# TrackForge Certification

> Blockchain-anchored music metadata verification — solving the information asymmetry problem in catalogue acquisitions

## The Problem

The music catalogue market suffers from a classic "market for lemons" problem:
- **Sellers** with good metadata cannot prove quality → priced the same as poor catalogues
- **Buyers** cannot quantify metadata risk → every deal priced in the dark
- **The result:** $1B+ in uncollected royalties, $690M valuation gap (Hipgnosis), mid-tier market locked out

Traditional due diligence costs $100K–$300K per engagement and takes 4–8 weeks — economically impossible for catalogues under $50M (the majority of the market by count).

## The Solution

TrackForge is a **rights rating agency** for music catalogues. It provides:

1. **Two-layer ratings** — Individual tracks rated Gold/Silver/Bronze/Declared (verification depth); catalogues graded AAA through D (revenue-weighted portfolio score)
2. **Published methodology** — Deterministic, reproducible, versioned assessment criteria
3. **Independent verification** — Cryptographic proofs (SHA-256, Merkle trees, Bitcoin anchoring) allow anyone to verify without trusting TrackForge

**Comparison:**

| | Traditional consultant report | TrackForge certification |
|---|---|---|
| **Output** | Bespoke opinion | Standardised grade (AAA–D) |
| **Methodology** | Proprietary | Published, versioned |
| **Reproducibility** | Cannot be independently verified | Any party can reproduce |
| **Evidence** | "We reviewed and found..." | Mathematical proof |
| **Cost** | Fixed $100K–$300K | Scales with catalogue size |

## Certification Tiers

Every track assessed on metadata completeness:

- **Gold** — Multi-source corroboration. ISRCs confirmed on DSPs, writer data cross-referenced with PRO records, shares reconciled
- **Silver** — Structurally complete. All required fields present and internally consistent
- **Bronze** — Partially enriched. Some gaps remain
- **Declared** — Owner-submitted data only. Not independently verified

Portfolio grades (AAA–D) weighted by revenue. A catalogue with 50 Gold tracks generating 90% of revenue outweighs 500 Bronze tracks.

## Technology

### Cryptographic Verification

1. **Fingerprinting** — SHA-256 hash of canonical JSON metadata (track-level)
2. **Merkle tree** — Combine fingerprints into single root hash (catalogue-level)
3. **Blockchain anchoring** — Root hash timestamped on Bitcoin via OpenTimestamps

**Result:** Any third party can verify:
- Data hasn't changed since certification
- Specific track was part of certified batch
- Certification happened when claimed

All without contacting TrackForge.

### Enrichment Pipeline

Multi-source waterfall across 23+ reference data sources:
- **Streaming:** Spotify (ISRC validation, track metadata)
- **Databases:** MusicBrainz (ISWC, writers), Discogs (releases), Last.fm (tags)
- **PROs:** PRS, GEMA, SACEM, JASRAC, SIAE, MLC, CPRS, APRA/AMCOS
- **Intelligence:** Genius (credits), Tunefind (sync), WhoSampled (samples), Wikidata (structured data)

Conflict resolution via algorithmic scoring + XAI agent for probabilistic resolution.

## Market Context

- **$20B deployed** into music catalogue acquisitions since 2019
- **10 consecutive years** of recorded music revenue growth (2015–2024)
- **$29.6B global revenues** (2024), $20.4B from streaming
- **70% of streaming** is catalogue music (tracks >18 months old)
- **14–18x NPS multiples** for evergreen catalogues (5–7% unlevered yield)

**Mid-tier opportunity:** The 39% of capital deployed into $1–50M catalogues offers 5–10x multiples (higher yield) but lacks standardised risk assessment. This is TrackForge's target market.

## Legal Framework

### What Certification IS:
- Attestation that documented verification process was followed
- Metadata was in stated condition at stated time
- Process fidelity (like title insurance for music metadata)

### What Certification IS NOT:
- Does NOT determine copyright ownership
- Does NOT settle disputes between claimants
- Does NOT guarantee no future claim will arise
- Does NOT provide legal advice or legal opinions

### Chinese Wall
- Enrichment services (improving metadata) structurally separated from rating services (assessing metadata)
- Separate databases, no shared write access
- Rating evaluations performed on data as submitted, not enriched data
- Methodology published and versioned — cannot be adjusted per engagement

## Key Identifiers

- **ISRC** — International Standard Recording Code (sound recording identifier)
- **ISWC** — International Standard Musical Work Code (composition identifier)
- **IPI** — Interested Party Information (writer/publisher identifier)
- **CAE** — Compositeur, Auteur et Éditeur (legacy writer identifier, superseded by IPI)

A track needs all three to collect: ISRC (for recording royalties), ISWC + writer IPI (for publishing royalties).

## Industry Glossary

- **Catalogue acquisition** — Purchasing ownership of music publishing or recording rights portfolios
- **Due diligence** — Pre-acquisition analysis of catalogue quality, registration completeness, revenue accuracy
- **Registration gap** — Track not registered with relevant collection society → uncollected royalties
- **Chain of title** — Documented trail of rights ownership from creator to current owner
- **PRO** — Performing Rights Organisation (PRS, ASCAP, BMI, GEMA, SACEM, etc.)
- **CMO** — Collective Management Organisation (generic term for PRO + mechanical societies)
- **NPS** — Net Publisher's Share (revenue metric for valuation multiples)

## Documentation

Full methodology at: **https://trackforge.studio/certification/**

### Core Pages (restructured narrative):
1. [Why TrackForge Exists](https://trackforge.studio/certification/overview/why-trackforge) — Information asymmetry problem
2. [The Problem](https://trackforge.studio/certification/overview/the-problem) — Market for lemons, due diligence bottleneck
3. [The Market](https://trackforge.studio/certification/overview/the-market) — $20B deployed, mid-tier opportunity
4. [The Solution](https://trackforge.studio/certification/overview/the-solution) — Rights rating agency
5. [Independent Verification](https://trackforge.studio/certification/overview/independent-verification-explained) — Cryptographic proofs

### Technical Methodology:
- [Golden Record Selection](https://trackforge.studio/certification/methodology/golden-record-selection) — Certification tiers
- [Enrichment & Validation](https://trackforge.studio/certification/methodology/enrichment-validation) — Multi-source waterfall
- [Canonicalization](https://trackforge.studio/certification/methodology/canonicalization) — Deterministic JSON serialization
- [Hashing](https://trackforge.studio/certification/methodology/hashing) — SHA-256 implementation
- [Merkle Tree](https://trackforge.studio/certification/methodology/merkle-tree) — Binary tree construction
- [Blockchain Anchoring](https://trackforge.studio/certification/methodology/blockchain-anchoring) — OpenTimestamps on Bitcoin

### Legal Framework:
- [Certification Scope](https://trackforge.studio/certification/for-lawyers/certification-scope) — What it does/doesn't mean
- [Liability & Risk](https://trackforge.studio/certification/for-lawyers/liability-risk) — Legal positioning
- [Data Handling (GDPR)](https://trackforge.studio/certification/for-lawyers/data-handling-gdpr) — Privacy compliance
- [Certificate Wording](https://trackforge.studio/certification/for-lawyers/certificate-wording) — Legal language

### For Catalogue Owners:
- [Deliverables](https://trackforge.studio/certification/for-catalogue-owners/deliverables) — What you receive
- [Reading Your Certificate](https://trackforge.studio/certification/for-catalogue-owners/reading-your-certificate) — How to interpret ratings
- [Verification](https://trackforge.studio/certification/for-catalogue-owners/verification) — How to verify independently
- [Proof Bundle](https://trackforge.studio/certification/for-catalogue-owners/proof-bundle) — Data formats and proofs

## Contact

- **Website:** https://trackforge.studio
- **Security:** security@trackforge.studio
- **Documentation:** https://trackforge.studio/certification/

## AI Agent Access

For markdown-optimised versions of any documentation page, use:
- **markdown.new proxy:** `https://markdown.new/trackforge.studio/certification/{path}`
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## Optional

- [llms-full.txt](https://trackforge.studio/certification/llms-full.txt): Complete certification methodology with all technical specifications