The Future of Musical Rights Clearing through Web Technology and Service Science

Enterprises increasingly jointly participate in service value webs. They do so because (especially small to medium-sized) enterprises can then offer services they could not offer on their own, and by doing so they can effectively compete with larger players. In earlier work, we have developed the e3value methodology to conceptually model service value networks, as a design task. This paper reports on our research into and development of an approach to semi-automatically generate such service value networks based on service profiles and a stated consumer need. To this end, we apply skeleton design and hierarchical configuration techniques, known from AI.
The configuration process is illustrated by a case study in the music industry and more specifically intellectual property right clearance. If a radio station in The Netherlands (customer) has the need to play a music track, the radio has to pay to right owners. A right owner can be an artist, a producer, a composer, or a lyricist. So-called IPR societies act as a man in the middle; they collect money from radio stations and distribute this money over the right owners they are working for. These societies clear a specific right namely the right to make content public. Radio stations make content public, but bars, discotheques, supermarkets, etc. do also if they play music on their premises. Therefore, they also have to pay to right societies in order to make content public. In The Netherlands there exist two relevant societies concerning the right to make public, namely the BUMA and the SENA, the latter our case study partner. These two societies both collect money from intellectual property right users and pay the money to right owners. BUMA and SENA differ in the type of right owner they are working for; BUMA clears rights for publishers, composers, and lyricists, whereas SENA clears rights for the artists and producers. In other European countries a similar situation exists, but with different societies operating for different right owners.
As of today, right societies have contracts with branch accociations (e.g. with the accociation of discotheques, supermarkets, etc.) that mention a fixed fee to be paid (depending on the number of square meters floor space of the right user, e.g. the number of square meters of a supermarket). The future trend is towards pay-per-play, which is payment per played track, rather than a fixed fee. Another trend is to increase competition amongst IPR societies. Nowadays, a right owner can not select the right society that represents him. Rather, the artist will be represented by the society operating for his country. Another future trend is however that right owners can select their society of choice. We take both trends as our point of departure. As a consequence, for each music track a unique service value web has to be generated, which is capable of clearing the intellectual property rights of that track, and which can pay the right owners the fees they are entitled to.
The full publication citation (downloadable after the conference):

Gordijn, J.; De Leenheer, P.; Razo-Zapata, I. Generating Service Value Webs by Hierarchical Configuration: a Case in Intellectual Property Rights Clearing. In Proc. of the 44th HICSS Conference on System Sciences, IEEE Press


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