Just another few questions to add, when shopping beats that contains uncleared sample and lets say an A&R wants to use the beat for an artist's upcoming label album. Why does the sample clearance process start after the song is already recorded by the artist? Does the producer get paid for the beat even if the final finished record sample never cleared? From a producer's standpoint, what would be the smartest way of approaching this situation? I sample alot and usually sell it for mixtape to local artists but let's say i get an inquiry from a label asking "Artist X wants to use beat x for his/her next record." Obviously you have to tell him it's a sampled beat, but it doesn't make sense telling him where the sample is from (unless its an obvious sample)? He can just find someone else to re-create the entire composition. Btw,I appreciate all your insights and advices on here.
No prob fam, as for your other questions
It all depends on your contract with the party you are working with. It's a team effort when it comes to clearing the samples As a producer working with a label you can have them clear it, most likely they they will and then they will get a bigger piece of your publishing. (Which you have to give up a piece of anyway since you are sampling.) If you have a track record you can contact publishing company's/ and labels directly and they can give you a better rate as opposed to the label clearing it for you. Its all about developing relationships with the labels and publishing company's. But if you are just starting out , I can guarantee you will have to work with the label to clear the samples because the process isn't cheap.
If you are working for yourself you can delegate sample clearance responsibility's to the purchasing party; just make sure you get everything in writing and have it contracted out. Mac miller when he started out couldn't afford to clear the samples either. (He got sued later down the line but he has a label backing now so he's alright.
Why does the sample clearance start after the artist records. That's because they don't even know if the song is going to make the album or not they will record probably 24 songs and pick 10-12 and the rest get dropped. You get paid when it makes the album. Or when it gets released is some form or fashion again--->It all depends on the contract they make with you on the particular record. No contract is ever the same.
When it comes to payment as to how much again that depends on the contract you forge with the party you are working with. It can take anywhere up to 6 months to a year to receive royalty checks. So that's why a lot of people try to get an advance (Upfront payment) and most of the time the artist never recoups anything so you hardly see a royalty check.
Labels/publishers won't go after any regular joe artist using a sample beat as it's a waste of time and money, to go after artist selling their music to family and friends and not pushing any serious numbers. But it becomes a problem when you put it on a cd and it sells an exorbitant amount of copy's or you try to get it on industrialized radio. Because The radio than has to pay the publishers and the writer for there share (You can see where the problem comes in.)
The label will most likely ask where you got the sample from and then will attempt to get it cleared. If they can they are usually going to come back to you and let you know the cuts they are expecting. Now can they take your sampled beat and get it replayed (Absolutely) There is no full proof way of preventing that but that's where having a team (Manager) or someone who represents you comes in handy. It's all in networking and developing relationships if you're able to do that then you will have a good working relationship and
less bad things will happen to you. Now will some bad things happen (Yeah) it's the music
business for a reason. But keep a good track record wherever you go always try to be easy to work with and talk to and treat people with respect and work with others the best you can and you won't have as many issues or rub people the wrong way in the future.