Story Protocol is a blockchain platform set to overhaul the management and monetization of intellectual property (IP) by enabling creators to register it on-chain. One of its most outstanding features is programmable IP, where content creators can set up their own rules for licensing, remixing, and revenue sharing that would be enforced automatically via smart contracts.
This feature explores PIL (Programmable IP License), one of Story Protocol’s cornerstones.
What Is PIL and How It Works
PIL is a code-based contract template that streamlines and automates the licensing and monetization process of IP through the use of blockchain-specific instruments. In a nutshell, it integrates legal terms directly into smart contracts, which not only simplifies the entire management process but also enhances its efficiency and transparency.
Creators register their IP as an IP Asset in the form of an ERC-721 NFT, which, however, is used for tokenizing creative works, data sets, or AI models rather than collectibles. Each IP Asset is linked to an IP Account, which, in the technological sense, is a smart contract wallet based on the ERC-6551 standard. The IP Account can execute transactions and interact with dApps, thus giving the IP Asset an on-chain identity.
Story Protocol involved legal experts in the development of PIL, so users without much knowledge of legal complexities or profound technological prowess can easily define specific licensing terms like permissions for commercial use, requirements for attribution, or royalty structures. All these terms are encoded in smart contracts, which ensures their automatic enforcement and due payments securely and transparently.
End users can enjoy PIL’s templates for mapping licensing terms onto the blockchain, including the following:
- Non-commercial social remixing (the original IP can be used, remixed, and shared but strictly for non-commercial purposes);
- Commercial use without resale or derivative development (IP can be bought but not resold or used for creating commercial derivative content);
- Commercial remix, which allows for the creation of derivative content based on the original IP and its selling.
IP owners can also create custom licensing terms that would be transparent to all parties.
Through PIL, creators can easily license their intellectual property and develop derivative works, while the royalties will be automatically distributed between all involved creators, both original and derivative. This way, creators of all kinds can truly enjoy a fair and efficient system that removes the need for manual negotiation and renders any intermediaries obsolete. In case anything goes wrong, there is a dispute module that helps handle IP rights verification and infringement issues: currently, it is handled by the Story Protocol’s legal team, with plans to expand this module to other third-party arbitrators in the future.
PIL in Real Life
Numerous platforms and projects, including the following, have already incorporated Story Protocol’s PIL into their operations.
- BlockBook, a platform that enables creators to collaborate with brands and authors, use their content in an authorized fashion, and earn rewards for quality work.
- Color Marketplace, the first IP marketplace to buy, sell, and trade IP Assets and licenses on Story.
- PIPERX, a next-generation IPFi platform aiming to serve as the ultimate liquidity layer for $3T IP assets on Story.
- Unleash Protocol, the IP Operating System on Story Protocol that streamlines the registration, licensing, and trading of IP assets.
- Mycelium Network, an on-chain creator platform centered around programmable IPs and employing easy-to-use creative tools.
Conclusion
As one of the early supporters of Story Protocol, Everstake is excited to contribute to reinventing the complex world of IP management.
Story Protocol’s PIL has the potential to revamp the way IP is managed and handled and make it substantially more efficient, transparent, and accessible to creators. Its adaptive and programmable licensing models are aimed at promoting a collaborative environment that is important for artistic progress and fair distribution of royalties.
At the same time, the blockchain industry as a whole can benefit from applying NFT standards beyond simple digital ownership and creating a framework for programmable and enforceable trust. Learn more about Story Protocol from our overview.
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