AI music service era, contract writing TIP including copyright attribution clauses.

Law firm Veat received a request from an AI-based music solutions company (hereinafter referred to as the “client”) to draft contracts, including copyright assignment clauses.

The client was preparing a service to recruit music work “arranged” from users through its own platform. Given the participation of various users, there was no alternative to copyright assignment issues for individual works.

If the copyright of such works remained with the users, the client would be restricted in freely utilizing or creating secondary works from them in the future. The possibility of copyright disputes could be even greater when using them as learning data for AI solutions or pursuing collaboration with external business partners.

  1. Service Contract Structure Design

Accordingly, Law firm Veat stipulated in the contract that copyright for the music would be entirely assigned to the client from the point of submission of the results by the user, clearly recognized “consideration,” and strengthened legal stability.

Through this, we helped the client securely obtain legal ownership and copyright for the service results.

​  2. Reflection of Requirements for Recognition as a Work-for-Hire

Especially, arranged music can be used as core material for AI solution learning and secondary business utilization, going beyond simple creative work. Therefore, we helped draft the contract in a ‘work-for-hire’ structure so that the client would be legally recognized as the copyright holder.

Law firm Veat systematically reflected the requirements necessary to be recognized as a work-for-hire in the contract.

First, we clearly stipulated that the arrangement work performed by the user was carried out in accordance with the client’s business purpose. Also, we stipulated in the contract that the work was performed under the client’s instructions and supervision, establishing a direct legal link between the results and the client.

Furthermore, we stipulated that copyright for the work results is initially assigned to the client, not the worker, that the user cannot use the work without separate consent, and that the client can freely modify and utilize it. Through this design, we helped the client securely obtain complete rights to the creative work.

  3. Strengthening of Non-Disclosure Agreement (NDA)

​In the music business, not only the work itself but also project content, unpublished technology, and marketing strategies become important secret information. Especially for AI-based solution companies, data sets, algorithms, and processes can cause a blow to competitiveness if leaked externally.

Considering this, Law firm Veat comprehensively supplemented the non-disclosure agreement that the client had previously used. We broadly defined the scope of confidential information as ‘all information directly or indirectly perceived’ and also stipulated the work and work process itself as confidential. Also, we strengthened the contract clauses so that immediate and clear legal responsibility could be imposed on the user or third party in case of violation.

This contract structure design goes beyond simple document drafting and is structured to practically support the client’s business and data utilization.

As such, when discussing and drafting contract clauses with copyright experts in advance, you can proactively prevent copyright risks tailored to industry characteristics and establish a legal basis for free utilization of learning data. Also, you can strengthen the stability of the business model and prevent issues related to the protection of secret information, thereby protecting corporate value.

Especially, reflecting the company’s business model, technical characteristics, and future expansion direction into the contract structure is a core strategy to secure ongoing competitiveness in the digital creation environment, so it is important to have a systematic response plan in advance through professional legal review.

In an era where the boundaries between the music market and AI technology are blurred, copyright is becoming a growth engine for companies.

Law firm Veat provides the optimal legal advice in various copyright areas such as music content, license contracts, and service structure review, so please feel free to contact Law firm Veat whenever you need legal advice.

This case study can also be found on the Law firm Veat blog below.

- AI Music Service Era, Importance of Arranged Copyright and Work-for-Hire Design

​Thank you.

Law firm Veat