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What is SOMRE?

Asset management

Rights Buyer


Sell Your Rights

Once you have sold your royalty rights to SOMRE; you will be able to immediately withdraw your funds or use the funds on SOMRE to purchase rights.


Remove Hassles

We make it easy. The whole process takes place online.

Derivative exchange

Exchange

Trade tokens that derive their value from the royalty income of an underlying copyright.


The exchange is comprised of sellers (i.e. parties selling the rights to royalties) and investors (i.e. parties looking to purchase rights to royalties).


The holders of the tokens will receive funds proportional to the amount of tokens they hold at the time of royalty payments.

cash

Funding Source


New Artists

Perhaps you are a new artist looking for an alternate way to fund new equipment, publishing expenses, or other costs. Perhaps you want fans to be able to stake a meaningful claim on your work and be directly invested in your success. Selling rights could be a viable way for you to fund raise.


Established Artists

As an established artist you may be looking to make a large purchase or fund a new business venture. By trading the rights to royalties, you have an interest free funding source.


Additional Revenue

  • Royalty Income - By purchasing the royalty rights, you are receiving a steady stream of revenue.
  • Rights Selling - Selling royalty rights will bring in large lump sums of revenue.

Investors

As a fan or investor you have a way to support artists while having a claim to show for it. It is the equivalent of investors for a business that invest because they truly believe in the company.

How do tokens work?


Tokens are how we determine who is to receive royalty payments and the portion that they are to receive. The tokens can be traded on the exchange, but you will only receive your portion of the royalty payment if you are holding the token at the time the royalty payment is received.


Tokens are issued on a catalog level.

Catalogs


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A catalog can contain any number of royalties that are related to a given song. That's the easy explanation, but reality is much more complex. There can be multiple copyrights related to a song and each of those copyrights can have a number of different royalties that it generates.


Keep reading to learn more about the complexities and how they are handled on SOMRE.

Copyrights


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A song can be broken down into 2 categories of copyrights:

  • Music Composition Copyright

    This copyright covers the lyrics and melody of the song. Usually owned by the songwriters and publishers.

  • Sound Recording Copyright

    This copyright covers the literal audio recording of the song. Usually owned by the recording artists and record labels.

Royalties


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The copyrights can be further broken down into 3 royalty types each. Making a total of 6 different royalties that can be generated per song:


  • Performance
    • Music Composition Performance royalties are generated when a song is played on
      • AM/FM radio
      • Satellite radio (e.g. SiriusXM)
      • Internet radio (e.g. Pandora, iHeartRadio, Slacker Radio)
      • Played in public (e.g. bars, clubs)
      • Live music
    • Performance Rights Organizations (PROs) collect the royalties, but publishing companies also collect from the PRO on behalf of their client.


    • Sound Recording Performance royalties are generated when a song is played on
      • Satellite radio
      • Internet radio
      • Played in public (e.g. bar, club, store, cafe, etc).

      SoundExchange collects these royalties for radio and public plays. 50% of what they collect goes to the copyright owner, 45% goes to the featured artist, and 5% goes to the non-featured artists.


  • Reproduction
    • Music Composition Reproduction royalties (aka mechanical royalties) are genereated from
      • CD or vinyl sales
      • Downloads (e.g. iTunes, Amazon Music)
      • Interactive streaming (e.g. Spotify, Apple Music, Youtube)

      Mechanical Rights Organizations (MROs) collect the royalties, but publishing companies also collect this fee from the MRO on behalf of their client.


    • Sound Recording Reproduction royalties (aka mechanical royalties) are generated from
      • CD or vinyl sales
      • Downloads (e.g. iTunes, Amazon Music)
      • Interactive stream (e.g. Spotify, Apple Music, Youtube)

      Collected by the distribution company or record label on behalf of their client.


  • Sync
    • Music Composition Sync royalties are generated when the song is used in a
      • Movie
      • TV show
      • Video game

      Collected by either the copyright holder, sync licensing agent, or a publishing company.


    • Sound Recording Sync royalties are generated when the song is used in a
      • Movie
      • TV show
      • Video game

      Collected by either the copyright holder or a sync licensing agent.

Tokens

Tokens are issued on a catalog level and each catalog starts off with 10,000 tokens issued. However, token splits can and do occur which increase the supply of tokens in order to make sure tokens are affordable to your average person.


If there are 10,000 tokens, one token entitles the holder to .01% of each of the royalties collected.


10,000 tokens = 100.00%