On June 19 Microsoft announced an ambitious plan to establish a system of fees to content creators, software developers, etc. by using blockchain technology. We are talking about protected from unauthorized access accounting scheme based on a network of many computers.
The main goal of the project is to substantially simplify and standardize the process of tracking and collecting payments associated with copyright. For a long time this process was dependent on a number of intermediaries. Critics believe that the current scheme is stealing from content creators.
For starters, Microsoft is planning to implement the blockchain is a tool in my fairly extensive gaming network, working in this direction with the game industry giants such as Ubisoft. At the same time in Microsoft consider that their joint project with EY will be effective in any creative industry.
In a joint statement the two companies said:
EY and Microsoft have developed a solution that is effective for any industry where third parties get a license to intellectual property or assets and where content creators receive royalties in accordance with the agreement on the payment of royalties.
The companies predict that when the project is fully implemented, the parties will be able to process millions of transactions per day and to replace the traditional royalty payments, which takes up to 45 days, fast daily payments. The underlying blockchain technology, known as Quorum, which also allows you to protect sensitive business arrangements.
The idea is to track royalty payments using the blockchain is not new, however until the solution remains theoretical — partly because of the incredibly complex nature of the management system of copyright and payments on them. For example, a video game, in which there is a music video that involves the payment of royalties to a number of parties: the developer, the author of the song, artist etc. Task is complicated by the fact that the rights to a particular product are often bought or sold, it is not always clear exactly who is entitled to fee, and to receive the funds.
To succeed, Microsoft and EY have to solve all these problems. In addition, the initiators will have to convince many developers and their managers to join the system and to adapt to the use of smart contracts and decentralized decisions.
The scale, the complexity and large amounts of digital rights and transaction on payments of royalties make this area an ideal Playground for the application of the blockchain. It can be used to establish the interaction of the parties on the scale required and with a sufficient degree of efficiency, while providing participants the opportunity of carrying out transparent auditing of accounts.