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Sum 41 frontman and chief songwriter, Deryck Whibley, made headlines in 2020 when he sold his publishing and recorded music catalogue to HarbourView Equity Partners. The financial details of the deal were not disclosed.
Whibley's decision to sell his music rights is a common trend among artists looking to secure their financial future. But what exactly are music rights, and how do they work?
Music rights refer to the legal ownership of various aspects of a musical composition or recording. These rights can be divided into two main categories: publishing rights and master rights.
Publishing rights give the owner the ability to license the composition to others for use in various ways, such as recording, broadcasting, and synchronization with visual media. Master rights, on the other hand, give the owner the right to reproduce, distribute, and perform the recording.
Whibley's sale of his publishing and recorded music catalogue means that he has transferred ownership of these rights to HarbourView Equity Partners. This deal allows HarbourView to collect royalties whenever Sum 41's music is used in various ways, such as in commercials, films, or TV shows.
According to Blabbermouth.net, Whibley's decision to sell his music rights was driven by his desire to focus on his music and not be distracted by the business side of things.
However, selling music rights is not a new trend among musicians. In fact, music rights have become an attractive investment for private equity firms and hedge funds in recent years. For instance, in 2017, Sony/ATV Music Publishing sold a 50% stake to KKR & Co. for $750 million.
Music rights societies, such as ASCAP, BMI, and SESAC, play a crucial role in collecting and distributing royalties to songwriters and publishers. These organizations represent the rights of millions of songs and collect billions of dollars in royalties each year.
In conclusion, Deryck Whibley's sale of his publishing and recorded music catalogue to HarbourView Equity Partners is a significant deal in the music industry. It highlights the growing trend of music rights as an attractive investment and the importance of music rights societies in collecting and distributing royalties to artists and publishers.
For more information on music rights and music rights societies, check out the following resources: