The copyright owner is approached
The music publishing industry is small. There is close to 300 major copyright owners representing approximately 90% of the turnover of €7 billion year on year. We have already spoken to many of them.
IMCA issues a letter of credit
Internet Media Copyright Association issues a guarantee of advance payment through bank and/or broker firm. The guarantee finalization is dependent on catalogues value based on Net Publisher Share or Net Cash Flow principle pending due diligence of the catalogue’s provenance.
The music catalogue is evaluated
Music royalties will typically not increase in value, as if they were stocks. Music royalties are consistent earnings paid on a regular basis which traditionally leads to longer-term income payments. Music royalties are “uncorrelated” with the stock markets and as we are heading into a global recession – the next stock market crash won’t cause royalties to lose value.
The flow of royalties act as security and consequently a strong base for CopyrightCoins.
Confirmed catalogue value
ROI and CopyrightCoins (CCIM)
The investor have followed the trading of CCIM closely and wants to cash in on part of the invested capital. Only 10 months has passed, but she’s free to sell CCIM at own discretion. The sale of 1 million CCIM at 1.89 Euro makes for a nice ROI. Since only 10 months has passed, core investment stays intact.
ROI and core investment
As core investment is never touched and only used for advances. There is a strong possibility that the core investment will be paid back sooner than after 3 years. The payout can be in Euro or CCIM (or both). However, if the payout is in CCIM the public value at 12:00 UTC the same day will be used (with a 10% discount for volatility). Any transaction fees are the responsibility of the investor.