Music licensing, explained in plain English

Music licensing has a vocabulary problem. "Publishing," "masters," "sync," "mechanicals," "PROs" — each term means something specific, but they're thrown around loosely in every producer/artist conversation, usually by people who don't fully understand what they mean themselves.

This is a plain-English walkthrough. No lawyer-speak. No "consult your attorney." Just how the system actually works, what each piece is worth, and where a beat license sits inside the bigger picture.

The two copyrights in every song

The single most important concept in music licensing: every song has two separate copyrights.

1. The composition (the "song" itself — lyrics + melody + chord changes)
2. The sound recording (the "master" — the actual recorded audio file)

These are two different legal rights, often owned by two different people or companies, and licensed separately. Every time a song is used commercially, both rights have to be cleared.

When you buy a beat, you're usually licensing the composition rights (and sometimes the master of the instrumental, depending on the tier). When you record your vocals on top, you create a new master — of the combined song — that you usually own.

Who owns what

Typical setup in 2026 for an independent artist using a purchased beat:

If you buy an exclusive, the composition of the instrumental often transfers to you (depending on terms). If you buy a lease, the producer keeps the composition rights and you get a license to use them.

The royalty streams

There are four main ways a song makes money:

1. Streaming and download royalties (mechanicals)

Every time someone streams your song on Spotify, Apple Music, Tidal, etc., a "mechanical royalty" gets paid out. It's tiny per stream (~$0.003 on Spotify), but it adds up on scale.

Your distributor (DistroKid, TuneCore, etc.) collects these for you. The producer gets paid via their share of the composition rights — their cut depends on the split you agreed to in the license or your collaboration.

2. Performance royalties (radio, TV, live, streaming)

Every time your song is "publicly performed" — streamed, played on radio, played in a bar, performed live — a "performance royalty" fires. These are collected by a Performing Rights Organization (PRO): ASCAP, BMI, SESAC in the US; PRS in the UK; SOCAN in Canada; etc.

You don't need to collect these per song — you register with a PRO once, register each song in their database, and they collect for you. It costs nothing for writers to join BMI; ASCAP charges a one-time ~$50.

The producer collects performance royalties for their share of the composition (which is what the "composition" credit on Spotify / radio picks up). You collect for your lyrics + melody share.

3. Sync royalties (film, TV, ads, video games)

When your song ends up in a movie, TV show, ad, or game, it's a "sync placement." These are one-time payments negotiated per placement, usually by a sync agent.

Payments range from $500 (small indie film background) to $100,000+ (major brand campaign). Sync is the single most lucrative royalty stream per event.

If your beat license doesn't explicitly grant sync rights, you cannot sync the song. Most leases exclude sync by default. Most exclusives include it. Check before pitching sync.

4. Master licenses

When another artist wants to sample or interpolate your song, they license the master from you. These are one-time payments + ongoing royalty splits, negotiated per case. The producer of the instrumental you used may have a claim on the master license if their composition is still licensed to you (not transferred outright).

Where a beat license fits

A beat license is essentially a bundled grant of specific rights to use the composition of an instrumental. Depending on tier, it may also include:

• Permission to distribute (required — if you can't distribute, you can't upload to Spotify)
• Streams + units caps (MP3/WAV leases)
• Territorial restrictions (rare, but exist)
• Sync rights (usually excluded from leases, included in exclusives)
• Broadcast rights (radio / TV — sometimes extra)
• Exclusivity (only the exclusive tier removes the beat from future sale)

The license PDF specifies exactly what you can and cannot do. Read it once, save it forever.

Common scenarios

Scenario A: you're a new rapper releasing to Spotify

• Buy an MP3 or WAV lease appropriate to your projected streams.
• Distribute via DistroKid or TuneCore.
• Register with BMI or ASCAP to collect performance royalties.
• Credit the producer in your song's metadata.
• Total rights stack: lease + distribution + PRO registration.

Scenario B: you're placing a song in a film

• You need an exclusive with sync rights or a custom sync license from the producer.
• Your sync agent (or direct contact with the music supervisor) negotiates the fee.
• Income: one-time sync fee + mechanical royalties on the film's soundtrack release (if applicable).

Scenario C: you're making beats and want to collect PRO royalties

• Register with a PRO (BMI for free; ASCAP for $50 one-time).
• Register every song that uses your beat — most PROs require both writers to register the song for correct splits.
• Your splits with the artist determine your royalty percentage (usually 50/50 on the composition if you retain rights; varies if transferred).

The "I just want to release" cheat sheet

If you just want to release a song using a purchased beat, don't want to deal with the rights stack:

1. Buy a WAV lease or unlimited license on a reputable marketplace (like beatsheaven).
2. Credit the producer.
3. Distribute through a distributor that handles performance royalty splits (DistroKid is easiest; they auto-split if you enter the producer's ISWC info).
4. Register with a PRO so future performance royalties don't get lost.
5. Save your license PDF somewhere safe.

That's 90% of what you need. The other 10% matters only if you start generating real money or placements.

What to avoid

• "Free for non-profit" downloads. These are not licenses for commercial release. If your song goes viral on a "free for non-profit" beat, expect the producer to pull your song or demand retroactive payment.
• Verbal agreements about sync rights. Get it in writing.
• Uncleared sample-based beats. Some producers use uncleared samples — your liability falls on you, not them, once the song is released.

The short answer

Every song has two copyrights: composition and master. A beat license grants you rights to use the producer's composition. PRO registration lets you collect performance royalties. Sync is separate and lucrative — only exclusive licenses typically include it. Save every license PDF; credit every producer; register every song.

When you want to license a beat the clean way — with written terms, instant delivery, and verifiable rights — browse beatsheaven.