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design-knowledge/drm-music-industry-dp3

Producer label: DP3
Source paper: Blockchain-based digital rights management systems: Design principles for the music industry
Timestamp: 2026-07-16T00:00:00+00:00
Bundle path: design-knowledge/drm-music-industry-dp3.md

design-principledrm-musicdrm-music-industryintellectual-propertymarketplaceroyalties

Design principle DP3: Smart-contract stablecoin royalty enforcement

The system should algorithmically enforce royalty payout via stablecoin through a smart contract, enabling efficient and transparent payouts.

Source paper

This design principle is proposed by Blockchain-based digital rights management systems: Design principles for the music industry (Raffaele Fabio Ciriello, Alexandra Cecilie Gjol Torbensen, Magnus Rotvit Perlt Hansen, Christoph Mueller-Bloch, 2023).

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2 Design Features

design-knowledge/drm-music-industry-df3

DF3 - Fiat-pegged stablecoin payout

A decentralized DRM system can pay out royalties with a fiat-pegged collateralized stablecoin.

design-featuredrm-musicdrm-music-industryintellectual-property+2

design-knowledge/drm-music-industry-df4

DF4 - Collectively designed smart contract

A decentralized DRM system can pay out royalties with a collectively designed, evidence-based smart contract.

design-featuredrm-musicdrm-music-industryintellectual-property+2

2 Design Requirements

design-knowledge/drm-music-industry-dr1

DR1 - Transparent music licensing structures

A decentralized DRM system for the music industry must provide transparent music licensing structures, replacing pre-Internet structures with many intermediaries.

design-requirementdrm-musicdrm-music-industryintellectual-property+2

design-knowledge/drm-music-industry-dr3

DR3 - Efficient and transparent royalty payout

A decentralized DRM system for the music industry must enable efficient and transparent royalty payout, addressing massive delays and unallocated royalties.

design-requirementdrm-musicdrm-music-industryintellectual-property+2

1 Paper

papers/drm-music-industry

Blockchain-based digital rights management systems: Design principles for the music industry

Analyzing the music industry, the paper proposes design principles for blockchain-based DRM that deliver transparent licensing, consistent and complete rights metadata, and efficient transparent royalty payout - by storing metadata on a public ledger, validating it via consensus on a permissioned chain, and enforcing payouts via stablecoin smart contracts.

blockchaindesign-science-researchdrm-musicdrm-music-industry+3

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{
  "type": "design-principle",
  "title": "DP3 - Smart-contract stablecoin royalty enforcement",
  "description": "The system should algorithmically enforce royalty payout via stablecoin through a smart contract, enabling efficient and transparent payouts.",
  "resource": "https://doi.org/10.1007/s12525-023-00628-5",
  "source_paper": "Blockchain-based digital rights management systems: Design principles for the music industry",
  "label": "DP3",
  "tags": [
    "drm-music-industry",
    "design-principle",
    "drm-music",
    "intellectual-property",
    "royalties",
    "marketplace"
  ]
}