Securitization May Work Beyond Music Royalty Income Stream

A securitization is a process whereby an individual or entity pools the right to future payments that it is owed, and sells this right as a security. The first individual to capitalize on the concept of securitization of intellectual property (IP) assets was musician David Bowie. He issued a bond offering backed by his copyright royalties in 25 of his albums comprising approximately 250 songs. Although industry experts expected a flood of music rights securitizations following the launch of the "Bowie Bonds" in 1997, this did not come to pass. However, securitization as a concept is not limited to just music copyright royalties. Any IP right with a proven revenue stream could be used as the underlying asset in a securitization. Therefore, there is a huge potential for extending the concept of IP securitizations to other areas of the entertainment industry.

23 minute readAugust 01, 2003 at 08:27 PM
By
Sean F. Kane
Securitization May Work Beyond Music Royalty Income Stream

A securitization is a process whereby an individual or entity pools the right to future payments that it is owed, and sells this right as a security. The first individual

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