Royalty Exchange is a dynamic platform that connects rights holders with investors interested in acquiring royalty income streams. Whether you’re looking to invest in music royalties from global artists or monetize intellectual property, Royalty Exchange offers a transparent and structured marketplace. Here’s a breakdown of the process:
How It Works
1. Explore Listings
The platform features a curated list of open royalty investment opportunities. For instance, current offerings include royalties from high-profile artists like Duran Duran (songwriting royalties) and aespa, EXO, NCT Dream (songwriter royalties). Each listing provides details such as:
List Price: The minimum price required to acquire the rights.
Last 12-Month Earnings: Historical income data to evaluate potential returns.
Term: Many listings are for the Life of Rights, meaning you earn royalties as long as the copyright generates income.
2. Analyze Data
Every listing comes with detailed financial statistics, including earnings over the last 12 months and a comparison with the marketplace median. For example:
Ocean Avenue royalties offer a 10-year term with a $45,000 list price and $4,363 in last year’s earnings.
Kygo’s “Firestone” is a life-of-rights opportunity with consistent performance metrics.
3. Bid or Purchase
Depending on the listing, you either place a bid during an auction or purchase directly at the list price. Auctions allow competition among investors, while fixed-price listings offer immediate ownership.
4. Earn Passive Income
After acquiring rights, you receive royalty payments directly based on the earnings generated by the intellectual property. These payments are typically made quarterly.
Keep in mind
By paying the minimum bid (e.g., $5,000 in some cases), you can become a right holder of the specified royalty stream, assuming you win the auction. Here’s how it works:
When you place a winning bid on Royalty Exchange, you are purchasing the rights to receive a portion (or the entirety) of the future royalty income generated by the asset listed in the auction.
The exact nature of the rights (e.g., performance royalties, mechanical royalties, or other income streams) is specified in the auction details.
As the right holder, you are entitled to the income generated from those royalties for the specified term, which could range from a fixed number of years to the life of the copyright.
However
The $5,000 is an example of a minimum bid. Actual amounts depend on the listing and competition from other investors.
You are not acquiring ownership of the intellectual property itself (e.g., the song or catalog); instead, you own the rights to the royalty income tied to that property.
How to Start
Create an Account: Start by signing up on the Royalty Exchange platform to access listings and investment tools.
Filter Listings: Use filters like “Dollar Age,” “List Price,” and “Last 12-Month Earnings” to find opportunities that align with your investment strategy. For example, you can narrow down investments by selecting a price range of $10k-$50k or choosing assets with high historical earnings.
Review Offerings: Each listing provides insights into the rights being sold. You’ll find comprehensive details, such as:
Sound Recording Royalties for Dee Watkins, listed for $240,000, showcasing a $20,820 annual income.
Royalties for TV and film cues, priced at $800,000, offering steady returns for large-scale investors.
Make an Offer or Purchase: After identifying the ideal opportunity, either submit a bid during the auction process or complete a direct purchase. Once successful, you’ll own the rights to the income stream tied to the intellectual property.
Track Your Investments: Use the platform’s dashboard to manage your portfolio and monitor earnings over time.
Why Choose Royalty Exchange?
Diverse Opportunities: The platform offers assets across music, TV, film, and other royalty categories.
Transparent Data: Financial and historical performance metrics empower investors to make informed decisions.
Flexibility: Options range from high-profile catalogs to smaller, accessible investments starting as low as $5,000.
Royalty Exchange provides a professional, data-driven environment for investors and rights holders alike.
