The Age of Programmable IP
We all want to be DJs!
We first started to get really interested in this concept of programmable IP when we heard a comparison to the remixing of a story and IP, with the all too familiar world of DJing and remixing music. Who doesn’t want to be a DJ right? Think of it like this. Say you’re a big fan of Star Wars. And you love Star Wars so much that you start to write some fan fiction that draws you millions of fans commenting on your substack about an alternate universe where Han Solo and Lando Calrissian start an underground fight club. Great! You wrote something amazing. You created fan fiction and have millions of fans. You’re essentially a DJ that’s remixing a certain IP. The problem? In this case, for obvious copyright reasons, you are unable to sell anything related to the wonderful world of Star Wars, as that is owned by Disney. So, the next steps are pretty simple. We need a way for creators to remix more of the material they love, create original content, and let others remix, all the while tracking and rewarding folks fairly along the value chain. Sound good?
Enter the wonderful world of programmable IP.
The Current Landscape of IP Management
For decades, intellectual property management has relied on centralized systems involving legal frameworks, intermediaries, and often cumbersome administrative processes. While these systems have provided a degree of protection for creators, they are not without their flaws. The traditional IP model is often slow, expensive, and prone to disputes, especially when it comes to the enforcement of rights across different jurisdictions. And, as the digital economy has expanded, so too have the challenges of managing IP in a world where content can be duplicated, modified, and distributed at the click of a button.
The rise of artificial intelligence has further complicated this landscape. AI can generate content—be it music, art, or written work—that raises questions about ownership and rights. Who owns the rights to a piece of music composed by an AI? How do we ensure that the creators of AI algorithms are fairly compensated for their contributions?
What is Programmable IP?
Programmable IP offers a solution to these challenges by using blockchain technology and smart contracts to automate and decentralize the management of intellectual property. At its core, Programmable IP allows creators to set specific conditions under which their IP can be used, licensed, or monetized. These conditions are encoded into smart contracts, which automatically execute actions—such as licensing agreements or royalty payments—when certain conditions are met.
Story Protocol, which recently raised 140 million to disrupt IP ownership in the AI age, is emerging to be one of the potential pioneers in this space. The platform aims to create a decentralized network where IP can be registered, licensed, and monetized with unprecedented transparency and security.
Similarly, Ritual, an AI platform that raised $25 million to decentralize access to AI, is exploring how blockchain can be used to track and manage AI models. By training and tracking AI models on-chain, Ritual ensures that the origins and usage of these models are transparent and verifiable, promoting ethical practices in AI development.
Benefits of Programmable IP
The benefits of Programmable IP are clear. First and foremost, transparency. In a traditional IP system, it can be difficult to track how and where IP is being used. With Programmable IP, every transaction is recorded on the blockchain, providing a clear and immutable record of ownership and usage. This transparency reduces the risk of IP theft and ensures that creators are properly compensated for their work.
Another significant advantage is the reduction of intermediaries. In the traditional IP model, creators often rely on intermediaries—such as lawyers, agents, and publishers—to manage their IP. These intermediaries can be expensive and may not always act in the best interests of the creator. With Programmable IP, creators can manage their IP directly, setting their own terms and conditions and ensuring that they receive the full benefit of their work.
Programmable IP also enables new forms of collaboration and revenue generation. For example, it allows for fractional ownership of IP assets, where multiple parties can share in the profits of a single piece of IP according to predefined rules. This opens up new possibilities for co-creation and shared ownership, particularly in the digital and AI-driven economy.
We’ve talked about this in the past with on-premise & cloud computing, and traditional finance and DeFi as an evolution and not a revolution. Instead of ripping and replacing, the systems can and will work in parallel. And, as a business or a consumer, you’ll have the opportunity to choose which model works for you. The same now will be said for IP management in an increasingly AI-generated and curated world. And if not, here come the lawsuits. Creators should feel free to opt into the IP universe that creates outcomes for revenue and transmedia revenue opportunities that align with their strategy (one of our writers’ picks is Scott Pilgrim as a favorite franchise).
A Crossover Example
The common narrative in explaining IP is pretty straightforward. The one we’re all familiar with is that a company creates an IP /patent, holds onto it, and then finds a way to monetize the asset. Got it. Makes sense. The less familiar model comes from the open-source software world. In a wildly unprecedented move, Elon Musk open-sourced all of his Tesla patents, stating in a 2014 article that all of our patents belong to you. He did what!? This, as you can imagine, flies completely in the face of the common narrative we’re used to, which is, that the IP and the patents we create are our competitive advantage, and we shall hold onto them at all costs and drive revenue. This works, not challenging that. And, as Elon proved, there’s another way. It’s with this in mind that we can imagine a web3 entertainment company like Ethernity partnering with a fan-forward IP studio, aptly named, Story Kitchen (producers of Sonic the Hedgehog, Lara Croft Tomb Raider et al) to revolutionize how Hollywood, Gaming, and entertainment look at alternative IP creation or generation. The reality of being your own ‘IP DJ’ can finally be brought to life. This is not an actual partnership, merely a thought experiment and our attempt at DJing!
Challenges, Considerations, and Closure
While the potential of programmable IP is immense, there are still challenges that need to be addressed. One of the primary challenges is the legal and regulatory landscape. Blockchain technology is still relatively new, and there is a lack of clear legal frameworks governing its use in IP management. This creates uncertainty for creators and businesses looking to adopt programmable IP.
Another challenge is the adoption of this technology. While blockchain offers significant advantages, it also requires a shift in how creators and businesses think about IP management. This shift may be difficult for some, particularly those who are accustomed to traditional IP systems.
As we’ve seen with blockchain adoption, the pace of progress doesn’t happen overnight. However, as you’ll learn about in our project spotlight, companies like IKONZ are taking the creator economy to the next level with your favorite star. Picture this, you’re a brand. And you get the opportunity to DJ your own version of Amitabh Bachchan for the upcoming launch of your product. To us, no matter how long we have to wait, this type of DJ experience is worth waiting for.
Project Spotlight
IKONZ
Ikonz is a pioneering AI-driven platform that empowers creators, brands, agencies, and production studios to effortlessly generate hyper-personalized interactive audio/video content at scale using globally exclusive celebrity IPs.. Apart from us, they are backed by Village Global, Fanatics’ ($31 Billion Sports Platform) top executive, JAB Holding Owner Family Office ($50 Billion Fund), Bioworld, Polygon, and Anthill Ventures. They have exclusive IP rights of Mr. Amitabh Bachchan (140 Million Followers on Social media), and Sourav Ganguly (Former Indian Cricket Captain and Ex-BCCI President) and have a deep pipeline of celebrities, agencies and brands adopting our platform not only in India but in the US as well.
Ikonz’s vision is to redefine user engagement globally by replacing resource-intensive tasks with AI Agents, using Influential IPs. There is an increasing trend of adapting AI agents at enterprises as they reduce costs, improve productivity, and enhance customer experience. Ikonz has had successful pilots in India across multiple brands and is now expanding into the US both for IPs and business.
As it grows its business, Ikonz is also mindful of bringing programmability and preventing deep fakes of its outputs. Both of these can be enabled with smart contracts and blockchain.
MARKET NEWS
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- Nic Carter’s excellent article on Operation Chokepoint 2.0
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Warm Regards,
Woodstock Team
