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RightsTech Summit Kicks Off September 27th

The curtain will be going up next week on the second annual RightsTech Summit. Part of the two-day New York Media Festival the Summit will feature over 40 speakers from around the world and will bring together rights owners, creators, technology developers, policymakers and investors from across the full range of media sectors, for a unique, high-level discussion focused on technology innovation around the registration, management, licensing,

Jim McKelvey

and tracking of media rights and royalties on digital platforms.

Featured topics will include:

  • Machine-to-machine rights management
  • Metadata standards and repositories
  • Automated licensing platforms
  • Rights registries
  • Copyright reform
  • Blockchain and cryptocurrencies
  • Artificial intelligence and intellectual property rights
  • Mashups, re-mixes and user-generated content
  • Investing in rights and royalties

Robert Kasunic

The Summit will also feature special keynote conversations with Jim McKelvey, the artist and entrepreneur who went on to disrupt the system of credit-card payments by co-founding Square; and Robert Kasunic, Associate Register of Copyrights and Director of Registration Policy and Practice at the U.S. Copyright Office.

The full agenda for the Summit can be found here. The full list of speakers is available here.

The agendas for all four conferences that make up the New York Media Festival can be found here.

Both the Festival and the Summit will be held at the Museum of Jewish History at 36 Battery Place in Lower Manhattan.

For information on how to register click here.

See you in New York!

 

From Monkey Business to Machine-Made Music

With the long-running litigation between People for the Ethical Treatment of Animals (PETA) and photographer David Slater over the now world famous “monkey selfie” still pending before the U.S. Ninth Circuit Court of Appeals, the two sides have agreed to settle the case and have asked the court to dismiss the appeal, according to a joint statement put out by the parties.

But the settlement of the lawsuit isn’t likely to end the debate over how courts and the law should regard works created by non-human authors. In fact, the debate may only be getting started.

For one thing, as The Hollywood Reporter’s legal columnist Eriq Gardner notes, the “settlement” between PETA and Slater doesn’t fully settle the case between them. In their joint motion to the court to dismiss the appeal, the parties also ask that the original lower-court ruling that monkeys do not have standing to enforce claims under the Copyright Act. If granted, that would presumably leave the door open for PETA or someone else to bring a future claim with a different set of facts.

“PETA contends it would be just and proper to not bind Plaintiff Naruto [the monkey] by the judgment of the district court in light of the dispute concerning PETA’s status to file the complaint which resulted in that judgment,” the complaint says.

In a footnote, Slater’s side demurs, “Pursuant to the terms of the parties’ settlement agreement, Defendants also join PETA’s request for vacatur, without joining or taking any position as to the bases for that request.”

Moreover, the statement released by the parties does not say whether they have in fact agreed on who actually owns the copyright in the photographs taken by the Naruto. According to the statement, Slater has agreed to “donate 25% of future gross revenue from the Monkey Selfie photographs to charitable organizations dedicated to protecting and improving the welfare and habitat of Naruto and crested black macaques in Indonesia.”

Does that mean he has agreed to some sort of shared, or split ownership of the copyright between himself and some other entity on behalf of Naruto? Does PETA, or someone else, have the right to an accounting of Slater’s earnings from the photographs? Who will have standing to bring claims against future unlicensed uses? The statement doesn’t say.

Since the case was settled, whatever provisions the parties may have made with respect to those questions will remain private, and do not establish any sort of legal precedent. Yet, while monkeys may not be rushing to set up Instagram accounts to show off their selfies, works created through machine-learning processes and artificial intelligence are becoming more common. And the question of how (or whether) to fit works created by non-human agents into existing licensing structures is only likely to grow more urgent.

A.I. researchers researchers at Google, for instance, have taught an artificial neural network called Creatism to take aesthetically sophisticated photographs that in A/B tests many professional photographers were unable to distinguish from human-made shots.

Google arXiv

Music composed by artificial-intelligence agents is increasingly finding its way into the soundtracks of advertisements, videogames, apps, and other contexts where suitable human-authored works are either not available or too costly.

It may not be long before A.I.-composed pop tunes start turning up in Spotify playlists alongside the works of anonymous or pseudonymous artists already popping up there.

Those questions will be the focus of two special presentations at this month’s RightsTech Summit in New York.

In one, Edward Klaris, managing partner in the media and intellectual property law firm KlarisIP will offer a global perspective on artificial intelligence and copyright protections.

A second, roundtable presentation, will focus on the specific case of machine-made music. It will feature Drew Silverstein, founder and CEO of Amper Music, an A.I. composer, performer and producer for creating music for soundtracks, and Arnaud Decker of Luxembourg-based Aiva Technologies, which has developed the first A.I. agent to be registered with a collective rights management organization.

The RightsTech Summit will be held on September 27th at the Museum of Jewish Heritage in lower-Manhattan as part of the 2-day New York Media Festival.  Click here for a full list of speakers at this year’s summit. Click here for information on how to register for the RightsTech Summit and the full NY Media Festival.

 

Carrying the Flag for Collective Rights Management

In an age when new technology platforms, politics, and changing consumer behavior are posing existential challenges to the music publishing industry’s long-standing practices of collective rights management and blanket licensing, Paris-based Armonia Online is fighting to preserve the collective.

Formed in 2013 in response to the increasing fragmentation of the European licensing landscape — an unintended consequence of a European Union directive meant to encourage multi-territorial licenses — Armonia is an alliance of collective management organizations (CMOs) that offers one-stop, multi-territory licenses to digital service providers (DSPs) while preserving what it views as the important benefits to rights owners of collective management.

To achieve that goal, Armonia built a collaborative back-office technology platform that allows its member CMOs to harmonize their music-usage data processing and metadata management while preserving their own, proprietary payment arrangements with the songwriters and publishers they represent. The alliance now includes 9 CMOs and 3 mandates, representing over 13 million tracks.

In 2017, Armonia became a charter member of the RightsTech Project, and its CEO, Virginie Berger, will be speaking at the RightsTech Summit on September 27th in New York. We a recent Q&A with RightsTech, Berger discussed Armonia’s formation, its goals, and its views on the evolving role of collective rights management in a time of fragmenting markets.

RightsTech Project: What was the impetus for the formation of Armonia Online? What issue in the market are you trying to address?

Virginie Berger

Armonia Online In 2005, a Recommendation from the European Commission encouraged rights holders to grant multi-territorial licenses directly to digital service providers (DSPs) outside the scope of reciprocal agreements between author societies. This prompted many of the biggest publishers to withdraw mechanical rights from the authority of CMOs (Collective Management Organizations) on the Anglo-American works they represent (as well as some Latin-American and Asian works), in favour of direct licensing in European territories.

As a consequence of this repertoire fragmentation, the local CMOs cannot provide licenses with multi-territorial cover and the DSP has to contact the CMOs in all EU-member states as well as those rights holders that have withdrawn their rights. This poses major problems for all aspects of the licensing process such as identifying the repertoire which requires an additional license and the right holders associated with it.

Armonia Online was created to re-aggregate repertoires in Europe and to facilitate the grant of multi-territorial licenses, by acting as a one-stop shop for online music services wishing to enter Europe. Founded in 2013 by the Italian, Spanish and French collective societies (SIAE, SGAE and SACEM), the hub was joined since by SABAM (Belgium), Artisjus (Hungary), SUISA (Switzerland), SPA (Portugal) and AKM (Austria) and also represents the repertoires of three mandating entities: Universal Music Publishing International, Wixen Music, and SOCAN, for a total repertoire of 13 million musical works.

RTP: How has Armonia addressed that issue? What processes and capabilities did you have to put in place to meet your goals?

AO: The first challenge for our members was to organize themselves into a consortium at a time when the overall licensing market was getting more competitive. In the first place, the European collective societies had paradoxically to structure themselves together within a more competitive environment. In the mono-repertoire licensing system resulting from the fragmentation, smaller collective societies feared a loss of value of their repertoire as well as a leak of their members to the benefit of societies having bilateral agreements with the big publishers.

Armonia’s strength is that it maintains the value for all CMOs’ repertoires, since there is a single agreement on rates and tariffs with DSPs. This is mainly what Armonia has been working on during its first years of operation: how to streamline and harmonize processes within the member societies in order to facilitate and accelerate the granting of pan-European licenses for online services and music technologies. Thanks to these efforts, Armonia has signed deals with Deezer, YouTube, Google Play, Beatport, Guvera, or more recently with 7 Digital and Recisio.

Today Armonia is still working to de-mystify pan-European licensing, but the music rights industry is such a complex business that it takes a very long time to educate the market and the players, especially when they come from outside of the EU – and specifically from the US where the rules are completely different.

Finally, Armonia had to put in place a common initiative which resulted in the creation of a collaborative back office platform to process data and ensure a better identification of rights owners’ works.

RTP: Were you able to use existing technology to build your platform or did you need to develop new technologies/applications, etc.?

AO: To answer the challenges associated with the overwhelming volumes of data to process (around 0.5 TB of data in hundreds of files are sent every month by DSPs) and to avoid the redundancy of processes among the different societies, the Armonia members decided in the very early stages of their alliance to initiate a common back office system. In 2014, Armonia chose the Spanish start up BMAT to build this collaborative service platform for sales reports processing, acting as a trusted and neutral third-party.

The service platform built with BMAT takes the best and appropriate technologies available in the market and is fully scalable. As a first step, the technology enabled Armonia to have a common quality check of DSPs’ sales reports, a single repository with 10-year archive of sales reports as well as a mutualisation of business analysis. Then, Armonia developed metadata cleaning and enrichment to improve reports quality and automated matching, resulting in a faster and more accurate identification of works.

Today, the Armonia back office platform is processing at a speed of 2GB per minute and 72 billion of elements are transacted every month. We keep improving our technologies and developing our tools to improve the accuracy and timing of financial streams for rights-owners royalties’ payouts.

RTP: What are Armonia’s principal long-term goals, and how far along do you believe you are in reaching them? Where did you see Armonia Online ultimately fitting within the music licensing system?

AO: Armonia’s main goal is to sustain collective management of rights in an environment where its relevance tends to get undermined, despite being more crucial than ever for protecting authors’ rights.

Indeed, some entrepreneurs claim authors can bypass CMOs and have their rights managed more efficiently by some new innovative players. Yet CMOs are constantly investing in new ways and technologies to improve their processes. Often, the processing of the data for a given digital service cost more than the revenues it actually generates.

The CMOs within Armonia are not-for-profit and their one and only reason for doing business is to get more revenues to distribute to their members. SACEM for example, the French collective society, has never distributed as much money as it did in 2016. And CMOs always are at the forefront of battles with non-paying players such as piracy platforms or web and TV giants.

Armonia ultimately aims at expanding into a strong international community of societies fighting for the protection of authors’ rights and helping them to make a living from their creations. To that end, we have put in place strong licensing agreements with major DSPs to ensure maximum revenues for the authors.

RTP: How would you assess the current state of the music licensing system? Is the industry moving in fast enough to develop the capabilities needed to sustain a healthy music economy? Is if falling behind? Where are we on the learning curve?

AO: The traditional players from the music licensing system took a long time to fully embrace the new consumption habits in the digital realm and to adapt to them. It’s only very recently that we have seen technology initiatives emerge among those traditional players. However, transparency in royalty pay-outs remains a major challenge among all of those new privately-owned technology structures, whereas CMOs must comply with ever-stricter transparency guidelines.

What has been interesting lately, is how the traditional industry has begun to join forces to build common initiatives in the fields of tech and innovations: the ASCAP/BMI joint song database plan, the SACEM/PRS/ASCAP blockchain project, the R&D initiative of the Nordic music copyright societies ‘Polaris Future Lab’, ASCAP/PRS/STIM partnership with the Swedish startup Auddly… CMOs know they cannot move fast enough to adapt if they are on their own: cooperation and exchanges of expertise are keys.

Yet there is still work to be done and processes to be improved since the digital storm is far to be over. New models are emerging every year, regarding both financing structures and types of contents, that do not fit in the boxes of traditional licensing schemes. It is always about finding the right balance between what is fair for artists without asphyxiating the service: a startup still in its infancy today could be the Spotify of tomorrow, and overwhelming licensing fees or advanced payments could nip it in the bud and prevent from significant revenues in the future.

RTP: What are the main challenges the industry still needs to address with respect to licensing, and how effectively are they being addressed?

AO: The number one challenge in the licensing system today is the identification of works. Collective societies rely on metadata to identify works, but very often, the information available is not qualitative enough to properly match a work with its rights owners. Moreover, the international licensing system relies on two types of information: the sound recording data, associated with the International Standard Recording Codes (ISRCs) and the publishing data, associated with the International Standard Work Codes (ISWCs). Today, there is no industry-wide system in place to reconcile the two, and third-party tech providers often don’t have access to it.

Technologies like audio fingerprinting, metadata enrichment or blockchains have been developed to reduce, over time, the number of unidentified works. Still, thousands of new works are added every day to the thousands of music work already in databases within the publishing industry, making the task very complex.

Another very interesting challenge the music rights industry will have to tackle in the very near future is Artificial Intelligence in the many possible ways it could impact our organizations. How could machine learning change the composition of music? When an AI creates a piece of music, who owns the rights to it? And who is liable for copyright infringement in such event? These are questions the industry has to address today if it wants to remain relevant tomorrow.

 

Square Co-Founder Jim McKelvey to Keynote RightsTech Summit

In 2009 Jim McKelvey was a practitioner and teacher of the art of glassblowing and author of a leading textbook on the subject, The Art of Fire. Frustrated by his inability to complete a $2,000 sale of his glass faucets and fittings because he could not accept credit cards he approached his friend, Jack Dorsey, the co-founder of Twitter.

From that collaboration, Square, Inc., was born, which revolutionized the world of payment processing by turning any smartphone and tablet into a credit card reader and cash register.

That nexus, between artistry and innovation, is the core of the RightsTech Revolution, and will be the focus of McKelvey’s keynote fireside chat at the RightsTech Summit in New York on September 27th.

In addition to Square, McKelvey is the co-founder of the Third Degree Glass Factory in St. Louis, and a partner in Cultivation Capital, an early-stage investment fund.

He also sits on the board of directors of Calpian  Inc., which offers mobile money solutions through its Indian subsidiary MoneyOnMobile, and is an independent director of the St. Louis Federal Reserve.

His latest venture, LaunchCode, is a non-profit organization that aims to grow new talent and create pathways to on-the-job training and employment.

Jim will discuss his evolution from artist to entrepreneur, his strategies for building and growing companies, and the ongoing evolution of the Square Payments Platform.

For information on how to register for the summit click here.

Tuning Up: Tackling the Ever-Growing Complexity of Music Rights

The fragmented and often opaque ownership of musical works and sound recordings has confounded industry participants and would-be licensees for decades. But according to a recent study by rights administration services provider Music Reports, Inc., the most decade has seen a rapid acceleration in that fragmentation, as new genres, new formats, and new distribution channels have spurred new modes of songwriting and opened new avenues for artists. We asked Music Report’s vice president and general counsel Bill Colitre to share his insights into what’s behind the recent spike in the complexity of music rights.

Bill Colitre

Music Reports recently performed an analysis of Billboard’s top 10 hits from the 1960s through to the present using the Songdex® database, and published a press release about the project. The analysis revealed a marked increase in the number of both composers and publishers involved in hit songs over time, especially since the 1990s.  Notably, the number of publishers associated with these hit songs increased faster than the number of composers, such that the average song now has about six publishers and four composers.

The release sparked some interesting discussion on various comment boards. Some commenters made note of often repeated anecdotes about ‘non-songwriters’ being granted songwriting credit undeservingly. Although there is undoubtedly truth to some of these anecdotes, there are also a number of more common explanations for the increase, many resulting from the evolution of popular music genres and business practices in the last three decades.

The 1990s, for example, saw at least two significant developments that contributed to the complexity of modern song credits. First, hip hop became a mainstream genre—one in which musical works often incorporated samples from earlier works.

Commonly in these cases, the publishers of the sampled works have agreed with the creators of the newer songs on shared ownership of the resulting works. When this happens, the rights structure incorporates the composers and publishers of the sampled song along with those of the newer work.

The other important development in the ‘90s was a resurgence of pop, after two decades dominated by artists who largely performed their own works.

Pop music has a long and celebrated tradition of collaborative songwriting. But whereas in earlier eras it tended to be practiced by famous duos (from Gilbert & Sullivan down through Goffin & King), who tended to work for a single publisher, from the 1990s onward it has been practiced by an increasingly cross-pollinated group of professional songwriters working in various combinations, often with contributions from the superstar performing artists with whom they work regularly.

Moreover, regardless of genre, recent decades have also seen an increase in the prevalence of “co-publishing” agreements. In these arrangements, a songwriter may be represented by a large publishing administrator who owns a portion of the writer’s work, while the writer also owns a piece of her work through her own music publishing entity.

This second entity is typically also administered by, but legally separate from, the first publishing administrator, which manages both catalogs together. All of these entities add to the number of “publishers” who may be associated with a single song.

To add to the complexity, those distinct entities may share a common licensing administrator (i.e., the person responsible for granting the license), yet have separate arrangements for where to account (e.g., in the publishing administrator’s case to the administrator, while in the songwriter’s case, to her own publishing company). And each entity may have a different “care of” address for payment (e.g., the specific address for the administrator, on the one hand, and the address of the writer’s business manager, on the other hand).

To this common arrangement we can also add similar arrangements resulting from 360 label deals, so-called “creative joint venture” arrangements, and of course producer deals involving songwriting credit.

Infinite Variety

As if all of these horizontal sharing arrangements didn’t create enough fragmentation, the so-called “bundle of copyrights” is almost infinitely divisible by law, such that different territories may be managed by different publishers or “sub publishers” and different rights types may also have alternative administrative arrangements.

For example, print rights may be administered by one party, while performance rights are managed by another, and mechanical rights by a third. Just emerging now is an even narrower fragmentation of specific rights types.

For example, whereas ‘mechanical rights’ might have historically been handled by one administrator as a class, now we are beginning to see one administrator claiming ‘traditional mechanical rights’, while a second administrator claims those mechanical rights associated with ‘internet streaming and limited downloads’.

A similar fault line is appearing between ‘traditional synchronization rights’ and so-called “UGC streaming” synchronization rights.

In short, the music publishing business has evolved a truly phenomenal degree of complexity, and the reasons for this complexity are widely varied (some better than others).

It is easy to be frustrated by this Gordian Knot of a problem.  But while newer (and perhaps simpler) solutions are sought for future works, there is no responsible way to slice through the world’s great repertoire as it currently exists.

The efficient licensing of, and accounting for, the music being enjoyed by listeners today can only be accomplished by honoring the choices made by today’s rights owners through careful attention to the rights structures they have agreed among themselves.  At the same time, care must be taken to vet the reported claims of those rights owners, which sometimes conflict (and more often by mistake than from fraudulent intent).

As difficult as all this may be, happily there are already common sense solutions in the market.  Modern relational database systems like Songdex, curated by teams of dedicated musicologists and technologists, are able to manage all of the dimensions of complexity called for by this music industry, and do so at scale.

Rapidly ingesting direct, electronic feeds from every publisher able to deliver them, accepting any file format for letters of direction and related repertoire updates from those who cannot, and making available the world’s most effective online song registry and claiming system for unmatched sound recordings, Songdex is at the forefront of this effort.

As a comprehensive, neutral registry combined with a licensing transaction and payment settlement platform, Music Reports currently manages the task of tracking billions of transactions a day across more than a hundred million sound recordings embodying tens of millions of compositions, through the coordinated efforts of at least six organizational departments of humans, and a dozen supporting IT systems. As we often say here, it’s not the database, but the organization that meets the challenge.

To conclude, the modern profession of songwriting and the administration of musical composition rights are growing in complexity. There are more composers contributing to compositions (both together and across time, through sampling). Their publishers are creating new and more intricate methodologies for maximizing returns across an increasingly global marketplace that is adding wholly new channels of distribution almost every year.

One day the business may return to a less fragmented state through technology. Until then it should be no surprise that a complex business requires complex data management solutions.

Music Reports is a member of the RightsTech Project. Both Colitre and vice president of IT business development Michael Shanely are scheduled to speak at the RightsTech Summit on September 27th in New York. Click here for information on registration

Momentum Builds For Music Database, But Controversy May Follow

The music industry has been discussing and debating for years the merits of creating a comprehensive, publicly accessible database of musical works and sound recordings and the ownership information attendant to each — something that does not currently exist. But various multi-stakeholder efforts to compile such a catalog have faltered amid disputes over cost, control, and access, most spectacularly the ill-fated Global Repertoire Database initiative spearheaded by a group of music publishers and performance rights organizations.

Rep. James Sensenbrenner

The need for such data, meanwhile, has only grown more acute, as the volume of new recordings being released each month as exploded and music streaming services churn through vast catalogs, leading to an eruption of disputes and litigation over the proper payment of royalties to rights owners.

Momentum seems to be building, however, behind renewed efforts to compile the universal look-up catalog, although controversy is already bubbling up around some of those efforts. Last week, Rep. James Sensenbrenner (R-Wisc.), the chairman of the House Judiciary Committee’s Intellectual Property Subcommittee introduced the Transparency in Music Licensing Ownership Act, which would instruct the U.S. Copyright Office to compile an open, comprehensive database linking metadata about sound recordings with metadata and ownership information about musical works so that users of sound recordings would be able to identify and locate the current rights owners of the musical works involved. The bill would also appropriate money to compile and maintain the database.

To encourage rights owners to register their works with Copyright Office for inclusion in the database the bill would also limit their ability to bring legal action against alleged infringers if the rights owner has not provided up-to-date information to the Copyright Office.

“Across the country, businesses and establishments play or perform music for the enjoyment of their patrons, but the process of ensuring they are legally able to do so, as well as those who hold the license to the music or recordings being played are fairly compensated, is convoluted and difficult,” Sensenbrenner said in a press release. “The Transparency in Music Licensing Ownership Act is a step forward in simplifying the process and helping business owners to identify copyright holders in one easy location to ensure they comply with licensing and payment requirements.”

How far Sensenbrenner’s bill will go in the current congress is an open question. Very little legislation in moving on Capitol Hill these days amid gridlock over health care reform and the multiple investigations into Russian meddling in the 2016 election. It’s also possible the effort could get dragged into the still unresolved controversy over the appointment of a new Register of Copyrights, a position sill unfilled since the previous Register, Maria Pallante was removed last year by the new Librarian of Congress, Dr. Carla Hayden.

But Sensenbrenner’s bill seems to have lit a fire under other music industry stakeholders who already make commercial use of elements of the data the bill would make public. On Wednesday, the two leading PROs in the U.S., ASCAP and BMI, announced plans to combine their respective catalogs of musical works into a single, unified database and to make it available to others in the industry.

“ASCAP and BMI are proactively and voluntarily moving the entire industry a step forward to more accurate, reliable and user-friendly data, ASCAP CEO Elizabeth Matthews said in a press release. “We believe in a free market with more industry cooperation and alignment on data issues.  Together, ASCAP and BMI have the most expertise in building and managing complex copyright ownership databases.”

Sensenbrenner immediately blasted the move, however, as an attempt to preempt his legislation.

“If BMI and ASCAP were serious about establishing a music database, not only would they have spoken to my office and other interested

Robert Kasunic, Associate Register of Copyrights and Director of Registration Policy and Practice, U.S. Copyright Office

Members of Congress about their plans, but they would have also included their fellow PROs in the initiative,” he said in a statement. “With their announcement today, they are grasping at straws; trying to maintain power over a failing process that only serves their interests, not those of the American consumer.”

The upcoming RightsTech Summit, which will be held September 27th in New York City, will tackle the daunting data challenges music industry and other media sectors face today as digital platforms strain legacy rights management and licensing systems, as well as the renewed efforts to create a comprehensive music rights database.

Executives from Rumblefish and the Harry Fox Agency, Music Reports, and other private companies making commercial use of the data targeted by Sensenbrenner’s bill will discuss the benefits and drawbacks of data sharing and the technological challenges associated with making it available.

The summit will also feature a one-on-one fireside chat with Robert Kasunic, Associate Register of Copyrights and Director of Registration Policy and Practice at the U.S. Copyright Office, who will address copyright reform efforts in the U.S. and elsewhere, including the Transparency in Music Licensing Ownership Act.

For information on registering for the RightsTech Summit, click here.

 

Direct Investments in Rights-Tech Companies Hit $95 Million in First Half of 2017

RightsTech companies have raised nearly $95 million in direct investment so far in 2017, according to data compiled by the RightsTech Project, kicked off by Dubset Media’s $4 million Series A round in February.

That figure does not include outright acquisitions, such as Blackstone Capital’s acquisition of performance rights organization SESAC in January, which included the rights management technology platform Rumblefish along with the Harry Fox Agency.

The bulk of the rights-tech investments this year is accounted for by Kobalt Music’s $75 million Series D raise in May, led by Hearst Entertainment, bringing its total capitalization to more than $100 million to date. As with Blackstone’s acquisition of SESAC, much of the investment in Kobalt is premised on the perceived asset value of the rights it controls. But part of the valuation reflects Kobalt’s ability to monetize those rights using its technology platform.

Growing investor interest in the direct monetization of rights is also reflected in Royalty Exchange’s $6.4 million convertible note offering, which more than doubled the company’s original target of $3 million. Denver-based Royalty Exchange allows artists to offer interest in their future royalty stream to investors through the sale of royalty-backed assets.

Other notable raises this year include blockchain-based rights registry Binded (formerly Blockai), which raised $950,000 in June, bringing its total to date to $1.5 million, and music rights payment platform Stem, which raised $8 million.

Company Description Amount raised Investors
Kobalt Music rights and publishing platform $75 million Hearst Entertainment, Balderton Capital, MSD Capital
Dubset DJ remix rights clearance platform $  4 million Cue Ball Capital
Stem Music rights payment platform $  8 million Evolution Media, Aspect Ventures, Upfront Ventures.
Binded Blockchain-based rights registry for visual arts $950,000  Mistletoe, Asahi Shimbun, and Vectr Ventures
Royalty Exchange Music-royalty based asset exchange $ 6.4 million Convertible debt offering

Notable rights-tech direct investments in 2016, included visual arts registry and authentication platform ascribe, which raised $6 million, rights registration and marketplace platform Monegraph, which raised about $4 million, music rights management platform Revelator, which took in about $3.5 million artCOA, which raised $5 million.

Check Out the Agenda for the RightsTech Summit

Nathan Lands, co-founder and CEO of blockchain-based rights registration platform Binded, Virginie Berger, CEO of Pan-European music rights licensing hub Armonia Online, dotBlockchain Music co-founder Benji K. Rogers, and Dubset Media CEO Stephen White are just a few of the leading rights-management pioneers you’ll meet at this year’s RightsTech Summit in New York.

The summit will be held September 27th at the Museum of Jewish Heritage at Battery Place in lower-Manhattan, as part of the 3-day New York Media Festival. The preliminary agenda for the conference has now been posted on the RightsTech Summit website.

Topics include:

  • The future of machine-to-machine rights management
  • Metadata and unique asset identifiers
  • Authentication, provenance and rights registries
  • Blockchain
  • Licensing hubs and online marketplaces
  • Overcoming resistance to sharing ownership and rights data
  • Copyright reform and technology
  • Investing in rights-tech and copyright-backed assets
  • Trusted data vs. trusted databases

Plus keynotes, special presentations and fireside chats.

Click here for information on registering for the RightsTech Summit and/or the New York Media Festival.

Interested in speaking? Contact Paul Sweeting (paul@concurrentmedia.com). For sponsorship and RightsTech membership opportunities, contact Andi Elliott (andi@rightstech.com).

 

Midem 2017: Blockchain & Copyright

The big Blockchain & Copyright panel at Midem on Thursday, featuring RightsTech Summit alums Benji Rogers, co-founder of the dotBlockchain Music project, and attorney Sophie Goossens, focused more on metadata and the mechanics of smart contracts than on issues related to copyight per se. But it was a very interesting and useful discussion nonetheless, especially in addressing the incentive problem inherent to persuading organizations that control proprietary data sets to share their data in the interests of the industry as a whole.

Here’s the full video of the panel:

 

RightsTech Summit Joins New York Media Festival

The RightsTech Summit is joining the New York Media Festival this year. The one-day Summit will be held on September 27th as part of New York Media Festival’s three-day event series. Other events over the three days include the Digital Music Forum, the NY Games Conference, and the Future of Television. All events will be held at at the Museum of Jewish Heritage at historic Battery Place in New York City.

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