Nick is spending the weekend with snowboarding. On Sunday evening, he watches the footage he filmed with his GoPro camera and cuts the best scenes to a short video. Nick knows that he can't use his Spotify playlists as a soundtrack for his video, due to copyright legislation. But he knows that the "Music Hackathon App" provides great stuff of licensable music!
Quickly he finds the right track he wants to use as a soundtrack for his video. All he needs to do is to purchase a license for 1.99 USD, download the track and synchronize it with his video. As a result, he can upload the video on Youtube, and by entering a specific code (e.g. RADKey) the Youtube Content ID detects that Nick legally licensed the music – the video goes online without any problems.
What happens in the background?
The "Music Hackathon App" knows the metadata of the audio track Nick had selected. The track was composed by composers John Doe and Jason Doe, and published by JJ Doe Publishing. The track was released by the music label JJ Awesome Records, and recorded by the artist Joseph Toe. Enabling Nick to legally use the music track in his video, in total the whole chain of artist, composers, respectively their label and their publisher need to permit the usage and agree on the terms. To make that fully automated, all parties pre-cleared the track for "non-commercial synchronisation use, online, worldwide, in perpetuity" via a verified smart contract in the "Hackathon Music App".
Optional: the transaction of the payment process of the synch license is handled via a crypto-currency.