Partial Sale vs. Full Sale
Selling a percentage of your music rights versus selling 100% of ownership.
What it means
When selling music rights, creators can choose between a full sale (transferring 100% of ownership and all future revenue) or a partial sale (selling a percentage of the rights while retaining the remainder). A full sale provides maximum upfront capital but completely eliminates the seller's future revenue stream from the sold assets. A partial sale allows the creator to generate some immediate capital while continuing to earn from the retained portion of the rights. For example, selling 50% of a catalog valued at $100,000 would generate approximately $50,000 in immediate capital while the seller continues to earn 50% of all future revenue. Partial sales have become increasingly popular thanks to platforms like Royalty Exchange and new financial models that allow fractional ownership of music rights. They offer a middle ground that addresses creators' need for capital without requiring them to fully divest from their creative work. For ambient and meditation music creators, partial sales can be especially attractive because these catalogs tend to appreciate over time as the wellness market grows. Selling 20-50% of a growing catalog provides working capital for new productions, marketing, or personal needs while preserving the long-term upside of the remaining ownership stake.
Technical details
Partial sale structures require careful legal and administrative setup. The sale agreement must define: the exact percentage being sold, how decisions about licensing, administration, and future deals will be made (control provisions), whether the buyer has a right of first refusal on future sales of the remaining interest, how the retained and sold interests interact with PRO registrations and distributor setups, dispute resolution mechanisms, and accounting and reporting obligations. Revenue distribution is handled through the publisher, distributor, or a designated administrator who splits incoming royalties according to the agreed percentages. Partial sales may be structured as direct ownership transfers or through SPV (Special Purpose Vehicle) entities that hold the catalog and distribute income to multiple stakeholders. From a valuation perspective, minority interests (under 50%) may be subject to a lack-of-control discount, while majority interests command a control premium.
Frequently asked questions
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