The Verve Intellectual Property Case A Bittersweet Example

Intellectual property’s tentacles are long and strong. Maybe the largest battlefield in IP is the music industry. Composer, producers, interpreters and license owners might get unexpectedly involved in legal battles regarding the misuse or abuse of a song of their property. Sometimes it is just something as little as a sample of the song but are legal frictions can deal with millions and millions of dollars.

Time is not an issue to underestimate when dealing with Intellectual Property. If by any chance, you use a song that was written forty years ago, and one of its owners is still alive, he/she can claim unfair use and suddenly, legal lawsuits can flood your desk. When working with someone else’s work, you should be extremely careful, no matter if you already got permission to use it.

In 1997, the British band The Verve sampled an orchestration in one of their songs, “Bittersweet Symphony”, from the Rolling Stones’ “The Last Time”. Prior the release of the album, the group did the proper negotiations concerning the license agreement with the Rolling Stones to utilize the sample. When the album came out, the song was a complete hit and reached number 23 on the Billboard Charts. After the sudden success of the song, the Rolling Stones argued that The Verve violated their license agreement because they use too much of the sample in their song. The Rolling Stones ended up collecting 100% of the loyalties of the song. Members of The Verve argued that the Stones got greedy when they noticed the sudden success of “Bittersweet Symphony”.

As a result, the Rolling Stones sold the rights over the “Bittersweet Symphony” and it became part of many commercials and publicities. Allen Klein, Rolling Stones’ manager licensed the song to Nike and to Vauxhall automobiles. Both brands utilize the melody for multi-million dollar television campaigns. Even worse, when the song was nominated for a Grammy, The Verve was not named as a nominee, but Mick Jagger and Keith Richards were. This is just a little example of moral rights dealing with intellectual property. The song hit top of the charts and not one members of The Verve enjoyed a cent of its success.

If these types of situations happen with amazing groups, who supposedly are not interested in more money, anything can happen to regular people who may get exposed to these inconveniences. Get acquainted with the respective regulations and laws so that no economical issues may come up in case you are planning to use someone else’s inspiration!

Reversionary Property Investment

When it comes to building a diversified property portfolio, many investors consider a reversionary property investment. Especially beneficial for the medium and long-term, a reversionary property is a good option as it offers a host of advantages. The fact that its unheard of for property prices to decline 50% below their current value makes investing in a reversionary property worth considering.

What is a reversionary property investment?

A reversionary property offers potentially high returns. Reversionary property investing refers to the process where an investor purchases the reversionary interest in another persons property, typically their home. This means they are purchasing the rights to own the property upon the death of the owner or when he vacates. In short, the property reverts to the buyer.

Types of reversionary properties

There are two types of reversionary properties: tenanted and untenanted. Tenanted is when the homeowner stays in the premises while untenanted is when the seller isnt residing in the house. In the second type, the buyer can choose to rent out the property.

How do you obtain a reversionary property?

In a reversionary property investment, you simply buy a residential property from a homeowner at a significantly discounted price usually around 50% of its value, depending on the sellers age and the propertys location and features. Payment can either be made through cash lump sum or in monthly instalments or a combination of both. When payment has been handed over, the homeowner continues to reside in the property as a rent-free tenant with full legal rights to stay in the house.

As long as he continues to stay in the house, he will be responsible for the general maintenance of the property, the utility bills, building insurance premiums and capital tax. Basically, reversion investments are a bet on the life expectancy of the homeowner. Meanwhile, the buyer of the property pays the monthly reversionary annuities until the death of the homeowner. When the homeowner dies or when he decides to leave, the propertys ownership reverts to the buyer.

Who benefits from a reversionary property investment?

Both the homeowner and the buyer benefit from a reversionary property. The homeowner-seller receives additional income in the form of a cash lump sum or monthly payments which could significantly supplement his pension. The setup will also provide him a lease that will endure until he passes away and he is freed from the responsibility of shelling out big payments such as land tax. In addition, he doesnt have to put up with the usual anxiety associated with selling his own property or moving out, allowing him a stable and secure state of mind.

For the buyer, the reversionary property presents an excellent opportunity for him to acquire a property at a huge discount. Most of these reversionary properties are apartments, studio flats, villas and commercial buildings situated in prime spots thus making them well-suited for buy to lets.

A reversionary property investment is certainly one of the least bothersome ways for any property investor to invest.

Why You Need To Start Investing In Commercial Property

To most of us, investing in a Residential Property seems to be a more lucrative option as compared to investing in Commercial property for sale or commercial property on lease. However, in reality the scenario is totally different. To know more, let us go through some of the pros and cons of investing in residential property.

Residential Property Investment: Pros It is tax deductible: Most expenses related to Residential property are tax deductible. For instance, the depreciation on the property, property loan are all deductible when you pay your annual tax. This is one of the main reasons why investors often make a beeline for investing in Residential properties instead of commercial property. Money minters: Another advantage of investing in residential property is that you get to make a huge amount of money as and when the value of the property increases. This is particularly true in the case when you invest in a property that is situated in a prime location in various cities. Earn from rentals: An investment made in residential property is an investment for a lifetime. This is because after buying a residential property, you can put it for rent or lease it to a company and earn extra income from the rentals. The cons of investing in Residential property : Why invest in commercial property in Mumbai (and elsewhere ) Rise in interest rates: Many a times, the interest rates of residential property may rise overnight, leaving investors in a lurch. This is not the case with commercial properties and hence, it is a safer bet particularly if you are taking a loan for investment. Bad tenants: Okay, so you give your property for rent and earn extra income. But what if you get really bad tenants/occupants? They may not pay the rent on time, cause damage to your property or even carry out activities that might not go down too well with those living as their neighbors and for that matter you. Commercial property on lease by various companies, won’t encounter such problems. Developing it can take up your time: Many a times, investing in residential property can take up much of your personal time since sooner or later, you might end up using it. This is the reason, you’d want everything to be perfect. Commercial property on the other hand, needs less attention from you as an individual and hence it is a safe bet.

So, these are some of the pros and cons of investing in a residential property. I am sure that after going through them, you might want to reconsider and invest in commercial property in Mumbai. You can either go for commercial property on lease or commercial property for sale – whichever falls within your budget constraints.