Unpaid royalties are killing artists’ earnings – could blockchain be the ultimate fix?
Globally, the music industry is grappling with significant issues related to unpaid royalties, with Limp Bizkit's lawsuit against Universal Music Group shedding light on intentional efforts to conceal payments. The core problem lies in inaccurate metadata, which is crucial for ensuring fair compensation but often remains misaligned across various databases. This issue is further exemplified by SoundExchange's legal action against AccuRadio, underscoring the widespread impact on both established and emerging artists.
The existing royalty systems are plagued by outdated technology and potential manipulation, creating a lack of transparency and trust. Blockchain technology emerges as a potential solution, offering a transparent and decentralized network for accurate royalty calculations. Despite challenges such as slower transaction times and limited adoption, blockchain presents a promising opportunity to revolutionize royalty payments and restore trust within the music industry.
Initiatives like Ripe Capital, Audius, and Myco are leveraging blockchain to provide transparent and fair compensation for artists, signaling a collaborative effort to address the issue. Ultimately, the urgency for reform in royalty payments is evident, and blockchain stands as a compelling solution to rectify the flawed systems and ensure fair compensation for artists.
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