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