Pulled this from the the rethink music report.
You can download the whole thing here
http://www.rethink-music.com/RETHINK MUSIC
TRANSPARENCY AND MONEY FLOWS IN THE MUSIC INDUSTRY
A database of accurate rights ownership information,
like the one we have proposed, could form the foundation
of a similar cryptocurrency log. In addition to rights
ownership information, the royalty split for each work,
as determined by a mixture of statute and contracts,
could be added to the database. Each time a payment is
generated for a given work, the money would be automatically
split according to the set terms, and each party’s
account would instantly reflect the additional revenue.
For example, suppose a song is purchased from a
digital music store, such as iTunes. After the store takes
its cut, for ease of demonstration, we will hypothetically
assume the revenue generated by the purchase comes
to US$1.00. This money would be split between the two
different works contained in the song, with a 9.1 cent
mechanical royalty going to the musical work, and the
remaining 90.9 cents going to the sound recording. Next,
if the contract between the publisher and songwriter
specifies a 75/25 split of revenue from downloads, the
publisher would receive 6.825 cents and the songwriter
would receive 2.275 cents. With an identical split at the record label,
The label would receive 68.175 cents, and
the recording artist would get 22.725 cents. The blockchain
network could also further divide this 22.725 cents
between the members of a band, if applicable.
This entire process would take place in less than one
second, allowing all parties to access their money
immediately after it is generated. Further, this payment
system is fully trackable and would ensure that royalties
are not held by third parties, such as labels and publishers,
before being passed to the artist and songwriter.
This would eliminate concerns about accidental or
intentional underpayment of royalties.
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