Each Royalty Exchange auction consists of a single asset made available to multiple bidders. All bids are public, and bids are accepted for the entire asset only. Each auction has only one winner, and the winning bid is a binding, legal contract with the seller to acquire the entire asset.
For each auction:
Here’s a more detailed breakdown of the process…
The first step to participating in our auctions is to create a Royalty Exchange account, which can be done by filling out our registration form. You may then individually view the listings available and register for any auction that you're interested in. Registered members of Royalty Exchange can opt in to receive updates about new listings, auction activity, and more.
Each Listing on Royalty Exchange goes through a rigorous evaluation process to ensure the seller has the rights to place the asset for auction and verify its financial history.
This consists of:
Once registered, you may participate in any auction you are interested in by clicking the 'Watch or Bid' button on the auction listing. You will be asked to confirm the phone number associated with your account. It will default to the phone number you registered with, but you may change it at this time by selecting your country from the dropdown menu and entering your mobile number. We'll send you a confirmation code as a text message (SMS). Enter this code into the space provided and you can then watch the auction.
To actually place a bid, you must first complete our one-time verification process. It only takes a few minutes.
We recommend completing the verification process BEFORE you find an asset you’re interested in acquiring so you’re not at a disadvantage against other pre-verified bidders.
Each listing has a starting price, which is the lowest price the seller will accept in an auction. Initially, an auction will be listed in “Awaiting Opening Bid” status until a verified bidder places a bid at or above the starting price. Once the starting price is met, the auction clock will begin. Most auctions will run for less than one week.
You can place a bid simply by entering a bid amount in the specified increment and clicking "Place Bid." If you have not yet called us to complete the one-time verification process, you will receive a prompt to contact a member of the Royalty Exchange team to complete this necessary step.
Our auction system will keep track of all bids in real time and notify you of other investors' bids on the auction. All bids are binding and must be placed before an auction closes.
A proxy bid is the amount that you set as your maximum bid for an auction. To place a proxy bid, simply enter your maximum bid in the bid field. Royalty Exchange's auction system monitors the auction bidding for the current high bid and will use your proxy amount to place incremental bids on your behalf to ensure that you remain the highest bidder. The automatic bidding will continue up to the maximum amount of your proxy bid, but will never go higher than the next highest bidding increment. That means that you could win an auction for less than what you were willing to pay.
Once the bid for your maximum amount has been placed, you will be notified if and when another bidder places a higher bid. You can then choose to continue bidding at a higher amount to remain in the auction.
Please note: if two or more bidders enter proxy bids for amounts at or above the minimum bidding increment, the bid that was entered first will win a tiebreaker. So, it may be to your benefit to place a proxy bid earlier in the auction countdown.
Royalty Exchange uses the “Five-Minute Rule” for auctions. If a bid is placed in the final five minutes of an auction, the auction clock will reset to five minutes and begin counting down again. There is no limit to the number of times the auction clock can be reset, so we recommend that you check back often as an auction nears closing time. When the auction has officially come to a close, the listing will indicate "Auction Closed."
When you win an auction, a dedicated Royalty Exchange Account Manager will guide you through every step of the closing process to ensure a smooth and speedy transfer. While the post auction process can vary depending on the auction, the general steps are:
Now that you understand how the auction process works, create a free account to view all of the music royalty assets we have up for auction on the site. You can create your free account in less than two minutes by clicking the button below.