In review: blockchain in the music industry

Every now and then I review publications regarding the development of blockchain technology in the distribution and protection of intellectual property rights, especially, in the music industry.

Today, I recommend a publication titled “A Preliminary Review of Blockchain in the Music Industry“, November 2018, authored by GreyscailØLedgerback. Ledgerback is, as described in the article, a Co-operative creating research and analytics for the future of decentralized communities and technologies; more information provided in the final section of the article, available via SSRN here.

The publication presents, in clear terms, members of the music industry (categories such as recording labels, producers, publishers, as well as collective management organizations (performance rights organizations), distribution companies, PR and marketing agencies, streaming platforms and artists themselves).

It also analyzes available solutions, based on white papers drawn up by companies using blockchain in the music industry and on other sources. The analysis mainly addresses specific issues suffered by the industry, on the one hand and – on the other hand – opportunities to change the balance of power in the field.

The concluding parts of the article address problems that may be encountered in the blockchain-based intervention projects and provides a list of recommendations.

The abstract of the article suggests that the authors praise solutions developed by innovative entrepreneurs and researchers, whose projects they analyze, in the expectation that the mere presence of new technology will eliminate the problems of the music industry. In fact, however, it indicates some of the basic potential obstacles and, although, in my opinion, more could be mentioned, it is not one-sided. The recommendations provided at the end are particularly worth mentioning.

In Section 9, we find the following postulates:

  1. “Increase musician awareness of blockchain and associated ecosystems.
  2. Create effective decentralized governance models.
  3. Prevent traditional industry players from having large stakes in blockchain-based intervention projects.
  4. Consider creating a consortium for music and blockchain projects, such as R3 consortium for financial institutions.
  5. Make efforts to get listed on multiple top 50 exchanges, with the top 10 exchanges being the most preferable.
  6. Try to approach young, up-and-coming musicians and independent labels about using blockchain interventions.”

This article described above concerns American Law. The image comes from the Pixabay collections. I am not affiliated with the authors of the article or any of the described entities.

[the publication is covered by CC BY license]