Recouped advances

The principle of CopyrightCoins is based upon the royalties that flows through the system and as such the value of CopyrightCoins is backed by the value of royalties and not solely based upon bid and ask as all other currency in existence.

This guarantees a better liquidity (in our opinion) as any bid/ask are backed by a commodity that are (again) backed by fiat-based royalties. Royalties have been paid but have yet to reach the Copyright Owner(s).

If we use music as an example – the value of a Copyright ownership is reflected in the popularity of the song. If the song is part of a back catalogue (i.e. older than 18 months) there is a fairly good backdrop for estimation of that particular song’s royalties and that value can be expressed in a formula coded into smart contracts.
If we only look at the Copyright in Musical works (composer and text-writer i.e. songwriter) there are several methods that are used in estimating the value.

Advances for exclusive administration rights.

Advances in Euro..
Based upon Net Publisher Share (NPS) an advance can be paid in Euro (all other currencies are pegged to the Euro) the latest 10 years an advance of €500 000 is paid and the royalties coming in the “old” way goes directly into the fond.As soon as the DSP’s records are updated and activated the royalties will go directly to the Euro account and immediately be available for further advances.

An example of advances and “traditional” royalties payments in escrow.
For instance, if an average of €100 000 over the latest 10 years an advance of CCIM equivalent of €500 000 is paid and the royalties coming in the “old” way placed in escrow as guarantee for the CCIM value. If the value of CCIM raised above €1.00 per CCIM the profit goes to the holder of the CCIM and the equivalent in € is released from the escrow into the Euro account of IMCA. If the value falls below CCIM = €1 the escrow account guarantees the payment of the CCIM=€1 (must wait until funds are available due to old ways of receiving)

By always “guaranteeing” the Copyright Owners that the price of CCIM never will be lower than €1=1 CCIM because they are putting up the royalties collected as collateral IMCA will be instrumental in keeping the price of CCIM stable.

This is of course not the case for the CopyrightCoins that are in “free” circulation.

An example of advances and “traditional” royalties payments in escrow.
For instance, if an average of €100 000 over the latest 10 years an advance of CCIM equivalent of €500 000 is paid and the royalties coming in the “old” way placed in escrow as guarantee for the CCIM value. If the value of CCIM raised above €1.00 per CCIM the profit goes to the holder of the CCIM and the equivalent in € is released from the escrow into the Euro account of IMCA. If the value falls below CCIM = €1 the escrow account guarantees the payment of the CCIM=€1 (must wait until funds are available due to old ways of receiving)

By always “guaranteeing” the Copyright Owners that the price of CCIM never will be lower than €1=1 CCIM because they are putting up the royalties collected as collateral IMCA will be instrumental in keeping the price of CCIM stable.

This is of course not the case for the CopyrightCoins that are in “free” circulation.