Brazilian investment funds bet on copyright royalties and entertainment-based products
Profit potential of copyrights and concerts (once the Covid pandemic is under control) have led Brazilian investment funds to create numerous products based on the music and entertainment industry, such as collective financing of copyright royalties, and concert investments specialized funds.
In 2020, singer Paulo Ricardo negotiated rights to 590 compositions and masters with a fintech (finance startup). (Source: Estadão’s E-Investor).
He recorded and co-wrote some of Brazil’s biggest pop hits in the 80s, reinvented himself as ballad singer in the late 90s, and enjoyed new popularity in the 2000s and 2010s as the song “Vida real” was chosen as the opening theme of the hugely popular Brazilian edition of “Big Brother” (the reality show broke rating records in 2021). Investors can now get a share of the profits from Ricardo’s portfolio.
In May 2021, it was reported that singer Gusttavo Lima (from the viral 2009 hit “Tchê tchererê tchê tchê”) sold his entire 2022 concert schedule to an investment fund, for R$ 100 million (U$19 million). (Source: Metropoles ) We have not found further details on the operation of such fund.
Lima had the highest profits with livestreams amongst Brazilian artists during the pandemic, in 2020. Investors are betting on even better profits when he’s back on stage.
Lima’s deal is unprecedented in Brazil. It’s most likely just the beginning, as the music and entertainment industries in the country are still prolific in possibilities, and “ordinary” investors are increasingly interested in music, entertainment and Intellectual Property too.
Brazil is one of the biggest music markets in the world, with great potential for investment.
If you want to invest in Intellectual Property or entertainment business in Brazil, it is highly recommended to conduct Intellectual Property compliance actions, as well as general due diligence that such transactions require.
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3Três Consultoria e Criação (Consulting & Creative) specializes in the intersection of creative, Intellectual Property Law, and communication services.
Contact us at: contato@3trescc.com
