Lease and sell Exclusive rights to the same Beat?

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Beats09

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I was wondering if it is actually legal to sell Exclusive Rights to a Beat that you have already leased to other people?

Since by selling Exclusive Rights you are handing over the ownership of the Beat. Does this make the "Lease" contract with the other artists void?

Can you get into legal trouble (has anybody) for this?
 
Not as long as your "leasing agreements" indicate the lease will be void under stipulations(time period, after x amount of sales or listens, at any time if the beat's exclusive ownership exchanges hands, ect.)
 
why would their lease have to be void if you sell the exclusive beat? As long as they're limited to only one commercial release or they can only distribute 2000 copies or whatever the stipulation is... then it shouldn't make a difference as long as you can prove you sold them the lease before you sold the exclusive, no?.. in other words if the lease says they get 2000 copies and they've distributed 1000 copies of the mixtape then you sell the beat to... lil wayne... why can't he still distribute the 1000 copies with that beat on it? As soon as the Lil Wayne song drops everyones going to use that beat on their mixtape anyways...
 
good point^^^

i doubt the owners will care if the lease guys continue to sell copies of their song on the beat.
 
FUTURE.PRODUCERS.COM said:
good point^^^

i doubt the owners will care if the lease guys continue to sell copies of their song on the beat.
Click to expand...

I'd doubt guys would sue a Karaoke bar for not paying royalties. That doesn't mean the WON'T. You should at least care about your clients enough to protect them.
 
^ exactly, but it seems like this has been the biz. model for years for people on the net so...... since it's the norm i guess it's accepted or just not discussed.?
 
To lease and sell exclusive rights to the same beat is just asking for legal trouble sooner or later.
 
Showing up in court to testify against one of your customers being sued by another one of your customers should be great for business :)
 
Yes you can...

You can do whatever you want as long as your client's contracts state everything concisely. What I do is put the following information on my Exclusive Contract and have the buyer sign off (mail back): "Licensee/Buyer understands that the said instrumental(s) may have been licensed out prior to this commencement of this contract and the non-exclusive licensees have a right to fulfill their agreement without interruption."

The only time you will run into trouble is if you tell the buyer that no one else has the beat (misleading to gain sale) but yet you've leased it out to other clients. Sometimes, exclusive buyers will ask before the purchase, whether or not the beat has been leased out and if so, how many times; you should provide at least a rough estimate before selling the track but you don't have to provide who purchased the leases (privacy policy).

SINIMA BEATS
 
If your in the business of selling "exclusive" and "non-exclusive" beats, you should really categorize them like so.
 
Actually once you have leased a beat, and you want to sell the exclusive to someone else you must tell the person you are selling the exclusives to so that they know the beat is already out in circulation. and then the new holder now holds the leasing rights to beat. regardless if leasing is expired or not. but you have to make this clear when leasing the beat
 
Just mention in your contract that prior buyers who bought the beat as non exclusive before the new buyer who buys the Exclusive can still use the beat.
 
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