Risk Assessment

Understanding copyright, legal, ownership, and market risk scoring

Four Risk Categories

v9.3 evaluates tracks across four risk dimensions, providing comprehensive risk assessment for commercial use, licensing, and rights management.

Copyright Risk

Likelihood of infringement or unclear copyright ownership

Legal Risk

Potential for legal disputes or complications

Ownership Risk

Clarity and legitimacy of ownership claims

Market Risk

Commercial viability and platform compliance

Risk Calculation Formula

Base Risk Calculation

Formula:

Risk Score = Platform Base Risk × (Confidence / 100)

Example:

  • Platform: Suno (Base Copyright Risk: 85%)
  • Confidence: 75%
  • Calculated Risk: 85 × 0.75 = 63.75% (rounded to 64%)

Metadata Adjustments

Risk scores are adjusted based on track metadata:

  • Major Labels: -30 copyright, -25 legal
  • Pre-2020 Releases: -50 all categories (pre-AI era)
  • High Followers (>100K): -20 ownership, -15 market

Minimum Risk: 5% (floor for all categories)

Example: Complete Calculation

Track: Suspected AI track by major label artist

  1. Base Suno Copyright Risk: 85%
  2. Confidence: 70% → 85 × 0.70 = 59.5%
  3. Major Label Adjustment: 59.5 - 30 = 29.5%
  4. Artist Followers (150K): 29.5 - 0 = 29.5% (copyright unaffected)
  5. Final Copyright Risk: 30%

Copyright Risk (5-90%)

What It Measures: Likelihood of copyright infringement, unclear ownership, or unauthorized use of training data

High Copyright Risk Platforms

  • Suno: 85% - Text-to-music, potential training data issues
  • Udio: 80% - Similar concerns, vocal synthesis
  • Mubert: 45% - Generative but licensed samples

Low Copyright Risk

  • Human Artists: 5% - Natural copyright protection
  • AIVA: 40% - Clear licensing terms
  • Endel: 25% - Wellness-focused, clear ownership

When to Be Concerned

  • >60%: High risk - avoid commercial use without verification
  • 40-60%: Moderate risk - legal review recommended
  • <40%: Lower risk - proceed with standard due diligence

Legal Risk (5-70%)

What It Measures: Potential for legal disputes, litigation, or regulatory complications

Legal Risk Factors

  • AI Training Data: Lawsuits against AI music platforms
  • Platform Terms: Unclear commercial use rights
  • Regulatory Uncertainty: Evolving AI music laws
  • Jurisdiction Issues: Different laws in different countries

Platform Legal Risk Scores

  • Suno: 70% - Active litigation, unclear terms
  • Udio: 65% - Similar legal challenges
  • AIVA: 30% - Clear terms, established legality
  • Human: 5% - Standard copyright protections

Mitigation Strategies

  • >50%: Obtain written legal opinion
  • 30-50%: Review platform terms and licensing
  • <30%: Standard contract review sufficient

Ownership Risk (5-90%)

What It Measures: Clarity and legitimacy of ownership claims, ability to enforce rights

Ownership Risk Concerns

  • Who Owns AI Music: Platform vs user vs training data owners
  • Rights Enforcement: Ability to sue infringers
  • Collective Rights: PRO registration challenges
  • Moral Rights: Attribution and integrity rights

Platform Ownership Clarity

  • Suno: 90% - Highest ownership uncertainty
  • Udio: 85% - Similar ownership issues
  • AIVA: 45% - Clearer ownership terms
  • Beatoven: 35% - Well-defined ownership
  • Human: 5% - Clear creator ownership

Adjustments for Established Artists

High Followers (>100K): -20 ownership risk

Rationale: Established artists have verifiable history, making ownership claims more credible

Market Risk (5-60%)

What It Measures: Commercial viability, platform compliance, and monetization potential

Market Risk Factors

  • Platform Policies: Spotify, Apple Music AI music policies
  • Monetization: YouTube ContentID, streaming royalties
  • Discovery: Playlist inclusion, algorithmic promotion
  • Licensing: Sync licensing, commercial use approval

Platform Market Risk Scores

  • Suno: 60% - Platform policy uncertainty
  • Udio: 55% - Similar market challenges
  • AIVA: 35% - Established commercial acceptance
  • Endel: 20% - Niche market, clear use cases
  • Human: 5% - Full market acceptance

High Follower Adjustment

Followers >100K: -15 market risk

Rationale: Established audience reduces market viability concerns

Risk Level Interpretations

5-20% (Low)

Safe for most commercial uses. Standard due diligence sufficient.

21-40% (Moderate)

Proceed with caution. Additional research recommended.

41-60% (High)

Significant risk. Legal review strongly advised.

61-80% (Very High)

Major concerns. Avoid without expert verification.

81-100% (Critical)

Extreme risk. Do not use commercially.

Case Studies

Case 1: Human Artist on Major Label

  • Platform Detection: Human 92%
  • Base Risk: 5% all categories
  • Major Label Adjustment: Copyright 5%, Legal 5% (already minimum)
  • Final Risks: All 5% (lowest possible)
  • Recommendation: Safe for all uses

Case 2: Suno Track, High Confidence

  • Platform Detection: Suno 85%
  • Base Risks: Copyright 85%, Legal 70%, Ownership 90%, Market 60%
  • Confidence Scaling (85%): 72%, 59%, 76%, 51%
  • No Adjustments
  • Final Risks: Copyright 72%, Legal 59%, Ownership 76%, Market 51%
  • Recommendation: High risk, avoid commercial use

Case 3: AIVA Track for Video Background

  • Platform Detection: AIVA 78%
  • Base Risks: Copyright 40%, Legal 30%, Ownership 45%, Market 35%
  • Confidence Scaling (78%): 31%, 23%, 35%, 27%
  • Final Risks: Moderate across all categories
  • Recommendation: Acceptable for video backgrounds, review AIVA license

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