When NFTs started making waves early last year, digital art was the medium most associated with the digital asset, but there have been other mediums, including video clips and music. Although they are scarce, music NFTs have slowly made their way into the spotlight. ABCRECORDS is a company that recently started utilizing NFTs in its brand.
Short for “Authorized Bootleg Company Records,” ABCRECORDS is taking the utilities of NFT to a whole new level by setting up a digital marketplace where anyone can purchase digital music sources. However, while NFT buyers often receive the copyright to their purchase, ABCRECORDS will only give buyers commercial rights.
Once a prospective owner purchases an NFT, the owner gets the exclusive rights to use it in their social media projects, like background music in videos. Commercial rights can also be obtained through ABCRECORDS by going to the application form, which will then be submitted directly to the copyright owner.
Owners also can resell the NFT, but they would lose the rights that come with it. As a bonus, if the value of an NFT goes up, the original creator is ensured to get a cut of the resale price thanks to the blockchain’s system.
The service was made available by Japanese entertainment agency AllEntertainment and Hiroshi Fujiwara, a design and music producer who started a career in the ‘80s as a DJ. Fujiwara is all too familiar with the frustrations of sampling music with the existing copyright system. For example, the process of tracking down the proper channels for permission to use a sample is already a handful, but he would also have to return and request permission every time it was used in various projects.
ABCRECORDS’ format streamlines the process into a single application for commercial use. In addition, the limited usage to the NFT owner prevents the music creator from having to go through a number of requests and approve them.
Although the prospect of the system is already promising, ABCRECORDS is planning to add more features as it continues to operate. However, the company must first gather a large enough community of users to allow it to thrive.