The IOTA Foundation has unveiled an innovative tool designed to streamline the management of intellectual property rights (IPR) in the film industry. This development is part of the European Blockchain Services Infrastructure (EBSI) Pre-Commercial Procurement (PCP) initiative and is funded by the European Commission. By leveraging Distributed Ledger Technology (DLT) and Smart Contracts, this tool aims to simplify the intricate process of managing music rights in films.
Addressing Complexities in Royalty Management
Typically, when a song is used in a movie, royalties must be paid to various stakeholders including writers, singers, record companies, and music publishers. Each of these entities often has different contract terms, complicating the calculation and distribution of royalties. These complexities can result in delays and challenges for rights holders in ensuring fair compensation.
To address these challenges, IOTA has introduced the IPR Marketplace, a platform that transitions from direct negotiations to digital contracts. These contracts are managed and executed through Non-Fungible Tokens (NFTs), which include royalty payments and rights to release or mix music. The NFTs contain links to comprehensive information stored in secure databases, ensuring full transparency and traceability.
Enhancing Transparency and Efficiency with NFTs
For instance, when a film such as Midnight Blue uses a specific track, the copyright is embedded in an NFT, facilitating seamless payments. This system ensures that all stakeholders receive their due shares efficiently and effectively. By minimizing disputes and making rights management processes more transparent and streamlined, NFTs and blockchain technology significantly enhance the management of intellectual property rights.
[#EBSI Update III] #IOTA has developed an Intellectual Property Rights (#IPR) tool as part of the @EU_EBSI PCP. Using Distributed Ledger Technology (#DLT), it streamlines music rights management in films 🎹 🧵⤵️ https://t.co/DDtldXbX80 pic.twitter.com/wjShd1Fm7H
— IOTA (@iota) August 12, 2024
IOTA’s new tool is set to revolutionize the means and methods used in the protection and management of intellectual property rights, offering a system that is more efficient, transparent, and adaptable to real-world situations. The Foundation also foresees additional advancements in these capabilities, such as employing smart contracts to handle payments for events like a song being played on the radio.
Paving the Way for Industry Reform
Ultimately, IOTA’s tool represents a significant step towards reforming the inequitable system of intellectual property management in the film industry. By leveraging advanced blockchain technology and smart contracts, the Foundation aims to create a more efficient, transparent, and user-friendly environment for managing IPR. This innovation not only addresses current challenges but also sets the stage for future advancements in the field, promising a more equitable and streamlined system for all stakeholders involved.