There seems to be a lot of controversy over beats for sale. Many people are confused as to how it works. Even though most producers are sole proprietors and technically make their own rules in business, there are a few general guidelines that frequent customers and sellers follow. For the beginners, every single thing is a blur; unfortunately they continue to go on with business not knowing exactly how to carry it out. I'll go over a few do's and don'ts when it comes to purchasing/selling beats.
To start this off, let's set the possession issue clear. Unless the producer exclusively signs (on paper or by e-signature) over just about any of his rights, he retains all of his rights no matter what was verbally agreed upon. That includes copyright possession, because well as writer's credit/royalties. Now whether or not you both register the song that way is another thing. Technically and legally, the producer would still retain those rights, no matter how much revenue was transferred, or what was said. I have witnessed many situations where an artist has "paid for" a beat and figured that he didn't need to pay the producer virtually any royalties. You as an artist are paying for the "use" of the track and/or the "time" and "knowledge of production" that it took from the producer to actually producer the track. Another issue I run into is that the artist thinks that if the producer retains backend royalties then they should not pay them anything upfront for beats for sale. The strategy I see it, if you WANT something, you pay for it. The producer didn't offer to write to his track. Now there may be certain cases where the producer actually likes a particular songwriter or artist and feels that he/she can help further his own career by working with them, and they offer to provide them a track for free to write to and see where it takes the both of them. Even in this case, the producer still retains all rights.
There are lots of other small issues, but I attempted to tackle the major issues when it comes to beats for sale. To sum it all up, the producer always retains his rights to the track unless he specifically signs them over to the artist. The pay to the producer is for time and his ability to produce, just as you pay a mechanic to work on your car. I hope the clears the air on the technicalities of beats for sale.
Author Resource:
There is a great web site with Beats For Sale as well as Custom Beats . Click on the links in the paragraph to find out more.