INTELLECTUAL property company, Caribbean 2 World (C2W) is cutting back on its expenses for the new year, given that it hasn’t generated any revenue to speak of.

It earned US$1,500 in sales for the nine months to September, but posted a net loss of US$798,000 for the period.

What’s more, the company needs to see a bump in sales soon, given that it has less than half of the US$1.5 million in capital it raised May.

“We are not cutting back because we are under pressure,” Ivan Berry, C2W’s CEO, told the Jamaica Observer. “Our risk is lessened by lowering our overhead expenses.”

The biggest cost centre for the publisher, which aims to make money from collecting on songwriters’ royalties, are the songwriting camps it holds to create most of its copyright material.

These gatherings of song international and Caribbean songwriters cost about US$60,000 a month.

A large chunk of the camps’ cost covers flights, accommodation, meals, and ground transportation, according to the C2W CEO.

However, the camps will be paid for by sponsorship going forward.

“A camp that is (currently) being held in Barbados is fully paid for by sponsors,” Berry said.

Although the recently listed company is in the red, Berry believes it’s only a matter of time before it makes sales.

He hopes to start seeing royalties in the second quarter of 2013 from performance income and other streams.

The first six months were spent making copyright through these camps. The next move is to exploit the materials. Berry said. C2W then has to wait another six to eight months before the revenue can be collected.

So far, the company has 700 songs and its catalogue is growing at a fast pace, Berry said.

C2W, which was listed on the Jamaica Stock Exchange (JSE) Junior Market earlier this year, earns through performance royalties, from music played via media outlets; mechanical royalties, from the sale of compact discs and digital units; and synchronisation royalties, from music used in or adapted for movies and television advertisements.

Its model is aimed at generating sustainable income through the ownership of Caribbean intellectual property, which is very valuable on the international market, he said.

The company recently signed a three-year partnership with German-based publisher BMG Chrysalis. The international company currently has writer artistes, will.i.am and Bruno Mars.

That deal makes the Caribbean company a sub-publisher for BMG’s its catalogues, songs and songwriters.

Prior to the partnership, BMG had no Caribbean representation.

“We had some representation through England and the Netherlands but for a lot to the territories we have no representation of our copyrights,” said Emi Horikawa, manager BMG International. According to Horikawa, BMG has 100 million copyrights, some of which they weren’t earning revenue for because of the lack of representation.

What the partnership now means for BMG is, it will receive earnings from its exploited material through C2W. It will negotiate and close deals with any entity wanting to use any songs that belong to BMG.

C2W will collect 100 per cent of BMG’s royalties from all potential revenue streams, for which it will be paid a 10 per cent fee.

A song called Band-Aid has been written for the upcoming album, of the American boy band, Mindless Behavior. Based on Berry’s reckoning, the group will have equal or more success with its second album after making millions with its debut album.

“That song may very well be a single,” Berry said. “When that song hits the airwaves, it will mean more revenue for C2W.”

At least 10 C2W songs have been synchronised and will come out on television next year, Berry said.

The digital download of C2W’s song We Want Drinkz was recently made available worldwide on iTunes and on digital downloading sites like Amazon.

The track is currently priced at US$0.99. It was written by King Bubba FM, Lil Rick and Corey Forde. The song is signed to Young American Recording, a record label owned by Max Grousse, senior vice-president of Island/Def Jam.

But Berry said it was difficult to calculate how the song will contribute to C2W’s revenues.

“Royalties don’t work as definitive as cents per play,” he said. Adding that it varies all around the world.

He hopes that millions of people will play the Tap Tap Revenge, the iOS game that the song is being played on. “When purchases are made via iTunes, the company will generate income from sales and also from streaming the song, Berry said.

It is much too early to say how many purchases have been made since the song was made available on iTunes. “Accounting statements via iTunes and the record label are quarterly, so it’s much too early to know the sales figures,” Berry said.

To realise the revenue that it hopes to see second quarter next year. Berry said it will do a good job for C2W and continue to exploit more of its catalogues.