The Italian SIAE is the sixth largest copyright management company in the world, and has recently concluded an alliance with Algorand. By taking advantage of Algorand’s blockchain infrastructure, SIAE is able to convey and manage copyright in the form of digital assets. In the last week of March (2021) alone, 4 million Non fungible tokens (NFTs) were created, which will digitally represent the rights of over 95,000 SIAE associated authors.
- What is the Blockchain Ledger?
- Which assets can be digitized?
What is the Blockchain ledger?
This is the first step in a path that starts with the creation of a decentralized database, to build a unique identification system of the authors and of the protected works.
Decentralization is, in fact, the main feature of Blockchain—a distributed ledger where all connected systems have the same data— and is the reason why it is extremely difficult to hack. When more systems are connected, more systems must be hacked simultaneously (it being understood that 50% + 1 is enough to obtain a change consent).
Which assets can be digitized?
Currently SIAE also uses blockchain to incorporate the rights connected to musical works and, in the very near future, they can also be used for finance or the real estate market.
The first step is the tokenization of the digital identities of the authors. The digitalization of the database of the works with all the parties who have the right to compensation up to the management of the reproduction count will then follow. “Tomorrow we will be able to do the entire reverse path from the playcount to the payment of the rights in a decentralized and automatic way, simplifying a process that is very complex today,” summarizes Matteo Fedeli, director of the music division of Siae and creator of the project, “it is a solution that solves the current information gap by bringing out the value for end users, in our case, the authors. Decentralized information exploits a scalable infrastructure that aims to bring the value back into the hands of the rights holders.”
Akran IP has long implemented blockchain technology in its internal processes to offer its clients rapid certification tools with legal value in Italy and more complete protection of rights and their circulation.