Twitter is always a goldmine, yesterday I stumbled upon the Royalty Exchange where royalties in music, intellectual property, pharmaceuticals and minerals trade like stocks. The Royalty Exchange is a marketplace that specializes in buy, sell, and auction of owner royalties. Royalty streams are the exclusive rights of the owners of intellectual property so putting them up for sale in an unregulated market is perfectly legal. Within the marketplace the Royalty Exchange packages the royalty streams for auction, bidders bid on pieces of the royalty streams and sellers are paid bid prices. The bidders eventually receive royalty revenue. There seems to be little guidance on this as an investment tool but more of something cool to own. I know I would if it was super affordable.
Pandora Inks Deal with Merlin
Billboard reports that Pandora has inked a deal with Merlin Records. The deal will expose Merlin to Pandora listener data and give them endless access to a pool of over 70 million music listeners. Pandora will no longer be responsible for paying Merlin standard copyright rates set by the Copyright Royalty Board because Pandora will now pay Merlin pre-negotiated rates. Pandora will continue paying artists royalties through Sound Exchange. Overall the partnership will help to curve Pandora’s royalty expenses. Last year royalties were Pandora’s largest expense, cutting into more than 50% of revenue. Hopefully the partnership proves profitable for everyone involved.