Leasing rights question

[dnkygirl]

Hi all,

I have a business question. I have started up the beatmaking thing. I've recieved some interesting information from another beatmaker about my terms. Do these terms sound fair? I'm new to all this and I guess I need to understand all the different ways people want to use a leased song.

M42 Entertainment Lease Agreement

LEASING RIGHTS
You received an encoded MP3 file of the untagged song, and/or a copy of the raw WAV file. The song file was delivered digitally or through the mail on a CD.
Leasing rights allow you to use the beat (or song) for non-profit, limited personal web-page use, student projects for school/college, mix-tapes up to 5000 copies, and demo projects.
You have full rights to record, alter, mix the beat/song in any shape, way, or form (except reselling the beat). In the event that someone buys exclusive rights to the beat you have leased, your rights shall stand and the beat is still yours to use.
Upon purchasing leasing rights, the seller still owns the beat(s) and the seller is able to resell the beat(s) to any other party until exclusive rights have been purchased.

 

[bknot1]

i really dont do leasing agreements.. but this is pretty standard..

you might not wont to let them alter the track on a lease agreement...

 

[Mindset]

Also, when you do contracts, you need to watch your contract language in there. IE You should not use the term "beat" but instead use musical composition. Stuff like Mixtapes, depending on the artists, a lot of people won't be pushing 5000 copies anyways, so therefore you may want to word something else in there. I wouldn't let them alter anything either. When leasing, you should have a period of leasing terms. How long will they be leasing the material? What happens when the lease is up? You always want to try and limit the usage of the material strickly/their rights. Might push them to buy an executive rights to use instead lol. Leasing contracts are usually short and simple. Do not use for commercial purposes type stuff.

 

[dnkygirl]

Also, when you do contracts, you need to watch your contract language in there. IE You should not use the term "beat" but instead use musical composition. Stuff like Mixtapes, depending on the artists, a lot of people won't be pushing 5000 copies anyways, so therefore you may want to word something else in there. I wouldn't let them alter anything either. When leasing, you should have a period of leasing terms. How long will they be leasing the material? What happens when the lease is up? You always want to try and limit the usage of the material strickly/their rights. Might push them to buy an executive rights to use instead lol. Leasing contracts are usually short and simple. Do not use for commercial purposes type stuff.

Thanks...more to think about...

 

[Fieva]

Demi

So far everything that has been said is good advice. I used to lease beats exclusively but these days, I'd rather keep product for myself (greedy bastitch that I can be LOL)

I'll put up some of my own advice as well (as well as repeat some that others have said because I feel the same way and see it's importance).

1.) First off, 5,000 units IMO is way too much for a leased agreement and I do see a lot of cats do it, but it does leave you open to get screwed. Chances are if they're leasing your beat, they're using it for demo purposes. And that's the way it really should be because if they're making money off your work, you should be able to catch royalties off of it. Trunk hustling is one thing, but anything above that, you need to cover your P's and Q's. I would just keep that to nonprofit purposes only.

2.) Like Mindset said, you shouldn't be able to alter a damn thing on a leased deal. I highly agree with that one. The way I see if is if you're leasing my beat, then it's understood that you're leasing it AS IS. If you don't like how it's mixed or arranged, but you like the direction or the sounds used, then the exclusive option is what they should be buying.

3.) And while I'm on that note, the same thing goes for reselling. Hell you might be able to sell a leased be for $25 and they can take that same beat and resell it to somebody they know for $50 and act like they did that track. While that may happen one way or another, I wouldn't put that in your agreement that it's okay to do so. By the way, in one area you mention that reselling is not allowed, but in another you said it is allowed on a leased. Wait nevermind, I read that wrong. That's the way you should have it. I'm just leaving this here just in case someone else reads it who's new to trying to sell beats.

4.) Not really another comment but a question more or less. Have you gotten all of your material that's ready to sell or lease copyrighted with an SR copyright form? It may be in your interest to get ready to do that if you haven't already.

Fiev.