Investing in Tokenisation of Music IP Rights

Introduction

A prominent UAE-based fund (the “Client”) enlisted our assistance for an investment in an international IP company that merges cutting-edge technology with the world of art. The project aims to tokenise real-world assets, specifically intellectual property rights. This case study highlights our firm’s involvement with the Client, which required thorough due diligence, strategic guidance, and skilled negotiations.

Client Challenge

The investment involved multiple parties, including our Client and another fund. While all Parties agreed on the overall goal, the main challenge lay in navigating this cross-border investment’s complex legal and regulatory landscape. Our Client was based in the United Arab Emirates (“UAE”). In contrast, the company and the other Parties to the agreement were established in France, necessitating compliance with the laws of each jurisdiction.

Moreover, given the highly regulated nature of our Client and the fund’s industry, a deep understanding of sector-specific nuances and potential challenges was crucial.

Strategies, Tactics, and Solutions

To meet the Client’s requirements, we deployed our multidisciplinary team of experienced legal professionals, specialising in mergers and acquisitions, corporate law, and the regulatory framework pertinent to the fund. We also paid particular attention to the laws surrounding the tokenisation of IP rights as they apply to both the UAE and France. Our strategy focused on an exhaustive due diligence process, meticulously scrutinising the target company’s operations, financial records, and legal obligations.

We adopted a collaborative approach, maintaining open communication channels with the Client and all relevant stakeholders. This ensured that any concerns or questions were addressed promptly. Our team utilised advanced legal research tools and industry-specific databases to understand the regulatory landscape and identify potential risks thoroughly. Cross-border transactions require adherence to different sets of laws and alignment with local legal customs and practices. Consequently, we negotiated carefully with the French team representing the IP company, ensuring the investment aligned with legal frameworks and industry standards.

Outcomes

Through diligent efforts and comprehensive analysis, we identified potential areas of concern and provided the Client with actionable recommendations to mitigate risks and optimise the investment process. Our insights enabled the Client to make informed decisions and confidently navigate the complexities of the transaction. The successful completion of the investment underscored our firm’s expertise and unwavering commitment to delivering outstanding legal services.

Not only did we successfully navigate a French-UAE investment transaction, but we also ensured that the legal matters surrounding the tokenisation of real-world assets were sound. The Client expressed gratitude for our thorough approach, effective communication, and seamless collaboration, reinforcing our reputation as a trusted advisor.