TIDMSONG
RNS Number : 4155S
Hipgnosis Songs Fund Limited
14 July 2022
14 July 2022
Hipgnosis Songs Fund Limited ("Hipgnosis" or the "Company")
New Global Administration Agreements with Sacem and
peermusic
Hipgnosis Songs Fund Limited, which offers investors a pure-play
exposure to songs and associated intellectual property rights, and
its Investment Adviser, Hipgnosis Song Management Limited have
agreed ground-breaking digital administration and sub-publishing
partnerships with the Society of authors, composers and publishers
of music (Sacem) and peermusic. Along with Hipgnosis Songs Group
("HSG"), they will provide a modern, global network for the
collection of song royalties for Hipgnosis.
Hipgnosis has entered into a direct administration partnership
with Sacem, one of the world-leading Collective Management
Organisations ("CMO"), to collect digital rights for the writers'
share and Hipgnosis' own publisher share, primarily in the UK and
the European Union. In addition, Hipgnosis has entered into a
sub-publishing partnership with peermusic to collect publishing
rights and other royalties in the rest of the world excluding the
US. Hipgnosis will continue to use HSG for royalty collection in
the United States.
Together these partnerships eliminate a link in the royalty
collection process, which is expected to materially reduce third
party administration and collection fees, the length of time it
takes to collect digital revenues and to expand our global
publishing and synch footprint. Hipgnosis will initially revert 36
Catalogues to these new partnerships, including Neil Young, Red Hot
Chili Peppers, Chrissie Hynde and Jack Antonoff. Additional
Catalogue administrations will be transferred to these partners,
where appropriate, as their administration rights revert.
About Sacem and peermusic
Sacem, one of the world-leading CMO, is a Paris based,
non-profit non-trading entity owned and managed by its members
according to the business model of a cooperative. To guarantee
authors' intellectual property rights over their works, Sacem
collects and distributes royalties, thereby playing a crucial
economic role to preserve musical creation.
Sacem is already mandated to collect royalties on digital usages
by some of the largest companies (publishers and CMOs) in the
sector on a multi territorial basis and their approach on using
technology to revolutionise the Collective Management system made
them a natural partner for Hipgnosis. Sacem is the oldest and most
established CMO in the world. Their combined approach of experience
and tech innovation is the perfect combination to drive collections
and revenue upwards.
peermusic is the world's largest independent music publishing
and neighbouring rights administration company, with a network of
38 offices in 31 countries. Since its establishment 95 years ago,
peermusic has distinguished itself by retaining the ethos of an
independent and global family business that remains
service-oriented while driving significant progress in a rapidly
changing competitive market. Income collected for peermusic
sub-publishing clients has doubled during the past 5 years.
Merck Mercuriadis, CEO and Founder of Hipgnosis Song Management
said:
"These are ground-breaking, future thinking deals. Sacem will
directly collect and pay digital rights for writers' share,
primarily in the UK and the EU, eliminating a link in the royalty
collection process. This will materially reduce third party
administration and collection fees and the length of time it takes
to collect digital revenues.
"Combined with our new relationship with peermusic, and
alongside our in-house expertise in HSG, this provides us with
global coverage from best in class operators with a focus on
collecting more, collecting it faster and getting it paid through
faster.
"We've had a long-standing admiration for both Ralph and Mary
Megan Peer, who are the first family of music publishing, and Sacem
has been elevated to a gold standard under Cecile Rap-Veber's
leadership. We very much look forward to welcoming them to the
Hipgnosis family and working closely together."
Amy Thomson, Chief Catalogue Officer of Hipgnosis Song
Management said:
"It is important that the songs which come into our direct care
move ever closer to the source of digital revenue. Transparency and
data fuels our ability to remove the costs of middlemen and work on
registration issues worldwide, increasing the revenue of our
catalogues. By coming closer to the source with Sacem and expanding
our publishing and synch footprint via peermusic all combined with
HSG's expertise in the US, the true agenda of totally transparent
and optimum revenue takes a huge leap in the direction we
promised."
Cécile Rap-Veber, CEO, Sacem said:
"We are thrilled to partner with Hipgnosis. This partnership
once again demonstrates Sacem's ability to serve innovative players
in the music market and increase the remuneration of works of major
artists and to contribute to the preservation of these
catalogues.
"Hipgnosis will benefit from Sacem's negotiation with multi
territorial DSPs, and technological expertise, especially in the
field of data management with its innovative URights platform,
which will give Hipgnosis full visibility, in real time, on the
revenues generated by its catalogues. Our goal is always to add
value to music by leveraging the transformations in consumption and
distribution modes, in order to contribute to the vitality of
creation and cultural diversity."
Mary Megan Peer, CEO, peermusic, said:
"We initially started this relationship through Big Deal Music
(which Hipgnosis acquired in 2020) and have built a genuine
connection from there. As the sub-publisher for Hipgnosis Songs
Fund, peermusic will work to maximize synch opportunities for
Hipgnosis clients in all local markets as well as provide them with
the first-class administration for which peermusic is known. This
deal allows us to help maximize local synch markets through our
worldwide offices and administrative opportunities for Hipgnosis'
roster with business partners who share our ultimate goal to serve
their music creators and maximize their earnings."
For more information contact:
Hipgnosis Song Management
Merck Mercuriadis
Giles Croot (Media) +44 (0)20 4542 1511
Rufina Pavry (Investors ) +44 (0)20 4542 1530
Singer Capital Markets - Joint Corporate
Broker
James Maxwell / James Moat / Amanda Gray
(Corporate Finance)
Alan Geeves / James Waterlow / Sam Greatrex
(Sales) +44 (0)20 7496 3000
J.P. Morgan Cazenove - Joint Corporate Broker
William Simmonds / Jérémie Birnbaum
(Corporate Finance)
James Bouverat (Sales) +44 (0)20 7742 4000
RBC Capital Markets - Joint Corporate Broker
Elliot Thomas / Max Avison (Corporate Finance)
Lisa Tugwell / Anastasia Mikhailova (Sales) +44 (0)20 7635 4000
Ocorian - Company Secretary & Administrator
Lorna Zimny +44 (0) 28 9693 0222
The Outside Organisation
Alan Edwards / Nick Caley +44 (0)7711 081 843
+44 (0)7771 978220;
FTI Consulting +44 (0)7809 411882;
Neil Doyle/ Paul Harris/ Laura Ewart +44 (0)7761 332646
All US music publicity enquiries
Fran Defeo +1 917 767 5255
About Hipgnosis Songs Fund
Hipgnosis, which was founded by Merck Mercuriadis, is a Guernsey
registered investment company established to offer investors a
pure-play exposure to songs and associated musical intellectual
property rights. The Company has raised a total of almost GBP1.3
billion (gross equity capital) through its Initial Public Offering
on 11 July 2018, and subsequent issues in April 2019, August 2019,
October 2019, July 2020, September 2020, February 2021 and July
2021. In September 2019, Hipgnosis transferred its entire issued
share capital to the Premium listing segment of the Official List
of the FCA and to the London Stock Exchange's Premium segment of
the Main Market, and in March 2020 became a constituent of the FTSE
250 Index. Since April 2021, the Company has been resident in the
UK for tax purposes and is recognised as an investment trust under
applicable HMRC regulations.
About Hipgnosis Song Management Limited
The Hipgnosis Songs Fund's Investment Adviser is Hipgnosis Song
Management Limited, which was founded by Merck Mercuriadis, former
manager of globally successful recording artists, such as Elton
John, Guns N' Roses, Morrissey, Iron Maiden and Beyoncé, and hit
songwriters such as Diane Warren, Justin Tranter and The-Dream, and
former CEO of The Sanctuary Group plc. The Investment Adviser has
assembled an Advisory Board of highly successful music industry
experts which include award winning members of the artist,
songwriter, publishing, legal, financial, recorded music and music
management communities, all with in-depth knowledge of music
publishing. Members of Hipgnosis Song Management Limited Advisory
Board include Nile Rodgers, The-Dream, Giorgio Tuinfort, Starrah,
David A. Stewart, Poo Bear, Bill Leibowitz, Ian Montone and Rodney
Jerkins.
About peermusic
Founded by Ralph S. Peer in 1928, peermusic is the world's
largest global independent music publishing and neighbouring rights
administration company, operating from 38 offices in 31 countries.
With well over a million titles owned or administered by the
company, and with a neighbouring rights roster encompassing over
300 record labels and more than 2,500 performers, peermusic is the
largest privately owned company of its kind in the world. For
further information about peermusic, go to www.peermusic.com . For
breaking news updates, behind-the-scenes information and photos,
follow @peermusic on Twitter, Instagram and Snapchat.
About Sacem
Music accompanies our lives and, for 170 years, Sacem has
supported those who create it. 182,520 authors, composers and
publishers have it chosen to manage their copyright. Mouthpiece for
creators, trusted partner of music distributors, Sacem acts to
promote music in all its diversity. A non-profit company, Sacem
contributes to the vitality and the influence of creation in all
regions, through daily support to cultural and artistic
projects.
Together let's bring music to life!
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