IOTA Revolutionizes Intellectual Property Rights Management with Smart Contracts

The
IOTA
Foundation
has
unveiled
a
groundbreaking
solution
prototype
designed
to
streamline
the
management
of
intellectual
property
rights
(IPR).
Developed
as
part
of
the
European
Blockchain
Pre-Commercial
Procurement
initiative,
funded
by
the
European
Commission,
this
new
platform
leverages
distributed
ledger
technology
(DLT)
and
smart
contracts
to
enhance
transparency
and
efficiency
in
IPR
management,
according
to
the

IOTA
Foundation
Blog.

Enhanced
IPR
Management

The
IPR
Marketplace
platform,
developed
by
IOTA,
aims
to
simplify
the
complex
process
of
securing
and
managing
rights
for
media
content,
such
as
music
used
in
films.
Traditionally,
this
process
involves
multiple
stakeholders,
including
songwriters,
performers,
record
labels,
and
music
publishers,
each
with
different
agreements
and
manual
tracking
systems.
This
can
lead
to
delays
and
opacity
in
royalty
payments,
making
it
difficult
for
rights
holders
to
verify
fair
compensation.

Real-World
Application

To
illustrate
the
platform’s
capabilities,
consider
the
case
of
Samantha
Sequel,
a
film
producer
looking
to
secure
a
song
for
her
latest
project.
Using
the
IPR
Marketplace,
Sam
can
navigate
the
intricate
web
of
stakeholders
and
secure
synchronization
licenses
more
efficiently.
The
platform
replaces
traditional
negotiations
with
automated,
transparent
digital
contracts,
ensuring
immediate
and
fair
compensation
for
all
parties
involved.

Smart
Contracts
for
Media

The
IPR
Marketplace
utilizes
IOTA
Smart
Contract
Chains
to
create
dynamic
digital
contracts
that
self-execute
and
enforce
the
agreed
terms.
Sam’s
production
company
can
use
predefined
contract
templates
to
set
terms
for
synchronization
and
master
licenses.
Adjustments
can
be
made
in
real-time,
minimizing
misunderstandings
and
delays.

Automated
and
Transparent
Payments

Once
the
terms
are
agreed
upon,
the
digital
contracts
are
transformed
into
machine-readable
Smart
Contracts
for
Media
(SCM),
which
automatically
manage
payments
and
royalty
distributions.
These
contracts
are
deployed
on
the
IOTA
Smart
Contract
Chain,
ensuring
immutability
and
security.
Payments
are
triggered
automatically
from
Sam’s
Web3
Wallet
to
the
SCM,
which
then
delegates
payment
to
other
smart
contracts,
ensuring
all
parties
receive
their
due
share
promptly.

Integration
of
NFTs

Each
work
of
art
and
its
associated
rights
are
encapsulated
using
Non-Fungible
Tokens
(NFTs),
which
represent
obligations
like
royalty
payments
and
permissions
like
the
right
to
publish
or
synchronize.
These
NFTs
are
stored
securely
off-chain
using
the





InterPlanetary
File
System
(IPFS),
enhancing
transparency
and
traceability.
This
system
not
only
secures
the
rights
but
also
immortalizes
the
contracts
in
a
digital
form
that
is
easily
accessible
and
verifiable.

A
Fairer
Future

The
integration
of
IOTA
in
IPR
management
offers
a
transformative
approach
to
traditionally
opaque
practices.
The
IOTA
Foundation
plans
to
expand
these
capabilities
further,
potentially
automating
payments
triggered
by
real-world
events,
such
as
a
song
playing
on
the
radio.
This
advancement
promises
to
revolutionize
the
way
intellectual
property
rights
are
handled,
making
the
process
more
dynamic
and
responsive
to
actual
usage.

Following
the
success
of
their
Digital
Product
Passport,
the
IOTA
Foundation’s
Technology
Adoption
Team
is
spearheading
the
commercialization
of
this
IPR
solution
prototype
within
their
ecosystem
of
partners.
This
initiative
marks
a
significant
step
towards
a
more
efficient
and
transparent
future
in
intellectual
property
rights
management.

Image
source:
Shutterstock