Red Hot Chili Peppers Sell Pre-2020 Music Catalog for $140M

In a major deal announced in February 2021, the Red Hot Chili Peppers sold their pre-2020 music catalog to the London-based company, Hipgnosis Songs Fund, for a reported sum of $140 million. Source: Billboard

Founded in 2018, Hipgnosis specializes in acquiring and managing music catalogs, with a focus on copyrights and neighboring rights. The company's portfolio includes the works of artists such as Neil Young, Tim Balance, and Linda Perry. Source: Forbes

The sale of the Red Hot Chili Peppers' catalog includes all of their compositions and recordings, as well as their shares in the publishing and master recordings of their songs. The band will retain ownership of their future works. Source: Variety

Music catalog investments have gained significant attention in recent years, with companies like Hipgnosis, Primary Wave, and Kobalt Capital acquiring the rights to thousands of songs from various artists. These deals provide a steady stream of income through royalties, as well as potential for appreciation in value. Source: The Guardian

The sale of music catalogs is a complex process that involves understanding various types of music rights, including performing rights, mechanical rights, and synchronization rights. Music rights societies, such as ASCAP, BMI, and SESAC, play a crucial role in managing and collecting these royalties on behalf of artists and publishers. Source: Music Business Worldwide

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