Copyright disputes represent over 55% of music industry litigation since August 2024, with many cases stemming from payment and accounting issues. Here's how to protect your music business from legal complications:

Key Areas to Address:

1. License Management

• Track all license types (performance, mechanical, synchronization)
• Consider territory-specific requirements
• Review framework with industry legal experts
• Watch for aggressive license interpretation claims

2. Payee Relationships

• Identify all rights holders and intermediaries
• Connect with relevant PROs (ASCAP, BMI, SESAC, GMR, AllTrack)
• Maintain clear communication channels
• Document all payment relationships

3. Territory Compliance

• Organize licenses by territory and bloc
• Adapt to regional payment requirements
• Implement flexible payment systems
• Stay current with territorial regulations

4. Contract Integration

• Link creator contracts to payment systems
• Establish clear dispute resolution processes
• Handle IP ownership conflicts systematically
• Maintain payment flexibility for contract changes

Essential System Features:

• Full transaction documentation
• Unified payment interface
• Dispute resolution capabilities
• Automated calculation tracking
• Territory-specific compliance tools

Implementing a robust payment platform with these features helps prevent legal issues before they arise, reducing liability while supporting business growth. Proper documentation and systematic handling of payments are crucial for avoiding costly litigation.

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