The term "metaverse" is becoming more and more common, but while many people have probably heard of it, they often don't know what it means.
It can be difficult to explain the term to someone outside of the Web3 space, as the metaverse is still relatively new and evolving. The most important thing to know is that it has the potential to revolutionize the Internet and the way people live, work and play.
The metaverse is a new frontier of innovation and creativity, heavily focused on media, which should come as no surprise as many Web2 applications are too, especially music.
There are entire social media platforms dedicated to music sharing, and those that aren't have incorporated music in other ways. While this has increased awareness of music licensing in digital spaces, it has also highlighted that some existing systems are outdated and struggling to keep up with the breakneck pace of new technology.
With new possibilities for music in the metaverse, the current licensing system may need to be revamped given the changing ways in which music is created and consumed, especially with Web3 innovations like non-fungible tokens (NFTs).
Music in the metaverse has been hugely successful. Many big-name artists have held concerts in space, and many artists have seen the appeal of releasing music as NFTs.
Despite the uncertainties and the evolving landscape of Web3, music licensing in the metaverse has great potential.
Current Licensing Challenges
Technology is advancing rapidly in the Web3 space, and given how new everything is, there are a lot of problems to solve. Currently, the metaverse is all about experimentation, so if something fails organically, it will serve as a lesson to others.
Despite much experimentation in the metaverse, licensing remains undeveloped. For Web2 social media platforms, there is a known standard about licensing and what can and can't be done. This does not currently exist in the metaverse. The mix of established standards and laws surrounding copyright and licensing is not as concrete as it needs to be for a robust licensing landscape.
Spottie Wifi, a musician and Web3 advocate, sat down with Cointelegraph to discuss the current state of licensing in the metaverse.
โThere is a difference between traditional music licenses and music licenses in the metaverse. The main difference I've seen is that a music license for the metaverse must clearly include the metaverse as a distribution channel listed within the scope of the license, or the scope of the license must be so broad that the metaverse would naturally be included, " he said.
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This would certainly be a simple solution to what is often seen as a nuanced problem. Still, compared to Web2, there are complications around music licensing on Web3, thanks to NFTs.
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He broke into the music industry in August 2021 by selling 2,000 NFT albums and generating $192,000 in revenue in less than 60 seconds as an independent artist. pic.twitter.com/iTVrNpvDzl
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โI recorded a concept album in 2021 about life in the metaverse, and I sold the album as an NFT collection, giving NFT holders a license to use and commercialize the music however they want while still retaining ownership of my masters. and publications. added Spotty Wifi.
โThere are NFT collectors who use music in this way in the content they develop, including metaverse experiences, video games, podcasts, movies, and advertisements.โ
Musicians want to avoid exploitation and make sure their music is used properly. This requires proper enforcement of intellectual property (IP) rights, which is a complicated process in the metaverse.
โFor now, the most effective means of enforcing IPRs as a composer in the metaverse is probably to simply enforce those IPRs on Web2 platforms like YouTube, Instagram, etc., through what is known as Content ID. Content ID is an automated system that removes content from those platforms if that content infringes someone's music copyright," explained Spottie Wifi. โThis can help enforce copyright in the metaverse because a lot of the content that streams in the metaverse still comes from those Web2 platforms.โ
This brings to light another issue related to copyright. If users can create their own virtual spaces or events within the metaverse, they will probably want to include copyrighted music as part of their creation, just like on social media platforms. This could lead to issues around obtaining the necessary licenses to use the music and the control and enforcement of those licences.
Since the metaverse is likely to be global, determining who oversees and enforces licenses could pose challenges because copyright law, performance rights, music licensing, and regulation would be cross-jurisdictional. The global aspect also raises other issues outside of copyright, with questions about how to properly compensate musicians when their work is used. As a standard for music licensing is established for this space, royalty structures that differ from traditional music licensing models can be complex.
Licensing Potential in the Metaverse
Streaming music to the metaverse from Web2 platforms to protect artists may be the easiest now, but this method will become obsolete when music licenses in the metaverse provide more protection.
According to Hendrik Hey, founder of media licensing firm Media Industry Licensing Content, a blockchain-based content licensing company, a new approach to licensing is coming.
โA simple interface is being developed where any musician can enter their license information. Music licensing in the metaverse works with the addition of blockchain technology. On a blockchain, anyone who knows what they are doing can create a hash in which they store all the information relevant to the license. The assets that someone would want to license are found in the metaverse itself,โ Hey told Cointelegraph.
While not completely theft-proof, the blockchain hash is relatively secure and transparent, and could make the licensing process much easier.
โThe blockchain hash will be generated automatically and will then serve as proof that the license information is correct. It is important to be able to prove that you are the true owner of a license and that the information is accurate, and the blockchain can clearly show who the true owner is in the event of a legal dispute,โ Hay added.
The developments that Hey discusses would simplify the process, as the places where the music is found would provide explicit information about what the licensor wants. The user could then decide if he wants the license or not. This eliminates a lot of steps, gets everyone to their destination quickly, and can set standards that are currently lacking in the space.
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From an artistic and development perspective, the future of the metaverse is bright, with huge potential for success and huge profits for content creators.
When Spottie Wifi sold her album as an NFT collection, she made $192,000 in just 60 seconds. Proceeds went directly to her wallet and intermediaries were eliminated. With NFT releases, artists own their music and increase potential revenue.
The metaverse could become the new mainstream as its popularity increases. With people like Hey developing the space, and artists like Spottie Wifi experimenting with it, music licensing will become less of a hassle and no longer bend under the pressure of digital spaces.
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