Introduction to Machi X's Music Copyright Tokenization
Machi X, the blockchain-based music copyright service promoted by celebrity "Machi Brother," launched in March 2019. This Ethereum-based platform transforms music copyrights into ERC-20 tokens, allowing public purchase using credit cards or stablecoins like USDT/DAI.
But what exactly do token holders acquire? The purchase interface simply displays song information without detailed rights explanations—raising important copyright questions.
The Token Holders' Rights: Claims vs Reality
According to Machi X's FAQ, token holders gain:
- Virtual copyright representation for lyrics/composition/master recordings (varies per song)
- Community perks: early song access, concert tickets, membership services
- Automated royalty distribution via smart contract in stablecoins
However, three critical clarifications from official sources reveal the legal reality:
- Partial Rights Tokenization: Machi X acquires partial copyrights (e.g., 50%) from creators, then tokenizes them as sellable commodities—never transferring full copyright ownership.
- Commercial Product Status: Tokens constitute products, not copyright transfers. Purchasers engage in commodity trading rather than intellectual property acquisition.
- Future Revenue Sharing: Token holders will theoretically receive royalties/income through legal channels, though mechanisms remain unspecified.
Four Critical Copyright Issues with Machi X's Model
1. The Copyright Co-Ownership Dilemma
If token purchase equaled copyright acquisition, this would create multiple co-owners—making practical copyright administration impossible. Under copyright law, licensing requires unanimous co-owner approval, which is unworkable for music industry operations.
2. The Ambiguity of Purchased Rights
Token holders don't acquire actual copyright shares but rather contractual rights to undefined commercial benefits. The platform fails to specify:
- Which revenue streams get shared
- Collection and verification processes
- Transparent accounting mechanisms
The vague promise of "smart contract distributions" lacks operational clarity.
3. Legal Accountability Gaps
Token issuers' identities remain unclear—whether Machi X or original creators. This creates uncertainty about:
- Contract enforcement responsibility
- Liability for royalty distributions
- Protection against issuer financial failures
4. Potential Solutions for Functional Tokenization
A viable "tokens-as-copyright" system would require:
- Designated rights administrators per copyright law
- Clear contractual frameworks
- Centralized licensing representatives
Proper structuring could prevent copyright dilution while enabling tokenized benefits.
Comparative Analysis: Current vs Ideal Tokenization Models
| Aspect | Current Machi X Implementation | Ideal Copyright Tokenization |
|---|---|---|
| Rights Transfer | No actual copyright transfer | Partial rights transfer with representative administration |
| Revenue Sharing | Vague "commercial benefits" | Defined royalty percentages per use case |
| Legal Clarity | Mixed messaging about token nature | Clear contractual terms for rights and distributions |
| Accountability | Unclear issuer responsibility | Designated rights administrators |
Future Recommendations for Machi X
For sustainable growth, Machi X should:
- Develop transparent copyright-token mapping documentation
- Implement verifiable royalty tracking and distribution
- Clarify legal relationships between creators/platform/token holders
- Potentially adopt representative administration models
Such improvements could benefit both creators and supporters through clearer governance.
FAQ Section
Q: Do Machi X tokens give me copyright ownership?
A: No. Tokens represent contractual rights to potential revenue shares, not actual copyright ownership stakes.
Q: How are royalties distributed to token holders?
A: Currently via smart contracts distributing stablecoins, though specific revenue sources and verification methods remain undefined.
Q: Who ensures I receive my token's revenue share?
A: Unclear—responsibility could lie with Machi X or original creators depending on unpublished contractual terms.
Q: Can token holders influence copyright decisions?
A: No. Tokenization currently doesn't confer any copyright administration rights regardless of token quantity held.
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