Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.
Now up for bid is another share of this unique royalty stream produced by Cherry Garcia ice cream — Ben & Jerry’s longtime, fan-favorite flavor.
Officially released in 1987, Cherry Garcia is a nod to the celebrated and acclaimed guitarist/songwriter Jerry Garcia, along with his band the Grateful Dead. The flavor was an instant hit and over 30 years later, it remains one of Ben & Jerry’s most popular and “longest-serving” products.
These consistent earnings come from the licensing of the Cherry Garcia trademark. This means the winning bidder will earn royalties from the sale of all Cherry Garcia-related products under the Ben & Jerry’s line. Currently, Ben & Jerry’s offers five variations of the Cherry Garcia flavor: ice cream, frozen yogurt, ice cream treats, non-dairy and light ice cream (recently released in early 2018), along with merchandise. Essentially, whenever Cherry Garcia ice cream (or any of its variations) is sold, you'll earn royalties.
A portion of proceeds from this auction will benefit the Jerry Garcia Foundation. The Jerry Garcia Foundation is a 501(c)(3) nonprofit organization, that supports artistic, environmental and humanitarian causes through the beauty of art and music. The Foundation was established in 2015 in honor of musician, artist, and visionary, Jerry Garcia.
Finally, as a special and exciting memento, the seller would like to include a unique piece of Jerry Garcia's artwork, for the winner of this auction!
Consistent Earnings. The royalties generated by the Cherry Garcia product line have been remarkably consistent over the last four years -- averaging just over $8,500/annually.
Ben & Jerry’s Popularity. According to Statista, in 2017 Ben & Jerry's was the third-ranked ice cream brand of the United States with about 477.1 million U.S. dollars worth of sales.
What is Being Sold?
Ten years of payments generated by the seller's interest in the domestic (U.S. only) royalties derived from the licensing of the Cherry Garcia trademark.
About the Royalty Distributor
Ben & Jerry's Homemade Inc., commonly known as Ben & Jerry's, is an American company that manufactures ice cream, frozen yogurt, and sorbet. It was founded in 1978 in Burlington, Vermont, and sold in 2000 to Anglo-Dutch conglomerate Unilever. Today it operates globally as a fully owned subsidiary of Unilever. Its present-day headquarters is in South Burlington, Vermont, with its main factory in Waterbury, Vermont.
Public performance royalties are payments made by radio stations, hotels, restaurants, night clubs, etc. to the composition copyright holder(s) for each public performance of the copyrighted work. In the U.S., public performance royalties are typically paid to performing rights organizations (e.g., ASCAP, BMI) who then distribute the royalties to the copyright holder(s).
Mechanical royalties are royalties deriving from per-unit payments made by recording companies or digital download providers to the composition copyright holder(s) for every purchase of a sound recording that reproduces the copyrighted composition.
Non-interactive digital performance royalties are payments made by non-interactive music services (i.e. those that mimic the experience of a radio broadcast) of a statutorily-set amount (on either a per-play or annual basis—depending on the type of service) to SoundExchange for the benefit of the sound recording copyright holder and the performing artists for the right to perform the copyrighted sound recording via non-interactive, digital means.
non-interactive digital performance royalties
The royalties owed to the creator(s) of a musical composition which are paid in return for the right to reproduce, distribute, or perform the copyrighted work.
A musical composition is one of the two copyrightable parts of a recorded song. It consists of the song's music, including any accompanying words, (i.e. the portion of a song that is capable of being fully expressed as sheet music) and is separate from any particular recording of the song or its performance by any particular artist.
A sound recording is one of the two copyrightable portions of a recorded song. It results from the fixation of a series of musical, spoken, or other sounds in a tangible (at least momentarily permanent) medium.
The portion of royalties owed to the owner of a sound recording. The owner may the performing artist, the producer, or another party (such as a record label) who contractually acquired the ownership of the copyrighted work (e.g., through a recording agreement), owns it by virtue of an employer-employee relationship with the creator(s) of the work, or specially commissioned the work.
rights owner's share
The portion of royalties owed to the performers of a sound recording in return for the right to perform the copyrighted work via non-interactive, digital services (e.g., Pandora, Spotify).
The portion of royalties owed to the music publisher which are paid in return for the right to reproduce, distribute, or perform a copyrighted musical composition, arising from a contractual obligation (i.e. a publishing agreement) or employer-employee relationship with the creator of composition (i.e. the songwriter(s)).
If an asset requires splitting up a catalog by works or percentages, Royalty Exchange may need to provide royalty accounting services to the buyer, seller, or both. This is because the royalty distributor may not be able to split royalties as intended by the asset transfer. Royalty Exchange's involvement helps to ensure accurate royalty payments. It also helps assure buyers and sellers that they are not missing out on potential earnings.
The accounting process often involves manual spreadsheet work and coordinating with royalty distributors. Royalty Exchange's goal is for the accounting service to be temporary. We plan to work with distributors to find solutions that will allow us to revert accounting and payment obligations back to the distributor, removing ourselves from the process. In the meantime, we've instituted the 5% fee to help offset costs in the manual accounting.
Please see the sample accounting agreement document for reference.
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