Abstract The emergence of new technologies such as mp3 and music streaming, and the accompanying digital transformation of the music industry, have led to the shift and change of the entire music industry’s value chain. While music is increasingly being consumed through digital channels, the number of empirical studies, particularly in the field of music copyright in the digital music industry, is limited. Every year, rightsholders of musical works, valued 2.5 billion dollars, remain unknown. The objectives of this study are twofold: First to understand and describe the structure and process of the Dutch music copyright system including the most relevant actors within the system and their relations. Second to apply evolutionary economics approach and Values Sensitive Design method within the context of music copyright through positive-empirical perspective. For studies of technological change in existing markets, the evolutionary economics literature provides a coherent and evidence-based foundation. The actors are generally perceived as being different, for example with regard to their access to information, their ability to handle information, their capital and knowledge base (asymmetric information). Also their norms, values and roles can differ. Based on an analysis of documents and held expert interviews, we find that the collection and distribution of the music copyright money is still based on obsolete laws, neoclassical paradigm and legacy IT-system. Finally, we conclude that the rightsholders are heterogenous and have asymmetrical information and negotiating power. The outcomes of this study contribute to create a better understanding of impact of digitization of music copyright industry and empower the stakeholders to proceed from a more informed perspective on redesigning and applying the future music copyright system and pre-digital norms and values amongst actors.
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The digital era has brought about profound changes in how music is created, distributed, and consumed, posing a need for modernizing the Dutch collective management system of music copyright to match the rapidly changing digital music industry. This study aims to identify the key stakeholders and their perceptions of the Dutch system of collective management of music copyright. Utilizing qualitative document analysis, the study examines a range of public and non-public documents, including income statements, annual reports from Collective Management Organizations (CMOs), and contracts between publishers and creators. The research is further enriched by twenty-four semi-structured interviews with key stakeholders such as composers, lyricists, music publishers, copyright lawyers, and CMO executives. The findings of the study highlight several issues like the outdated IT systems and the lack of data standardization within the system. The research also notes a contrast in organizational effectiveness: major publishers are well-organized and unified in their negotiations with Digital Service Providers (DSPs) and CMOs, effectively advocating for their rights. However, music copyright holders, despite their legal homogeneity, are either unorganized or ineffectively aligned, displaying diverse interests and varying levels of access to information, as well as differences in norms and values prioritization. The study is grounded in the economics of collective management (ECM) and makes a significant academic contribution to this field by introducing new empirical findings to ECMs core constructs and integrating theoretical perspectives. The research offers valuable insights for policymakers, industry stakeholders, and researchers, aiming to foster a more equitable music copyright management system in the digital context.
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This research investigates the integration of stakeholders' values into the digital frameworks of Collective Management Organizations (CMOs) within the Dutch music copyright system. Utilizing Q methodology, the study captures diverse perspectives from composers, lyricists, publishers, and CMO representatives on values, value tensions, norms, and system requirements. A pilot study with four experts tested data collection methods and refined the study design for a larger, follow-up study involving 30 participants. Preliminary findings, based on factor analysis of participant rankings of 30 statements, reveal two distinct perspectives: one focused on "Fairness and Accountability," emphasizing trust-building and equitable treatment, and the other on "Technological Efficiency and Transparency," prioritizing clear information, verification mechanisms, and advanced IT systems. Qualitative insights from participant interviews provide nuanced understanding, highlighting the importance of transparency in royalty processes, balanced application of technology, and equitable royalty distribution in the digital age. This research contributes to the modernization of copyright management systems offering a conceptual model adaptable to other creative (Intellectual Property) industries
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