The film industry is set to undergo a major transformation in the management of intellectual property rights (IPR) thanks to a groundbreaking tool developed by the IOTA Foundation. This tool, funded by the European Commission as part of the European Blockchain Services Infrastructure (EBSI) Pre-Commercial Procurement (PCP), utilizes Distributed Ledger Technology (DLT) and Smart Contracts to simplify the complex process of managing music rights in films.
Traditionally, the management of music rights in films involves making royalties payments to various stakeholders, including writers, singers, record companies, and music publishers. However, each stakeholder often has different contract terms, leading to complications in calculating and sharing royalties. This results in delays and challenges for rights holders in ensuring fair compensation.
To address these challenges, IOTA has introduced the IPR Marketplace, a platform that proposes a shift from direct negotiations to digital contracts. These contracts are executed through Non-Fungible Tokens (NFTs), which represent royalty payments and rights to release or mix music. The NFTs contain links to comprehensive information stored in secure databases, ensuring transparency and traceability.
For example, when a movie like Midnight Blue uses a particular track, the copyright is embedded in an NFT, facilitating seamless payments. This allows for the efficient and effective distribution of shares to all stakeholders, minimizing disputes and creating a seamless process of rights management with the help of NFTs and blockchain technology.
IOTA’s tool promises to revolutionize IP rights management in the entertainment industry by introducing a system that is more efficient, transparent, and adaptable to real-world situations. The Foundation also envisions further advancements in these capabilities, including the use of smart contracts to pay for events such as songs played on the radio.
Overall, IOTA’s new tool marks a significant step towards reforming the inequitable system of intellectual property management in the film industry.