How to Invest in Royalties

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Nov. 19 (Bloomberg) -- Royalty Exchange Founder and CEO Sean Peace discusses investing in royalties with Mark Crumpton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Why did you launch royalty exchange?

On a worldwide basis, for music and books, it is about $10 billion.

We are not just doing music, we will branch out into pharmaceutical royalties, patton trademark royalties.

There are a lot that we will move into but originally focusing on music.

Are you surprised that this seems like an area where somebody could have stepped in and done this already?

Well, i would like to think that.

We were the first folks to think about it and implement it but the music business is a very interesting and complex animal.

It has definitely been a very hard-fought journey to make sure the people understand that they can monetize their music royalties but also getting the industry to allow us to do it.

That has been a hard-fought road.

Who are your users and how much money does an investor need to get started?

What is nice is currently in the past we have been selling royalties just to one individual.

So, they need anywhere from $20,000 to say $500,000 were million dollars.

What is great is we are moving through the jobs act and the changes in the securities law, this will allow us to securitize these royalties so that people can buy in for as little as 25- $100. why do you think that royalties are unattractive investment?

-- an attractive investment?

Like the lifespan for royalties are 70 years after the death of the last author of the song.

As you can imagine, the market lace could crash tomorrow.

The digital landscape is certainly changing a little bit.

People will continue to have music?

Tell us more about the world to rights that have been sold on your site.

We have probably had a predominant hit from the 80s. so, they are spanning anywhere from country music with catalogs from travis tritt to a song that was sung by frank sinatra.

We have a wide range of songs anywhere from jazz to country to pop.

What is the price range of the royalties sold and how do you get paid?

Well, we get paid currently because we take a commission.

Right now, it is a true auction marketplace.

We take a commission from the seller as well as from the buyer.

You also offer options to everyday users.

How is this different?

Well, this was kind of the initial company that i founded back in 2008. this was really more focused on selling individual songs as memorabilia.

The concept is that if you found your favorite song . what is next for you?

We are getting ready to have a partnership with one of the brokers and securitize these royalties of that investors can buy at a much lower rate.

Sean pieces joining us from

This text has been automatically generated. It may not be 100% accurate.


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