Once you purchase a non-exclusive license and record vocals on it, do you have a level of copyright rights on it? Well, yes and no! In this case, all you have done is created derivative work or also called "New Work". So basically, you have copyright over the lyrics, but not on the beat you have recorded since the beat copyright still belongs to the producer.
Music Publishing Rights
With a non-exclusive license, you get 0% of the publishing rights to the instrumental
Exclusive Beat Licensing
When you purchase exclusive rights to a beat it allows you to master your song without limits user rights. With exclusive rights, the artists can make money commercially, globally. Your range of exploiting the master is vast without any limitations. More so, beat licensing is now a non-issue because you will now own the exclusive rights to the song you created using the beats.
Copyright Issues & Publishing Rights
The issue of copyright sharing in exclusive beat licensing has been a major controversial topic of discussion among producers. They differ in how they define ‘exclusive’ rights. However, most negotiate for a fair 50/50 split of publishing rights and maximize the song’s potential. Most terms are negotiable between the artists and the producer.
Which should you choose: Exclusive vs. Non-Exclusive?
The biggest difference between the two is that non-exclusive licenses for one beat can be sold to numerous artists but exclusive licenses are only sold once to an individual artist. The other big difference is that Exclusive rights come with publishing rights, whereas a lease does not. However i would not recommend out right buying exclusives to beats unless you are for sure your song will gain major exposure and blow up.
What if one of my songs produced on a leased beat becomes a hit?
If you work well within your payment and benefits agreement then you will not be fined or penalized for being a success. Instead, what will happen is you will need to talk and negotiate a deal with the producer.
If he still holds the exclusive rights to the beat then you will need to come up with a payment agreement for you to upgrade and buy the exclusive rights to beat. However, if they do not wish to sell their rights, then you will either have to agree on a deal that hashes out sharing and distribution of the profits you make or, unfortunately, take down the track if that is their wish.