Eminem Publisher, Eight Mile Style Music, and Kobalt Music Group Announce Groundbreaking Global Music Publishing and Technology Pact

U.S. Company, Music Resources, to Exclusively Debut 'Powered By Kobalt'

Services Brand

Nov 16, 2007, 00:00 ET from Kobalt Music Group

    DETROIT, Nov. 16 /PRNewswire/ -- Signaling a strategic move towards
 global consolidation of assets and transparent online copyright
 administration, Detroit-based Eight Mile Style Music, which together with
 Martin Affiliated LLC owns and controls 225 compositions on multi-million
 selling albums, including all of rap artist Eminem's first four solo
 albums, has orchestrated a groundbreaking administration, technology and
 marketing pact between Eight Mile Style, global independent online
 music-publisher Kobalt Music Group and Los Angeles-based licensing and
 administration company Music Resources. The announcement was made today by
 Joel Martin, principal of Eight Mile Style Music and Willard Ahdritz, CEO
 and Founder of Kobalt Music Group.
     Through the unique publishing and marketing deal, Kobalt will become
 Eight Mile Style's publishing administrator for all worldwide territories
 outside of the U.S and Canada, and will collect, process and track
 royalties for the catalog on a worldwide basis. Music Resources will
 administer the Eight Mile Style catalog for the US and Canada, and will
 collaborate with Kobalt on synchronization and creative/A&R services. Music
 Resources will utilize Kobalt's transparent, online music publishing
 administration technology and will exclusively debut the new "Powered By
 Kobalt" services brand.
     Upon making the announcement, Martin said: "The music industry is
 changing fast, and like the trend with established major artists, copyright
 holders of major catalogs need to take control of their own destiny.
 Kobalt's transparent system has re-engineered the publishing industry, and
 we're confident we have crafted a unique relationship with Kobalt globally,
 and both Kobalt and Music Resources in the U.S., that will provide
 tremendous financial and creative advantages and will ensure we are
 completely involved in the management of our business with money not being
 wasted on unnecessary expenses."
     According to Martin, the business decision to utilize Kobalt and Music
 Resources and combine the expertise between the companies was prompted in
 part by the results of years of market testing and comparison of
 collections and reporting among several major publishers that have been
 handling the Eight Mile Style catalog under separate agreements. "Due to
 the fact that Eight Mile Style co-publishes multiple writers for the same
 songs that were administered by different companies in the same
 territories, it has enabled us to accurately compare 'apples to apples.' We
 found compelling advantages in Kobalt's level of accuracy, royalty tracking
 and transparency, especially as it relates to their unique portal and the
 proprietary technology they have developed," said Martin.
     Commented Ahdritz: "We are very excited to expand our already
 successful sub-publishing relationship with Eight Mile Style, taking it to
 a new global level, including the United States. This unique, new
 relationship with Eight Mile Style and Music Resources is another example
 of how Kobalt can offer customized solutions for clients and continue
 delivering the structures and solutions that we need for those exciting
 changes to the industry."
     The Eight Mile Style catalog contains hit songs performed by Eminem
 including the Oscar-winning song "Lose Yourself," and "Guilty Conscience,"
 "97' Bonnie & Clyde," Just Lose It," "My Name Is," "Shake That," "Without
 Me," "The Real Slim Shady," and "Cleanin' Out My Closet" among other works
 written by Marshall Mathers III (a.k.a Eminem) and his legendary
 songwriter/producer team Jeffrey Bass and Mark Bass (a.k.a. The Bass
 Brothers), as well as frequent collaborators, Luis Resto and Steven King.
 The catalog also contains numerous songs recorded by multi-platinum
 artists, including 50 Cent, Tupac, Dr. Dre, Jay-Z, Nas and others. In
 addition to the available back catalog, Eight Mile Style and Martin
 Affiliated will, together with Music Resources and Kobalt, administer the
 future works of Resto, King and The Bass Brothers, including new songs
 slated for Eminem's next CD release. With career sales estimated in excess
 of 70 million albums worldwide, Eminem is one of the best selling music
 artists of the decade.
     Music Resources is owned by Nancie Stern, who has 25 years of music
 publishing, clearance and licensing expertise. For over 15 years Music
 Resources has specialized in the complex area of sample clearance and has
 worked with every major label and multi-platinum artists such as 50 Cent,
 Destiny's Child and the Black Eyed Peas. Music Resources is currently
 recognized as one of the leading clearance companies in the area of
 emerging technologies, including digital ringtones and streamed media, and
 represents the publishing catalog of academy award winning group, Three Six
 Mafia. Stern will continue working for music icon Quincy Jones in her
 position as Vice President of Quincy Jones Music Publishing.
     "I'm tremendously excited and fortunate to not only have the
 opportunity to work with the incredible Eight Mile Style catalog and
 Kobalt, but also with Joel Martin who I deeply respect as a business mentor
 and person. Combining our knowledge, relationships and expertise, Music
 Resources Powered by Kobalt will offer a broader copyright administration
 platform to our clients. We are all united together in our goals toward the
 future of the music industry," said Stern.
     Having recently debuted at No. 6 on Billboard's Second-quarter Top 10
 Publisher Airplay chart and ranking No. 1 U.K. independent publisher for
 the second quarter results of 2007 (Music Week 18.08.07), Kobalt, now in
 its 7th year of operation, has more than 600 clients worldwide, processes
 1.5 million copyright registrations, and employs a staff of 45 people in 6
 offices. The company has experienced an average of 200% growth per year in
 global gross collections and synchronization revenue.
     In the last year, Kobalt has renewed its ex-North America deal with pop
 icon Gwen Stefani, as well as signed deals with Barry Manilow, Dr. Luke
 (producer of Avril Lavigne's global chart-topping singles and CD), German
 pop superstar Herbert Groenemeyer, classic R&B writing team Full Force and
 up and coming UK artist Gary Go. Other clients include Max Martin, The
 Hives, Editors, Evergreen and Richard Ashcroft among many others. The deals
 were put together by Ahdritz and Martin, and Eight Mile Style was
 represented by New York attorney, Mark Levinsohn. Kobalt's business affairs
 team included Michael Petersen, Executive VP/General Counsel and General
 Manager U.S., and Christiaan Winchester, General Counsel/Director of
 Business Affairs in Kobalt's London office.

SOURCE Kobalt Music Group