Non-Exclusive, Exclusive & Custom Music Licensing Agreements

Signing Contract

On BeatStars, by default you can offer non-exclusive and exclusive licensing agreements for your beats. In addition to customizing both of these licenses to suit your specific wants and needs, you also have the option of creating custom, tailor-made licensing agreements yourself.

Don’t worry – you don’t have to know the ins and outs of licensing agreements and intellectual property rights to create and modify these licensing agreements. BeatStars guides you through this process with easy-to-fill-out forms that fill in the blanks of each licensing agreement.

To better understand these licenses, though, and to get additional guidance on setting them up, let’s clarify the difference between the licenses and what they mean for you as a creator.

Selling Music with a Non-Exclusive License

The most popular licensing option on BeatStars is the non-exclusive license. When you understand what this license entails, you’ll understand why.

A non-exclusive license allows the creator to set terms and conditions for the purchase and use of a piece of intellectual property to an unlimited number of parties.

In other words, if you have a beat you want to sell with a non-exclusive license, you can set the terms to purchasing and using this beat and then go on to sell it to as many rappers or singers as you want, all while making money off of the same beat.

Sounds like a good deal, right? That’s because it is. A non-exclusive license allows you as a creator to get a lot of steam out of a single production. This contrasts with an exclusive license, which is essentially the opposite of a non-exclusive license.

Selling Music with an Exclusive License

A beat with an exclusive license usually costs way more than a beat with a non-exclusive license and for obvious reasons.

An exclusive license allows the creator to set terms and conditions for the purchase and use of a piece of intellectual property, but the property can only be sold and owned by one other party.

This means that if you have a beat with an exclusive license, whoever you sell the beat to will then own that beat and you can’t sell it to anyone else. This is why this type of license usually costs more, because it’s a one-time sale and that’s it.

While this significantly limits how long you can continue profiting off a single production, it does have its benefits, namely if you’re selling a beat to a high-profile artist or if you’re getting way more money for this one license than you would if you tried selling it for cheaper with a non-exclusive license.

Customizing Your Non-Exclusive and Exclusive Licenses on BeatStars

Now that we understand each license better, we can get into customizing these licenses on BeatStars to better meet our specific needs as creators.

Log in to your BeatStars account and head over to My Media. On the left, you will see a menu item for “Licenses & Contracts.” This will take you to the page where you can customize your non-exclusive and exclusive licensing agreements.

BeatStars Licensing Options

Click on the blue “Customize” button to begin customizing your license. This will bring you to a page that has form fields you can quickly and easily fill out to create your license.

There are the basic fields – license name, description, etc. You can also create a track price for how much you want to sell your beats for by default, as well as a minimum offer amount for negotiations.

In addition to a description, you can also include license features if you’re looking to include additional information on perks that buyers can get with this license.

Next, you will decide what files will be delivered with the purchase of this license. Automatically MP3s are included, but you have the option to include a tag with this MP3. Other options are to provide a WAV file and/or track stems.

Many times, producers will use this opportunity to create different kinds of licenses at different price points. For example, a non-exclusive license that only provides the name-tagged MP3 could be substantially cheaper than a non-exclusive license that provides the original track stems.

Mantra Licensing Info and Pricing on BeatStars

Lastly, you will see a bunch of boxes under the “Quick Customization” tab that will help you to complete your licensing agreement. I suggest sticking to the “Quick Customization” as opposed to the “Full Customization” as not many of us speak legalese, so it’s easier to just use BeatStars’ “Quick Customization” form.

These fields are pretty self-explanatory, but they’re essential to fully create your licensing agreement, so make sure you fill these fields out how you want.

BeatStars Quick Customization Licensing Fields

Once you save your changes, this will set your license in place, so whenever you upload a new track, you can select the license you want to attach to it. This is good if you want a stock non-exclusive or exclusive license, but what if you have something different in mind?

Creating Your Own Custom License on BeatStars

By following the same steps above, you can also create an entirely custom license on BeatStars. Thanks to the same form fields we just saw, BeatStars gives you total control over your licensing agreements.

To create a custom license for your beats, simply go back to the “Licenses & Contracts” page in My Media and click “Create New Custom License.” You’ll see the same page you saw when you customized your non-exclusive and exclusive license.

Some ways to take advantage of custom licenses may be to create licenses like I mentioned earlier, where you offer only the tagged MP3 as opposed to the track stems. You could also offer customizations to the beat after purchasing for a premium fee. The sky’s the limit, as the saying goes.

So go forth and create the perfect licenses for your beats. If you don’t have an account already, sign up for free today!