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Lease Beats (Non-Exclusive) vs. Exclusive Beats
There seems to be a lot of confusion in online producer communities about whether to sell their beats as a lease, or exclusive, or even sell them as both until the beat has been sold as exclusive.
What is a beat for lease (non-exclusive)?
A beat you are selling - online or offline - for lease, is a beat that an unlimited number of artists can buy. Leased beats are generally sold for significantly less than what you would sell it for, if you were selling it exclusively. By buying your beat as a lease they don’t own it, but they can use it provided that they stick to the limited use terms agreed to when purchasing. For the artist/label to own your beat, it would have to be sold as exclusive.
Producer Still Owns the Beat
If an artist buys a beat from you on lease terms, you as the producer still own full rights to the beat. This means you can continue selling the beat to other artists, and you can specify additional limits as to what, where and how your leased beat can be used, this can include:
Perform at shows, in a battles and contests.
Background music in a TV, radio, and internet broadcast commercial.
Background music in a TV show, radio, and internet broadcast, video game, and film soundtrack.
What in an exclusive beat?
An exclusive beat, is a beat which you are intending to only sell once. If you are selling your beat as an exclusive beat you do not need to worry about having to think what usage limits you would like to apply to it as you would if you were leasing the beat. This means that if an artist purchased your exclusive beat, the beat would no longer be yours, and the artist can use it however they wish.
What happens when I’ve sold the beat as exclusive?
Once you have sold your beat as exclusive, you must not sell that beat again. The ownership of the beat is transferred to the artist for them to use it however they wish.