Bieber, one of the singers who has had the most success in the 21st century, is now included in the expanding number of musicians who have capitalized on their back catalogs.
As a result of the decision, Hipgnosis will be entitled to financial compensation whenever one of the songs to which they contribute musically is performed publicly.
Bieber’s publishing copyrights to his entire back library of 290 songs were purchased by the business, which is a joint venture worth one billion dollars between the global investment firm Blackstone and the British Hipgnosis Song Management.
This covers all of his music that was released up to the 31st of December 2021, as well as his portion of the writer’s royalties.
The agreement also included the acquisition of the artist’s rights to his master recordings held by the celebrity.
The specifics of the transaction have not been made public by Hipgnosis; nevertheless, a source informed the news agency AFP that it was valued at about $200 million.
Artists, such as Justin Timberlake and Shakira, are selling ownership rights in their work to music funds at an increasing rate. Hipgnosis has also reached agreements with both of these artists.
However, this tendency is more prevalent among artists of a more senior age bracket. The legendary musician Bob Dylan and Bruce Springsteen have both sold their back catalog rights to Sony for the last two years.
According to reports, Springsteen made an estimated $500 million (or £376 million) from the selling of his life’s work.
Bob Dylan made a deal with Sony Music to sell his master recordings.
The music rights to Bruce Springsteen’s catalog were sold for $500 million.
The Hipgnosis Songs Fund is currently compiling a collection of successful songs and has extended an invitation to major institutional investors to participate in the fund’s profits.
In July 2018, the fund debuted trading on the London Stock Exchange (LSE).
Merck Mercuriadis, who also created the company, was quoted as saying in the past that successful tunes may be “more valuable than gold or oil.”
In making the most recent announcement, he said, “The influence that Justin Bieber has had on world culture for the last 14 years has been astounding.”