Diverse International Catalog - Publishing Royalties

Sony changed how they distribute foreign royalties (royalties earned outside Scandinavia) in H2-2019. Foreign earnings in this statement period included 12 months of earnings as opposed to six months. This was to “catch up” and pay foreign earnings on the same schedule as domestic earnings. Going forward, the winning bidder will receive six months of foreign earnings on each biannual statement.

SELLER BUYBACK OPTION

As a part of the purchase agreement for this asset, the seller will have the option to buy the royalty stream back from the purchaser for 150% of the sale price at any time during the two-year period after the initial sale.

EXCHANGE RATES AND FOREIGN TAX WITHHOLDING

Royalties for this asset are reported in Swedish Krona from Sony Music Publishing Scandinavia. To calculate the royalty payments in U.S. Dollars, Royalty Exchange applied the average historical foreign exchange rate for the distribution month (via X-rates.com).

The future royalties will be paid to Royalty Exchange in Swedish Krona converted to U.S. Dollars upon receipt, and then paid in U.S. Dollars to the winning investor. Please note: the receiving bank may mark-up the exchange rate by up to 2.5% as a transaction fee. Assets paid in foreign currency entail additional risk as foreign exchange rate changes will cause fluctuations in future cash flows. 

Additionally, because the royalty payments originate in Sweden, the purchaser may be subject to withholding taxes, depending on their domicile. You can learn more about foreign tax withholding here. Since all investors’ tax situations are different, please consult your tax advisor if you have questions on foreign withholding. International royalties denoted below are earned outside of the United States. 

This catalog will not be automatically added to the Secondary Market of The eXchange. The winning bidder can contact Royalty Exchange to relist.