MP3 Basic (Lease)

Agreement


Preface

This basic Non Exclusive LICENSE AGREEMENT (“AGREEMENT”) is made and effective as of June 27, 2014 (Draft Date), by BeatChampions.com. Producers (hereinafter referred to as the “Licensor”) in accordance with the terms stated in this agreement gives the Purchaser (hereinafter referred to as the “Licensee”) a license to lease a non‐exclusive beat purchased from BeatChampions.com producers.

Background Information


Definitions

Non‐Exclusive License, Basic: “Basic” refers to a non‐exclusive license with a distribution copy limit of twenty‐five hundred (2500) copies. Once the twenty‐five hundred copy limit has been reached, you will need to purchase another license, whether non‐ exclusive or exclusive. Basic comes with a full mp3. track of the Beat/Instrumental.

“Licensee” (Purchaser) means a person, company, etc., to whom a license is granted or issued.

“Licensor” (BeatChampions.com Producers) means one who grants, issues, permits, and authorizes the Licensee the right to use the beat/musical composition.

“Site” (or plural “Sites”) shall mean BeatChampions.com and all of our other related or affiliated websites.

“Beat” (or plural “Beats”) means any musical material that is subject to being uploaded to or downloaded from the “Site” (e.g. drum‐ beats, music, or other recorded performances or instrumentation of any kind).

“Producer” refers to the person(s) who has composed, written, produced, and otherwise created a Beat available on the Site for downloading.

“New Work” as used here refers to a Beat that has been transformed into a derivative work by the Licensee’s addition of vocals, harmonies or live instrumentation, etc.

“Public Performance” is described as any material of the New Work presented to the “public” (i.e. radio, album, single release mix tape, live performance, cable, pay‐per‐view, Internet release etc.), also referred to as a “Commercial” release.

License


You may License Beats from BeatChampions.com Producers for two (2) types of uses:

Distribution License

Digitally (i.e. through the internet, iTunes®, e-Music, Facebook, Myspace, etc.) or by physical means (CD’s, DVD’s vinyl, etc.) however the Licensee must make a “derivative” of the beat by adding vocals and/or adding additional vocals, etc.

A Beat licensed for Distribution (non‐exclusive Beat License/Lease) must be transformed to a derivative work before Distribution.

Synchronization License

When the Licensee fixes or synchronizes the Beat in time‐relation with images in a motion picture, television show, commercial advertisement, video games, student film, short film, slide show, or any other visual media i.e. background music for a scene, commercial, etc. You may not synchronize a Beat purchased for Distribution unless you also pay/obtain a Synchronization license for such Beat.

A Beat licensed for Synchronization does not need to be turned into a New Work, but if it is, a Distribution license is also required in addition to the Synchronization licensed in order for the New Work to be synchronized.

Terms for Purchasing Beats


Terms of Use

When purchasing beats from BeatChampions.com, producers and/or through affiliated websites for distribution, you agree to the following (this contract does not apply to Synchronization, please contact BeatChampions.com at “BeatChampions@gamil.com” for a Synchronization License):

Non‐Exclusive License: You are being granted non‐exclusive license (authorization) to distribute such Beat pursuant to the guidelines below. The BeatChampions.com producers have the right to license the beat to others. A Beat designated as an ”exclusive” will be licensed to only one (1) Purchaser by BeatChampions.com Producers and will be marked SOLD. The worldwide copyright of the composition and recording of such Beat remains 100% the property of BeatChampions.com Producers.

Your license grants you the following:

Modification of the Beat: You may make only one (1) Commercial, derivative work (e.g. adding vocals and harmonies, adding live instrumentation, etc., for an album, mix tape, single release, internet release, cable, pay‐per‐view etc.), referred to as the “New Work”.

If you wish to create more than one (1) New Work from the original Beat/composition, you must purchase another non‐exclusive license/lease as though you were purchasing such Beat again so a new distribution limit (cap) can be established. You may not assign, transfer, or sub‐license your rights in the Beat to any other person or entity, but you may sub‐license the distribution rights to the New Work to music distributors (i.e. record labels, retailers etc.) as further described in subparagraph (c) on the next page.

Ownership of the New Work: You will own solely your contributions to the New Work. BeatChampions.com Producers retains ownership and 100% copyright ownership of the underlying Beat. Your contributions to the New Work must be original and sufficiently distinctive (i.e. adding vocals etc.).

Public Performance of the New Work: conditioned upon to give BeatChampions.com Producers mandatory credit described in Paragraph 3 below, you shall have the worldwide right to (i) reproduce (copy), and (ii) distribute up to twenty‐five hundred (2500) physical and digital units combined of the New Work, as well as the right to sub‐license the foregoing (i.e. to a distributor).

Once you have met the maximum distribution limit (2500 copies) for this agreement, and once one (1) commercial use (album, mix tape, single release, radio, internet release, cable, etc. has been established), you must purchase another non‐exclusive license/lease as though you were purchasing such Beat again or purchase a “premium” non‐exclusive license for a maximum distribution of five‐thousand (5,000) copies or purchase an exclusive license (unlimited copies) if the beat is still available for lease or sale. You may not synchronize a New Work unless you pay/obtain a Synchronization license by contacting BeatChampions.com Producers at BeatChampions@gmail.com.

Public Performance: Licensee has the right to perform BeatChampions.com Beat/Compositions in public. If the BeatChampions.com music compositions purchased by Licensee is exploited regionally, nationally, or worldwide via radio, television, motion picture or any other form of entertainment etc. Licensee must contact Licensor to pay/obtain exclusive rights if you wish to use the Beat for unlimited radio use, so Licensor can take proper steps in obtaining any performance royalties generated. Licensee is being granted one (1) “local” radio broadcast use only. After your one (1) “local” radio broadcast use, you must pay/obtain a new non‐exclusive license agreement or purchase the exclusive rights for unlimited radio broadcast use.

If the public performance of the New Work is for an album, this constitutes as your one (1) commercial use. If the public performance of the New Work is for a mix tape, this constitutes as your one (1) commercial use. If the public performance of the New Work is for internet release or single release, cable or pay‐per‐view, that will constitute as your one (1) commercial use. If the public performance of the New Work is intended for radio broadcast, this will constitute as your one (1) commercial use.

After your one (1) commercial use of the New Work has been established and/or the twenty‐five hundred distribution cap has been reached, you must purchase a new license to lease the Beat/compositions for another commercial use if the Beat is still available for lease or sale as further described on the next page in paragraph (9).

Mandatory Credit: you must provide clear and legible credit on the packaging and in the metadata fields of downloadable copies of the New Work, and in any place where credit otherwise appears as follows:
“_______name of New Work______” by “______Name of i.e. Artist/Singer______” Produced by “Producer” of BeatChampions.com.

Consideration: In consideration for the rights granted under this agreement, Licensee shall pay to licensor the sum of the cost of the Lease (Non‐Exclusive License) and other good and valuable consideration, payable to “BeatChampions.com”, receipt of which is hereby acknowledged. If the Licensee fails to account to the Licensor, to timely complete the payments provided for hereunder, or perform its other obligations hereunder, including having insufficient bank balance, the licensor shall have the right to terminate License upon written notice to the Licensee. Such termination shall render the recording, manufacture and/or distribution of Recordings for which monies have not been paid subject to and actionable infringements under applicable law, including, without limitation, the United States Copyright Act, as amended.

Delivery of beats to Purchasers: Upon receipt of your payment, the beat will be made available for instant download and/or emailed to you once payment has been received. If Purchaser has any complications downloading Beats from BeatChampions.com please contact us at BeatChampions.com@gmail.com immediately to resolve this issue.

Delivery Format: We shall have the right to (a) deliver Beats to Purchasers from BeatChampions.com and/or affiliated websites in non‐DRM protected, unencrypted mp3 format.

Indemnification: Accordingly, Licensee agrees to indemnify and hold Licensor harmless from and against any and all claims, losses, damages, costs, expenses, including, without limitation, reasonable attorney’s fees, arising of or resulting from a claimed breach of any of Licensee’s representations, warranties or agreements hereunder.

Audio Samples: The Buyer understands that the Original Instrumental Composition that is being licensed in this agreement does not contain any unapproved samples. The Buyer also understands that they are responsible for clearing all samples that they choose to use and that the Seller cannot and will not be held liable for the misuse of any sampled material that the Buyer uses in conjunction with the Original Beat/Instrumental Composition that is being licensed in this agreement.

Term: Executed by the Licensor, to be effective as for all purposes as of the Effective Date first mentioned above and shall terminate exactly once one (1) commercial (album, mix tape, single release, internet release etc.) derivative of the New Work has been established and once the New Work has reached the twenty‐five hundred (2500) distribution limit for this agreement.

Producers of BeatChampions.com
www.BeatChampions.com
BeatChampions@gmail.com

Please attach each Contract to each proof of Purchase for your records.