When creating a Music/Video/MV NFT, you will be asked to set 2 royalty ratios, respectively.
- Collection Royalty: You need to set up a Collection Royalty ratio when creating collection. When the Copyright NFT is resold, collection creator of this NFT receives Collection Royalty. This applies to both Origin and Cover Music/Video/MV.
Collection Royalty = Trade Value * Collection Royalty Ratio
- Work Royalty: You need to set up a Work Royalty ratio when creating your Music/Video/MV work. When Music/Video/MV, Cover Right, Refilm Right or Commercial Use Right NFT is resold, current Copyright NFT holder receives all Work Royalty. This applies to both Origin and Cover Music/Video/MV.
Work Royalty = Trade Value * Work Royalty Ratio
- There is no conflict between the 2 royalty setups.
- Collection Royalty and Work Royalty are 2 independent settings. You need to set them in different locations.
- Original creator & cover artist set their own Collection Royalty & Work Royalty. Royalty ratios of origin Music/Video/MV work will not be transferred to cover work.
Royalty Payout Rules:
To help you better understand the royalty payout system, here are 4 common cases you may see. To differ the royalty ratios set by original creator and cover artist, we use different colors to display them, same color refers to the same royalty ratio.
Note: Royalty payout for Commercial Use Right NFT resale works the same way as Cover Right/Cover Song NFT resale.
Example1: Cover Song Resale
Example2: Origin Song Copyright Resale + Cover Right Resale
Example 3: Origin Song Copyright Resale + Cover Song Resale
Example 4: Cover Song Copyright Resale + Cover Song Resale
If your situation is not one of these cases and you still have concerns or questions about the Royalty Payout Rules, please Contact Us.