I N T E L L E C T U A L P R O P E R T Y the david bowie way

spiders AND STARDUST

STEPHEN HOLLIS

TABLE OF CONTENT

BY STEPHEN HOLLIS | PARTNER

A B O U T A & A P O W E R O F M U S I C I P I N M U S I C B A C K T O T H E D R AW I N G B O A R D C O P Y R I G H T I N C O M E S T R E A M S C O N T R A C T N E G O T I AT I O N S 3 6 0 - D E A L S O T H E R M O D E L S

ABOUT US

§  LARGEST INTELLECTUAL PROPERTY LAW FIRM IN AFRICA

§  VOTED AFRICA IP LAW FIRM OF THE YEAR 2015 & 2016

§  LARGE COMMERCIAL, PROPERTY & LIT IGATION GROUP

§  PRO-ACTIVE IP COMMERCIALISATION GROUP

§  OFFICES IN PRETORIA, JOHANNESBURG, CAPE TOWN & DURBAN

There’s ‘gnome’ time like the present to consider the protection and monetisation of your intellectual property rights. Adams & Adams has been helping clients with ‘spiders and stardust’ since 1908

“It always seems impossible until it’s done.” – Nelson Mandela

the power of

MUSIC

MADONNA

U2

DEPECHE MODE

KANYE WEST

POWER OF MUSIC

MARILYN MANSON

LADY GAGA

RADIOHEAD

N.W.A

POWER OF MUSIC

DAVID BOWIE WAS AN ABSOLUTE ROCK STAR He transcended the eras, influencing them and sometimes even creating them musically, intellectually and as a human being. Personally he inspired me by his creativity, his extravagance, his sense of fashion(s) that he was constantly reinventing, by his allure, his elegance and his androgyny.

JEAN PAUL GAULTIER, FASHION DESIGNER

“ “

BACK TO THE DRAWING BOARD

Creative Control Own my brand

Own my music

Capital and income Future vision

I back myself – as long as I own my music, I will come out on top

DOLLY PARTON

WHITNEY HOUSTON

MICHAEL JACKSON

A b u n d l e o f r i g h t s

Composer will own copyright in the musical composition

Song Lyrics = literary work = songwriter is copyright owner

Composition = musical work = composer is copyright owner

Sound recording – owned by person who arranged the making

Literary work – song lyrics

Musical work - composition

Performers Protection Act – not Copyright but linked

Sound recording

Literary work – song lyrics

Musical work - composition

Copyright in the song lyrics

Copyright in the musical composition

COPYRIGHT OWNERSHIP AND MANAGEMENT

Core line descriptions

Performance rights (not copyright but linked)

Copyright in the sound recording (the masters)

INCOME STREAMS

§  Mechanical royalties (reproduction) §  Performance-based royalties §  Synchronization fees §  Copyright Act forms the basis for liability to pay and for Collection Agencies to collect and distribute the monies

1989 – REVERSION OF RIGHTS

§  NOW WHAT? §  Licensing structure

ü  Licenses back to labels ü  Capital assets grow ü  Income streams grow

Wall Street

Concept

Success!

Outside the box!

OFF TO

THE BANK!

BOWIE BONDS

The original Prospectus Terms

WHAT TO DO WITH US$55, 000, 000?

1997 – MISSION ACCOMPLISHED

§  Purchases remaining rights §  US$27, 000, 000 well spent

ü  Licensing structure ü  Capital assets secure ü  Income streams secure

Should not end in a KO

CONTRACT NEGOTIATIONS

BEST DEALS INVOLVE WIN-WIN FOR BOTH PARTIES

ü  Both parties are committed to success and profitability

ü  Both parties’ investments and assets are adequately secured

ü  Both parties respect each other’s future vision ü  Both parties willing to be flexible on business model

Risky business

CONTRACT NEGOTIATIONS

Poorly negotiated deals

§  Poorly negotiated contracts can have long term damaging effects

§  Caveat subscriptor – ‘let the signer beware’! §  Responsibility on each party to fully understand their rights §  Understand the difference between a license and assignment §  Look for another investor or business partner if need be

A GIANT MISTAKE

PRINCE – THE SYMBOL – THE ARTIST

Cost of breaking new artist in major market

DIGITAL AGE OPENS MARKETS

§  Opportunities to create your own buzz – social media power §  More outlets for your music §  Great marketing opportunities for your brand §  More potential business partners (streaming services) §  Consumers are driving marketing creativity §  Internet and crowd funding are options

JUSTIN BIEBER

KREPT AND KONAN

GANGNAM STYLE

360-DEALS

§  Additional revenues for record company

§  Secondary income to pick up slack from decline in record sales

§  Shares in all income streams

INNOVATIVE MODELS

Joint-ventures and partnerships can be utilized to achieve model of shared ownership + commercialization of assets

COMMERCIALIZE YOUR ASSETS EFFECTIVELY

BUILD A STRONG BALANCE SHEET – CAPITAL ASSETS AND INCOME STREAMS

IDENTIFY AND PROTECT YOUR INTELLECTUAL PROPERTY

DEVELOP A CLEAR LONG TERM VISION

NEXT STOP – SUCCESS

Step 1

Step 2

Step 3

Step 4