Copyright issues dominate music industry litigation, accounting for 55% of pending cases since August 2024. Contract disputes follow at 15%, Antitrust/Federal issues at 10%, and Patents/Trademark issues at 9%.

To avoid legal complications in music business operations, implement these essential safeguards:

License Management:

• Track all triggered licenses (performance, mechanical, synchronization, territory-specific)
• Review your framework with industry attorneys
• Be cautious of aggressive license interpretation claims

Payee Relationships:

• Identify and connect with all relevant payees
• Include rights organizations, labels, publishers, and artists
• Maintain proper documentation of intermediary relationships

Territory Compliance:

• Organize licenses and payee relationships by territory
• Adapt to regional licensing requirements
• Ensure compliant payment processing across jurisdictions

Contract Integration:

• Link creator/rights owner contracts to payout calculations
• Implement clear dispute resolution processes
• Maintain flexibility for contract term modifications

IP Dispute Management:

• Establish uniform processes for ownership conflicts
• Prevent incorrect royalty payments during disputes
• Document all transactions and calculations

A robust payments platform should:

• Provide transparent transaction tracking
• Enable quick dispute resolution
• Support scalable business growth
• Maintain comprehensive documentation
• Offer unified interface access for all parties

Implementing these measures with a flexible payments system helps prevent copyright issues, ensures proper royalty distribution, and minimizes legal exposure while supporting business growth.

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