hollywood billionaire

Chapter 44 Buy 'Em Out
"Yes, we buy 'em out."

Han Yi spit out a short sentence lightly.

"I believe you know better than me, Jordan, what music copyright means to musicians, and what publishing rights mean to them."

"Positive, or negative?"

"Of course it's negative." Han Yi rolled his left index finger around his temple, "Think about it, what words would you use to describe the negative effects of music copyright?"

"Burden." Jordan Bromley pondered for a moment before replying, "This is a gift given to them by copyright law, but it is also a burden."

"Why do you say that?"

Han Yi looked at the other party with a smile, and gave his future legal adviser a high score in his heart. It seems that his insight into this industry has indeed reached a level beyond the reach of ordinary professionals, completely surpassing the current era Confined.

"Copyright law gives them the life of the author plus 70 years of copyright protection after death, but if they really want to commercially exploit the created music works and generate considerable income, music creators almost have to contact the copyright distribution company Sign a music distribution deal. All but a few superstars rely on the resources of a major music group."

Jordan Bromley recounts the harsh realities facing music creators.

"Most music publishers will require music creators to transfer copyright ownership to the company. Although creators can still get 50% of the share, the ownership will belong to the contracted publishing company for a long time until 35 years later."

"The 35-year rule."

"Yes, the 35-year rule." Jordan Bromley glanced at Han Yi in surprise, "Are you studying music law?"

"The music industry ... also learns the concept of copyright law."

"This can be explained." Jordan nodded, and continued, "Section 1976 of the Copyright Act of 203 stipulates that music creators can terminate all license agreements 35 years after the song is released, and take back the music copyright and mastering copyright. . But there’s a fatal loophole here, left open by the music conglomerate’s lobbyists.”

"Reminder period."

"Yes, if you want to terminate the license agreement, the musician must submit a termination request within five years from No.20 to No.30. That is to say, you must notify the record company and the music company Issuing companies apply to begin the process of agreement termination. How will these companies react when they receive a termination application?"

"Respond in the form of capital." Han Yi replied with a smile, "Since the copyright will soon cease to belong to me, I would rather ruin it than give it to you. Whether it is a music publisher or a record company, as long as there is any disagreement Everywhere, they will license the works at unbelievably low prices to destroy the subsequent commercial value and development space of music works.”

"When the original company can use at least a two-year window to run amok, there are very few people who want to take back the copyright. Even if they don't take back the copyright, the settlement process is quite painful. Even the Beatles have to be old. Honestly wait until Sony’s finances go through the process before the money can be transferred to their account.”

"That's the problem you're trying to solve, isn't it, Yi?" Jordan Bromley asked. "It used to be the norm in the industry, individual versus capital. Individuals had no chance of winning. Now you just pay musicians for cash." Buy out, and then turn the agreement relationship with the issuing company into capital-to-capital."

"At that time, whether you choose to take it back or continue to cooperate, you will have the upper hand."

"You are very sharp, Jordan." Han Yi touched Jordan's wine glass with a glass filled with Coke, and said, "Capital is not afraid of excessive exploitation, because capital can always find another way to continue to exploit. Even if they set the authorized price Once it is done, as long as the song still has traffic and an audience, we can use other methods to monetize it.”

"Establish a copyright company, private placement, and then go public."

"That's right. In the hands of musicians, copyright is copyright. It's their work and their hard work." Han Yi raised his left hand to the height of his nose, and then grabbed it suddenly, "But in our hands, this It is a high-quality and stable financial product, and it is anti-cyclical and even counter-cyclical music gold.”

"Maybe you can make money no matter what you invest in now, but imagine, Jordan, if human beings encounter an unprecedented black swan event in the next few years, and the entire world economy falls into recession, the assets composed of these music copyrights , will it become Noah's Ark to help us survive the harsh winter?"

"'Hey Jude' is the Mona Lisa of our time."

"How did you come up with this...I mean, you haven't even entered the industry yet. It's a really amazing strategy." Jordan Bromley looked at Han Yi like he was looking at an alien. No matter how calm he was, he couldn't help but look at the Chinese boy in front of him with admiration.

The music industry has evolved from Tin Pan Lane to the present, and no one has proposed a solution to the problem from this perspective.

It is simply an epoch-making genius.

"Reading, Jordan, what I want to say is that I have been reading this world with my heart." It's not to blame Han Yi for pretending, he really couldn't find a better explanation. In 2016, musicians and companies were still fighting over the right to terminate, because according to the provisions of the 1976 Copyright Act, the first batch of important music works with international influence happened to arrive collectively in the past few years. Expect.

By the time the music industry and financial capital turn their attention to the acquisition of copyright shares, it will be 2020.The black swan sweeping the world has caused musicians to start looking for channels to quickly realize their profits in a short period of time, and capital, which is inherently seeking profits and avoiding disadvantages, also regards stable music copyright assets as the best tool to avoid risks.

As a result, Bob Dylan, Neil Young, Whitney Houston, and then Justin Timberlake, Justin Bieber, The Chainsmokers, and almost all music stars with names have joined the ranks of selling copyrights middle.

Music copyright and mastering copyright have thus become the most popular investment targets in the capital market in the third decade of the 21st century.

The artistic imprint of an era has become the asset portfolio that fund managers talk about. This is the background of the American dream and the most authentic appearance of Hollywood.

Everything in the world has a price.

For Han Yi, becoming a pioneer in copyright acquisition is a lucrative business. If it works well, he doesn't even need money.After all, he has a special reward mechanism, as long as there is positive feedback, he can continue to get return funds.

Acquire the music copyright and mastering copyright of a superstar with cash, and then use the rewards obtained to make the next acquisition.

This kind of snowballing thing, you can do it with your hands.

The most important thing is that these acquired copyright assets can support a copyright management company with a valuation of billions or even tens of billions, and then go to the capital market to harvest a wave.

One fish can eat more.

"This is just one of my many ideas, Jordan, what I want to do is by no means limited to this."

"Yi, I think you're a bit conservative in your own predictions." Jordan put his right index finger and middle finger together and put them close to his mouth, laughing, "I don't think you'll just be an owner. You'll be a Founder of the modern music industry, I mean, a really modern music industry."

"I'm working hard for this." Han Yi turned on the mobile phone in front of him and pressed the send button on the email interface, "If you open the email now, Jordan, you will find a legal counsel proposal."

"A monthly consulting fee of 2 US dollars is guaranteed. I will give this much to every company in the music field." Seeing Jordan Bromley pick up his phone and start browsing, Han Yi added, "In addition, 100% The revenue share and the $[-] million cap are based on the fact that most of our partnerships will exceed tens of millions of dollars.”

After careful consideration, Han Yi still decided to limit the cooperation with Jordan Bromley to the music level first. The family office does need legal counsel, but the legal counsel must go through a long period of cooperation and review to confirm Only after they can be fully trusted can they be accepted into the capital group's system.

Prior to this, Jordan - Bromley will only be the legal counsel of the music business group.

For film and television, technology, and other entertainment industries, Han Yi will always find another well-known lawyer to match.The different sectors are not affiliated with each other, but they will compete in project contact, business negotiation and acquisition progress in the air. Only the one that wins in the end will be eligible to see the capital empire that Han Yi will soon form.

"Most of the basic conditions are fine. As a monthly consultant, I may not be able to guarantee that I will handle the documents every time. Manat Entertainment has a good enough team of assistant lawyers to assist."

"They are enough for the daily legal affairs." Han Yi nodded, "But the template agreement needs to be formulated by you."

"Of course." Jordan quickly browsed through Han Yi's proposal, "The same model as the Big Three?"

"Almost, there are some minor changes, I will point them out in the specific work."

"In addition, I seldom take 2% of the share. For me, for music cases, the smaller 5% and the largest 3% share."

"3% is not a big problem, but I have to stick to the $100 million income limit." Han Yi emphasized, "There will be many, I mean countless, copyright transactions and other acquisitions in the future. Even with the $100 million cap, you're getting a decent return, Jordan."

"Understood, Yi. After I go back, I will draw up an agreement according to your proposal, and then we can make revisions based on the draft." Jordan Bromley put down his phone and did not express his opinion immediately.

"That couldn't be better."

"But I want to say, I like you very much... I think we can make a good team." Jordan pointed to Han Yi and said with a smile, "To be honest, the path you pointed out today is really good. It’s very exciting. It would be a great honor to be a negotiator in making this a reality.”

"It's an honor to invite you, too."

"So what's the next step? Enlighten me, Yi, where should we start?"

"Before I get in touch with the copyright library of those legendary musicians, I hope to build up the basic structure and make a certain volume. UTA represents the performing arts agency, but I have to create copyright distribution companies, record companies, and artists. The management company and the live performance company will eventually form a comprehensive music group. Each section will require the professional assistance of the Manat entertainment team, especially in terms of music distribution and label operation. I have already negotiated the first single , the current top priority is to advance the signing work as soon as possible.”

Having said that, Han Yi took a deep breath, and finally entered the most important topic of his meeting.

"In addition, Jordan, I remember that you should have quite a few active musician clients, and some of them even have their own labels."

"If some of them have financing needs, I can provide sufficient financial support and bring these labels into the music group system."

"Like...Diplo?"

　Thanks to the lord Linglong Ali for bringing more updates, just like the last lord, more updates will continue until they are on the shelves!

　　
　
(End of this chapter)