Sacem adapts copyright to NFTs

Sent Nov 14, 2022 4:28 PM

Two hundred and twenty-three years after Beaumarchais ‘death, the copyright pioneer’ s efforts are still bearing fruit. These rules, enshrined in the law since 1791, are now the world of NFTs, thanks to the unprecedented partnership that Sacem, which claims the rights of authors, composers and music publishers, has just signed with a French platform marketing company for NFT , Pianità.

Once not customary, Sacem did not have to pretend. The young Parisian shooting of web 3, which has 15 employees, came knocking on his door in January, to make sure that every beneficiary received their due for the operations carried out at home. Pianity is a marketplace where artists can create and sell, and enthusiasts collect and trade, musical NFTs: tokens, registered in the blockchain, which constitute the unique certificate of possession of a piece of music. In other words, the start-up born in 2021 offers the virtual equivalent of the CD or the limited edition of 45 rpm. Currently there are about a thousand artists registered. By purchasing one of their NFTs, fans support them and can, if they want, bet on their success and the token valuation.

“Smart contracts”

In order for all operations to take place according to the rules of the art, Pianity needs not only the consent of the record companies that hold the recording rights of the piece, but also that of Sacem, which protects the rights of the written work (texts and music). “The agreement now allows Pianity to exploit and use, as part of the sale of its NFT, all the works of the 196,700 members of the Sacem repertoire”, indicates Julien Dumon, director of development, phono and digital of the author company.

The partnership also includes a “right of resale”. Creators thus receive money on the first sale, but also on subsequent ones. A bit like a composer receiving a percentage on the resale of used CDs at a flea market. Each exchange is registered in a blockchain, the digital transaction register, which also includes the “smart contracts” that automatically distribute the income to Sacem, which then transfers it to the beneficiaries. “The blockchain will allow us to follow and trace the reality of uses and resales”, congratulates Julien Dumon.

Deliver more value to rights holders

The percentages that go to the entitled parties remain reserved, but Pianity indicates that it receives on average 20% on the primary market and 2% on the secondary market. This leaves artists a bigger chunk of the pie than streaming platforms, which capture around 30% of the title’s revenue.

Even though streaming platforms have many users, their subscriptions at € 10 per month on average for tens of millions of titles squeeze artists’ revenue. “Today you have to do at least 1 million streams a month to reach the minimum wage,” recalls Julien Dumon. “On Pianity, to earn 1500 euros, an artist has to sell 150 NFTs for 10 euros, it’s more accessible for an emerging artist,” emphasizes Pianity’s CEO and co-founder, Kevin Primicerio. “Our main goal is to enable the music industry to acquire more value and distribute it more equitably to rights holders,” he says. The start-up now hopes to expand its catalog by concluding partnerships with the largest record labels in 2023.

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