Method of Copyright Protection and Royalty Distribution Based on NFT and Smart Contracts

Smart overview of the Invention

The patent application introduces a method for copyright protection and royalty distribution using NFTs and smart contracts, specifically tailored for digital music. By leveraging blockchain technology, the system ensures transparent and secure management of music copyrights. The smart contracts automate the distribution of royalties during NFT transactions, enhancing efficiency and fairness. This approach aims to minimize copyright infringement and prevent unauthorized resale of digital music.

Background Challenges

The rise of streaming digital music has brought convenience but also significant copyright issues due to easy duplication and anonymous sharing. Unauthorized plagiarism is rampant, causing economic losses and demotivating creators. Additionally, income distribution in the music industry is skewed towards major labels, leaving smaller artists with minimal returns. This invention seeks to address these challenges by integrating NFT technology into the music streaming ecosystem.

Key Features

• Blockchain Verification: Each piece of digital music is linked to a unique, non-replicable NFT, with ownership and transaction records verified via blockchain.
• Smart Contract Automation: Utilizes Solidity for writing rules that govern royalty distribution and resale control, ensuring fair compensation.
• NFT Minting: Includes original and derivative minting processes, allowing musicians to earn from both initial sales and secondary market activities.

System Architecture

The invention is built on a five-layer system architecture comprising data, network, consensus, contract, and application layers. The data layer secures storage and transactions using cryptographic techniques. The network layer employs P2P technology for decentralized communication. The consensus layer ensures transaction consistency across nodes. Smart contracts operate at the contract layer using virtual machines like EVM, while the application layer facilitates user interaction with decentralized applications (DAPPs) for NFT minting and trading.

Implementation Details

The system includes modules for copyright protection, royalty distribution, minting, creation, and transactions. The smart contract's data structure includes variables for managing NFTs, such as addresses for contracts and creators, song IDs, royalty rates, and limits on minting layers. The process flow involves minting and trading NFTs on a platform designed to protect creators' rights while enabling efficient royalty distribution through automated mechanisms.