How Blockchain is Going to Reshape IPR Management in Media
This article is the second issue of Overtheblock.io IPR management series, representing an extensive and ongoing effort to understand and map the innovation potential of Distributed Ledger Technologies (DLTs) in IPR management within the Media & Entertainment Industry. The work presented in this post has been conducted in the context of MediaVerse, an H2020 innovation action sponsored by the European Commission.
The first issue of the IPR management series presented the potential for blockchain to reinvent the IPR management space by presenting its impact on the media value chain. The principal novelties brought by blockchain are disintermediation, digital scarcity, content management, and monetization.
The aim of this second issue is to provide a map of the blockchain-based ecosystem focusing on IPR management by identifying prominent market players, their strategic positioning, and a number of emerging business model archetypes. The purpose of this article is to show the current state of evolution of this market, outlining not only the leading players participating in the IPR management market revolution but also the business directions they are taking. This enables to outline current market trends and define potential future trajectories as well as identify new opportunities in an ever-changing environment.
The blockchain-based ecosystem mapping has been carried out using the case study methodology that is based on the multiple cases design logic in which the presence of different contexts under consideration is oriented towards heterogeneity rather than replication. Consequently, each unit of analysis examined through this analysis technique is a company whose main activity is focused on managing IPR through blockchain technology.
The first step of the analysis is the identification of a long list of cases for the study. The long list was created by evaluating all the companies that decided to use the blockchain to develop a platform for distributing and managing media content. As far as the platform service is concerned, the platforms have been firstly characterized based on the general category they belong to, defined as content distribution, content communities, and IP management.
Analyzing the aggregate evolution of platforms over time per category, the figure below (Figure 1) shows that all the categories experienced an increasing pattern during 2012–2020. In general, the period 2016–2018 is characterized by the most significant number of new projects in all the three macro-categories. In particular, this recent trend is driven by the exploding interest in tools such as Non-Fungible Tokens (NFTs) that have strongly stimulated demand for new services related to digital assets as well as artworks and, consequently, the creation of new blockchain-based platforms.
Figure 2, instead, summarizes the blockchain platforms utilized by IPR management projects. As can be noticed, Ethereum holds the record as the most used chain, followed by the Bitcoin blockchain. However, many other blockchain infrastructures have been used for other projects, for example, EOS, LBRY network, and Musicoin. An interesting aspect to be noticed, which may also be expected, is that for most of these new platforms, the underlying blockchain infrastructure is permissionless or public permissioned.
Maintaining a broad representation of the DLT-based IPR management universe, a selection process has been performed to delineate a short list of 10 case studies, selecting the main projects for each macro-category of services. Specifically, Figure 3 shows the 10 case studies analyzed, also presenting useful information to better comprehend their market positioning: market category, service provided, blockchain infrastructure, tokens implemented, and development status.
Across all the players considered, from both the long and shortlist, there is evidence that the impact of blockchain is concentrated in the media preparation, monetization, and consumption phases of the value chain [1]. But more specifically, blockchain technology generates several new opportunities that translate into specific benefits, summarized in the picture below (Figure 4).
In such a context, blockchain technology directly impacts the business models of innovative media players by providing powerful benefits to the artists, such as authenticity protection, verified ownership of the content created, and direct payment channels between user and artist. All this occurs alongside the guarantee of data security that the blockchain provides by design.
The major driver of these benefits is the absence of intermediaries. Eliminating middlemen and bridging the gap between artists and customers open an indefinite number of possibilities for the blockchain-based Media & Entertainment Industry. New platforms have boundless innovation opportunities that allow generating characterful value propositions based on idiosyncratic token utilizations.
In the Media & Entertainment Industry, NFTs represents one of the token usage systems that has garnered a great level of interest in recent time. NFTs allow creating digital originals tracing back artworks to their authors. The broad scope of application of these tools (e.g., digital art, real-world items, legal documents, etc.) has allowed them to attract, in addition to the massive amount of global attention, colossal flows of capital [2]. The owner of an NFT can easily prove the ownership and sell the token as well as prove the creation, determine the scarcity, and earn royalties. Moreover, having assured an NFT on the blockchain implicates that no one can manipulate it in any way [3].
Therefore, it is indisputable that blockchain technology is taking the Media & Entertainment Industry to a new dimension. This transformation raises consequences not just in the area of digital art, but in the entire domain of intellectual property and creative works from any field of expertise.
[1] Moncada R., Ferro E., Santamaria M. (2021), How Blockchain is Set to Revolutionize IPR Management in the Media Industry, Overtheblock Innovation Observatory, Retrievable at link.
[2] Mitic, I. (2022), 30 Fascinating NFT Statistics for 2022, Fortunly, Retrievable at link.
[3] Rotondi, D., Saltarella, Corrias G., M., Moncada, R., Ferro, E. (Forthcoming), Digital Assets Management by combining Smart Legal Contracts and Smart Contracts.
Please cite as:
Moncada R., Ferro E. (2022) The Added Value of Blockchain: Case Study Analysis of the IPR Management Market, Overtheblock Innovation Observatory, retrievable at [LINK]
OverTheBlock is a LINKS Foundation’s initiative carried out by a team of innovation researchers under the directorship of Enrico Ferro. The aim is to promote a broader awareness of the opportunities offered by the advent of exponential technologies in reshaping the way we conduct business and govern society.
We are chain agnostic, value-oriented, and open to discussion.
