How Blockchain Will Change The Copyright

The world market of visual content, protected by copyright, was estimated by specialists at nearly $6 billion by the end of 2016, and up to 2022, according to the same estimates it will successfully cross the 10 billion mark. Such a serious market with a solid volume cannot be ignored by professionals and enthusiasts, developing services using blockchain technology.

The market state

There are 3 main groups of participants in the visual content market: suppliers, consumers and various intermediaries. Today this interaction looks like this: providers create content and transfer it to intermediaries, and those already sell licenses for its use to consumers. Suppliers at the same time receive a fee in the form of royalties for the work, the amount of which is much less than the intermediators leave for themselves from the sale of content — their income reaches 70% of the cost of the license.

Both suppliers and consumers of visual content suffer greatly from such a high mark-up. And it’s not about the profit and over-payments received by the suppliers that are not received by the suppliers, even at such rates, the demand for content does not drop — many simply prefer not to buy it, but to engage in piracy.

In addition to the financial relations of the parties, there are other weaknesses in the current situation on the market. The single license base did not exist, that creates serious problems for all parties connected with the difficulty of confirming the legitimacy of visual content and proving their rights to a particular object.

The market does not have a leading platform which could fully meet the needs of content providers. This forces them to direct additional efforts to spread their work on multiple platforms and takes a lot of time and energy. This problem can be solved without resorting to monopolizing the market, but through a technological solution that allows you to lay out an object of intellectual property once for all possible forms of use.

Searching for solution

IPStock is not just another digital startup, planning to become the main intermediary, it’s a working platform since 2015, which includes almost 5,000 users: content providers, consumers and buyers. The project registered in Switzerland since birth and became partner of Fongit, a Swiss incubator of innovative start-ups with more than 25 years of experience in the development of innovative technologies.

Blockchain with its technology of the distributed registry will allow confirming and storing information over the rights of possession of intellectual property. Chain blocks exclude the possibility of forgery of data and unambiguously indicate the rights of the parties.

At last smart contracts allow almost instantly carrying out transactions either for sale or lease of licenses. With full confidence, they can be considered to date as the best way to confirm and verify compliance with the terms of the transaction of any format of intellectual property copyright transfer.

The industry is ready to change

To ensure that ambitious plans to change the market are successful, they must meet the requirements of the industry, the availability of which ultimately determines the whole project success. We already see the desire and willingness of the market for the reformation, and here is one fresh example of this.

In November 2017 the largest CIS aggregator of licenses for electronic books “LitRes” signed an agreement with the IPChain project on the induction of blockchain technology in the processes of storage and protection of intellectual property rights. The agreement provides the recording of all copyright data on books that are kept by “LitRes” in the distributed IPChain register, as well as recording in it all information on future transactions made with these rights.

One of the main problems of the modern Internet is known as Piracy. Among the founders of the IPChain project there are: All-Russian Intellectual Property Organization, the Russian Union of Right Holders and the Russian Authors’ Society, which makes it clear how effective the use of blockchain can be fight against piracy. The MSU Business School, which is known as IPChain founder too, are confident that such projects are capable of bringing so much needed transparency to the industry and greatly simplifying the resolution of disputes arising from the difficulty of transferring and verifying copyrights to intellectual property. According to MSU BS, the automation of monitoring and the ability to respond as quickly as possible to violations from the field of copyright in the digital world of the future — is the main advantage of the blockchain.

Big step forward

The role of intermediaries in the distribution of visual content is so great that without principal changes in the market it`s impossible to abandon them right now or impose new rules for the game. That’s why the IPStock project offers such a large-scale change, which was created by a team of specialists pretty familiar with the visual content copyright market — they perfectly understand the needs of the market and how to build mutually beneficial relations between all market participants.

During the period from 2013 to 2017, the main elements of the project ecosystem were launched: — the cloud service for the providers of visual content, which will become the center of the future infrastructure. — the site for vector graphics sales without royalty with special feature — customizing any images within the platform.

In the first half of 2018, the project plans to create a single register of visual content on the IPStock basis. After applying the smart contracts for the management and transfer of licenses, a campaign to attract consumers will be launched with the addition of new type of content — video. In 2019, IPStock is going to launch a market-unique exchange platform, which will trade copyright on visual content. In early 2020, the project ecosystem will be ready to begin connecting all players on the market to its blockchain. An opportunity to trade copyright for content within the augmented and virtual reality also planned to be added by this time. The confidence in all this significant changes that will go for good to the whole market and all its participants, the professionalism of the our team and detailed plans allows to believe in success of the future ICO and the prospects of the whole project.