Blockchain Platform for Intellectual Property Loans Planned By Russian Authors’ Societybr>
Non-governmental organization Russian Authors’ Society (RAO) is planning to launch a blockchain financial platform for intellectual property-secured loans next year.
RAO is Russia’s largest and most prominent copyright collecting society which represents authors (creators of audiovisual, dramatic, musical and choreographic works), authors’ successors and right holders in collection and distribution of royalties for use of copyrighted works by means of their communication to general public.
At the Cult & Tech: New Economy of Content Roundtable held in the Mass Communication section of the St. Petersburg International Cultural Forum, RAO Director General Alexander Sukhotin said that they are developing a blockchain platform where right holders will be able to directly meet with investors and receive loans secured by patents and other forms of intellectual property (IP).
“CoFi service will be launched in the first quarter of 2019,” Sukhotin said. “It has already passed certain stages of development, the structure is already clear, the general concept of how it will work. This will be an electronic platform where potential borrowers with intellectual property and ready to give it as collateral, having previously evaluated it, on the other hand, there will be investors who are ready either to provide loan funds automatically or to be active participants of the site.”
Sukhotin noted that the platform will not be limited by type of intellectual property. The platform will also include patents, musical works, and visual art.
“Now we are working on the selection of experts who will be able to evaluate one or another form of ownership,” Sukhotin said. “We are talking about mortgage amounts in the millions of rubles.”
According to the World Intellectual Property Organization (WIPO), intellectual property refers to “creations of the mind: inventions, literary and artistic works, and symbols, names and images used in commerce.” Intellectual property can be separated into three categories: trademarks, patents, and copyrights.
In the US, intellectual property theft costs the average company almost $102 million in revenue per year. This is the reason why many IP industry players have been turning to blockchain technology to catalogue and store original works. By establishing an immutable record of use cases, a blockchain system could help creators monitor exactly how and by whom their creations are being used. Smart contracts also allow creators to set their own licensing terms and ensure that they are being carried out.