does a paypal receipt that says " for exclusive rights purchse" constitute a legaly binding contract??

Typically, you cannot unilaterally add a term to the contract when tendering payment. This type of contract, a copyright license agreement, can be complex with regard to what rights you are paying for. Your note in paypal may be further evidence that you did purchase exclusive rights to the intellectual property, but the entire agreement needs to be reviewed to fully determine what exactly you purchased or licensed. You need to consult an attorney with experience in intellectual property litigation for your defense. Feel free to follow the link below to my website.

This response is informational only and is not legal advice. Further, this response does not establish an attorney client relationship.

I respecifully disagree with the other response. I think you intended to buy the music outright, not license it or share authorship in the song with the producer. I think you intended this to be a "work for hire," and your PayPal note indicated that, and the producer accepted your money and your offer. Since copyright transfers such as these, where the producer might otherwise be entitled to a 1/2 share of the songwriting of the song, must be in writing, there are questions of fact whether this PayPal note documented your previous communications with the producer, whether you have other documents such as a written contract or emails between the two of you that specifies what you were buying and what he was selling, etc.

A copyright infringment suit is very serious, and if this prodcuer is claiming co-authorship in this song and your ifnringement on his rights, you should retain a copyright litigator with music law experience immediiately.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

Hire an intellectual property litigator today.

If you cannot afford one, talk to your local bar association about its pro bono services. Also, reach out to some of the law schools in your area that have intellectual property programs -- one or more may have a business law clinic or a friendly professor who will handle your case free or at a reduced rate.

If you've already been served with the copyright infringement complaint you normally have only 30 days to file a response with the court. If you don't file a response the other side wins by default. Fixing that mess (if possible) is expensive. If you have not been served with the complaint then you have some time to resolve the case w/o court intervention.

One note: before a copyright infringement suit can even be filed, the copyright MUST be registered with the Copyright Office. If it has been registered, search for it using the online records at copyright.gov and order the registration certificate and the specimen submitted (i.e., the digital file of the beat). If it has not been registered (an application to register will not do) then you can request that the court dismiss the case because it does not have jurisdiction over claims of alleged infringement of unregistered works.

As for the merits of your case, your note on the Paypal order form stating "for exclusive rights purchase" does NOT, to me, make clear that what was being sold was both the digital file of the beat AND the copyright to that beat. As Ms. Koslyn notes, this is a factual question that must be resolved.

I'm not sure that Andrew is correct when referring to this matter as a copyright "licensing" dispute. The issue is whether the copyright in the beat was "assigned" to you along with the digital file that you bought or whether you simply purchased the digital file (along with, granted, some sort of license to use the beat).