The music industry faces billions in unidentified and undistributed royalties, primarily due to metadata issues and fraudulent activities. Here's a comprehensive look at the problems and solutions for managing unclaimed payments and fraudulent streams.

The core issues affecting royalty distributions can be broken down into three main categories:

• Missing or incorrect metadata
• Unclaimed works
• Intentional fraud through false information and fake streams

Key Solutions for Preventing Payment Issues:

1. Strong Participant Verification

• Implement robust KYC (Know Your Customer) processes
• Use validated security protocols
• Verify all platform users thoroughly

2. Strict Metadata Requirements

• Mandate detailed ownership information
• Require clear split arrangements
• Include complete recording and publishing IP data
• Collect accurate remittance and tax information
• Reject incomplete or suspicious data entries

3. Clear Holding Policies

• Establish transparent procedures for unclaimed funds
• Set specific timeframes for holding undistributed money
• Create fair redistribution methods among stakeholders

4. Dispute Management System

• Freeze payments during conflicts
• Implement clear resolution procedures
• Maintain dedicated dispute resolution teams
• Ensure satisfactory outcomes for all parties

5. Fraud Prevention Measures

• Monitor for suspicious streaming patterns
• Implement bot detection systems
• Verify payment recipient authenticity

By implementing these measures upstream, platforms can significantly reduce payment issues and ensure proper royalty distribution to rightful recipients.

With proper systems in place, platforms can effectively manage large volumes of creators, transactions, and payouts while minimizing the risk of missed payments and fraud.

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