hollywood billionaire

Chapter 44 Buy 'Em Out

Author: TrojanRW

Chapter 44 Buy 'Em Out

“Yes, we buy 'em out.”

Han Yi gently spoke a short sentence from his mouth.

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

“Positive or negative?”

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

"Bare." Jordan Bromley pondered for a moment, and replied, "This is a gift given to them by copyright law, and 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 counsel a high score in his heart. It seems that his insight into this industry has indeed reached a point that ordinary professionals cannot reach, completely surpassing the confinement of today's era.

"Copyright law gives them a lifespan of 70 years after their death, but if they really want to commercially develop the musical works they create and generate considerable benefits, music creators almost have to sign music distribution agreements with copyright distribution companies. Except for a very few superstars, everyone needs to rely on the rich resources of large music groups."

Jordan Bromley narrates the cruel reality faced by 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, ownership will be owned by the signed distribution company for a long time until thirty-five years later."

“Thirty-five-year rules.”

"Yes, the thirty-five-year rule." Jordan Bromley looked at Han Yi in surprise, "Are you a music method?"

“The music industry…will learn the concept of copyright law.”

"That makes sense." Jordan nodded and continued, "Section 203 of the Copyright Act of 1976 stipulates that music creators can terminate all licensing agreements and take back music copyrights and master copyrights after thirty-five years of the release of the song. However, there is a fatal loophole here, which was left behind by the lobbyist of the music group."

“Reminder deadline.”

"Yes, if you want to terminate the licensing agreement, the musician must make a termination request within the 25th to 33rd years. That is, you must apply to the record company and music distribution company at least two to ten years in advance to start the termination process. What will these companies react when they receive the termination application?"

"Respond in the form of capital." Han Yi smiled and replied, "Since the copyright will no longer 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 no negotiation, the work will be authorized at an incredible price to destroy the subsequent commercial value and development space of the musical work."

"When the original company could do whatever it takes to do for at least two years, there were only a few people who wanted to take back the copyright. Even if the copyright was not taken back, the settlement process was quite painful. Even the Beatles had to wait honestly for Sony's finances to complete the process before they could transfer the money to their accounts."

"This is the problem you want to solve, right, Easy?" asked Jordan Bromley. "The original industry norm was that individuals had no chance of winning. Now you just use cash to buy musicians out, and then turn the agreement with the issuing company into capital to capital."

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

"You are very keen, Jordan." Han Yi clinked Jordan's wine glass with a glass filled with Coke, saying, "Capital is not afraid of excessive exploitation, because capital can always find another way to continue exploitation. Even if they set down the authorized price, as long as the song has traffic and audience, we can cash it in other ways."

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

"It's totally correct. In the hands of musicians, copyright is copyright, their works, and their efforts." Han Yi held his left hand up to a height flush with the tip of his nose, and then suddenly held it. "But in our hands, this is a high-quality and stable financial product, which is anti-cyclical and even countercyclical music gold."

"Maybe you can make money no matter what you invest, but imagine Jordan, if humans encounter unprecedented black swan events in the next few years and the entire world economy is in recession, will these assets composed of music copyrights become Noah's Ark that will help us through the severe winter smoothly?"

“Hey Jude is the Mona Lisa of our time.”

"How did you think of this... I mean, you haven't even entered this industry yet. This is really an amazing strategy." Jordan Bromley looked at Han Yi like he looked 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.

Since the music industry evolved from Tinpan Lane to the present, no one has proposed a solution to the problem from this perspective.

He is simply an epoch-making genius.

"Read, Jordan, what I want to say is that I have been reading this world with all my heart." It's not that Han Yi is pretending to behave, he really can't find a better explanation. In 2016, musicians and companies were still fighting for the termination rights, because according to the Copyright Act of 1976, the first batch of important music works with international influence were collectively expired in the past few years.

It is already 2020 when the music industry and financial capital turn their attention to the acquisition of copyright shares. The black swan that swept the world has made musicians start to find channels for rapid monetization in a short period of time, and capital, which is naturally seeking profits and avoiding harm, also regards stable music copyright assets as the best tool to avoid risks.

So Bob Dylan, Neil Young, Whitney Houston, and then Justin Timberlake, Justin Bieber, The Chainsmokers, almost all the music stars who can name it have joined the ranks of selling copyrights.

Music copyright and master 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 an asset portfolio that fund managers talk about. This is the background color of the American dream and the most real appearance of Hollywood.

Everything in the world has a price tag.

For Han Yi, becoming a pioneer in copyright acquisition is a profitable transaction. If it is well operated, it doesn’t even need a capital. After all, he has a special reward mechanism, and as long as there is positive feedback, he can continuously obtain returns.

Use cash to acquire the music copyright and master copyright of a superstar, and then use the rewards you receive to make the next acquisition.

Such snowballing is enough to have hands.

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

I can eat more fish again.

"This is just one of my many ideas. Jordan, what I want to do is not limited to this."

"Yi, I think you're still a little conservative about your own predictions." Jordan's right index finger overlapped with his middle finger, put it on his lips, and laughed, "I don't think you'll be just a owner. You'll become the founder of the modern music industry, and I mean, a truly modern music industry."

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

"I will give so much to every company in the music field." Seeing Jordan Bromley pick up his phone and start browsing, Han Yi added, "In addition, the 2% revenue share and the 1 million dollar share limit are based on the fact that most of our cooperation will exceed tens of millions of dollars."

After careful thinking, Han Yi decided to limit the cooperation with Jordan Bromley to the musical level first. The family office does need legal counsel, but this legal counsel must have to go through a long period of cooperation and review and confirm that he can fully trust before he can be accepted into the capital group system.

Before that, Jordan Bromley would only be the legal counsel for the music business group.

In film and television, technology, and other entertainment industries, Han Yi will find another well-known lawyer. Different sectors are not affiliated with each other, but they will conduct project contacts and competition in business negotiations and acquisition progress. Only the one who wins in the end can be qualified to see the capital empire that Han Yi will form soon.

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

"It's enough to have them in the daily legal affairs." Han Yi nodded, "but the template agreement needs to be formulated by you personally."

"That's of course." Jordan quickly finished browsing Han Yi's proposal, "The same model as the three majors?"

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

"In addition, I rarely share 2%. For me, the music case is 5% smaller, and the largest I share 3%."

"3% is not a big problem, but I have to stick to the revenue cap of one million dollars." Han Yi emphasized, "There will be many in the future, and I mean uncountable, copyright transactions and other acquisitions, I believe that even with the one million dollars cap, your returns will be quite considerable, Jordan."

"I understand, Yi. After I go back, I will draw up an agreement according to your proposal, and we can modify it according to the draft." Jordan Bromley put down his phone and did not make a statement immediately.

"That would be better."

"But I want to say, I like you very much...I think we can be a good team." Jordan pointed to Han Yi and smiled. "To be honest, the path you pointed out today is really exciting. I would be quite honored to be the negotiator who made this happen."

"I am equally honored to invite you."

"So what's the next plan? Inspire me, Yi, where should we start?"

"Before I get in touch with the copyright library of those legendary musicians, I hope to build the basic structure and make a certain voice. UTA represents the performing arts agent, but I also have to establish a copyright distribution company, record company, artist management company and live performance company, and finally form a comprehensive music group. Each section will require professional assistance from the Manat Entertainment team, especially in terms of music distribution and label operation. I have already agreed on the first single. The current top priority is to promote the signing work as soon as possible."

Speaking of this, Han Yi took a deep breath and finally entered the topic he valued most for this meeting.

"Also, Jordan, I remember you should have a lot of active musician clients now, some even have their own labels."

“If some of them have financing needs, I can provide adequate funding and include these labels into the music group’s system.”

“For example…Diplo?”

Thanks to the league leader Linglong Ali for the additional updates. Like the previous league leader, more updates will continue to be launched!

(End of this chapter)