Can People Who Purchased a Non-Exclusive License Still Use the Material After the Exclusive Rights are Sold?
What happens to existing non-exclusive license holders when you sell an exclusive on Fairbeat.
Updated
Yes — existing non-exclusive license holders retain the rights they already purchased. Selling an exclusive does not retroactively cancel prior licenses.
Why can existing buyers still use the beat?#
When a buyer purchases a non-exclusive license, they enter a legal agreement with you at that moment. That agreement remains valid regardless of what happens to the beat afterward. Selling an exclusive to a third party does not void existing licenses.
What does the exclusive buyer actually get?#
The exclusive buyer gets the right to use the beat exclusively going forward — meaning you cannot sell additional licenses after the exclusive sale. They do not have the right to revoke or invalidate licenses already granted.
Should I disclose this to the exclusive buyer?#
It is good practice to be transparent with exclusive buyers about any pre-existing non-exclusive license holders. Fairbeat recommends noting this in your listing description if the beat has been sold previously.
What if the exclusive buyer disagrees?#
License terms are set by you in your contract template. If your contract specifies that the exclusive sale is subject to existing licenses (which Fairbeat's default templates do), the exclusive buyer agreed to those terms at purchase.
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