I’ll analyse the article about intellectual property in the music industry.

https://www.straitstimes.com/opinion/intellectual-property-is-the-secret-sauce-for-a-flourishing-music-industry

This opinion piece by Nicky Tan, chairman of the Intellectual Property Office of Singapore (IPOS), discusses how intellectual property (IP) rights, particularly copyright, are essential for protecting musicians and ensuring the music industry thrives in the digital age.

Key points from the article:

Evolution of music consumption: The author contrasts the 1980s era of collecting vinyl records with today’s digital streaming, highlighting how technology has created both opportunities and challenges for musicians’ rights.
Notable copyright cases:

Ed Sheeran case: The article describes how Sheeran successfully defended his song “Thinking Out Loud” against claims it copied Marvin Gaye’s “Let’s Get It On.” The ruling confirmed that basic musical elements, such as chord progressions, aren’t protected by copyright.
Taylor Swift’s masters: Swift re-recorded her early albums as “Taylor’s Version” after her original label sold her masters without her consent, illustrating the impact of ownership on control over one’s work.

AI challenges: The article addresses how generative AI is introducing new complexities around ownership and originality in music.
Practical advice for Singapore musicians:
- Read contracts carefully
- Consider what rights to retain
- Work with collective management organisations (CMOS)
- Keep dated records of creation
- Use digital watermarks
- Stay informed about AI-related copyright laws

Singapore’s protective measures:
- Updated Copyright Act in 2021
- Implemented regulations for CMOs in 2024
- IPOS offers various IP protection services and clinics

The article concludes by emphasising that IP rights are crucial for musicians’ livelihoods and cultural identity, connecting back to the author’s personal vinyl collection as a metaphor for preserving musical craft.

The piece was published to coincide with World IP Day (April 26, 2025), which has the theme “IP and music: Feel the beat of IP.”

The Role of Copyright in the Music Industry: An In-Depth Analysis

Copyright plays a multifaceted and crucial role in the modern music industry, influencing everything from creative processes to business models and revenue streams. Here’s a comprehensive analysis of copyright’s impact on the music industry:

Fundamental Role of Copyright in Music

Copyright serves as the legal foundation that establishes ownership rights for musical creations. In the music industry, copyright typically protects:

Musical compositions (melodies, harmonies, lyrics)
Sound recordings (the specific recorded performance)

These two aspects are often owned separately, with songwriters or publishers owning composition rights and record labels traditionally owning recording rights (the “masters”).

Economic Impact and Revenue Generation

1. Royalty Streams

Performance royalties: Generated when music is played publicly (radio, venues, streaming)
Mechanical royalties: Paid for reproduction of compositions (physical sales, downloads, streams)
Synchronisation fees: Earned when music is used in visual media (films, TV, advertisements)
Streaming royalties: Complex systems that pay both composition and recording rights holders

2. Market Structure

Collective Management Organisations (CMOS): Represent extensive catalogues of works (like ASCAP, BMI)
Publishers: Manage composition rights and royalty collection for songwriters
Record labels: Traditionally finance recordings in exchange for master ownership
Digital Service Providers: Pay licensing fees to use copyrighted music

3. Economic Value

The article references how Taylor Swift’s masters controversy highlighted the enormous financial value of copyright ownership. When her former label sold her masters, the transaction was reportedly worth hundreds of millions of dollars, demonstrating the role of copyrights as a critical financial asset.

Power Dynamics and Industry Transformation

1. Artist-Label Dynamics

Traditionally, record deals required artists to surrender their master recording rights in exchange for financial backing and distribution. This created a power imbalance where:

Labels could profit perpetually from recordings
Artists had limited control over how their music was used
Revenue splits heavily favoured labels

The Taylor Swift case exemplifies how copyright assignment can lead to artists losing control of their creative output.

2. Industry Evolution

Digital disruption has transformed copyright’s role:

Direct distribution: Artists can bypass traditional gatekeepers
Independent ownership: More artists retain their rights
New monetization models: Subscription streaming changed how copyright generates revenue
New leverage: Artists with strong fanbases (like Swift) can exert influence through re-recordings

Balancing Innovation and Protection

1. Creative Tension

The Ed Sheeran case highlights the delicate balance between:

Protecting original expression: Ensuring creators receive compensation
Enabling creative inspiration: Avoiding excessive restriction of musical conventions

The court ruling confirmed that basic musical elements (chord progressions, rhythmic patterns) remain available for everyday use, preventing monopolisation of musical building blocks.

2. Technological Adaptation

Singapore’s 2021 Copyright Act updates addressed digital innovation needs
Implementation of CMO regulations helps ensure fair compensation
AI-generated music presents unprecedented challenges to traditional copyright concepts

Impact on Profit Distribution

1. Traditional Model

Record labels: ~50-85% of recording revenue
Publishers: ~50% of composition revenue
Artists: Remaining percentages after recoupment of advances

2. Emerging Models

Independent artists retaining rights: Higher percentage of smaller revenue
Direct licensing: Eliminating intermediaries increases artist’s share
Streaming economics: Volume-based models that favour popular catalogue owners

Future Challenges

The music industry faces several copyright-related challenges:

1. AI and Generative Technologies

As mentioned in the article, AI raises profound questions:

Who owns AI-generated music trained on existing works?
How should the law handle AI that mimics specific artists’ styles?
What constitutes “human creative input” in hybrid human-AI creation?

2. Global Harmonisation

Different copyright regimes across countries create challenges for global music distribution.

3. Fair Compensation

The streaming era has raised concerns about whether current copyright structures ensure fair compensation, particularly for niche artists.

Conclusion

Copyright remains the “secret sauce” for the music industry’s sustainability, as the article suggests. It provides the economic foundation that enables creators to earn a living while establishing the legal framework for addressing new challenges in music creation, distribution, and monetisation. The ongoing evolution of copyright law will continue to shape power dynamics, business models, and creative practices throughout the music ecosystem.

Copyright as the Foundation of the Music Industry’s Profit

1. Creates Monetizable Assets

Licensed for various uses
Sold or transferred as property
Used as collateral for financing
Built into valuable catalogs over time

Without copyright, music would be a public good that anyone could freely reproduce and distribute, eliminating most revenue opportunities.

2. Enables Multiple Revenue Streams

Mechanical royalties from physical sales, downloads, and streaming
Performance royalties when music is played publicly (radio, venues, streaming)
Synchronisation fees from use in visual media (films, commercials, TV)
Print royalties from sheet music and lyrics
Sampling fees when portions are used in other compositions
Licensing revenue from merchandise and brand partnerships

Each stream depends on the exclusive rights that copyright grants to owners.

3. Supports Long-Term Business Models

Record labels invest upfront because they can profit from recordings for decades
Publishers acquire song catalogues as long-term assets with reliable returns
Artists can earn income from past work throughout their careers
Estates continue generating revenue long after creators’ deaths

This long-term value proposition attracts investment that funds the creation of new music.

4. Creates Negotiating Power

Rights-holders can negotiate favourable terms for usage
Control over copyright enables strategic business decisions
Exclusive rights prevent unauthorised exploitation
Ownership concentration leads to market power (major labels/publishers)

As seen in the Taylor Swift case, copyright ownership directly impacts who profits from creative work and the extent of control they maintain.

5. Establishes Market Structure

The entire music industry ecosystem is organised around copyright management:

Record labels acquire and exploit recording copyrights
Publishers administer composition copyrights
Collecting societies track and distribute royalties
Digital platforms pay for copyright licenses
Legal teams enforce copyright protections

This infrastructure exists specifically to monetise the exclusive rights that copyright provides.

The music industry’s profit model collapses without copyright, as there would be no legal mechanism to prevent copying, no basis for royalty payments, and no incentive for the substantial investments needed to develop, produce, market, and distribute music at scale.

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Preserving Musical Craft through IP Rights