Deriving Value from Derivative Works
The music industry has undergone a significant transformation in recent years, with the rise of derivative content and now generative AI causing a substantial shift in how creators find new ways to produce and distribute music. In simple terms, derivative content is created by taking existing material and modifying or repurposing it. Derivative content can take many forms, from sampling and remixing existing tracks to using loops and pre-made sounds to create new compositions. Distorted samples, infectious blends, remixes, and live covers all fall under the umbrella of derivative content.
In today’s complicated digital landscape, artists and music companies are exploring new avenues for creating and distributing music. This shift has opened up new opportunities for musicians to reach wider audiences, engage with fans, and increase their revenue streams. However, derivative content is adding to the complicated questions about music rights and copyright infringement.
The Underground
Listeners’ tastes are ever-evolving, and derivative content is not only growing in popularity but also challenging rights legislation. Artists are experimenting with new genres and creating new and exciting music, but they are often held back by crippling litigation. A massive underworld of derivative content exists, but only a select few can access it. This content is unavailable on mainstream platforms for various legal reasons, but imagine a world where all creators, original artists, and rights owners could benefit. Bottom line — existing copyright law needs updating.
Like it or not, unsanctioned content finds its way to the masses. This has led to legal disputes and calls for more explicit guidelines on fair use. And with the tsunami of derivative content released every day, protecting the rights of the original artists has become more challenging. Labels and other music companies have had to change their strategy on protecting their assets and are beginning to collaborate instead of issuing takedowns.
A Key Shift from Takedown to Collaboration
More now than ever, artists are tapping into new markets by allowing other artists and fans to create their own versions of their songs. Legacy catalogs are being rediscovered and generating revenue as new versions and remixes keep them in the public eye. For example, the resurgence of the Nightcore genre can be directly attributed to artists creating sped-up versions of their latest hits to appeal to the trend in rising BPMs on UGC platforms.
But to provide that value, we must ensure that creator rights are being accurately tracked. Record labels are starting to collect and track licenses and the use of stems and samples across “unofficial” remixes, DJ performances, and UGC. These remixes and mashups are identified and connected to original compositions, ensuring royalties are not lost in the black box for derivative works.
Double-edged Technology
Technology has enabled the growth of derivative content while simultaneously threatening artists’ livelihoods. To combat this, platforms such as TikTok and YouTube have introduced new licensing agreements and revenue-sharing models that allow artists and rights holders to benefit from the use of their music in derivative works. These platforms also offer tools for identifying and monetizing derivative content, which can help to reduce the risk of copyright infringement.
Generative AI, which uses algorithms and machine learning to create music similar to existing artists and tracks, has also emerged in recent years. While this technology can potentially revolutionize the music industry, it poses significant challenges regarding music rights. For example, who owns the rights to a track created by a generative AI algorithm? Is it the artist who created the algorithm, the label that invested in it, or the software company that created the AI in the first place? And what about the music ingested to train the AI algorithm? Are licenses required for this use, or can an argument be made for fair use?
Looking Ahead and Preparing for Changes
To prepare for these challenges, the music industry must be proactive in its approach to music rights. New standards and protocols for managing music rights data need to be developed, and we must invest in new technologies and tools to help address these rights effectively. It will also require a greater focus on transparency and collaboration between different stakeholders in the music industry, from artists and labels to software companies and technology providers. For example, a collaborative dataset like the Verifi Rights Data Alliance (VRDA), a cross-industry data alliance for music rights that includes music labels, streaming platforms, and copyright organizations, is ideal for capturing the evolving nature of the original work and its associated derivatives.
Ultimately, the importance of accurate music rights data cannot be understated. With accurate data, it’s possible to manage and protect the rights of artists and labels, which can lead to less lost revenue and missed opportunities. By establishing clear guidelines and licensing agreements, artists, rights holders, and platforms can ensure that derivative works continue to benefit the music industry while protecting all groups’ rights. As the music industry continues to evolve and new technologies emerge, accurate music rights data will be more critical than ever, providing the foundation for innovation and growth in the years to come.
We are committed to being great caretakers of our clients’ data, while steadfast in the belief that significant rights data improvement has massive economic value collectively for the music business globally, and, as importantly, each organization and creator that joins will benefit from greater mobility and transparency of rights data. If you would like more information regarding Verifi Media, or the VRDA, please reach out to us at info@verifi.media. Learn more about Verifi Media at our website.
