Who Are We?

Copyright Exchange^SM is the marketplace for the new intellectual property economy. The new Nashville business is building a professional, predictable environment where copyright holders and potential buyers can connect and structure transactions. In much the same way that a real-estate agent facilitates the buying and selling of land or buildings, Copyright Exchange is making the complex business of selling catalogs of creative works easy to understand. It is the first company to concentrate actively on the market for this increasingly common transaction and the first dedicated to bringing new groups of non-traditional copyright buyers to these attractive and dynamic investment opportunities.

Why now?
Even though intellectual property is an increasingly important driver of the American economy and a major U.S. export to the world, relatively little attention has been paid to bringing standardization and transparency to the market for copyrights. A revolution is underway in the distribution of creative content, especially music, video, and software. As a result, Copyright Exchange believes that the market for copyrights will grow increasingly active in the coming years, as traditional media companies and non-traditional investors attempt to acquire larger catalogs of content.

What does Copyright Exchange provide?
The founders of Copyright Exchange bring decades of experience in music business management, accounting, estate planning, real estate, and law to this new venture. They have negotiated the sale of numerous song catalogs that include hits by such diverse artists as Alicia Keys, Faith Hill, George Strait, Eric Clapton, Engelbert Humperdink, Brian McKnight, and Widespread Panic.

The company has refined a methodology for evaluating the long-term value of catalogs, based on past earnings. Aligned with neither buyers nor sellers exclusively, Copyright Exchange is dedicated to brokering win-win deals for both parties in these transactions. With its mix of experience and skills, Copyright Exchange is a one-stop shop for the marketing, negotiating, accounting, and administrative services needed to complete a copyright catalog sale.

In addition, Copyright Exchange has created a new Copyright Listing Service^SM, an on-line inventory of available copyright catalogs. Sellers will know their catalog is visible to investors worldwide, while buyers will be able to browse available catalogs in a standardized format. The Copyright ExchangeSM Affiliate Program also helps bring greater transparency and a strength-in-numbers approach to the increasingly active market for copyrights.

I need more background on copyrights. How does this work?
The author of a book, a poem, a painting, a song, or any other creative work automatically owns the copyright on that work. Unless the author grants permission, nobody but the author can exploit the work for commercial purposes. Copyrights can be licensed for specific uses, or they can be sold outright. Copyrights are generally split between the author and the author's publisher, which solicits uses of the works, such as in a movie or a recording artist releasing a song to radio and retail. Through rights management societies like BMI, ASCAP, and the Harry Fox Agency, those products generate a revenue stream to the copyright holders. Because songs or movies can produce income for many years, their returns can be compared to stocks, bonds, and other traditional financial investments.

Who is selling?
The typical seller is a music publishing company interested in liquidating its assets or an individual songwriter selling the future earnings of his catalog in exchange for a lump-sum payment. In addition, estates that include songs or other intellectual property may find that a sale of the assets is the most attractive option when confronted with inheritance taxes.

What are the benefits of selling my copyrights?
While each seller's situation is different and should be assessed individually, selling one's copyrights can provide many advantages to retaining ownership of the same, including portfolio diversification, debt repayment, liquidity, locking in value and reducing future taxes.

Who is buying?
Up to this point, larger music or media publishers, often embedded within larger entertainment companies, have been the chief buyers of copyright catalogs. However, Copyright Exchange has seen a large new class of non-traditional investors entering the market, including high-net-worth individuals, investment bankers, and endowment portfolio managers. Anyone who has ever relished the challenges of investing should investigate opportunities in copyright catalogs.

What are the benefits of buying copyrights?
An investment in copyrights can provide a buyer with many advantages such as portfolio diversification, predictable income streams, future appreciation in value, and certain tax benefits including the ability to amortize (i.e., write-off) the buyer's investment at a rate 2-3 times faster than real estate.

How are copyright catalogs valued and priced?
While Copyright Exchange can place a suggested sale price on a song catalog if the seller requests it, the company will more often provide evaluation tools and presentation standards that will make it easier than ever for buyers to make apples-to-apples comparisons among proffered copyrights.

Does Copyright Exchange handle more than music?
As the model is proven through the exchange of song catalogs, Copyright Exchange plans to become the clearinghouse for a wide variety of intellectual property, including patents, trademarks, and copyrights in master recordings, film and video, screenplays, photography and software. Copyright Exchange is also looking for financial investors to "make a market" for copyrights and other intangible assets.