• Turning IP Into Code: How Story Protocol Makes the Legal System More Efficient for Creators
• How you code an IP onchain: The challenges!
• Welcome to the World’s Tailored Blockchain for IP Protection
• 1. Story Network
• 2. Proof-of-Creativity Protocol
• 3. Programmable IP License (PIL) 💊
• Promising! But What Do I Build on Story?
• What We Think Of Story at Encapsulate
• More Blog Posts
• Subscribe to newsletter

Turning IP Into Code: How Story Protocol Makes the Legal System More Efficient for Creators

Imagine this: you’re a talented digital artist who spends months perfecting a stunning collection of original artwork. You finally release it online, excited to share it with the world. But almost immediately, you discover copies of your work popping up everywhere—social media, blogs, even merchandise—without your permission.

Frustrating, right?

You want to protect your creation, but dealing with copyright infringement means going through a traditional legal system that is slow, expensive, and involves lawyers at every step. Worse still, when someone expresses interest in licensing your work for use in a marketing campaign, you’re faced with even more legal hurdles—contracts, negotiations, and more fees.

Now multiply this scenario across countless creative industries—musicians, writers, filmmakers, designers—and add to the mix the recent surge of AI-generated content. Advanced AI models are scraping massive amounts of data, often pulling from copyrighted material without proper attribution. The rate at which these models are creating new content is far faster than the current intellectual property (IP) system, which was built for the physical world and is ill-equipped to handle the digital chaos.

Enter Story Protocol!

Story has set out to make the legal system for creative Intellectual Property (IP) more efficient by turning IP "programmable" on the blockchain. How are they doing it? Here’s Story’s story…

How you code an IP onchain: The challenges!

Intellectual property (IP) represents the legal embodiment of creative ideas, but ideas are rarely static. They blend, morph, and build upon each other, evolving over time. Remixing and reinterpreting existing concepts is not only common but integral to the creative process.

This dynamic nature of ideas leads to the formation of complex IP relationships—where new creations become part of a larger web of connected works, resulting in intricate, branching networks of intellectual property. These branches extend deep, with each new derivative work adding more layers to the tree of attribution.

Tracking the ownership and origins of intellectual property is far more complicated than simply querying a blockchain for a balance or a public key. Each work may have multiple contributors and influences, requiring a system that can traverse these growing, interconnected trees as the IP evolves.

The deeper and more intertwined the connections, the greater the challenge in managing and attributing ownership fairly and transparently. This is where the limitations of existing blockchain infrastructure become evident.

Also, this was the point where the idea of building a vertically integrated tech stack became even more compelling for the Story team!

How did they go about things? let’s get a bit technical in the next section.

Welcome to the World’s Tailored Blockchain for IP Protection

To tackle the above-mentioned problem, Story introduces a custom Layer 1 blockchain designed specifically for the efficient management of intellectual property. Let’s have  a look at their vertically integrated tech stack and their most critical cogs in the wheel-

1. Story Network

This purpose-built Layer 1 blockchain merges the strengths of Ethereum Virtual Machine (EVM) compatibility with the Cosmos SDK. It offers full EVM compatibility along with advanced execution layer optimizations, designed specifically to manage complex data structures like intellectual property (IP) in a fast and cost-effective manner. The network achieves this through:

• Precompiled Primitives: These are utilized to efficiently traverse intricate data structures, such as IP graphs, in mere seconds at minimal costs.
• Consensus Layer: Built on the robust CometBFT stack, the consensus layer ensures rapid finality and low transaction fees.

2. Proof-of-Creativity Protocol

It is a suite of smart contracts deployed natively on the Story Network, enabling seamless onramping of intellectual property (IP) to the blockchain.

Key features include:

• Registration of IP Assets: Creators can register their IP as IP Assets (IPA), which serve as programmable metadata for intellectual property.
• Structure of IP Assets: Each IPA consists of:
1. On-Chain NFT: This can be an existing NFT, such as Bored Ape Yacht Club, representing its own IP or a newly minted NFT representing off-chain IP (e.g., a real-world asset).
2. Associated IP Account: Implemented as a modified ERC-6551 (Token Bound Account), allowing for enhanced functionality.
• Modular Interaction: The protocol includes various modules that facilitate interactions with IP Assets:
1. Licensing Module: Owners can define licensing terms, including whether derivative works can be commercially used and the associated costs.
2. Royalty Module: Creators can generate revenue streams from derivative works.
3. Dispute Module: Allows for raising disputes over IP rights and usage

This structured approach empowers creators to effectively manage, license, and monetize their intellectual property in a decentralized environment.

3. Programmable IP License (PIL) 💊

It is a groundbreaking License Template that simplifies the management of Intellectual Property. As the first and only example of its kind, the PIL is designed to facilitate the complex landscape of IP licensing in a decentralized manner.

How the PIL Works: Behind the Scenes

At its core, the PIL operates as a structured set of predefined terms that creators can customize according to their needs. These terms include:

• Commercial Use: Specifies whether others can use the work for commercial purposes.
• Minting Fee: Sets the cost associated with minting a license to utilize the IP in new works.
• Derivatives Attribution: Determines if creators must credit the original author in any derivative works.

Click here to see all the terms defined by PIL and their relevant explanations in code.

PIL Properties: Bridging Code and Law

The PIL operates in tandem with the Story Protocol, enforcing license parameters on-chain. This integration bridges the gap between legal agreements and blockchain technology, enabling transparent, autonomous, and permissionless smart contracts for intellectual property management. Some notable properties of the PIL include:

• Universal Licensing: Unlike existing open-source licenses that require parties to agree on specific versions, the PIL offers a flexible framework that accommodates various licensing needs without the confusion of multiple agreements.
• Permissionless Derivatives: A hallmark of Web3, the PIL allows for the creation of derivative works without prior approval. While some IP Assets (IPAs) may require permissions due to brand constraints, the default setting encourages creativity without red tape.
• Commercial Use Flexibility: The PIL does more than provide a simple yes/no on commercial use. Creators can define terms to limit the commercial rights of specific parties, clarify what constitutes commercial use, and manage activity across different media formats.
• Progressive Complexity: The PIL allows for a tiered approach to complexity. Under each parameter, IPAs can select tags that align with their project needs. For instance, a license may be limited to a specific jurisdiction, with global licensing as the default setting. This adaptability caters to both seasoned media companies and casual creators.
• Adaptability: The parameters of the PIL can be published as a license library, enabling others to map their existing agreements to Story’s smart contracts easily. This flexibility promotes widespread adoption of the framework.
• Content Standards: To ensure a healthy ecosystem, the original licensor can choose from specific content standards that creators must adhere to, promoting quality and compliance.

Through the Programmable IP License, Story Protocol is redefining the landscape of intellectual property management, providing creators with a robust, flexible, and efficient way to license their work in a rapidly evolving digital world.

Promising! But What Do I Build on Story?

Excited about the potential of Story and their vision of transforming the internet into an IP Legoland?

Convinced they’re building something that can truly reshape how creators protect their rights over digital assets?

Ready to build something that seamlessly integrates into the existing tech stack and contributes to the mission of making creative intellectual property (IP) programmable on the blockchain?

Here are a few ideas to help you hit the ground running. Use them as a starting point or as inspiration to guide the direction you want to build in.

• IP Attribution Tracker for Content Creators

Build a tool that helps content creators (YouTubers, podcasters, bloggers) track and manage attribution for any licensed content they use. The tool could automatically issue License Tokens for the usage of music, images, or videos and ensure royalties are paid to the original IP owners.

• Smart Royalty Distribution for Music Creators

Develop a platform where musicians can license their songs or beats, using Story Protocol's royalty module to automate payments. License Tokens could allow other artists to remix or sample their work, and Royalty Tokens would distribute earnings to the original creator every time the licensed music is used.

• IP-Integrated Meme Creation Tool Design a meme generator that automatically registers intellectual property (IP) for every meme created or remixed. This tool would enable users to craft and customize memes while ensuring all content is properly protected on the blockchain. By incorporating IP registration directly into the creation process, meme creators can maintain control over their original work and easily manage derivative creations.
• Comprehensive Licensing Hub Develop a streamlined marketplace where creators can easily license and source high-quality stock images, videos, music, and audio samples for commercial projects. This platform would simplify the process of acquiring media assets by offering fully licensed content, ensuring creators can use materials with confidence, and helping licensors manage their IP and receive appropriate credit and compensation.

Story team has compiled a comprehensive list of ideas that can be worked upon using Story Protocol, here is the list that you would love to check out. You can also chat with the Story team if you have any queries regarding the posted ideas and the dev team would be more than happy to come in and help you get started with the ideas.

What We Think Of Story at Encapsulate

At Encapsulate.xyz, we're dedicated to securing decentralized networks and empowering communities through blockchain technology. With over $248 million in staked assets across 32 networks, our commitment to maintaining zero slashes, providing governance participation, and fostering community contributions defines who we are. As validators, we see firsthand how blockchain technology is transforming industries—and Story Protocol is no exception.

Story Protocol is doing something revolutionary by bridging the gap between the rigid legal frameworks of intellectual property and the openness of the internet. As champions of decentralization, we at Encapsulate believe that IP should embrace the very ethos of Web3—openness, transparency, and programmability. Story Protocol aligns with this vision by making intellectual property truly interoperable with blockchain infrastructure, unlocking the potential for global-scale collaboration, seamless licensing, and frictionless ownership.

The protocol’s vertically integrated architecture is particularly impressive. By handling complex data structures like IP graphs in a cost-efficient manner and offering tools like the Proof-of-Creativity Protocol and Programmable IP License, Story not only protects creators but also empowers them to manage their IP dynamically. It transforms the traditionally rigid, costly legal framework into an agile, blockchain-native ecosystem. Story aligns with our mission to promote secure, decentralized technologies, and we’re excited to see how it will redefine how intellectual property is managed and monetized in the digital age.

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