Some of Bob Dylan's royalties will be far from blowin' in the wind.
Sesac Inc., a performance-rights company, plans to sell $300 million of bonds linked to licensing agreements, copyrights and royalty payments for artists from Bob Dylan to Neil Diamond, reports Bloomberg.
The offering is being arranged by Goldman Sachs and will be rated BBB- by Standard & Poor’s. Sesac will use the proceeds to refinance debt and pay a dividend to Sesac owners.
Dylan, who signed a recording contract in 1961, accounts for 7 percent of Sesac’s royalty expenses, S&P said in a report for investors.
Sesac is unlikely to be a big fan of the view that property rights can not be attached to songs and other intellectual property.
The anti-property rights for intellectual work crowd believes that work created by your mind should not be protected by property right and that anyone should be allowed to use such intellectual work for free once it has been created.
It simply baffles me as to how this crowd can not recognize contracts when it comes to intellectual property. If I contract with Mr. X to create a song under the grounds that Mr. X does not show or distribute the song to anyone else, I do not see how I am not controlling the property rights relative to that song and that the person I contract with to produce the song is a criminal in breach of contract if he distributes the song beyond the terms of the contract.
More to come.