One of South Korea’s largest companies is developing a music copyright blockchain project. This could result in a fairer distribution of music royalties.
According to local media reports, conglomerate CJ Corp is developing the application through its CJ OliveNetworks subsidiary. The platform would record instances of music broadcast to the blockchain. Therefore, it creates an accurate ledger of plays for royalty distribution.
The aim of the music copyright blockchain platform is to create a more reliable account of music broadcast. Therefore, royalties can go to copyright holders. This would also replace the current system, which relies largely on estimates and manual reporting to determine appropriate royalty payments.
Kim Eung-do, director of the DT Convergence Research Institute at CJ OliveNetworks, said there is demand from copyright holders for this kind of technology, as an upgrade on the current copyright management process.
“It is very important to have a system that guarantees fairness and transparency among copyright stakeholders. The blockchain-based copyright management system will greatly contribute to improving the copyright management process.”
According to reports in Yonhap, the system is being developed on AWS’ Amazon Managed Blockchain Service.
Can A Music Copyright Blockchain Really Help Rights Holders?
Taking advantage of the unique properties of distributed ledger technology, CJ believes the system will also allow more efficient, transparent distribution of royalties to rights holders.
CJ Group is the 14th largest conglomerate in South Korea, with equivalent $25.9 billion in assets. The group operates across a number of sectors including cinemas, beauty, logistics, IT, food and drink and entertainment.
Their move towards blockchain is only the latest example of a major global company developing practical solutions on the technology.
With its immutable records, automatic verification and transaction mechanisms, blockchain is therefore perfect for tracking ownership. This includes digital ownership in the form of copyright.
The platform would enable rights holders to claim a more accurate share of royalties owed to them than at present, while introducing cost-saving efficiencies into the reporting system.
With rights management for music and other IP a contentious issue globally, the platform could also inspire similar applications for monitoring, tracking and recording rights ownership on the blockchain.