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Industry rule #4080 strikes again. Last week, Royalty Exchange, an online platform for selling royalty assets, announced that it would auction off 1.5% of the sound recording royalties for the first five studio albums from rap legends a Tribe Called Quest. The idea, according to a press release, was that the buyer of those royalties would “earn money every time the songs in question are streamed, played on the radio, sold physically, sampled, or appear in TV/film/commercial placements. Once again, the seller will get a cut each time the asset is sold down the line, making it a rare win-win for both parties involved.” It looks like it wasn’t really a win-win, though.
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