The Solution: Music IP Tokenisation

What is Music Protocol?

The solution lies in transitioning to fully digital IP management through decentralised infrastructures that can serve as both an identification registry for IP and a registry of ownership for associated rights.

Music Protocol is the outcome of many years of collaboration between legal, music business management, and technology teams. This process has resulted in a new technological infrastructure that serves the music industry and supports a digital revolution in managing IP. It opens up new and advanced ways to handle licensing in traditional settings and emerging areas, such as the metaverse, gaming, and artificial intelligence.

The architecture of Music Protocol is a blockchain-based ecosystem thoroughly designed for managing intellectual property within the music industry. Its core is a sovereign chain built on Substrate, serving as a settlement layer and a public registry for IP assets. This chain operates on a proof-of-stake (PoS) validation mechanism powered by the $RECORD token and backed by a network of validators from the music industry and financial sectors. The setup ensures high integrity, security, industry relevance, and alignment with standards.

Complementing the sovereign chain is a series of multi-chain execution layers. These layers are engineered to handle crucial functionalities necessary for the comprehensive management of IP and are built on different stacks, depending on their functional role. This includes registering, identifying, and verifying IP assets, enabling seamless and efficient digital management.

Music Protocol is a fundamental building block for transforming intellectual property management and ownership procedures in the music world. Its primary focus is on digitising licensing processes, a move that will significantly enhance the efficiency of current business models used by the music industry. It will boost the creation of new business models, where the digitalisation of IP and establishing a technological market infrastructure for IP circulation are crucial starting points.

How does the music IP flow change with Music Protocol?

The blockchain-enabled approach to music IP management starts with digitally registering the music asset on a blockchain network. Compliance and legal checks are automated, streamlining the approval process. Two key functionalities emerge once the IP is tokenised: fractional ownership and rights management through NFTs. This allows for transparent trading, automated revenue distribution, and collective decision-making. Royalties can be auto-disbursed using smart contracts, enhancing payment speed and traceability. This framework aims to make the music IP process more transparent and efficient.