Are there guidelines over what is considered “Eligible” sound recordings that can be monetized and “Ineligible” sound recordings that can’t be monetized?

YouTube automatically generates claims against other user's uploaded content that matches the music you provide, so it very important that the music you are opting in is eligible to avoid falsely claiming other user’s content. This rule applies to Facebook as well but their program will show no visual indicator (like a claim or ad).

Eligibility:

Songs that you control all of the master and publishing rights to.

• Use only your own material for which you have exclusive rights.
• Use third-party material for which you have exclusive rights.

The following examples are Ineligible and cannot be used for YouTube or Facebook Monetization:

• Content licensed non-exclusively from a third party (such as samples that are not exclusively licensed)
• Content released under Creative Commons or similar free/open licenses
• Public domain footage, speeches, recordings, or compositions
• Clips from other sources used under fair use principles
• Video gameplay footage (by other than the game’s publisher)
• Karaoke versions or sound-a-like cover versions
• Part of a compilation/various artists’ albums
• Songs already monetized on YouTube by another distributor
• Contain any audio library samples, sound effects, or production loops (such as GarageBand loops)

Check out this video for more details on how it works and what is eligible

Important : Violations of these guidelines may lead to permanent blocking of your track(s) from this service.