## 3 Suggesting a Settlement-Distribution Structure for Music Usage  
This study suggests the following alternative structure using the existing log collection system to settle and distribute royalties for music usage. Because music rights holders have the right to access the music usage status and information of rights holders, this structure could be one of the efficient ways to carry out the transparent settlement and distribution of royalties. This structure is basically similar to DDEX [6,10]; however, it is not a legally binding force. Figure 2 shows the proposed settlement-distribution structure based on meta-log information analysis. This structure consists of three modules: a meta-log information analysis module, a settlement module, and a distribution module. These modules could be successfully constructed based on spontaneous requests from music rights holders. First, the meta-log information analysis module performs the registration of the copyrighted music and log information. Only the music copyright holder, who has authorized music usage status and information, can register the copyrighted music itself for settlement and distribution. Once the music is registered, the basic metadata can be obtained from the music UCI data of the Recording Industry Association of Korea. The rights for a single music source can be divided into copyright and neighboring rights (production rights and performance rights) [5]. The current log collection system gathers the sales month, OSP classification, the song code and service code according to the OSP, the association type, UCI, and sales volume data. For a settlement, the rate per song and the reported settled sum for a specific OSP (the rate per song multiplied by the number of times that the music is used) will be needed. This is a highly complicated issue because the process  
Figure 2: Proposed settlement–distribution structure based on meta-log information analysis. closely involves stakeholders (e.g., OSPs); however, the music copyright holder can request this information for their rights. Once the issues among the aforementioned stakeholders are solved, the proposed structure can be used to automatically retrieve the music usage log data from the log collection system, as long as the music rights holders register their copyrighted music. The second step consists of a match module and a settlement module. The match module carries out a matching process between the copyrighted music via registration and the music usage log data from the log collection system. The settlement process can be carried out based on the rate of a song or the share of total sales of a song, according to Formula (1). The share of total sales of a song is higher than that of the rate of the song in most cases, and this information can be requested by copyright holders because of their rights, while the information from major OSPs is confidential. Recently, several OSPs (e.g., NAVER VIVE (Seoul, Republic of Korea), etc.) adopted the settlement method of paying for music usage so that the fee would go directly to the music rights holders. The third step consists of a distribution of royalties and a report system. When the settlement for distribution is finalized, the distribution ratio will be determined according to the copyright and neighboring rights in the first step. Based on this ratio, the royalties for the music's usage will be distributed to individual rights holders. The reporting system can provide a sum of royalties, royalties from different OSPs, and other information in a chart or a diagram. Once the music rights holder registers the copyrighted music and each OSP transmits the log information for settlement, one can realize a transparent settlement and distribution structure because the music rights holders have the right to request sales details. Figure 3 shows a flow chart of settlement and distribution. After following this process, a settlement and distribution report can be drawn.