Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Perspectives on Blockchain and the Music Industry
Leslie José Zigel is Chair of the Entertainment, Media & Technology Group at Greenspoon Marder, which recently launched a practice area focused on blockchain. Zigel, who is based in the law firm's Miami, FL, office, has included many high-profile recording artists and labels among his clients. In this interview with Entertainment Law & Finance Editor-in-Chief Stan Soocher, Zigel offers his thoughts on the impact of blockchain technology on the music industry. He can be reached at [email protected].
Q: What are some plusses and minuses of using blockchain?
A: On the plus side, the use of smart contracts [i.e., self-executing contracts based on blockchain code] and blockchain-payment methodology allows fast processing of payments. This is far more efficient to stakeholders receiving micropayments from digital-content streaming providers.
A limitation in using smart contracts and blockchain is once you put in metadata, it's very challenging to correct it. For example, with analog music-publishing processes it's relatively easy to adjust a writer's share of authorship from, say 10% to 15%, and another writer's from 15% to 10%. Thus, one of my big concerns in implementing blockchain is making corrections with retroactive effects.
Q: How does blockchain technology affect royalty audits?
A: In general, if you have metadata that is very clear as to how someone gets paid, it will make royalty audits easier because there's much less manual processing. The challenge is how the cash is going to flow. For example, Spotify Europe passes along to Sony/ATV Europe 100% of the royalties for a particular song, and the writers' split is between the United States and Latin America, and Sony/ATV sends the money to their centralized system for disbursement. A royalty audit has to follow that chain. But does Spotify have all metadata directly or does it go to Sony/ATV Europe as a clearinghouse? Would you have to audit all the payors if there's no central intermediary?
Q: But does the blockchain metadata help with accuracy?
A: Yes from an efficiency standpoint, but it will only be as good as the data that's inputted.
Q: How can blockchain technology affect rights approvals?
A: One of biggest hurdles in the music sync world is not having a centralized repository of data where people know where to go to license songs. So much of this licensing process has been handled through an institutional memory construct. When we finally get to the place where all this information is available at the touch of a button, it can help all rights holders get more licenses and dollars
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?