The film industry is set to benefit from a groundbreaking tool introduced by the IOTA Foundation. Developed as part of the European Blockchain Services Infrastructure (EBSI) Pre-Commercial Procurement (PCP) and funded by the European Commission, this tool utilizes Distributed Ledger Technology (DLT) and Smart Contracts to simplify the management of intellectual property rights (IPR) in relation to music in films.
Traditionally, the process of managing music rights in films has been complex and time-consuming. Royalties must be paid to various stakeholders, including writers, singers, record companies, and music publishers, each with their own contract terms. This has led to challenges in calculating and distributing royalties, resulting in delays and difficulties for rights holders in ensuring fair compensation.
To address these issues, IOTA has introduced the IPR Marketplace, a platform that proposes a shift from direct negotiations to digital contracts. These contracts are executed using Non-Fungible Tokens (NFTs), which represent elements such as royalty payments and rights to release or mix music. These NFTs contain links to comprehensive information stored in secure databases, ensuring transparency and traceability.
For example, when a movie uses a specific track, the copyright is embedded in an NFT, making the payment process seamless. This enables the fair distribution of shares to all stakeholders in an efficient and effective manner, reducing disputes and streamlining the rights management process through the use of NFTs and blockchain technology.
The introduction of IOTA’s tool promises to revolutionize the management of intellectual property rights in the entertainment industry. It offers a more efficient, transparent, and adaptable system for protecting and managing these rights. The Foundation also envisions further advancements in this area, including the use of smart contracts for payment in events such as songs being 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.
