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Rightscorp’s Red Bottom Line Gets Larger and so Does its List of Copyrights to Protect

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Rightscorp’s Red Bottom Line Gets Larger and so Does its List of Copyrights to Protect

Postby sunnyd » Mon Aug 18, 2014 8:41 pm

It’s another repeat bright red bottom line number for Rightscorp, and it keeps us wondering about this specific business model, and why the company continues to be so excited and proud of its work. However, despite showing a substantial loss for the second quarter of 2014 as reported by the Wall Street Journal, Rightscorp continues to earn more copyrights to protect. The latest agreement reached is with The Bicycle Music Company.

In the press release dated August 14th, the company stated that due to this newly reached agreement, they now, "Represent a total of 50,000 copyrights from The Bicycle Music Company, the globally influential independent music publisher, record label, and rights manager. The copyrights received from The Bicycle Music Company add to Rightscorp's catalogue of over 1.5 million copyrights."

Included in the list of music copyrights in this agreement are; Crossroads Blues, Bust A Move, Eye of the Tiger, Guantanamera, Lady Sings The Blues, Let Your Love Flow, Man In the Mirror, Sister Christian, Slow Ride, Stand By Your Man, Time After Time and the songs from A Chorus Line. Bicycle's song catalog includes works by Roy Ayers, Glen Ballard, Marty Balin, Sammy Cahn, Wes Farrell, The Fixx, Foghat, Marvin Hamlisch, Billie Holiday, Robert Johnson, Montell Jordan, Cyndi Lauper, Ernie Maresca, Marilyn Manson, Night Ranger, Nine Inch Nails, Jim Peterik, Pete Seeger, Third Eye Blind, Tammy Wynette and Dwight Yoakam. Bicycle's master recording catalog includes works by AFI, The Brand New Heavies, Evanescence, Finger Eleven, The Connells, Creed, Drowning Pool, Nine Inch Nails, The Offspring, The Pharcyde, Seether, The Skyliners, Tone Loc, Brenton Wood and Young MC.

The announcement also mentioned that, "The Bicycle Music Company is a well-respected publishing pioneer representing both hit songs and hidden gems, and we are excited to include their impressive portfolio of copyrights in our growing catalog," which was stated by Christopher Sabec, CEO of Rightscorp, and he added that, "The music industry has been hit hard by illegal copyright infringement through peer-to-peer networks and has lost billions of dollars in sales, revenue."

It’s evident that the company continues to gain trust with the music industry by what some may see as a proven method of the "pay up or else scheme" for alleged copyright infringement victims, and the list of copyrights the company protects just keeps on getting longer. What makes absolutely no sense at all is that the company is actually losing more money each time they take on more copyrights to protect, even though their revenues have increased. They just keep on going, sans anything strong to really show for it.

Here are facts that lead to the bright red bottom line:

"Rightscorp incurred operating expenses of $1,824,469 during the six months ended June 30, 2014, as compared to $771,766 for the six months ended June 30, 2013. This increase was due to increased payroll expenses and fees paid to copyright holders in the period. General and administrative expenses were $1,513,489 for the period ended June 30, 2014, compared to $662,542 for the six months ended June 30, 2013, due to increased wages expenses, professional and investment banking fees, and travel and other expenses related to securing financing.

Sales and marketing costs were $66,416 for the period ended June 30, 2014 compared to $42,719 for the six months ended June 30, 2013, an increase of $23,697 due to increased presence at industry conferences to meet potential clients.

Depreciation and amortization expenses were $24,357 during the six months ended June 30, 2014, an increase of $8,815 as compared to $15,542 for the six months ended June 30, 2013. Other expenses totaled $21,226 during the six months ended June 30, 2014, a decrease of $118,912 from the six months ended June 30, 2013, due to decreased interest owed on convertible notes used to finance operations.

Net loss attributable to common shareholders was $1,405,281, or $(0.02) compared to $809,977, or $(0.03) for the six months ended June 30, 2013.

Rightscorp is currently working with about 140 ISPs to which they present the payment demand letters for subscribers, followed by termination letters for non-compliance and/or threats of litigation. The company still demands $20 for each single infringement, and claim to have settled about 75,000 cases to date.

In an effort to comprehend what’s taking place here, a quote from Mark Twain may very well explain it all, "The lack of money is the root of all evil." Yes, in this case, we'll just go with that and say that it makes perfectly good sense since nothing else does. We have yet to figure out how Rightscorp ever plans to be profitable based on what we keep seeing. What we do know for sure is that the alleged victims, many of which are innocent, are being scared into paying up by the "settle or else we’ll sue" threats issued to them, and that’s the evil part that continues.

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