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Integrating Stakeholder Values in System of Collective Management of Music Copyrights: A Value-Sensitive Design Approach Cover

Integrating Stakeholder Values in System of Collective Management of Music Copyrights: A Value-Sensitive Design Approach

Open Access
|Mar 2025

Figures & Tables

Figure 1.

SCMMC values and their relations. SCMMC, system of collective management of music copyrights.
SCMMC values and their relations. SCMMC, system of collective management of music copyrights.

Value interactions and possible tensions

Value interactions and possible tensionsThree supporting quotes from the interviews
Justice serves as a final aim to balance all values fairly and equitably, drawing support from Fairness, Equality, and Equity. However, its implementation might expose conflicts, particularly where compromises are necessary. For instance, “Striving for justice in copyright distribution often reveals the tensions between what's legal and what's fair”.
  • “Publishers often take one-third domestically, but this can increase to 50% for international plays, often undisclosed”. [1]

  • “Questioning the rightful ownership, publishers, representing composers, have conflicting interests compared to Buma Stemra”. [9]

  • “Artists without publishing rights often challenge labels for a share of the master, causing industry friction and calls for fairer splits”. [21]

Equity supports Justice and adjusts imbalances that Equality might overlook, but it can conflict with Equality when attempts to level the playing field seem unfair to those advantaged by the system as is.
  • “Song revenue depends on location; international partners likestreamline collection via local rights organisations”. [12]

  • “Rights permissions are essential; even with millions of streams on Spotify, the payout to authors is minimal”. [8]

  • “Online data complexities overwhelm systems like Buma Stemra, leading to unprocessed royalties for smaller play counts”. [16]

Fairness is pivotal in promoting Justice and supporting Equity, but it might conflict with Accuracy when making the system fairer requires less precision.
  • “Composers and songwriters unfairly receive a small percentage compared to owners of master copies on streaming platforms”. [23]

  • “Many publishers accumulate rights, but few create value; it's like throwing a sticky ball and hoping one sticks”. [16]

  • “Improving clarity and ease of use in copyright databases, could significantly increase efficiency”. [24]

Equality supports Justice and underlies Fairness, ensuring that all individuals are treated equally. Supported by Transparency and Accountability, it sometimes conflicts with Equity when equal treatment doesn't address different needs or starting points.
  • “Songwriters, facing significant stakes, deserve better compensation”. [22]

  • “Organisations must pressure platforms like YouTube to pay fair copyright fees given their substantial ad revenue”. [6]

  • “Authors become dependent on sub-publishing networks where intercompany fees dilute earnings right from the source”.[1]

Ownership and Property bolster Fairness and Equity by ensuring that creators receive recognition and compensation. This value is supported by Transparency and Accountability, enhancing the enforcement of rights. Conflicts might arise with Equity when rigid ownership structures do not support fair distribution.
  • “Legal and technological disparities complicate global intellectual property control, needing improved system execution”. [18]

  • “Creators retain ownership, but publishers control rights and royalties, often leading to opaque compensation”. [3]

  • “Publishers favor administrative deals over ownership, allowing authors to retain rights longer”. [1]

Transparency facilitates Accountability and supports Fairness and Equality by making processes clear. However, it may conflict with Ownership and Property if the need to protect proprietary information restricts openness.
  • “Discovered errors in royalties allowed me to claim funds that would have otherwise benefited top earners due to redistribution”. [10]

  • “Revenue opacity and inefficiencies cause funds to disappear, exacerbated by internal politics and potentially unethical behavior”. [4]

  • “Despite appearances of transparency, verifying actual earnings within large sub-publishing networks remains challenging”. [1]

Accountability ensures that actions impacting others are responsible and traceable, supported by Transparency and Accuracy. Yet, it might conflict with Ownership and Property when proprietary rights restrict necessary disclosures.
  • “Authors need to understand business aspects to avoid bad deals and protect their rights”. [19]

  • “Songwriters rely on proper registration by performers like AvB to ensure they receive due royalties from tours”. [6]

  • “Composers should be proactive with their finances, but labels and publishers also have a significant responsibility in management”. [24]

Accuracy supports Transparency, Justice, and Equity, ensuring that data not only reflects reality but also upholds Fairness and equitable compensation. However, it may conflict with Fairness and Equity when precision in data processing inadvertently reinforces existing disparities.
  • “Large-scale transactions in Buma Stemra often lead to errors; authors must stay vigilant for fair compensation”. [11]

  • “Compensations are sometimes arbitrarily redistributed, highlighting systemic flaws and transparency issues in ownership”. [19]

  • “Classical music elites may resist detailed usage tracking to benefit from simpler administrative processes”. [4]

Description of values

ValueElaboration (of description)
Terminal values

JusticeJustice entails fair treatment and equitable distribution of benefits and burdens, respecting individual rights and societal laws, as inspired by Rawls' concept of distributive justice (1999). This framework not only aims for fairness and equal liberties but also focusses on equity—adjusting benefits to address inequalities and historical injustices. Our empirical data supports that such a justice-based approach ensures all creators, especially the least advantaged, gain equitable access to protections and earnings, promoting a balanced system. This strategy helps uplift underrepresented artists, ensuring industry wealth benefits every member equitably.
EquityEquity in music copyright management ensures that benefits match each member's input. Our study integrates this concept, emphasising equity beyond legal equality to address and correct disparities within the SCMMC, ensuring all creators' gain equitable opportunities from their work, regardless of popularity or location.
FairnessFairness emphasises equal access to fundamental rights and freedoms, promoting actions against discrimination to uphold justice in music copyright management. Rawls' Principles of Justice (1999) highlight the necessity of equal liberties, underscoring actions against discrimination that contradict fairness. Technologies in copyright management system must reflect this by avoiding biases that perpetuate injustice (Barocas & Selbst, 2016). For instance, issues like those faced by Blur's Dave Rowntree with PRS (Dredge, 2024), where royalties are misallocated due to flawed metadata, illustrate the urgent need for fairness in copyright distribution.
EqualityEquality is not about treating everyone identically, but rather about ensuring that everyone has genuine opportunities to achieve similar outcomes. Rawls (1999)'s emphasis on fair equality of opportunity and the use of the difference principle to address the disparities in social and economic starting points are central to creating a just society where equality is not just a formal declaration but a lived reality. According to Harris et al. (2009), this principle supports not only refraining from discriminatory practices but also proactively addressing systemic inequities. Engaging with diverse perspectives helps in creating systems that embody Rawlsian justice and effectively manage the complex balance between technological accuracy and justice for all involved in the music industry.

Instrumental values

Ownership and propertyOwnership and property involve possessing, using, managing, and profiting from information. Global copyright laws protect these rights, enabling creators to control and benefit financially from their works (Honoré, 1961). However, these rights also entail responsibilities, especially in technology design, to avoid misusing ownership and ensure respect for others' rights. Our participants support this, referring to the secrecy in CMO tariff negotiations with DSPs, such as Spotify, that often defended for competitive reasons, which poses ethical dilemmas by compromising transparency and accountability, potentially leading to technology misuse.
The differing priorities of creators and publishers further complicate the governance of CMOs. While creators prioritise equitable compensation and recognition, publishers focus on optimising revenue streams and expanding market access (Kretschmer & Kawohl, 2004). This divergence creates tensions in royalty distribution, contractual agreements, and licencing models, with publishers often advocating for broader commercialisation, while creators emphasise the need for fairness and control over their works (Kretschmer et al., 1999; Hadziarapovic et al., 2021). This study confirms that current governance models within CMOs struggle to balance these competing priorities
AccountabilityAccountability ensures that actions and decisions align with legal and ethical standards (van de Poel, 2013) and requires justification, particularly when impacting copyright holders (Floridi, 2013). Directive 2014/26/EU (European Parliament and Council of the European Union, 2014) aimed to enhance CMO governance and transparency, yet challenges remain in multi-territorial licencing and royalty distribution. Despite mandates for clearer reporting (Articles 7–10), rights holders cite ongoing opacity in royalty allocation and licencing agreements (European Parliament and Council of the European Union, 2014). Research confirms persistent transparency gaps, especially in algorithmic calculations (Yakubova, 2022). While the directive provides a governance framework, enforcement inconsistencies limit its impact. Accountability can be improved by identifying royalty distribution inefficiencies, promoting transparency, and ensuring equitable management (Ferguson, 2017).
TransparencyTransparency ensures that all decision-making processes are openly visible, promoting clarity and inclusivity that upholds ethical standards (Lepri et al., 2018). This openness challenges the usual opacity associated with proprietary algorithms, which can obscure essential processes and impact rights holders (Ferguson, 2017). Advocates like Van de Poel (2013) and Hayes et al. (2019) call for transparent technology development that includes diverse perspectives, particularly from underrepresented groups, to demystify algorithmic decisions and ensure fairness.
AccuracyAccuracy in data, as emphasised by Fox et al. (1994) and Tayi & Ballou (1998), is fundamental for informed decision-making, ensuring data is complete, reliable, consistent, and timely. However, as McCue (2015) noted, challenges, such as poor data entry practices and design biases, complicate this accuracy, a statement supported by the findings in our empirical data.

Framework of values, norms, and requirements

ValueNormsPossible institutional or technical requirements
Justice
  • -

    Ensure all rights holders have fair access to legal protection and dispute resolution mechanisms.

  • -

    Implement progressive royalty distribution mechanisms to prevent over-concentration of revenues among a few major rights holders.

  • -

    Establish non-discriminatory licencing policies that provide equal access to rights management services for all stakeholders.

  • -

    Use technology to detect and address copyright infringements;

  • -

    Enforce ethical generative Artificial Intelligence use in music copyright management;

  • -

    Implement an algorithm that prevents the over-concentration of royalties among a small number of major rights holders by ensuring a more balanced distribution structure;

  • -

    Provide standardised contract terms and eliminate preferential deals that give large publishers' competitive advantages;

  • -

    Establish a neutral dispute resolution body separate from CMOs to handle complaints and appeals fairly;

  • -

    Implement an AI-driven claim verification tool that analyses conflicting claims based on transparent, predefined rules to prevent subjective decision-making;

Equity
  • -

    Guarantee that all rights holders have equitable opportunities to access, manage, and benefit from their rights, regardless of market position or influence.

  • -

    Ensure that compensation and licencing mechanisms fairly reflect contributions and do not disproportionately favour dominant stakeholders.

  • -

    Design universally accessible interfaces for all creators;

  • -

    Develop data analysis tools to analyse and correct compensation and representation imbalances;

  • -

    Facilitate easier cross-border licencing management, so the least advantaged can also access data;

  • -

    Facilitate mandatory legal or other sort of help for the least powerful rights holders.

Fairness
  • -

    Ensure copyright management processes are transparent, accessible, and easily understandable for all rights holders.

  • -

    Guarantee that all creators receive fair compensation proportional to the use and value of their musical works.

  • -

    Establish minimum royalty thresholds and mechanisms to support smaller rights holders, ensuring equitable earnings even for less commercially dominant works.

  • -

    Use available technology for educational purposes of rights holders;

  • -

    Enable open access to collective music copyright management and decisions;

  • -

    Provide online tools for creators to resolve copyright disputes and ensure fair agreements and automatic enforcement with smart contract technology;

  • -

    Establish a minimum compensation threshold to ensure that smaller rights holders receive a baseline level of earnings, even in cases where low-volume plays or fragmented rights distribution would otherwise result in negligible payments;

Equality
  • -

    Ensure that copyright rules and regulations are applied consistently to all rights holders, without exceptions or preferential treatment.

  • -

    Guarantee equal access to rights management data, ensuring that all creators—regardless of their market position—can access and verify relevant information.

  • -

    Develop accessible platforms using universal design for all;

  • -

    Integrate bias audits in algorithms;

  • -

    Develop a centralised digital rights database where all rights holders—regardless of size—can access real-time data on their works, usage, and revenues;

  • -

    Implement content discovery tools, ensuring that lesser-known artists are not overshadowed by major publishers in metadata indexing and licencing opportunities;

Ownership and property
  • -

    Ensure that creators receive proper attribution for their work across all platforms and uses.

  • -

    Guarantee that rights holders have full visibility into when, where, and how their works are used, including the purpose of their utilisation.

  • -

    Digital Fingerprinting/Content ID: automatically identifies and attributes creator music across platforms;

  • -

    Digital rights management: prevent unauthorised alterations, respecting moral rights;

  • -

    Issue standardised reports at fixed intervals (e.g., quarterly);

  • -

    Provide rights holders with access to a database of active licences, showing which entities have obtained rights to their works;

Accountability
  • -

    Ensure clear role definitions within copyright management and establish mechanisms for promptly identifying and correcting errors in royalty distribution.

  • -

    Implement continuous monitoring of compliance with copyright policies and actively integrate stakeholder feedback into governance and operational improvements.

  • -

    Restrict information access based on organisational roles;

  • -

    Automatically track and manage data handling errors;

  • -

    Provide real-time analytics on copyright practices to stakeholders;

  • -

    Integrate feedback tools in platforms to enhance accountability and improvements;

Transparency
  • -

    Maintain comprehensive and accessible copyright records, enabling regular auditing and open communication about rights management processes.

  • -

    Ensure that all public copyright-related documents and licencing agreements are easily accessible to all rights holders, fostering openness and informed decision-making.

  • -

    Develop clear, comprehensive copyright reporting accessible to all stakeholders;

  • -

    Implement systems for stakeholder access to documents and records;

  • -

    Integrate tools for independent audits;

  • -

    Create a database of active licences, showing which entities have obtained rights to what works;

  • -

    Require DSPs and streaming platforms to integrate with CMO databases ensuring automatic reporting of usage data to rights holders;

Accuracy
  • -

    Ensure the integrity, reliability, and consistency of copyright-related data to support informed decision-making.

  • -

    Establish mechanisms for promptly identifying and correcting data errors to maintain accuracy in royalty distribution and rights management.

  • -

    Deploy technology to automate and accurately attribute music copyrights;

  • -

    Ensure data reliability, security, and error logging features and ensure current, accurate copyright data updates;

  • -

    Automatically detect and correct copyright data errors;

Language: English
Page range: 27 - 43
Submitted on: Oct 22, 2024
Accepted on: Feb 7, 2025
Published on: Mar 21, 2025
Published by: International Music Business Research Association (IMBRA)
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2025 Nerko Hadziarapovic, Marlies van Steenbergen, Pascal Ravesteijn, Johan Versendaal, Gerard Mertens, published by International Music Business Research Association (IMBRA)
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.