Exclusive Lease – Beat License
This License Agreement is made on Purchase Date by and between The Buyer (“Licensee”) and The Seller (“Licensor”). Licensor warrants that it controls the mechanical rights in and to the musical work named BEAT (“Composition”) being sold to the Licensee as of and prior to the Effective Date.
The Licensee and Licensor have agreed to the following terms:
Exclusive rights allow the Licensee to use the Instrumental for unlimited commercial recordings or broadcasts. The Licensee has full rights to record, alter, mix the Instrumental in any shape, way, or form (except reselling the Instrumental). The Licensee must give full credit to the Licensor as on all commercial recordings. The Licensor still owns copyright to the Instrumental but is no longer be able to sell the Instrumental.
Publishing
BMI CAE/IPI # 664989771 – Songwriter/Composer: (Name provided via PayPal transaction or upon direct request.) owns 50% of the publishing rights.
Displayed above and below is the information required to register the composition with Performance Rights Organizations (BMI, ASCAP, SESAC) and distribution companies.
Licensee owns 50% of the publishing rights created through the lyrics written by the Licensee.
Licensor owns 50% of the publishing rights created through the musical composition (instrumental).
Licensor retains 100% ownership of the instrumental sound recording and underlying musical composition.
Publishing splits do not transfer ownership of the beat; they only determine royalty participation.
Synchronization Rights
The Licensor grants the Licensee the right to use the Master Recording in unlimited monetized video streams, including but not limited to YouTube, TikTok, Facebook, Instagram, and similar platforms.
The Licensee is required to share royalties for synchronization licenses (placements in film, television, advertisements, video games, trailers, and other commercial uses).
Sync Fee Splits:
Publishing Share: 50% Licensor / 50% Licensee
Master Use Fee: 100% to the Licensee as the owner of the Master Recording
Unless otherwise negotiated, the Licensor does not receive any portion of the master use fee.
Mechanical Royalties
Mechanical royalties are generated from the composition, not the master recording.
The Licensor receives mechanical royalties for the musical composition (instrumental).
The Licensee receives mechanical royalties for the lyrics they wrote.
Mechanical royalties are collected and paid by:
The MLC (U.S. streaming mechanicals)
Harry Fox Agency (physical/digital download mechanicals)
International mechanical collection societies
Mechanical royalties are paid according to the publishing split and do not affect the Licensee’s master recording revenue.
Master Royalties
The Licensee shall receive 100% of all master recording royalties generated from the commercial exploitation of the Master Recording, including but not limited to:
Streaming revenue (Spotify, Apple Music, etc.)
Digital downloads
Content ID monetization
Distributor payouts
The Licensor does not receive any share of master royalties unless otherwise negotiated in writing.
Producer Points
The Licensor shall receive 3% producer points on the Master Recording, payable from the Licensee’s share of master royalties.
Performance Royalties
Performance royalties generated from public performances of the composition (radio, live shows, streaming, television, etc.) shall be paid directly by the respective PROs to each party according to their publishing share:
50% Licensor
50% Licensee
Broadcast Rights
The Licensor grants the Licensee an exclusive license to broadcast or air the Master Recording on unlimited radio stations, including terrestrial, satellite, and internet radio.
Publishing Administration
Each party is responsible for registering their respective publishing share with their PRO.
Neither party may claim more than their agreed‑upon publishing percentage.
Failure to register does not alter the publishing split.
Producer Credit
The Licensee shall credit the Licensor as the producer of the Instrumental in all metadata, artwork, streaming platforms, and public releases as:
“Produced by Centric Beats”
Failure to provide credit does not void the agreement but must be corrected upon request.
Ownership
The Licensor retains full ownership of the instrumental sound recording and underlying musical composition.
The Licensee owns the Master Recording created using the Instrumental.
No transfer of copyright occurs under this agreement.
Compensation
Payment for this License is non-refundable. If the Licensee fails to account to the Licensor, timely and complete the payments provided for hereunder, the Licensor shall have the right to terminate this License upon written notice to the Licensee. Such termination shall render the recording, manufacture and/or distribution of Recordings for which monies have not been paid subject to and actionable as infringements under applicable law.
Indemnification
Licensee agrees to indemnify and hold Licensor harmless from and against any and all claims, losses, damages, costs, and expenses, including, without limitation, reasonable attorneys’ fees, arising out of or resulting from a claimed breach of any of Licensee’s representations, warranties or agreements hereunder.
Miscellaneous
- The Licensor expressly forbids resale or other distribution of the Instrumental, either as they exist or any modification thereof. The Licensor can not sell, loan, rent, lease, assign, remix, rearrange, remove any melodies, instruments, drum programming or transfer rights under to another user (example – Record Label, another production company, another producer), or for use in any competitive product without written consent and or another license agreement.
- Licensee must supply the Licensor with at least 1 copy of each final recording made using the Instrumental.
- Licensee must include credits to Licensor on all physical media containing a portion or sum of the Instrumental that is being licensed in this agreement. Including but not limited to CD’s, CD covers, Cassette tapes, Cards, Mixtapes, Websites, etc.
- Licensee must contact and inform Licensor of CD sales if the Instrumental is used for commercial purposes with a record label with gross revenue of over $1,000,000, the Licensor must receive credit for the Instrumental unless agreed upon otherwise by the two parties.
- Written consent is required if the Instrumental is to be used for Radio Broadcast, Commercial Advertisement, Television Broadcast, Video Games, Internet, On-hold & In House Background Music, or film Soundtracks. By receiving this contract via email, you automatically agree to the terms stated above and gain exclusive rights to the Instrumental
