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So long as you don't try to go without any kind of copyright. I've heard stories of people releasing their music for free with no copyright only for somebody to download it, register it as THEIR copyright, and then sell it on all the platforms and even send a copyright takedown notice to the original creator.

Better to protect yourself by registering it under creative commons or a similar licence.

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Of course, the music should still be protected against the commercial use or reselling.
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Well. This is what Soundcloud or Bandcamp do. The problem is that: if it's for free, 99% of people won't pay.
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The users usually not paying is a problem introduced by those platforms, in my opinion. They make the entire experience too generic for the regular users to care.

It seems to me that the bands or musicians should distribute their music via their own websites. I think that then the users would care much more.

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You're absolutely right
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Add a download gate to the mix, remove the optional payment (I promise you nobody's gonna do that) and you're basically describing https://hypeddit.com/.

Instead of paying to download music, the users "pays" by following you across social media / streaming services. Granted it's mostly used for copyright-violating edits, but some musicians use it for original tracks too.

It's how basically any electronic music producer makes a name for himself before they ever sign a contract with a label.

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No. No restrictions should be put on downloads. The main point is that the distribution channels should always be free.

What should be gated and limited is the commercial use: reselling, relicensing, using for business, etc.

> the optional payment (I promise you nobody's gonna do that)

Such "promises" seem to be based on no facts. Moreover, they contradict my personal experience.

I would be very interested in using that business model. In fact, I have already used it with other types of services. I have paid for software that is open source, free to download and free to use. Multiple times. Simply because I like the software and I wanted to thank the authors for it in some tangible way.

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