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The New Marketplace of Music Royalties | SXSW 2021

Alex Heiche
CEO and Founder at Sound Royalties
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SXSW 2021
March 16, 2021, Online, Austin, USA
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The New Marketplace of Music Royalties | SXSW 2021
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About speakers

Alex Heiche
CEO and Founder at Sound Royalties
Wyclef Jean
Artist at Heads Music
Ellen Truley
Chief Marketing Officer at The Mechanical Licensing Collective
Robert Celestin
Owner at Law Offices of Robert A. Celestin/Intelligent Music Entertainment Inc.

Alex Heiche is the founder and CEO of Sound Royalties. He has an innate passion for music and strong roots in the music industry. Alex established the company in 2014 after identifying the gaping need for fair funding options for music professionals, which allowed creatives to retain their copyrights.Alex has almost two decades of experience in providing cash and finance raising strategies to large annuity recipients, professional athletes, songwriters and artists. He has worked with leading music industry professionals, including Grammy Award winners, platinum recording artists and notable music industry executives in every genre, always with the utmost discretion and privacy.

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I am an artist, musician, composer, producer, and businessman - what some would call a “Jack of All Trades!” Because of my constant curiosity and passion for creating, I have been fortunate to write and produce some of the most exciting music of the last 30 years. Starting my career as a proud member of The Fugees, with the release of The Score in the 1990s to great success, I was able to launch a solo career that included all of my inspirations and musical influences as a songwriter, producer, and performer, with hit songs like “Sweetest Girl’ and “Gone Til November.” Some of my favorite projects came out of collaborations with my heroes, including “Hips Don’t Lie” with Shakira, “Maria, Maria” with Carlos Santana, and “My Love is Your Love” with the late, great Whitney Houston.

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Twenty plus year’s broad-based experience in Global Marketing, Business Operations, Brand Strategy, Digital Initiatives, Business Development, Advertising, Public Relations, Communications, Sponsorship & Promotion and Industry Relations. Also a Producer of Events and Award Shows as well as Magazine publishing. Experience in the design and launch of key strategies in social media and mobile marketing efforts and the development, strategy and execution of progressive branding in both the creative realm and partnership creation leading to innovative sponsorship relationships. Proven skills in leadership, team building and managing all aspects of the creative process into a total business plan.

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After graduating from Yale University and Columbia Law School, I worked as a corporate attorney for 2 1/2 yrs at a corporate law firm named Kaye, Scholer, Fierman ,Hays and Handler. I then spent a year at Arista Records in their legal department.I then went to run hip/hop R&B label Uptown Records( home of Puffy (Diddy), Jodeci, Mary J. Blige, Heavy D & the Boys, etc) as the VP/General Manager for 3 years. Subsequently worked for 2 years with Untouchables Entertainment (home of Donell Jones, Intro, Pete Rock & CL Smooth) in the same capacity. Left and worked for 3 years with Louise West, Esq (represented Timabaland, Missy Elliott, and Ginuwine) as an attorney. Started my solo law practice in 2000 and represented recording artists such as Petey Pablo, 3LW, City High (whom I also co-managed) ,Secondhand Serenade, Mickey Factz, Big Daddy Kane, DJ's Funk Flex, Bobby Trends, DJ Self, and many others. Also represented reality tv stars such as Toccara Jones ( America's Next Top Model), Laurieann Gibson (Making the Band), Momma Dee & Shay( Love and Hip Hop Atlanta) and the family members of the HBO show "Family Bonds". Through my production entity Intelligent Music, I've independently releasing the debut album of latin hip-hop recording artist "Enemigo"( Univision Music) and hip hop group "NGP".

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About the talk

The democratization of the music industry is underway as the expansion of digital streaming transforms the landscape of music royalties. The Music Modernization Act takes effect this year, mechanical streaming royalty rates are on the rise, and the newly formed MLC, along with BMI, ASCAP, SESAC, SoundExchange and others, is tracking music royalties using new technologies. These changes are empowering creatives and independent artists, especially in the wake of Covid-19. As music royalty rights grow in value, what do royalty holders need to know in order to maximize and leverage their royalty assets? This panel of global thought leaders will help royalty owners, managers and advisors make informed decisions regarding the potential value and versatility of royalty copyrights and licenses.

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SXSW dedicates itself to helping creative people achieve their goals. Founded in 1987 in Austin, Texas, SXSW is best known for its conference and festivals that celebrate the convergence of the interactive, film, and music industries. An essential destination for global professionals, this year’s online event features sessions, showcases, screenings, exhibitions, professional development and a variety of networking opportunities. For more information, please visit sxsw.com.

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Welcome everyone to the South by Southwest session, the new Marketplace of Music, royalties and royalties, democratization of the music industry. The rise and royalties as an asset class the variables that impact evaluations of Music catalogs and more will be focusing on royalty music catalogs and what creative can do. In the ever-changing music industry to remain successful and generate Revenue changes happening in the business, this panel will help royalty owners managers and

visors make informed decisions regarding the potential value of royalty streams. First off, we have music, industry, executive, professor and academic leader sirona, Elton the mlc in this role. Surrounded directs, the mlc, his efforts to engage future members of the music industry, currently studying music, business and related subjects at colleges and universities across the country, and around the world. She's also a professor and director of the music business program. At the University of Miami Frost School of Music

and a Yamaha Master educator. She has worked as a vice president and Warner music group and Emi recorded music and has consulted for Sony Music, Entertainment and Universal Music Group. Most often involved in the mechanical licensing and royalties and Rights Management. She has held leadership positions in the recording Academy and in the copyright Society of the United USA and it's also an attorney. Next, we are Bob celestin who is the principal founder of one of the top entertainment. Law firms in New York City is a graduate of Yale University and Columbia law school. And

has practice entertainment law for over 25 years. Working with the legendary Clive Davis and went to work as a GM Uptown records. The house of superstars such as Mary J. Blige Heavy D & The Boyz, and Sean Diddy. Combs He later worked for Untouchables entertainment at the home of Pete, Rock & CL, Smooth. And Donald Jones has BP GM went on to work with his mentor and a caiman attorneys Louise. West in representing Timbaland, Missy Elliott, and genuine. He also managed

to grammy-nominated in platinum-selling hop, R&B group City, High presently, the law, offices of Robert, a celestin represent and provide strategic advice and counsel to Independent record labels startups and production. Companies recording artist, producers songwriters reality TV stars. BJ's another present, clients include designer 6 9, the estate of extension and pop smoke and many, many more. Lastly, we have the amazing artist, songwriter producer actor, and activist Wyclef Jean. The music that Wyclef

Jean is written for formed and produced both as a solo Superstar and as a Founder in guiding member of the Fugees has been a consistently powerful pop culture for over two decades in 1996, the Fugees released their Monumental album the score since then Wyclef has released a towel bones as a solo artist that have sold nearly 9 million copies worldwide, including his 1997 debut, the carnival and two thousands, The Eclectic two sides to a book. In March 2019 Wyclef released Wyclef goes back to school. In collaboration with students. He met. While touring the

United States and visiting colleges across the country and features singles demons. Enjoy Baba and Faded butterfly while his latest song. Dear Future Self hands, up with Fall Out. Boy, premiered on, Jimmy Kimmel Live. In September, 2019, Netflix announced the production of an Untitled animated Project based on the real life story of Wyckoff childhood in Haiti, in his most recent project, Wyclef host, run that back a one-of-a-kind show for music. Lovers of any type where Wyclef interviews Heavy Hitters from all walks of life, from music, to sports, to politics &

Beyond, you never know what you'll learn about the world at war music from Wyclef, but you will definitely find it anywhere else. He's guaranteed to make you run that back to what that must dive right into the panel. First, let's talk about what we're seeing in the world. Few landscape Realty rates in the mlc has begun its work to license interactive stream make sure artists get paid for their digital mechanical royalties and royalties for Creative. Can you tell us a little bit about the mlc and what you're doing for creators? Absolutely my pleasure and naiah and I'm honored to be here with you

today. So the mlc is a brand new nonprofit organization created specifically by the music modernization act. The actor actually lays out 13 different things that we're supposed to be doing, but two of them are really itchy. The first one is that we are administering, a new blanket digital mechanical license, which involves us collecting mechanical, royalties from interactive streaming services, and download services. And paying those royalties to music, Publishers, publishing administrators, and self-administered songwriters Lyricist and composers.

The second key thing that we are doing is maintaining a publicly-available database of musical, Works ownership information. That's great. That's awesome. What impact will the music modernization Act? And the mlc have on sun Riders Revenue? Sure. So music modernization Act is actually made up of three different title. Title one has to do with Mechanicals and the mlc. But title 2, and 3 also will be impacting the revenue. Going to creators, I'm not going to speak to those, but I just thought it was important to point out that the the MMA

has that has multiple sections to it that are going to benefit creators. So under title, one would be at the mlc songwriters. Now are going to know very specifically where to go to get this type of Revenue. We are working on making sure everyone knows who we are, which is why we're at South by Southwest so everyone will know very clearly where to go for this money. Songwriters will have support from our customer experience team to help them if they're not sure how to set up there. Song information to make sure they get paid. So there is a real support

system available to them and Willie excitingly for the first time there. Have the ability to look at what we call our unmatched data. So this is cases where we have not been able to match the recording information that we're getting from a digital service to the musical Works information, we have in our database when we can't make that match. We call that an unmatched scenario and songwriters and and music Publishers. All of our members will be able to have a look at what is sitting in that bucket of unmatched activity and make sure that none of those are recordings of

their musical Works. They'll really have to be empowered to make sure that their musical works are connected to the recording of them so that they can get paid. I'm all of this ultimately means that the control over the data is in the hands of the Creator which ensures that the payment is accurate And Timely That's awesome. I want thing to add, please correct me if I'm wrong sooner. We get a lot of questions over its royalties on, is this stream additive. And and for the most part it is it it's it's things that they typically may not have been paid for in the

past. Would you agree with that? Download. Paying mechanical royalties for a long time, but not up. Not everybody knew how to get them how to clean them. So, most Publishers that lets they were signed up for Avicii with the Harry Fox agency. They've been around a long time and have handled Mechanicals on behalf of many Publishers Publishers were going to the Harry Potter Agency. For example, we're getting paid songwriters who signed up with the Harry Potter agency or women organization called music report who

are both handling some compulsory digital Mechanicals, we're getting paid. But not everybody was getting paid and not everybody was happy with the way. It was all working, which is why we ended up with the music modernization act in the first place. So for some groups of people, this will be incremental money that they have not been seen before. For others. They have been getting paid and they'll continue to get paid. Perfect, that's awesome. Bob, what are you doing? Or have you done and what can other attorney managers do to prepare their clients for the changes happening? Now,

with the mlc, Cool. Before I even get into answering that question. You got. You can hear me correct near me. I just want to just, you know, shout out to my man, white classified, as a fellow Haitian. You forgot to the crime as described him as the number one Haitian in the nation is number one. Number two, we mentioned that I could Amanda ruple City High, what city and I will stay until to Wyclef and it's cut the gray. One is labeled you're a drink tea with Interscope so for me to give you your flowers while you still hear. You feel me? All right.

So what happened to my clients and other managers or production companies is number, one of the importance of maintaining some sort of an Excel spreadsheet or database. Now more than ever is going to be in for that artist, songwriters producers managers production companies, keep track of their ownership interest in compromise. I first thing I'd probably Able to do is to become a member of the mechanical licensing Collective. I tell him to go to DM lc.com and Anna register as a member. At the same time, make sure they register

Sound Exchange to. There's a music data organization worksheet which is basically another form of a split sheet on mechanical spreadsheet, that they should, you know, print out or you'll make sure that they take it with them at any Studio sessions that they go to. So they can start, you know, making sure that they document, you know, their ownership interest in these compositions that they're producing organ. They are creating and, and make sure that they submit that to the mlc, to the extent that they

have admin deals with Publishers or cope up, deals with Publishers, they should be taking care of this. My experience, I advised managers or or or or or artists to kind of stay on top of these admin companies are sometimes they think they'd forget to to register the song. So they've got to stay on top of all of these guys to make sure that their information is being in, put it correctly. Yeah, that's awesome. Bob. That's one of the things that we often see is, is if their hat, if they're well represented. The maybe it's your law firm,

in our other friends like you, they tend to have their data more organized than. And that's really the first step I really knowing where you work. I link my PayPal password to help you been in the industry of a long time and you're not supposed to be familiar with the music. You're, you're well-versed in an expert. My opinion, on the business, side of things, from a creative perspective, what does the A&M A&M LLC mean to you? And how do you ensure that you will benefit from these changes? Why me? First of all I want to shout out everybody here. You know, my brother Bob we go way back

every when I'm like friends of yours and different ways. So this is the most amazing part of this, right? So, I have a brother. His name is Sammy, was John and he's a lawyer. And I remember coming up from Haiti and coming to America. When we grew up in a religious family, my dad was a minister and when he was like, okay, you know, he had set it up for us to go to law school and he's like the idea of what I wanted to do and I was like I'm going to be a rapper so he's going to be one of the things, my father said, Tell me

one Haitian music that, you know, in a lifetime or just musicians, in General that, you could say, our successful it from you and me being a musician, a lot of advantage that I've gotten a lot of the youth has not. I mean, you have to understand that. 23 + 2421. I mean, we're already sitting on a lot of money right hand. In the first thing is, I go back by saying maybe if somebody was to say, open, We have women, explain to you, what royalties really are by this actually a back data Channel? You know, where, you know, we

understand artist you live in your head, you live in outer space, you live, you know. So what I like about MMA of coercing, mlc 2 is not hidden to the yard. And this is very important because as we know information is power, right? So that's why we as the artist on the worst organizers, right? If you like a true creative dudes coming up in the 90s, it's not like now my daughter is 16 and she has a different mindset. You tell my daughter where you going to do she like, Daddy I might have a makeup line and, you know, I want to set up my business right from the gate.

So the mentality of a youth Today's versus when we was coming up, was a different era. So what I liked about what's going on is an artist is true. Real estate is when he comes up or she comes up with and I feel that the value that that comes with has not ever really been respected in the sense of giving the artist distance of education and wanting to protect them. So, for me, this is a platform that support we encourage artist to come on because as you move towards the future, The reason why I'm 51 in Maine

still look like myself is because of situations like this because at the end of the day the fact that your real estate is actually protected and you can really grow it with a group of people that actually is not going to hide the data and give it to you is very important. Yeah, that's awesome. David transparency is something that the digital age is definitely brought us and it and you know, what is so many creative that were talented in their own, right? Didn't make it because they couldn't grasp the business stuff. Going through the years, you are able to stay on top

of it, get ahead of it. And now we're in it in a, in a transparent age were definitely, it's more tractable and it's definitely more beneficial. But it's funny when I started in the business, I started this little chart of you get this royalty stream from here, from the sound recording, this comes from the, from the composition and I started building this chart. And then in about a year ago, we looked at it. I realized they were over fifty income stream to creative people acted rashly put together this chart and put it on the website. You know, 50 income streams and where to find them.

It's just insane, show me different areas. Yeah. It's, it's crazy. It's crazy. Oh, happy to. This is important. This is so important. This is let's not skip this part right because I am what you call a case study right because at the end of the day you know an artist is so important that you hear this part. So let's start with me. Just as a composer write, one thing I learned was that it was 50, different ways to collect. I didn't want that part 2. Well thanks thanks Cliff that's very generous of you. Yeah since we have the 50 income streams listed on our on our

website. But you know, we try to take everybody through it. Whether there are you, why class 4 or someone that's an indie artist, it's it's part of the passion of why we started it. So thank you for that secret. That streaming has been on the rise is currently account for over 80% of the revenue for Creative. What are the top places that, you know, a creative should be registered for in order to earn all the Roku streaming or lease the bulk of them? Well, the front first thing Wyclef brought up an interesting point in his conversation, you said we'll stay

by intellectual property is being real estate. The first thing that comes to mind everybody out there who are watching this video, I want y'all to write down these three letters. C y s. It stands for copyright your shit. Hey, this is this is this is the origin of register your copy, right? So the first place, you're an independent artist that you should be. You should familiarize yourself with is www.copyright.gov because all of these income streams. Are emanating from this real estate

with your intellectual property and the first thing you want to do is protected, right? That's the first thing. So, We mention it, obviously computer should be registered with the mlc. Definitely sound machines to this day. I never, I'm always classify office and I'll stop them, ask them. Hey, are you ready to exchange? And it looks like know what is that. And, you know, Sound Exchange been around for years. They collect your digital performance royalties, and they are sort of doing what mlc is getting ready to do, which is trying to

advertise and educate. The artist of their existence is a lot of money there. It's being generated that are just not being taken advantage of. Obviously you should also registered with the various p r. O s for my rights organization but there's a scab bmrc sack. If you're independently released in your records, obviously you want to be with the distributor that's going to account to you on streaming revenues. And and if you're, if it's possible to enter into an admin deal or co-publishing deal with a major publisher and help you collect on his Revenue, I will

it be also something that would be worthwhile getting involved. And maybe sad example and the other 30 or 40 income sources that are on the sound royalties website. It's interesting. You know, we just recently the case with a major artist and said, this is my Sound Exchange and my labels collecting the rest and in a brief conversation. The initial conversation is like, why I own a few of my Master's. And so the question was, do you have a right to own her account for Sound Exchange as well know,

I have this sound of a nice chunk of income and and it just it was being missed. And so no matter who it is, it is happening all the time because they're so many and stuff's getting dropped and so important to be on top of it. You know, what are your personal thoughts and things moving to streaming, you know, through the years people have been moved to streaming with a creative perspective and how do you feel about us heading into a streaming error? Which streaming is it's very interesting. what's interesting about that is,

The power. Is that? It took away from life. is the the physical aspect and the The rule on. what it has to be, when it comes to music, how you have to put out the music, the order within the music, the amount of music that you have to put out and Very threatening to someone who selling a VCR. When you say you coming with a DVD to someone who selling a DVD, when you say, you coming with the cloud. And I think that we would definitely at the medium and I'll keep going back. So, mlc right now. Is that? I think that The

artist now has by law. Legislation that is here now to protect them. So I think that would definitely had a good balance as far as like, for the free. Yeah, it where it's a step deck, huge step in the right direction, and we're going to keep pushing for the Traders cuz if so it's definitely that it's the heart and soul of everything and end the reason for all this house, how will the mlc impact the flow of streaming royalties? Yeah. So in almost all cases, the mechanical royalties from streaming services will be flowing through us. The only exception

to that are what we called, voluntary mechanical licenses, that some Publishers have entered into directly with Digital Services. There are some of those not a lot of those. They tend to be the larger music Publishers but aside from those voluntary, licenses between the Publishers, and the Digital Services. The rest of those mechanical royalties will be flowing through us. So we'll be collecting them. And then they slow to the party that controls the publishing. That's generally, the music publisher or publishing administrator. But in those cases, when that song writer or composer is

handling their own publishing, then that money will be flowing directly to that. So, we now we're kind of in the middle of this Revenue flow for most people for mechanical royalties from Digital Services. Just as you would ask me earlier, some of those parties will be paying. We're getting this money before through other companies that were working, you know, providing services to digital service, is trying to find people to pay and pay them some of that money. Now would be flowing through US instead and some people never even knew that you could sign up to get that money. So in all those

cases, those trucks are going to be getting payments from us on a monthly basis. Do you think they'll be a disruption in time flow? Cuz you for those that were collecting it's now, it was some of it is being coming to the mlc will that have an impact much? You think the w a one-time impact. So some of those folks were getting paid quarterly and now it's going to be paid monthly but there's a time. Where are our blanket licenses went into effect January 1st of this year and the digital services that have chosen to go that route? You're once January is finished, they have a. Of

time to then sends the data to us. And then after that. Of time, you know, we have some time to ingested in our systems match, it and pay people. So there is a time lag from, but that's stream that happened on January 2nd until when it ends up on a royalty statements. But from that point forward, every month that process is going to fall the same timeline. So people will be getting paid every month, but there will be a bit of a gap from December and then we got paid from the San Which was before I threw when we start receiving this royalties in January, and then start paying it out in

late spring. So, that's a one-time timing issue. And after that, then they'll be paid monthly going forward. Thank you, awesome. That's great. Bob Pitchfork recently referred to the copyright Acquisitions and Investments as musics copyright, Gold Rush and Son Gold Rush. Money, you know, it said that they goes back to, you know, back back in the day. When, when there was a gold rush in the west of evil or are all the, the miners and settlers moved to the way, they want to get that money. At the end of the day, it's

about the dollar bill. Now, all of us are old enough to remember the roller coaster ride has been the music, and we first got a message from the 90s and CDs were King. Recommended was flush with cash. Then we have master master came in for those of you who are watching the don't know what Napster is the software that allows kids. To just basically share music on their computers are by destroying CD sales and causing a lot of agita and anguish to the record labels and almost with the

death knell of the record labels and then we have Steve Jobs, please iTunes. I was trying to stem the flow, the piracy for a second and then we ended up having Daniel Atkins Spotify and streaming has been, you know, as we supposed to take the music industry to on a whole nother level and because streaming is still a growing medium of of of distribution for music. Hedge funds and some plans private investors are looking into acquiring copyrights and in some instances Masters because with a copyright falls. Into what's known as a perpetuity model, you can be able to

not only get a return on your investment, but actually make a profit because you have a longer. Of time to profit. So this is the number one reason why these does a gold rush. Go to speak as far as streaming Stever. And do you think, you know this all these investors you mentioned that are coming in and coming into the market to acquire copyrights? Is that the greatest impact on these valuations were seeing the multiples, go higher and higher. But do you see any other impact causing these valuations to go up? I mean, you know, the number one

thing is, if you're creative recording artist producer, you obviously want to make hit records. And as long as there is hit records, it wasn't going to be the reasons why the valuations will increase as they are because if you got a hit record or Classic record, I mean, we just we just finished Christmas. You look at you listen to Mariah, Carey's all I want for. You is Christmas every Christmas and Thanksgiving to pop the beginning of January. That record is going to be a number one, top. Five record Extreme like crazy and his income

being generated that song, every year, increasing evaluations. Plus you know, according to a lot of Wall Street analysts streaming is as, as a Long Way to Grow trying to I think the scribers an hour about in Spotify it's like a hundred, forty-four million subscribers, estimated to rise up to 154 million, the lot of room to grow. So which means a lot more money being generated, which makes you know, investment advisors and hedge funds in all of that really, really happy.

Absolutely, there's that there's more ice on it and more interest in it. And I think part of it is what you mentioned by this. You know, we had to see the consumption Marketplace in certain amount of CDs were being sold for a hit record. Write the Napster kind of chipped away at it in an apple music, brought it back and iTunes and then Apple music after that. But it was a certain Marketplace that would pay for music. Streaming legitimizes the consumption of music and what we're seeing is india-china. 2.7 billion people combined in those two countries

34 to 36% of the world's population. What typically not paying for music. But they're starting to maybe not $10 a month, but ten Yuan 10 Rupees watching ads, driving ad Revenue in different ways and so the value of those. Exactly. And so, you know, those its Revenue, we're seeing coming from places, we never saw before and only just started and said, any suppression do you sell or do you not sell and then, and Wyclef, you know what they're growing attractive, the

music royalties as an asset class, with the numbers going up, and then catalogs or selling it. Multiple many craters consider selling their catalogues especially in a drink or something, you even considered yourself That's definitely a great question. And I want to start off by answering his, we said the word covid. I want to apologize to anyone if you see me constantly on the phone, it's because I did not not want to do this, cuz I knew how important

it was. But at the same time my mom is going to coat it right now and you hospital. So I just want to apologize if anyone has seen me on the phone, thank you so much and she going to be strong. So it in saying that the first part about it is To each artist. It's a decision that they have to make fried so I saw that. So, for example, like my p r, i saw it came out on DVD. Shakira sold her publishing. You know, Bob Dylan doing a deal for the publishing. Pretty amazing. But each creative understand, they're Low by.

So as you know what, you can handle and what you can handle, you know, your lifestyle. I would say, in the time of covid, I've seen a lot of my Tears of a lot of them, and a lot of them have. Let catalogs go on in a different situation and I see that to each his own, but I would encourage every artist. If you have had, this is just impatient. And I will tell you, if you avoid You got your ears, you got your feet. You got to Talent. You can constantly constantly make the

music. The only thing I want you to remember is in order for you to have generational wealth. And that means like, when I'm gone my daughter and her daughter's daughter and they thought his daughter. This is the reason why you hold on to that catalogue, as long as you can and never sell. I'll let you have to be. So that's like my I might do to, to the, to the question. I know I speak for everyone here and our thoughts and prayers, and your mother, and your family. So we're definitely sending positive vibes your way. And yeah. And if you

need to bounce bounce, we get it family first. And that's the most important. But, I will say to what you said, wasn't very powerful message and that's what we're saying that, you know, there are alternatives to selling there's ways to finance their advances and things like that. The last-ditch has to sell it as you mentioned in a, hold on to it. And you know, there are options and which is good. But Bob is here today, who is considered, what would you say to help them? You know what is considered a bad deal on a catalog sale Roshes Vance and how can creative support

it? I mean kind of piggybacking off what Wycliffe said. I mean obviously as an attorney, Jesse an attorney of color, you know, where and most of my clients are artist color, Aspect of ownership is something that we try to counsel to do to our clients because Lord knows that in the past, they have now, they've been ripped off or, you know, Bamboozled out of the ownership of their intellectual property. So obviously the first thing and, hey, hold on to your your copyright.

But having said that given where we are in the world today. You know, my first question when a client comes to me. I've been involved with a number of an asset in catalog sales actually closed. A pretty big, one last December. And first question, why do you want to stop? What what is what is motivating you to sell most of time to some sort of financial hardship on especially given what we are proposing. Then the next question is, well, there may be Alternatives such as found royalty, where you can get an advance of. I did a deal recently

where we can go alone, the client took a loan out against the revenue being generated by his copyrights and I also own some of the Masters as opposed to selling it out, right? Then there's also the possibility of selling some Of your ownership interest not necessarily or now Wyclef work. Another Point, generational wealth. Some of these deals that are being offered. really will result in generational wealth if if if that the numbers are really pretty massive

such that if you were to sell now, only we're children be fine for their children and their children's children and their children's children will be fine. And so that's a and aspect of a doing a deal like that, that you have to consider. So again, it's all on a case-by-case basis. Got to really sit down and talk with the client, find out where they are before, you can help them make the best decision possible. Thanks Bob. One of the things that we here and wanted by so I could give it to attorneys

business, managers managers created themselves as yester Alternatives. But if there comes a reason that it makes sense to sell, make sure you set it up properly. You know how many, many crabs come to us asking for guidance on this more often able to help you know, if it decision is made that you're going to sell, don't take the first day on the table and typically, like you mentioned, Bob, it's because money is, is it is a concern for one where I need for something, maybe it's an investment, or maybe like covid, like, you mentioned. And so, we offer, like, Frenchmen

asking short-term three six months to give them the time to shop and get the most. And then on top of that, you know, get the guidance will point you in the right direction of who the buyers aren't and for your type of asset and what makes sense. So they're all our options and it to look at Looks looks kind of wrap it up a towards the end here and look at the democratization of the music industry, which we talked about briefly music is more acceptable for Creative success or career without the barrier entries that we saw before, you know,

you needed before you need to label and pushy, pushy and releasing releasing it on Apple music and dance around the world. What advice would you give these indicators as they're launching their careers? okay, so the first thing I want to tell the Indie creators is You know. We celebrating with the 20th 5th year anniversary of the score, right? And so when I'm here in about like, kids doing and all that, that I always smile because the album ever that I did

it with the Fugees and Jerry Wanda and that was done in the hood and my uncle's basement. The big studios, anything that matters. It's always what you have in your head. Checking things that I want is so at 51. And when I look at the wall and I say, okay, so I said the amount of music now. And I want you to look at what's going on in the situation, covid Spike with streams and that's all around. What movies? So I want you to create is and you independent independent artist to really think the

Avenues. As you move forward, it's going to be very, very important because it's a big Avenue here where the ability to get sync, licenses are going to be endless if you have the material. So I'm moving forward, it's important. I say this because I guess in my selfish way, I just started the first scoring and jingle company of diversity. I'm representing composers scoring movies, clearly life. And so, for me, it's important, When I was coming up there on the Billboard charts. So what

the creators to understand the covid cannot stop you. As you move forward, there's a whole plethora of music that's going to be needed for movies for commercial pools, in four different things. So, do not put yourself on a box and don't think, like, let me just put music out and one situation because you, you are that time. So that's what I wanted to share with them. Backs. Thanks, thanks Wyclef and for those that don't know if you know I had the pleasure of watching Wyclef perform some of this works with an entire

Orchestra was just incredible. So musical genius there of all levels about what advice are you giving creatives that are self launching their careers and releasing music on their own? As I say, we let us down. Cyso, you sneaking it if you don't copyright it, right? That's the first thing you can do. You don't need me to do it right. Just go to www.copyright.gov and protect intellectual property that you are creating is the first step. Of course, make sure you are friendly with with the spreadsheets or the MLS

the mlc. Worksheet where you can keep track of your ownership interest in these songs that you're writing. If you're writing them with other co-writers, juicers Etc, very important to make sure that when you leave that session, That piece of paper. I don't care if you got to take a right on a napkin basically, right down the ownership, interest in the composition, And then register with the mlc sound machines. Calm join the pro right? Do all of the things are necessary

to make sure that once you are Distributing music that you are going to be able to monetize and put some money in your pocket. First and foremost after you create something register the copyright to your intellectual property. Ace. That's awesome. That's awesome, Bob. Thank, you know, it's been an interesting panel, you know, we talked about the rising royalties as an asset class, and just dreaming being on the rise and currently account for 80% of revenues for Creative Suite coronavirus, you really brought us up to speed

on the mlc and end the benefits in the value and the great work that you guys are doing and then talk about the democratization of the industry and you know the rise in music copyrights as an asset class and why they're going up, you know, the increased consumption, The increased market for them, bastards coming in and whether to sell or not to sell and and and and Wyclef you waiting on that, I really appreciate what you had to share there. And also, for the Indy creatives, those just launching the careers themselves. No, thank you so much, everybody logged in to join us

on this panel. And, you know, definitely, I'd like to extend a warm things to sarona to buy After white cloth for taking the time to offer up their stories, their insight and experience, and Wyclef, our thoughts and prayers. Go out for you, your mother and your family as well. So thank you everybody. Thank you very much.

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