Music copyright is an overlooked investment opportunity. Music publishing generates nearly $9 billion a year in worldwide revenue. Global royalty income is growing at around 10% a year.

Heiko Schmidt, managing partner of Parafund Management and CEO of Parasongs, talks with Hedge Funds Review editor Margie Lindsay about the investment opportunity offered by this business.

Schmidt, with 25 years of experience in the music industry, talks about where he sees growth in music royalities coming from and what specfic geographical areas as well as market segments he thinks are going to see the biggest increases over the medium and long term.

Collection of royalties has traditionally been poor with up to half of all royalty payments lost through poor administration and systems.

Schmidt believes the technology is now available to make collection of payments due easier to capture. The system developed by Parasongs, he says, has found a way to reduce leakage as well as make the process more efficient and effective through the use of technology.