Music & IP Royalties
On-chain representation of royalty streams and intellectual property rights. Tokenization enables fractional access, transparent payouts, and compliant secondary transfers under applicable IP and securities rules.
Overview
Tokenized music & IP royalties convert future royalty cashflows (e.g., performance, mechanical, streaming, sync) or licensing revenues from catalogs and individual works into digital interests. Investors can participate in revenue shares while issuers gain broader distribution and potentially faster capital formation.
Why tokenize Music & IP
- Access & fractionalization: split high-value catalogs into smaller tickets for a wider investor base.
- Operational efficiency: on-chain register, automated distribution schedules, transparent statements.
- Programmability: encoded transfer restrictions, vesting, waterfalls, and revenue splits.
- Liquidity: venue-based secondary transfers subject to platform rules and licensing terms.
Legal & compliance (high-level)
- IP rights: confirm ownership/assignment (masters, publishing, neighboring rights) and revenue sources.
- Classification: revenue-share tokens or fractional interests may be treated as securities in many jurisdictions.
- Licensing & CMOs: align with PROs/CMOs (ASCAP, BMI, PRS, etc.), distributors, and publisher agreements.
- KYC/AML: investor onboarding and ongoing checks on compliant venues.
- Docs: assignment/licensing agreements, offering terms, distribution & reporting policy, custody of rights/contracts.
Note: treatment varies by jurisdiction and structure (pure IP license vs. revenue-sharing security). Always align with venue and counsel.
Common structures
- Revenue-share notes: SPV issues tokens/notes entitling holders to % of net royalties.
- Fractional IP units: equity/units in an SPV that owns catalog rights; tokens mirror cap-table entries.
- NFT + legal wrapper: NFT for provenance/access bundled with enforceable off-chain contract for revenue rights.
Selected cases
- Song-level offerings sharing a slice of future streaming income with investors.
- Catalog financing where holders receive quarterly distributions from multiple tracks.
- IP licensing tokens for film/TV sync revenues with programmatic reporting.
Platforms working with Music & IP
anotherblock
Song-level royalty shares with on-chain distribution and transparent splits.
Opulous
Music IP financing and revenue-share tokens for artists and catalogs.
Royalty Exchange
Marketplace for buying/selling music royalty interests and IP rights.
Sound
Music releases with on-chain ownership primitives and fan participation.
INX
Licensed venue exploring tokenized revenue-sharing instruments incl. IP.
Key risks
- Rights clarity: chain of title, splits, and recoupment terms must be verified.
- Regulatory: many revenue-share structures fall under securities rules.
- Collections risk: delays/mismatches from PROs, distributors, and publishers.
- Liquidity: secondary trading depends on venue licensing and investor demand.
- Technology: accuracy of on-chain reporting and distribution smart-logic.
Explore further
Interested in tokenized music & IP? See the full list of platforms, or continue with our guides on structuring, licensing, and distribution.