The IOTA Foundation has introduced a groundbreaking tool to streamline the management of intellectual property rights (IPR) in the film industry. Developed as part of the European Blockchain Services Infrastructure (EBSI) Pre-Commercial Procurement (PCP) and funded by the European Commission. This tool uses Distributed Ledger Technology (DLT) and Smart Contracts to simplify the complex process of managing music rights in films.
New IOTA Platform Uses NFTs to Revolutionize Music Rights Management
Normally, if a song is used during a movie, then royalties have to be made to the writers, the singers, the record companies, and the music publishers. Most of these stakeholders have different contract terms and this complicates the calculation and sharing of royalties. These give rise to problems such as delay and challenges experienced by rights holders in ensuring the assessment of fair compensation.
To overcome these challenges, IOTA has recently introduced the IPR Marketplace as the platform that suggests moving from direct negotiations to digital contracts. These contracts are run and executed by Non-Fungible Tokens (NFTs) such as royalty payments and rights to release or mix music. The NFTs themselves comprise links that refer to more comprehensive information kept within secure databases, being fully transparent and traceable.
For instance, when a movie such as Midnight Blue employs a certain track, the copyright is embedded in an NFT, which makes payments seamless. This leads to the distribution of due shares to every stakeholder, efficiently and effectively. It also helps to minimize disputes and makes the whole process of rights management with the help of NFT and blockchain seamless.
IOTA’s Tool Promises Fairer IP Rights Management in Entertainment
In this case, IOTA is set to completely reinvent the means, manner, and methods used in the protection and management of intellectual property rights with a system that is more efficient, transparent, and adaptable to real situations. The Foundation also envisions other exciting advancements in these capabilities, embracing smart contracts to pay for events such as a song on the radio.
Lastly, IOTA’s new tool is a leap towards the reform of the inequitable system of intellectual property management in the film industry.
