Bowie Bonds: A Key to Unlocking, the Wealth of Intellectual Property

Authors

Nicole Chu

Abstract

Before David Bowie broke a new frontier in financing by selling $55 million in bonds backed by future music royalty payments and copyrights, music royalties and copyrights had never previously been securitized due to the uncertainty in predicting future cash flows. The concept of intellectual property securitization resolves the dilemma of inexpensively raising a large amount of money, while still retaining ownership in the underlying intellectual property. Asset securitization of intellectual property touches upon copyright, bankruptcy, tax, and securities law, as well as being impacted by the Uniform Commercial Code. This Note provides a brief overview of the securitization structure, previous securitizations, the legal and policy areas involved in creating "Bowie-style bonds," and suggests future applications not only to other musicians, but also to other entities owning intellectual property rights.

Recommended Citation

Nicole Chu, Bowie Bonds: A Key to Unlocking, the Wealth of Intellectual Property, 21 UC Law SF Comm. & Ent. L.J. 469 (1998).
Available at: https://repository.uclawsf.edu/hastings_comm_ent_law_journal/vol21/iss2/5