Music Catalog Sales –
Music Publishing & Music Rights
Do you want to sell your music catalog, your publishing rights, or your master recordings—or have you inherited music rights? We’ll guide you through every step: from valuation and legal review to the secure execution of the contract.
The Market Today
Music Rights as an Investment Asset
—What Has Changed
What used to be reserved only for the biggest players—the strategic sale of music catalogs—has now become relevant for artists of all sizes, publishers, and heirs.
Streaming platforms have turned music rights into transparent, data-driven assets. Spotify streams, YouTube views, and international licensing revenues are measurable and predictable—which makes catalogs attractive to professional investors.
Private equity funds, specialized music rights funds, and institutional investors are actively buying. The market is deep, international, and highly professional.
The bottom line: Once a property is sold, there’s usually no turning back. Anyone who takes this step without legal guidance risks making mistakes that can’t be corrected.
Act Now
Don't sell your rights for less than they're worth.
Before you sign—have a lawyer review your contract so you know the true value of your rights.
Basics
What's Actually Being Sold? - The Rights Chain
Catalog sales involve copyright and related rights. The most important principle is this: You can only sell what you actually own—and the buyer must be able to provide complete proof of this.
Composition / Publishing
Publishing Rights
Melody, lyrics, arrangement—owned by the songwriter, managed by the music publisher. Revenue from GEMA royalties, reproduction licenses, dubbing rights, and print rights. Upon sale, all licensing rights and entitlement to revenue are fully transferred.
Admissions / Master's Programs
Master Recording Rights
Rights to the finished audio recording — typically held by the label or independent artist. Buyers acquire licensing rights, streaming revenue, control over sampling, and neighboring rights.
Author's Share
Songwriter Royalties
Even without a publisher’s share, the personal royalty entitlement can be assigned separately—for mechanical licenses, dubbing fees, and GEMA performance royalties. This is legally complex and involves specific GEMA requirements.
Rights of Personality
Name, Image & Likeness
Commercial use of the artist's name, image, and persona. Often bundled with the catalog deal for well-known artists—enables merchandise, documentaries, and brand licensing.
Heirs / Estate
Estate Administration
If the artist has passed away, the heirs or estate administrators take action. Who has inherited which rights? Do all the co-heirs agree? Where are the original contracts? Unclear inheritance situations can block catalog sales or lead to long-standing disputes.
Key Rule
The Chain of Title
The buyer always acquires only the seller’s rights—not all rights to a song. A song can have multiple co-owners. Complete documentation of all transfers of ownership is a prerequisite for any deal.
Rating & Price
How is your catalog rated?
"What is my catalog worth?" — this question can only be answered once it is clear which revenues are actually sustainable. Buyers pay for future cash flows, not for past hits.
BASIC PRINCIPLE
Catalog Value = NPS × Multiplier
NPS (Net Publisher’s Share) = Total revenue minus all author royalties and administrative costs.
Alternatively: Present value calculation of future revenue—discounted to its present value.
Approach 1
Multiplier based on the annual average
The most common approach: Average annual NPS over the past 3–5 years × market-standard factor. One-time effects and charter revenues are excluded beforehand.
Approach 2
Calculation of the Present Value of Future Revenues
A projection over several years, discounted to present value. The interest rate reflects risk, genre stability, and general interest rate levels. The more stable the revenue stream, the higher the value.
Approach 3
Comparable Transactions
What have similar cases been settled for recently? Experienced attorneys know the market and can determine whether an offer is in line with market conditions—or whether there is room for negotiation.
An Overview of Typical Multipliers
Catalog Type
Typical range
Key Factors
Classics & Standards — timeless, widely used
15-20 x NPS
Stable, diversified revenue; high relevance to Sync
Recent Songs, Active Career
12-16 x NPS
Higher Risk Due to a Decline in Intake Following the Chart Period
Masterrecordings (Net Label Share)
10-14 x NPS
More dependent on streaming performance and label structure
Smaller catalogs / niche markets
6-12 x NPS
Fewer buyers, lower liquidity, but definitely feasible
"A multiplier is always a simplification. What matters is which revenues are truly sustainable—and which are one-time or have been artificially inflated by charter successes."
— The fundamental principle of any reputable catalog evaluation
M&A Process
How Catalog Sales Work
Preparation
Every deal is unique. The following outline describes how professional transactions are structured—from the initial contact to the transfer of rights.
Assessment & Inventory
Before you start looking for a buyer, you need to know what you have. A complete inventory of all your songs, split releases, GEMA registrations, contracts, and revenue history from recent years is the foundation of any serious negotiation.
Preparation
Get an independent evaluation
Have the catalog appraised before you talk to buyers. Unrealistically high expectations will scare off serious prospects; expectations that are too low will cost you real money. A realistic assessment is the strongest basis for negotiation.
Start of the trial
Non-Disclosure Agreement (NDA) & Prospectus
Non-disclosure agreements protect sensitive data during the initial contact. Qualified buyers then receive a structured prospectus containing songs, revenue history, and licensing activities.
Negotiation
Letter of Intent (LOI)
The buyer submits its initial offer: purchase price, payment structure, exclusivity period, and key terms. Some of these may be binding—this is where the legal work begins.
Exam
Due Diligence — Legal & Financial
The buyer reviews rights chains, registrations, all contracts, royalty statements, and subpublishing obligations. Any gaps could jeopardize the deal or significantly lower the price.
Graduation
Purchase Agreement, Closing & Transfer of Title
Lawyers negotiate guarantees, indemnities, and payment terms. After signing and payment, rights are formally transferred—GEMA, DSPs, and subpublishers are notified of the change in ownership.
Due Diligence
What Buyers Look for During an Inspection
The review consists of an economic analysis of revenue and a legal review of the ownership structure—both of which determine the price and the closing.
Economic Review
- Royalty statements for the past 3–5 years — broken down by GEMA, sync, streaming, and mechanical
- Distinguishing between sustainable revenue and one-time effects (litigation, back payments, label audits)
- Adjustment of chart activity bonuses that will not be earned again
- Review of outstanding, unrecovered advances—these directly reduce the purchase price
- Verification of the correct compensation for all co-authors and co-publishers
- Analysis of Geographic Revenue Distribution (Germany / EU / International)
- Projections of sustainable future revenues as a basis for valuation
Legal Review
- Complete reconstruction of the chain of title—who transferred which rights and when?
- Copyright status of all works—and, for older catalogs, public domain issues as well
- Review of Ongoing or Imminent Copyright Infringement Lawsuits
- All songwriter contracts, co-publishing agreements, and ongoing songwriting deals
- International Subpublishing and Administration Agreements
- Reservations of consent by co-owners or contracting parties
- Complete GEMA work registrations and copyright documentation
Contact
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Legal Support
Why You Need a Specialized Attorney
Buyers, on the other hand, are professional investors with specialized legal teams. Anyone who negotiates without expert guidance is at a structural disadvantage—regardless of how good their portfolio is.
Right-Chain Analysis & Cleanup
You can only sell what you can prove beyond a doubt. A lawyer checks for missing contracts, incorrectly documented revenue splits, and unregistered co-authors—before the buyer discovers them and drives down the price.
Contract Negotiation — Purchase Agreement
Protection Against Unwanted Disposal
Tax Planning in Advance
Disclose Subpublishing Obligations
Post-Sale Processing and Title Transfers
Attorneys Specializing in Copyright and Media Law
"Over 20 years
of experience in music law.
We can help you solve your problems
."
Attorney Juliette Sarvan de Castro
; Attorney Patrick Rehkatsch
Attorney
Juliette Sarvan de Castro
Attorney
Patrick Rehkatsch
"Experienced. Strategic. Assertive.
We solve your legal challenges."
Tax Considerations
The Tax Advantage — and Why Structure Is Everything
The difference between a poorly structured transaction and a well-structured one can be significant—and can only be planned for before the agreement is signed.
Through catalog sales
One-of-a-kind.
Capital gain — depends on the holding structure and tax planning. With the right preparation, the effective tax burden can be significantly reduced. The tax is a one-time payment; it is not levied every year.
For ongoing royalties
Every year.
Ongoing royalties are taxed as income from self-employment or business activities—at the full personal tax rate. Over many years, this adds up to a significant amount.
The bottom line: Once you've sold, there's usually no turning back. Anyone who takes this step without legal guidance risks making mistakes that can't be corrected.
Option 1
Payment in Installments
Spread the proceeds over several years—this reduces the annual tax burden. The buyer's risk of default must be contractually covered.
Option 2
Ownership Structure
Holding rights in a GmbH, selling shares instead of rights—under certain conditions, this results in significantly more favorable taxation of the capital gain.
Option 3
Home Design
Tax residency has a significant impact on which taxes apply. Changing your tax residency before the sale can result in substantial tax savings—but it requires early planning.
For Heirs & Estate Administration
You've inherited music rights—what now?
Music rights in an estate are both valuable and complex. They can generate income for decades—or become mired in disputes for years if the situation is not resolved professionally.
What did you inherit?
Publishing rights, master recording rights, neighboring rights—what you’ve actually inherited depends on what the deceased owned. First step: Take inventory of all documents.
How long will the revenue continue to flow?
In Germany, copyright law protects a work for 70 years after the author's death. Well-managed music rights can generate revenue for generations.
Sell, keep, or manage?
Properly managing a catalog is a lot of work: handling licensing requests, managing GEMA compliance, and overseeing subpublishing. For many heirs, selling the catalog is the more attractive option.
The Cost of an Unsettled Estate
Unclear inheritance situations have dragged out probate proceedings for many years—incurring significant costs that deplete the estate. Early clarification protects the value of the catalog.
Your Preparation
Before You Sell: 8 Questions You Need to Ask Yourself
Buyers come with specialized teams. If you're prepared, you'll stay in control of the process—and the price.
01
Why are you selling?
Your motive influences your negotiation strategy. It’s obvious when someone is in urgent need of cash—and that weakens their position.
02
What belongs to you?
Know your ownership structure and co-authors. Gaps in the ownership structure are the most common problem in due diligence.
03
How much is it worth?
Have the catalog appraised by an independent party. Without making any value judgments, you'll stick to the buyer's price range.
04
Are the royalty statements complete?
3–5 years of purchase history, broken down by source. The heart of every sales process.
05
What contracts are in place?
Publishing, distribution, label, sync licenses. Outstanding advances directly reduce the purchase price.
06
Have the works been registered correctly?
Complete GEMA registrations are required. Missing registrations will result in deductions or block the deal.
07
All of it, or just part of it?
You can sell the entire item, part of it, or separate it by type of right. The structure affects the price and tax.
08
What happens to the proceeds?
If you sell without a strategy, you're simply exchanging an income-generating asset for cash. Consult with a financial advisor early on.
Frequently Asked Questions
Frequently Asked Questions About the Catalog Contract
At what catalog size does it become worthwhile to sell?
This depends less on the number of songs than on verifiable, regular income. Even smaller catalogs with stable royalty income can be of interest to specialized funds, independent publishers, or private investors. The market has opened up significantly and now encompasses a broader spectrum.
Can I sell just a portion of my rights?
Yes. You can sell a percentage stake, exclude certain territories, negotiate specific types of rights separately, or grant a time-limited license. The possibilities are numerous—the key is to ensure that the structure is clearly outlined in the purchase agreement.
How long does a typical catalog sale last?
From the initial contact to the legally binding closing, a professional catalog sale typically takes three to nine months. Complex deals involving multiple rights holders or extensive due diligence can take a year or longer.
What is GEMA's role in a catalog sale?
GEMA plays a crucial role as the central collecting society. It collects royalties for public performance, broadcast, and reproduction. In the case of a catalog sale, transfers of rights must be reported correctly. Determining which rights GEMA manages in a fiduciary capacity and how these are handled in the deal is legally complex and often underestimated.
What happens to my songs after they're sold?
The buyer assumes full licensing authority. They may license your songs for use in film, television, advertising, or political campaigns—without your consent, provided that no restrictions on authorization have been agreed upon. This point must be clearly stipulated in the contract.
Who buys music rights catalogs these days?
The buyer's market is international and highly professional. In addition to large music funds from the United Kingdom and the United States, European publishers, family-run investment firms, independent music companies, and strategic buyers such as record labels are also active.
As an heir, do I need the consent of the other heirs?
Generally speaking, yes. If there are multiple heirs who are co-owners, their consent is required for a sale. Disagreements among co-heirs can significantly delay or block a sale. Seeking legal clarification early on is therefore one of the most important first steps.
What tax considerations are relevant in Germany?
That depends on the ownership and contractual structure. Under certain conditions, a GmbH holding structure can offer significant advantages. In addition, there are VAT issues and withholding tax considerations involving foreign buyers. It is essential to seek individualized tax advice in advance.
- Contact us now
Let's talk about your catalog
Whether you’re an artist, songwriter, heir, or music publisher—we’ll discuss your situation in an initial, no-obligation consultation and give you a realistic assessment of your catalog’s value and how a sale can be structured effectively.
What we'll discuss during the initial consultation:
- Estimation of Catalog Value
- Recommendation on the Sales Structure
- Basic Tax Considerations
- Next Concrete Steps
Request an Initial Assessment
Discretion and data protection are a given. We'll get back to you within 24 hours.