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Originally Posted by Thinny
From what I can gather they help artist make money from their song writing, by promoting their songs to people that need music for TV, or promo etc an make sure that the writer gets the royalties that they feel they are due. It's really not very clear, and I've read a few articles about the company, but for some reason it all seems very vaugue. A lot of what they do seems to be along the same lines as a music publisher, but a more hands on version. So expect that the deal was up with whoever owned Richie's publishing right and he sold the publishing rights to this company, who are a more modern take on the publisher. I think. I could have it wrong...
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Yeah, it seemed vague to me, too. I assumed Richie's share of the publishing rights had previously been managed by his own company, 'Sambora Songs'. But one article I read said that, with a catalog acquisition, 'the purchaser "owns" the copyrights'. With 'owns' in quotes I wasn't sure if that meant Richie no longer owns his share of the songs, altogether; or if it meant that they were in some kind of partnership arrangement where Hipgnosis
also owns the copyrights, in that they could approve licenses for commercial use of the songs to allow for further distribution or promotion.
According to Hipgnosis' Investment Advisers' Report:
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The Company’s investment policy is to diversify risk through investment in a Catalogue of Songs and associated musical intellectual property rights.
The Company will seek, but is not required, to acquire 100 percent of a songwriter’s copyright interest in each song, which would comprise their songwriter’s share, their publisher’s share and their performance rights.
In appropriate cases, however, the Company may not acquire all three elements of the songwriter’s interest and may also acquire peripheral interests such as producer royalties on a songwriter’s copyright interest.
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The Company will, directly or indirectly via collection agents, enter into licensing agreements, under which the Company will receive payments attributable to the copyright interests in the Songs which it owns. Such payments may take the form of royalties and/or licence fees, including:
• mechanical royalties – when a copy of a song is made, whether physical (e.g. CDs, DVDs) or digital (e.g. permanent downloads, streaming, webcast);
• performance royalties – when a song is performed live or broadcast on TV or Radio, or when a song is streamed online; and
• synchronisation fees – when a song is used in another form of media (e.g. movie, TV show, video game, advertisement).
The Company will focus on delivering income growth and capital growth by pursuing efficiencies in the collection of payments and active management of the Songs it owns.
The Company may acquire Songs for consideration consisting of cash, Shares or a combination of cash and Shares, and payment of part of the consideration may be on deferred terms.
Whilst theCompany does not intend to sell the Songs it owns, it may make disposals of Songs where it considers such a disposal to be in the best interests of Shareholders.
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It sounds like Hipgnosis is (partially?) banking on the ability to pursue other licensing even tho Richie is only co-writer, especially on the biggies. Maybe they assume that any of his co-writers would be open to any use of the songs that would increase revenue.
Anyway, I was just curious about the practical implications of all that jargon. 'Cause, as Old Joysey used to say, "I'm curious as a cat."
