Thanks for the input. This is being designed for producers. We want to provide a solution that really helps producers. How do you suggest we solve this problem?
Ownership does not transfer, but a lease is negotiated for the pre-stated fee
- If the fee is high enough the beatsmith may agree to an exclusive lease
- Otherwise they would be selling a non-exclusive lease
- No other rights are ceded in the transaction unless further fees are paid - at this point I would assume that you either begin to act as the agent for one or the other to keep your fingers in the pie or step aside and let their attorneys battle it out at 10 paces
From the clients perspective
- they can buy a lease (with you as the intermediary)
- whether that is an exclusive lease or otherwise is down to the parties involved
From the beatsmiths perspective
- they can sell a lease (with you as the intermediary)
- whether that is an exclusive lease or otherwise is down to the parties involved
Your business model is designed to benefit you first and your clientèle second
- the only value that you add to this transaction is the opportunity to run an on-line beat auction, with you as the broker
- this suggests that your revenue stream is two-fold on every sale
-- the beatsmith gets charged a simple fee
-- the successful client is also charged a fee on the sale/transaction (a premium if you will over and above the cost of the beat)
- I am not going to join simply to find out what fees you charge either party
- remember that in this business, the supplier as well as the consumer need to agree on the price and what rights, if any, are transferred
- you putting in place a simple "ownership goes to the client" clause is theft of property by the client by illegal contractual stipulations
-- the statement "the legal ownership of the winning beat transfers to the Client from the Producer" stipulates that the beatmsith cannot negotiate what rights transfer, only that all rights transfer
-- if they win the auction they have to accept this stipulation, regardless of what they want, as you make it a stipulation before they enter the auction
-- i.e. their entering the auction does not give them any legal recourse to negotiate what they are selling, once the auction has concluded
-- all power in negotiations has shifted away from the beatsmith to you and the client, which may well make the contractual agreements null and void, as a contract is only legally binding, in most jurisdictions, where the parties are entering into the contract with equal power
-- it is why minors and other "special" persons cannot enter into contracts, because the power structure of the contractual negotiation is weighted against them
--- this last point of course raises the spectre of minors jumping in and either purchasing or selling a beat
---- if both beatsmith and client are minors, then neither party can enter into a binding contract (and you cannot pursue your fee)
----- I see no effort on your part to limit your liability in this matter
None of the above should be taken to be a valid legal opinion on your operation but is an informed summary of the pros and cons; before proceeding further I would seek legal advice as to what (other) issues may be present in your business model.
also I have merged your two threads because both belong in Collaborations and Opportunities, start another one in getting stated and I will have to give you an infraction
