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.
Nov 09, 2016, 3:39 PM MST
Life of author + 70 years
Last 12 Months' Royalties:
Here is a unique opportunity to share in the royalties driven by synchronization licensing on a cutting edge platform. Synchronization or “sync” royalties are up-front fees paid by licensees to the owners of both the musical composition and sound recording copyrights. In this case, the seller holds both copyrights and is entitled to both sync fees. The platform, Musicbed, is a revolutionary way for media creators to find and license music for use in their works. Top brands like Apple, Facebook, Amazon, BMW and GE rely on Musicbed tracks for their marketing campaigns. Musicbed's website gets between 1.5-2 million visits a month and they issue roughly 10,000 sync licenses every month. To learn more about Musicbed, check out our recent blog post.
Up for auction is 15% of those future sync fees for a catalog of works by singer/songwriter Katrina Stone. In the last 12 months, 15% of the sync royalties generated by this catalog totaled $9,984.
Singer/songwriter/producer Katrina Stone's powerhouse pipes and lyrical vulnerability have made her one of the most unique and inventive acts of her generation. Her music is attracting national attention with licensing placements with big names like Wayfair, Hulu, Apple, Pez, and many more. Stone also is part of the duo, The Likes of Us, and often collaborates with several other artists. The winner of this auction will benefit from licensing royalties not only from Katrina's catalog but from any other catalog she has contributed to as well. See 'Documents' tab for full track list.
What is being sold?
15% of the seller's interest in the master and publishing synchronization royalties attributable to the songs in seller's catalog administered by Musicbed. Musicbed distributes payments monthly, so the winner of this auction will receive the first royalty payment in December.
How does this asset make money?
In order to sync a particular recording of a song with pictures or video (like a soundtrack to a movie or background music in a commercial), someone who wants to use that recording must get permission from and pay sync fees to both the musical composition copyright holder (the songwriter or publisher) and the sound recording copyright holder (the artist or record label). The fees vary in amount based on the licensee's usage of the song. Anytime a song in this catalog is licensed for a project - a film, promotional/branded content, a slideshow, etc. - a sync royalty is collected.
What rights are included?
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.
Why does Royalty Exchange need to account?
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