When You Wish Upon a Star: Explaining the Cautious Growth of Royalty-Backed Securitization

48 Pages Posted: 22 Oct 2012  

Lisa M. Fairfax

George Washington University - Law School

Date Written: 1999

Abstract

This article focuses on the phenomenon of securitizing future royalties of entertainers, illustrating why securitzation of such royalties has not been embraced more enthusiastically. The article begins by describing the securitization process in general and the differences between mortgage-backed and asset-backed securities. The article then examines the benefits of securitization as applied to entertainment royalties. Benefits of securitization include immediate liquidity, less expensive capital, and diversification of the suppliers of the originator’s funding. However, securitization does not make sense for many entertainers unless they need large sums of cash. Moreover, securitizing royalties may not be viable because it creates a host of copyright issues.

Keywords: securitization, royalties, copyright

JEL Classification: L82 , K22, O34

Suggested Citation

Fairfax, Lisa M., When You Wish Upon a Star: Explaining the Cautious Growth of Royalty-Backed Securitization (1999). 1999 Columbia Business Law Review 441 (1999); GWU Legal Studies Research Paper No. 2012-92; GWU Law School Public Law Research Paper No. 2012-92. Available at SSRN: https://ssrn.com/abstract=2165382

Lisa M. Fairfax (Contact Author)

George Washington University - Law School ( email )

2000 H Street, N.W.
Washington, DC 20052
United States
202-994-4630 (Phone)

HOME PAGE: http://www.law.gwu.edu/Faculty/profile.aspx?id=16144

Paper statistics

Downloads
50
Abstract Views
563