Royalty and Rights Management Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud Based and On-premises), By Application (Large Enterprises and SMEs) , Regional Insights, and Forecast To 2032

ROYALTY AND RIGHTS MANAGEMENT SOFTWARE MARKET REPORT OVERVIEW

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global royalty and rights management software market size was USD 1.9 billion in 2023 and market is projected to touch USD 3.11 billion by 2032 at CAGR 5.6% during the forecast period.

Royalty and rights management software is a software solution specifically designed for content creators, publishers and brand owners to deal with IP rights and royalty payments effectively. It is much more focused on contract and right management and allows users to handle all incoming, outgoing and owned right with one system. It also aids in sorting out the rights for usage and sales to enhance the efficiency of the utilization of the existing IP assets and the need to meet standards regardless of the position held in an organization. It also comprises automated royalty, which allows the user to calculate and pay royalties using the various contracts and sales records that may prevail. They handle large numbers of royalty transactions and protect the company against legal implications arising from contract breaches.

Apart from the flexible solutions for contract and payment transactions, the management of royalties and rights provides comprehensive analytical summaries. Customers can create reports tailored to contractual agreements or royalty statements and get insights into owed royalties, advances, guarantees and profitability. The software allows for benchmarking by retailer, IP, category, SKU and many others, to find pockets of the most margin capture. They enhance profitability and operating efficiency since they address complexities associated with IP rights and royalty management hence reducing the amount of manual work done. Several companies offer global and leading players such as companies such as SAP, Vistex, Ingenta, Rightsline and Dependable Solutions are mapped for helping music, media, gaming and licensing industries to manage the intricacies of intellectual property rights and royalties.

COVID-19 IMPACT

"Pandemic influenced the market and its future disrupting it and requiring adaptation and sustainability"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic had affected the revenue of the royalty and rights management software market in a major way because of which the royalties and payments got delayed due to the lockdown in the production and distribution of content. Challenges of contract implementation and compliance became more pronounced for the industry besides the issue of simplifying complex royalty formulas in this evolving market. Moreover, the emergence of new working scenarios, such as remote working, revealed some flaws in the systems that were in place and the opportunity for new and better technical solutions. This period of destabilization also challenged the supply and demand competition and forced the companies to make unsteady shifts with higher degrees of failure, thus compounding the adverse effects on their performance and financial condition.

LATEST TRENDS

"Increasing use of cloud-based services to the market is expected to boost the market growth"

There is a growing trend in the use of cloud-based solutions for royalty as well as right management which can be more flexible and elastic. These platforms provide real-time and current instant access to data, as well as several procedures that require far less on-premise foundation. This shift enables businesses to bend counter to their surrounding environment and better handle their IPR and royalties issues. Supporting this shift is the growth in analytics-driven solutions that enhance the understanding of the royalty data and its use. These tools enable users to understand the causation behind the numbers, manage revenues more effectively and define the potential for additional revenues. Royalty and rights management software is not immune to change and has had to adapt to the shift towards cloud and more specifically advanced analytics to evolve to meet the market’s needs.

ROYALTY AND RIGHTS MANAGEMENT SOFTWARE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud Based and On-premises.

• Cloud-Based: Cloud-based royalty and rights management software offers flexible, scalable access, ideal for adapting to changing business needs. Subscription models lower upfront costs, benefiting smaller organizations. Automatic updates and maintenance ensure up-to-date features and security. Enhanced collaboration is facilitated through a centralized platform, while robust security measures and regular data backups protect sensitive information against loss or unauthorized access.

• On-Premises: On-premises royalty and rights management software offers full control, crucial for compliance and security. It integrates seamlessly with existing IT infrastructure, enabling tailored workflows. Despite a higher initial cost, it can be more cost-effective long term. Superior performance is assured, especially with unreliable internet. However, it requires a long-term commitment, including investment in training and support.

By Application

Based on application the global market can be categorized into Large Enterprises and SMEs.

• Large Enterprises: Large enterprises require advanced royalty management software to handle complex IP portfolios and multiple contracts. Seamless integration with ERP systems ensures cohesive workflows. Customizable and scalable solutions accommodate growth and increasing data volumes. Advanced security features protect sensitive IP assets. Robust reporting and analytics provide detailed insights, enabling accurate royalty tracking and informed business decisions.

• SMEs: SMEs seek cost-effective royalty management software that provides essential features without high costs. They prefer user-friendly interfaces that require minimal training for quick adoption. Basic functionality suffices for tracking royalties and managing rights, focusing on core tasks. Flexible solutions allow for easy upgrades as the business grows. Cloud-based options are popular due to lower upfront costs and reduced IT maintenance.

DRIVING FACTORS

"Rising level of intellectual property rights to enhance the market"

The enhancement of focus on safeguarding intellectual property (IP) rights has emerged as one of the main driving forces behind the global royalty and rights management software market growth. Due to this realization by industries of the importance of their IPs, there has been a need to come up with efficient management strategies that will protect and maximize IPs. Growing trends in IP-related litigations and increased difficulties in handling, consolidating and managing various interests where IP interests include copyrights, patents and trademarks call for feature-rich and sophisticated software that can address complex royalty structures and compliance needs. Management solutions also assist in monitoring organizations’ awareness of their respective IP rights as well as in setting up systems for royalty payments and reporting. This emergence of focus on IP protection is shifting companies’ attention towards the development of stronger royalty and rights management systems which in turn is a key driver to the growth and development of this market.

"Growth of new platforms for the production and distribution of digital content to expand the market"

The availability of new content generation and delivery has influenced the growth of royalty and rights management software solutions. With the constant rise of new technologies in the form of OTTs, social media platforms and e-commerce marketplaces the number of advertising and monetization opportunities only grows, but so does the number of rights management issues. Publishers and rights holders as well as all the content creators are having the problem of how to monitor and manage rights for their content across all these channels, each of which can have its own licensing and monetization models. Due to these complexities, efforts to control the liabilities involved for various royalties call for advanced software solutions in determining the correct figures, adherence to these contracts and distribution of payments as necessitated by the agreements signed between the parties involved in the production process. This is a driving force encouraging growth in the market as organizations scramble to capture significant revenue from digital content while at the same time satisfying their need for better, more advanced rights management solutions.

RESTRAINING FACTORS

"Cybersecurity threats are a leading concern as they slow down market growth and profitability"

The high risks of cyber threats are a main concern for the royalty and rights management software platform which requires strong security measures from the providers’ side. Cyber risks are on the rise and so are the scale and capability of threats including data breaches, malware and ransomware that threaten the integrity of valuable IP assets and the information that defines royalty structures among other things. These threats therefore pose a major risk where providers experience difficulties in maintaining robust cybersecurity measures. Lack of security measures often leads to customers losing their confidence in the software and suffering huge losses in cases of data breaches that compromise the fairness of the application and organizations’ functioning. This suggests that with the increasing utilisation of digital solutions for the safeguarding of organizations’ intellectual assets, the threat of cybersecurity threatens market development and consumer confidence as a primary limitation.

ROYALTY AND RIGHTS MANAGEMENT SOFTWARE MARKET REGIONAL INSIGHTS

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The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America is leading the market owing to mounting demand for digital rights management solutions amongst the media and entertainment firms"

The media and entertainment industry together with the uptake of DRM solutions is leading the global royalty and rights management software market share in North America. These industries deal with the challenging task of safeguarding and finding ways to profit from content distributed across digital platforms they can considerably benefit from effective DRM solutions that will support them in controlling access and distribution of their products as well as handling licensing agreements. Due to the heavy concentration of media in this region and the rising amount of digital content released, there has been a growing trend of organizations seeking to adopt automated royalty and rights management solutions. These solutions have benefits as they eliminate or reduce the need for manual work such as calculations, tracking of royalties and payments for the rightful owners. The growing demand for efficient and correct management of IPR in North America to enhance the revenue model and protect the information asset is a key factor that is fueling the growth of the market.

KEY INDUSTRY PLAYERS

"Key industry players are introducing new offerings and enhancing their existing services to progress the market"

The key industry players are also engaged in constant product developments to cover the emerging needs of their clients resulting in the growth of the royalty and rights management software market. The companies which is currently one of the industry leaders and has recently released a new version of its rights management software. This new release includes additional built-in functions that were developed to improve the general performance of the program as well as to enhance the usability of this product. The latest release offers new features that enhance the monitoring of IPRs and royalties, as well as compliance with the more intricate contractual conditions. Such continuous innovations are seen as evidence of commitment by the industry toward bringing flexibility to address the growing concerns in the market while at the same time offering more sophisticated ways for managing rights and royalties to the users.

List of Royalty and Rights Management Software Companies

• Eclipse (U.K.)
• Ingenta (U.K.)
• WestEnd (U.S.)
• Iptor (Austria)
• MetaComet (U.S.)
• Vistex (U.S.)
• Schilling A/S (Denmark)
• Inovva (U.K.)

INDUSTRIAL DEVELOPMENT

November 2023: PRS for Music has transitioned its royalty payout database to Oracle Cloud Infrastructure as part of its digital transformation. This was launched in 2019 but went live in 2021 and has helped PRS manage a growing workload by processing 27 trillion lines of music data in 2021. The migration supports improved data control, speed and accuracy in royalty distributions.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.