Microsoft, the company that created Windows, the most popular operating system of the whole world, and Ernst Young (EY), a big firm of financial professional services, will team up to launch a blockchain based system to make copyrights associated royalty payments. The two companies expect their collaboration to find an answer to today’s copyright payment disaster, according to an article published by Fortune.
For this difficult task, Microsoft will provide the programming backbone and EY will provide the price analysis and the expertise about how these payments should be made. The system will be programmed on Quorum, an enterprise-oriented blockchain platform based on Ethereum, one of the most known cryptocurrencies today. Developed by JP Morgan, the use of it will permit a solid programming base for solving the task ahead.
The issue here is that the process of determining copyright royalty payments is not an easy task; for each game, movie or song, there are hundreds of creators involved, and every one of them needs to be paid by their work in every one of these jobs; furthermore, rights for a movie or a song can also be sold to another individual or expire in time, making this a really difficult task to complete. That is why an immutable ledger like blockchain would be ideal, letting users keep track of every one of these changes.
Right now, the process of collecting all of these rights of a piece and paying all creators involved takes 45 days. With the system proposed by Microsoft, they estimate that there could be daily payments for all content creators and rights beneficiaries. The Global Innovation Leader for Blockchain of EY, Paul Brody, is optimist about the real possibility of solving these problems using this tech; he stated:
THE SCALE, COMPLEXITY, AND VOLUME …MAKES THIS A PERFECT APPLICATION FOR BLOCKCHAINS. A BLOCKCHAIN CAN HANDLE THE UNIQUE NATURE OF EACH CONTRACT BETWEEN DIGITAL RIGHTS OWNERS AND LICENSORS CAN BE HANDLED IN A SCALABLE, EFFICIENT MANNER WITH AN AUDIT TRAIL FOR THE PARTICIPANTS”
If they really can pull it through, it will be another interesting and difficult problem solved by the application of blockchain.