May 12, 2021
Non-fungible tokens (NFTs) continue to make the headlines, with more companies from traditional markets adopting them for various use cases. One of the most relevant use cases for NFTs is copyright management.
SIAE (Società Italiana degli Autori ed Editori), Italy’s largest copyright collecting agency, is rolling out NFTs representing authors’ rights on the Algorand blockchain.
SIAE, which was founded in 1882, has more than 95,000 member authors. While the agency is focused on music authors and composers, it can also serve book authors and publishers, among others. It acts as an intermediary between authors and consumers. Its influence touches upon the distribution of money from royalties of copyrighted music, books, or other forms of content, to its authors.
The agency has been around for more than a century, adapting to changing market conditions throughout different eras of the music and publishing industries. However, the biggest challenges came with the emergence of the Internet, which enables people all over the world to share all forms of content within seconds.
Apart from the evident benefits, the Internet favors copyfraud and other forms of copyright infringement like no other technology. Thankfully, the very same technology made blockchain possible, and SIAE uses it to improve its copyrights operations.
SIAE selected Algorand as the main infrastructure for its databases of millions of member authors’ rights. It has been collaborating with the company since 2019, well before the beginning of the NFT craze.
SIAE and Algorand, founded by MIT Professor Silvio Micali, are currently working on a blockchain-based open platform that enables the management of authors’ rights in a transparent and efficient manner. The first major milestone of the project has already been achieved. In mid-March, SIAE created more than 4 million NFTs representing the rights of its 95,000+ member authors.
Digitizing the rights through NFTs will make their management more secure and transparent. As a non-profit, SIAE is interested in offering the best to the authors.
Gaetano Blandini, General Manager of SIAE, explained: “Ensuring the protection of creativity has been SIAE's mission for 139 years, and this project demonstrates that our goal is to continue to guarantee it for the next 139 years.”
“Blockchain technology is definitely an interesting strand to continue exploring because of its transparency and efficiency – by design - features, which are fundamental for those who, like us, manage the salary of other people's hard work,” he added.
SIAE envisions a future where intermediaries like itself will update their roles, giving more control to authors. The agency hopes that blockchain can transform the business models of many other copyright collecting entities. The main goal of the project launched by SIAE and Algorand is to achieve true decentralization of copyright data.
Eventually, SIAE plans to share its project results with the international community to promote the decentralized management of rights metadata. Its conclusions can define the future global trends in the Intellectual Property (IP) space, as it’s the world’s sixth-largest copyright collecting company.
Blockchain and NFTs can improve the management of authors’ rights. The technology is quite relevant today, given that Generation Z internet users are more inclined to access music through copyright infringement than the rest of the population.
Blockchain can be used to track copyright ownership and store records of creation. An author can tokenize his work through NFTs and manage his rights more conveniently. NFTs are great because they can represent something unique while being traceable and very secure.
They can help artists secure new revenue streams by selling unique copies of their work, whether it’s music, books, or audiovisual content. Another major benefit of NFTs is that they can help authors and artists better engage with the fans.
NFTs can be used in so many ways – it all depends on the authors’ creativity, which should be prevalent thanks to the nature of their activities.
There are several blockchain platforms that enable the creation of NFTs, but SIAE opted for Algorand because of its features.
Algorand is the only distributed network that solves the blockchain trilemma by achieving all three key elements of an ideal blockchain – scalability, decentralization, and security – without sacrificing one.
Anyone can issue NFTs on Algorand conveniently. Developers can mint NFTs via Algorand standard asset (ASA), a functionality that allows anyone to issue new assets, whether fungible or non-fungible, directly in Algorand’s Layer-1 blockchain.
Layer-1 is currently the most rapid and secure blockchain architecture, providing a great level of scalability.
SIAE is happy to use Algorand’s technology and can already assess the first results of the collaboration.