Raising Capital By Selling Royalty Income

Web Helps Musicians Sell Shares of Royalties
Web sites like the Royalty Exchange allows musicians to sell parts of their royalty income to investors and define which rights to sell and which to retain.
Article here.   Ben Sisario, "Web Helps Musicians Sell Shares of Royalties", 4/22/2013 NYTimes (Business).

Royalties "Trickle" - New York Times

Ben Sisario, "As Music Streaming Grows, Royalties Slow to a Trickle", New York Times (published Jan. 28, 2013).  Link here.

Blurb from NYTimes: "Companies like Spotify and Pandora are catching fire, but the money paid to artists is often tiny, perhaps half a penny per play, which has the music industry on edge."

Monies Gifts, Not Loans, from Label to DJ

ABKCO Music & Records v. Montague, NYLJ 8/3/10 "Decision of Interest" (Sup. Ct., N.Y. Co. July 26, 2010).

"What is in dispute is whether certain funds transferred from ABKCO on an on-going basis at the direction of its founder and principal, Allen Klein (Klein) (now deceased), to Montague(s), were interest-free, uncollateralized loans or were they gifts or perhaps investments. Arrangements between the parties, if any, were remarkably informal, but now ABKCO seeks the return of several hundred thousand dollars claimed to be loans."

Court dismisses plaintiff's claims - no evidence these were loans.

The Economist Weighs In

A tipster forwarded this article from The Economist about the current state of the music industry and its shift "From major to minor". As the article concludes, "Some among their number, indeed, may not survive."


Thanks tipster!

[The Economist, "From major to minor", Business section of the Jan 10, 2008 print edition.]