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ARTICLE · 04 FEBRUARY 2022

Copyright: High Stakes And Low Stakes

In this article, we discuss two very different copyright matters. The first deals with the fact that the finance industry is suddenly showing a great deal of interest in music copyright.

South AfricaIntellectual Property

In this article, we discuss two very different copyright matters. The first deals with the fact that the finance industry is suddenly showing a great deal of interest in music copyright. The second deals with the illegal sale of a single CD. Yet, both stories highlight some important aspects of copyright law.

COPYRIGHT AND THE FINANCE INDUSTRY

Selling future royalties

For some time there have been reports of music catalogues being sold – a while back David Bowie's estate sold his music catalogue to Warner Music for USD250-million, whereas more recently Bruce Springsteen sold his music catalogue to Sony Music for some USD500-million. The attraction of such a sale to the seller is obvious – the musician (or his or her heirs) receives a large lump sum, the sort that would allow for a very comfortable retirement. As for the buyer, well it clearly takes a calculated risk, betting that over time the copyright will bring in far more than the purchase price.

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