The metaverse has recently gained attention and popularity, raising questions on what music licensing in this new space will look like. This article will discuss the challenges and opportunities brought about by the metaverse to music licensing.
Challenges of Music Licensing in the Metaverse
The metaverse is still in its early stage of development, and its definition remains unclear to many people outside the Web3 space. It is a new frontier for innovation and creativity, with media at the forefront of the movement. Web2 social media platforms have dedicated themselves to music, but the current licensing system struggles to keep up with the evolving landscape of technology, making it imperative to revamp the system.
The lack of set standards and laws surrounding copyright and licensing complicates the process. Presently, the metaverse is in its experimental stage, making it challenging to enforce intellectual property rights. Content ID, an automated system, is still the most effective means of enforcing IP rights in the metaverse. However, given that content is broadcasted from Web2 platforms, questions surrounding the use of copyrighted music in virtual spaces and events within the metaverse arise.
Moreover, the metaverse being global poses a challenge in determining who monitors and enforces licenses because copyright law, performance rights, music licensing, and regulation are cross-jurisdictional. Proper compensation for musicians when their work gets used is also a concern.
Opportunities for Music Licensing in the Metaverse
Despite the challenges, the metaverse presents massive potential for licensing music. The current licensing system may need to be revamped, given the changing ways music is created and consumed, especially with Web3 innovations like nonfungible tokens (NFTs).
NFTs, for instance, have seen many top-name artists perform concerts in the space and appeal to releasing music. Furthermore, licensing music for the metaverse needs to include the metaverse as a distribution channel within the scope of the license, or the license’s scope should be so broad that the metaverse would naturally be included.
According to Hendrik Hey, founder of blockchain-based content licensing company Media Industry Licensing Content, a new approach to licensing is on the horizon. Royalty structures that differ from traditional music licensing models could be complex. Nevertheless, a standard for music licensing in the metaverse will provide more protection for artists and lead to better opportunities.
The metaverse has brought a new frontier of innovation and creativity to the music industry. Although it presents challenges in music licensing, the metaverse also presents opportunities that may revolutionize the way music is consumed and created. Revamping the current licensing system and setting standards for music licensing in the metaverse will provide more protection for artists and lead to better opportunities.