Will License for Equity?
Posted by Mark Levy | Posted in Articles, Licensing, Music | Posted on 03-06-2008
Tags: copyright, equity, Licensing, MCPS-PRS
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By Mark Levy, CEO MaxxoMedia
MCPS-PRS, the U.K. music publishing licensing and collecting organization, recently released a proposal suggesting that new digital media companies that want to license their copyrights should provide equity in their fledgling companies in exchange for the license.
They cited as some of the reasons behind this proposal:
1. Start-up firms present an undeniable headache for music rights entities. At incorporation, emerging firms tend to lack the financial resources, both in terms of cash holdings and cash revenues, to pay otherwise standard fees for music rights.
2. Emerging firms are not stable entities, in terms of their chances for success and the nature of their business models.
…and…