee and execution of this Non Profit Agreement, Producer will email a link to the Beat in MP3 for the Beat (as such terms are understood in the music industry), to the email address you provided to Producer.  

3. Term: The Term of this Non Profit Agreement shall be ten (10) years and this license shall expire on the ten (10) year anniversary of the Effective Date.

4. Use of the Beat:

a. Non-Exclusive. The Beat is being licensed to you on a non-exclusive basis, which means for example without limitation that Producer may continue to exploit the Beat and/or license it to other third parties. 

b. Making One New Song. You will have a limited, non-exclusive, nontransferable license to create one (1) new, substantially different (i.e., with substantial unique addition) derivative musical composition (the “New Composition”) and one (1) new derivative master recording (the “New Recording”) incorporating the Beat. For example, you may choose to record your own topline vocals over the Beat, and/or incorporate all or portions/samples of the Beat into the instrumental music of a New Composition and New Recording. You will have the right to modify the arrangement, tempo, duration, and/or pitch of the Beat in preparation of the New Composition and New Recording. You will not have the right to sublicense the New Composition and/or New Recording to third parties (e.g., you may not permit anyone to “sample” your New Recording in a subsequent master recording). 

c. Promotional / Free Use Only. You may only exploit and/or permit exploitation of the New Composition and New Recording in non-paid uses—e.g., where people don’t have to pay to listen to and/or download it. For example, you may release the New Recording for free download, include it on a free mixtape or free compilation of music, or release it on non-monetized digital streaming service (such as SoundCloud, but not, for example, via Spotify or Apple Music). 

d. No Public Performances. Notwithstanding anything to the contrary herein, you not may perform the New Recording (and/or underlying New Composition) publicly (for example, in a live concert performance, at a festival, or in a nightclub), and even if people are paying to see you perform.

e. No Radio. You may not pitch, submit or permit the pitching or submission of the New Composition and New Recording for performance on terrestrial, satellite, or internet radio (e.g., over-the-air radio, Sirius XM, Pandora, etc.)—any such use would require your purchase of an UNLIMITED License in connection with the Beat. 

f. 0 Video. You may synchronize (use) the New Composition and New Recording in zero (0) audiovisual work (“Video”). The duration of the Video can’t exceed the longer of: (i) five (5) minutes; and (ii) the duration of the New Composition as embodied on the New Recording. The Video can’t be used to promote any third- party product or service—it can only be used to promote the New Composition and New Recording. You may exploit the Video only on free-access internet video platforms (e.g., YouTube, Vimeo, Instagram, Facebook, and/or Vevo), and you may not monetize the Video (on those platforms or otherwise). The description of the Video on such video platforms must include credit to KHARMA as producer. You may not license or permit the Video to be broadcast on television networks, or to be otherwise licensed to third parties. For the avoidance of doubt, the New Composition and/or New Recording (and/or Beat) may not be synchronized with or incorporated in any other audiovisual work—for example without limitation, in any commercial, television show, film, or video game. 

g. No ContentID Registration. You may not register or permit the registration of the New Composition and/or New Recording with any content identification system or service (for example without limitation, with YouTube’s ContentID, whether directly or through a third party). This is a non-exclusive license agreement, and the Beat may have been or may yet be licensed to third parties for their own use; if any licensed users of the Beat tried to register their derivative songs, the content identification system might improperly flag all other users of the Beat as infringing uses. 

h. 0 Distribution Copy/10,000 Stream Cap. Your rights to exploit a New Composition and New Recording are subject to a maximum aggregate number of ten thousand (10,000) streams and zero (0) distribution copies (physical, or digital downloads), across all services and platforms (for illustrative example, if the Video had half (50%) of 10,000 plays on YouTube and the New Recording had half (50%) of 10,000 + one (1) streams on SoundCloud, that would be a breach of this paragraph). If you are approaching the foregoing cap on your rights to use the Beat, New Composition, and New Recording, you must either remove the New Composition and New Recording from all platforms, or you must purchase a new higher-level license of the Beat from Producer (e.g., an UNLIMITED License), before exceeding the foregoing cap. 

i. No Direct Use of the Beat. For the avoidance of doubt, you are not getting any right to exploit the Beat directly, only to create and exploit a New Composition and New Recording that incorporates the Beat along with sufficient new and unique material to distinguish the New Composition and New Recording from and not directly compete with the Beat. 

5. Credit: You will have the right to use and permit others to use Producer’s approved name “KHARMA” for purposes of the New Recording and “KHARMA” for purposes of the New Composition, but solely in connection with uses of the New Composition and New Recording permitted hereunder. You will use best efforts to have Producer credited as a “producer” of the New Recording (e.g., “Produced by KHARMA”) and co-writer of the New Composition (e.g., “Co-written by KHARMA [and other co-writers]” in any and all metadata, liner notes, and/or other customary place for such credits in connection with all exploitations of the New Recording and/or New Composition (as applicable), and in a manner no less favorable to Producer than credit accorded to any other producer or songwriter of the master recordings and musical compositions (respectively) bundled with the New Recording and/or New Composition. In the event of any failure to have Producer properly credited, you will use reasonable efforts to cure such failure immediately on a prospective basis.

6. Royalties: In addition to the Non Profit Fee, you agree to pay the following royalties to Producer, either by directing the distributor of your records to do so (i.e., your record label, or the digital distribution company you use, e.g., DistroKid), or by doing so yourself (e.g., to PayPal ID: whoismarcel@gmail.com, or via Producer banking information that may be provided upon emailed request): 

a. Mechanical Royalties. When a copy of a master recording like the New Recording is sold (either on a CD, or when someone buys it on a service like iTunes) or streamed (e.g., on a service like Apple Music or Spotify), copyright law requires that the songwriters get paid a royalty called a mechanical license. You agree to make sure that Producer is paid mechanical royalties for Producer’s 50% songwriting share of the New Composition, at the minimum statutory rate. 

b. Producer Royalties. For Producer’s production of the Beat you intend to use in the New Recording, you agree to pay Producer 50% of everything you make from the New Recording. 

7. Ownership: Producer has written and composed the Beat, which is commonly treated as one-half of the total songwriting on a musical composition (and you agree that Producer retains a 50% ownership of the copyright in the New Composition). The Producer is and shall remain the sole owner and holder of all right, title, and interest in the Beat, including all copyrights to and in the sound recording and the underlying musical compositions written and composed by Producer. Nothing contained herein shall constitute an assignment by Producer to Licensee of any of the foregoing rights. You may not register or attempt to register (or permit the registration or attempted registration) of the Beat with the U.S. Copyright Office. You may own a copyright to the extent of your contributions embodied in the New Song and New Recording (e.g., your topline lyrics, melody, and/or other new instrumental elements), but any registration or claim of copyright as to the New Song and/or New Recording must be as a derivative work disclaiming any ownership to the copyright(s) in the Beat.  For the avoidance of doubt, there is no intention of the parties for the New Composition and/or New Recording to constitute a joint work for purposes of copyright law, and Producer does not herein grant to you any rights in or to any other derivative works that may have been or may yet be created by third parties based on the Beat. Producer reserves to itself any and all rights in and to the Beat not expressly granted to you herein. You will, upon request, execute, acknowledge and deliver to Producer such additional documents as Producer may deem necessary to evidence and effectuate Producer’s rights hereunder, and you hereby grant to Producer the right as attorney-in-fact to execute, acknowledge, deliver and record in the U.S. Copyright Office or elsewhere any and all such documents if you fail to execute same within five (5) days after so requested by Producer. 

8. Breach by You: 

a. If you fail to cure any breach of this Non Profit Agreement within five (5) business days of Producer providing you with written notice of a breach, Producer will have the right to immediately terminate this Non Profit Agreement, and if Producer notifies you of such termination, you will have no further right to use the Beat in the New Composition, New Recording, and/or Video (and you must immediately cause them to be no longer available to the public). 

b. If you use the Beat, New Composition, New Recording, and/or any Video in a manner not expressly permitted in this Non Profit Agreement, you agree to pay Producer any and all amounts previously or thereafter collected, received, or credited to you or any third party in connection with such exploitation of the Beat, New Composition, New Recording, and/or Video (as applicable). 

c. You recognize and agree that a breach or threatened breach by you of this Non Profit Agreement could cause irreparable injury to Producer, which may not be adequately compensated by monetary damages. Accordingly, in the event of a breach or threatened breach by you, Producer shall be entitled to a temporary restraining order and preliminary injunction restraining you from violating the provisions of this Non Profit Agreement. 

d. Nothing herein shall prohibit Producer from pursuing any other available legal or equitable remedy in connection with breach or threatened breach of this Non Profit Agreement, including but not limited to the recovery of monetary damages from you. 

9. Representations, Warranties, and Indemnification: 

a. Producer represents and warrants that Producer has the full right and ability to enter into this Non Profit Agreement and grant those rights granted herein. Producer warrants that the exploitations of the Beat permitted hereunder will not infringe upon or violate any common law or statutory right of any person, firm, or corporation; including, without limitation, contractual rights, copyrights, and right(s) of privacy and publicity and will not constitute libel and/or slander. 

b. You represent and warrant that exploitation of the New Composition and/or New Recording hereunder will not infringe upon or violate any common law or statutory right of any person, firm, or corporation; including, without limitation, contractual rights, copyrights, and right(s) of privacy and publicity and will not constitute libel and/or slander. Just to be clear, Producer takes no responsibility whatsoever as to any elements added to the New Composition and/or New Recording by Licensee or any third party, and Licensee indemnifies and holds Producer harmless for any and all such elements. 

c. Parties hereto shall indemnify and hold each other harmless from any and all third party claims, liabilities, costs, losses, damages, judgments, costs, and expenses as are actually incurred by the non-defaulting party (including, without limitation, reasonable attorneys’ fees) arising in connection with any breach or claim of breach of this Non Profit Agreement by the defaulting party, their agents, heirs, successors, assigns and employees, which have been reduced to final judgment or settled with the defaulting party’s consent. The non- defaulting party shall give the defaulting party prompt written notice of all claims giving rise to indemnification obligations hereunder, and the defaulting party shall have the right to participate in the defense of such claims with counsel of its choice at its sole expense. 

10. Miscellaneous: In no event shall Artist be entitled to seek injunctive or any other equitable relief for any breach or non-compliance with any provision of this Non Profit Agreement. This Non Profit Agreement constitutes the entire understanding of the parties and cannot be changed or waived, in whole or in part, except in writing signed by both parties hereto. This Non Profit Agreement supersedes all prior agreements between the parties, whether oral or written. Should any provision of this Non Profit Agreement be held to be void, invalid or inoperative, such decision shall not affect any other provision hereof, and the remainder of this Non Profit Agreement shall be effective as though such void, invalid or inoperative provision had not been contained herein. No failure by Producer hereto to perform any of its obligations hereunder shall be deemed a material breach of this agreement until you give Producer written notice of its failure to perform, and such failure has not been corrected within thirty (30) days of notice (or, if such breach is not reasonably capable of being cured that quickly, Producer does not commence to cure such breach within said time period, and proceed with reasonable diligence thereafter). This agreement shall be governed by and interpreted in accordance with the laws of Sweden applicable to agreements entered into and wholly performed in said State, without regard to any conflict of laws principles. You hereby agree that the exclusive jurisdiction and venue for any action, suit or proceeding based upon any matter, claim or controversy arising hereunder or relating hereto shall be in the state or federal courts located in Sweden. You don’t have the right to make any money off the Beat, the New Composition, or the New Recording except as specifically allowed in this Non Profit Agreement. You shall be deemed to have signed, affirmed and ratified your acceptance of the terms of this Non Profit Agreement by virtue of your payment of the Non Profit Fee to Producer and your electronic acceptance of the terms and conditions (e.g., at the time of your payment of the Non Profit Fe