Our Guiding Principles

  • Support the music industry in its evolution to eliminate the historical issues around rights and royalty accuracy, transparency, and speed of payments

  • Adopt the new business models being innovated in the industry, empower existing industry participants to respond to new opportunities, and help move the industry away from outdated paradigms and barriers

  • Enable music companies to respond to the demands of copyright owners: quick payments, high transparency, better accountability, and more control

  • Support full-scale asset management, not limited to publishing copyright vs. masters

The Industry Today

  • The music industry is being criticized for inaccurate artist compensation and distrust; artists are more vocal, informed and tech savvy, demanding to be paid faster and more accurately and are seeking alternatives to the status quo

  • Every dollar of revenue earned is shared amongst many parties but the data surrounding that revenue is masked and highly restricted, often only verifiable through costly and time consuming audits

  • Rights data is often inaccurate and not visible to the rights holders or to the parties who share in the interest of a composition or recording, resulting in delays and errors in obtaining use licenses and in paying out royalties

  • Paid subscriptions and streaming are causing significantly more data in music, adding complexity to the industry and its workflow, and crushing the legacy technology which supports it

  • Continued advances in technologies and the digital music environment has provided accelerated interest in tech-based music business model innovation

Unmet Needs

  • Many companies are tracking creators’ rights with spreadsheets or using reportedly suboptimal legacy music administration products

  • Lack of visibility permeates the industry; music companies of all sizes have difficulty understanding their catalog, tracing their royalties, and resolving rights and royalty disputes

  • There are multiple centralized sources of rights and royalties data with subsets of data exchanged via EDI standards

  • Creators have no overall visibility into their plays and sales across the multitude of industry sources, nor to the middlemen who collect and process the royalties along the way

  • Industry organizations need support in taking advantage of the continued tech-based business model innovation

Essential Value

  • Highly efficient flow of money to artists (more money, faster), less chaos (technology, processes and people) to music companies, happier informed participants

  • Serves established music company models - through our Rights and Royalties Administration component - but enables a path to new blockchain and shared data enabled paradigms

  • Improves speed and accuracy of royalty payments to rights holders

  • A complete view into royalties via the Royalty Chain and the Participant Portal - especially important for singer/song writers and to creators with deals and licenses spanning multiple organizations

Why Blockchain: Growing Complexity, Antiquated Solutions

  • Over 10 years ago, the majors recognized the value of centralizing regional databases into global repositories and undertook large technology initiatives to create their own conflict-free single sources of truth

  • Immutable royalty ledgers were created and shared between affiliates, offering transparency and visibility into pipeline transactions

  • Since then, we have been watching the data volume grow and have been managing the acceleration of that growth in real-time. Support for these data volumes has required a ground-up architectural approach, modern tools/technologies, and the power of cloud computing

  • Such large data storage requires a distributed database similar to those used by major content providers such as Netflix and Facebook. The design naturally operated with the same principle concept as blockchain - a distributed ledger where data never changes and only evolves forward, enabling multiple machines to safely coordinate handling data at a massive scale

WHY BLOCKCHAIN: Trust and Efficiency

  • Blockchain provides the transparency being craved by the most important participants in the industry: the creators

  • The entire music industry is built around the concept of multiple parties with complementary interests sharing in a single asset - the song. Why should this data be kept in private copies in incompatible systems and require synchronization through ineffective methods? Blockchain empowers the industry to share the data in a controlled, mutually beneficial environment where conflicts are known and resolvable

  • Immutable, permissioned ledgers provide security yet accountability

  • Smart contracts allow for the automatic execution on the terms of agreements and assets