Royalty Exchange: Platform Profile

Overview

Royalty Exchange is a marketplace for buying and selling royalty-income rights.

Current marketplace assets can include:

• music publishing royalties;
• sound-recording royalties;
• producer royalties;
• film residuals;
• trademark royalties;
• other intellectual-property income streams.

The structure is materially different from SongVest.

Royalty Exchange generally facilitates a direct contractual purchase of an existing royalty interest from a seller.

The investor is not necessarily buying a fractional Regulation A security issued by Royalty Exchange.

May fit better for

• investors seeking direct royalty-income assets;
• investors comfortable making larger single-asset purchases;
• investors who want access to music, film, trademark, or other royalty streams;
• investors comfortable evaluating historical royalty statements;
• investors who value an active resale marketplace;
• investors seeking assets with terms ranging from fixed years to life of rights.

May fit less well for

• investors seeking $25 or $100 fractional entry points;
• investors needing guaranteed liquidity;
• users who want standardized SEC-qualified series offerings;
• investors who do not want to perform asset-level valuation;
• users who assume a historical royalty yield will continue;
• investors who want principal protection.

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Current marketplace operator

Current Terms of Use:

• Platform operator: Royalty Exchange Inc.
• Minimum age: 18
• Investment advice: No
• Fiduciary relationship created by marketplace: No

Royalty Exchange describes itself as a third-party marketplace intermediary.

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What the buyer acquires

Current marketplace agreements can transfer:

• life-of-rights royalty interests;
• fixed-term royalty interests;
• fixed-return structures where specifically offered.

A buyer can acquire the right to receive a defined portion of royalty revenue without acquiring control of the underlying copyright.

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Current buyer fee

Current All Access page:

• Standard buyer fee: 1% of final deal amount
• Standard buyer fee minimum: $500
• All Access waives standard buyer fee: Yes

The fee applies to ordinary marketplace purchases unless a specific listing or membership treatment changes it.

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Buyer-fee examples

A $20,000 purchase:

1% × $20,000 = $200

Because the current minimum fee is $500, the standard buyer fee is:

$500

A $100,000 purchase:

1% × $100,000 = $1,000

before any separate legal, tax, wire, or asset-specific expenses.

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No universal investor minimum

Current listings span a wide range of deal sizes.

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Current marketplace activity

Current platform markets:

• Active marketplace: Yes
• New assets listed regularly: Yes

Current homepage shows transactions ranging from tens of thousands to more than $1 million.

Those examples are not minimums or expected deal sizes.

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The eXchange resale market

Royalty Exchange currently operates the eXchange.

An investor can list or receive offers for eligible royalty assets.

That does not make the asset liquid like an exchange-traded stock.

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Income administration

Current royalty-accounting agreement states that Royalty Exchange can:

• collect royalty payments;
• account for the buyer's interest;
• distribute payments to the buyer.

The underlying royalty distributor remains central to payment timing and accuracy.

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Payment timing

Distribution frequency depends on the royalty contract and payor.

Examples can be:

• quarterly;
• semiannual;
• other schedules.

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Historical yield

Royalty Exchange publishes marketplace yield statistics.

Royalty revenue can decline because of:

• listener trends;
• catalog aging;
• licensing changes;
• loss of placement activity;
• distributor changes;
• legal disputes.

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Ownership verification does not eliminate risk

Royalty Exchange states that it reviews and verifies listed royalty assets.

That does not guarantee:

• future royalty amounts;
• absence of every ownership dispute;
• uninterrupted distributor payments;
• resale demand.

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Late-payment terms

Current marketplace Terms of Use state that a winning buyer who fails to pay on time can face a late fee equal to:

• Late fee: greater of $500 or 2% of amount due
• Daily interest after default: 0.05% per day

This is an operational transaction rule, not an investment-management fee.

Assessment

Royalty Exchange is a direct royalty marketplace rather than a fractional fan-investing product.

That creates higher capital requirements on many listings but gives the buyer direct contractual exposure to a defined royalty stream.

The buyer fee is also unusually easy to calculate:

• 1% of the deal;
• $500 minimum;
• waived for current All Access members.

The main liquidity distinction is:

Royalty Exchange has an active resale marketplace, but a listing is not a guaranteed sale.