Blockchain startup raises $24M for digital rights management

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Bluecoat, a blockchain company specializing in digital rights and royalties distribution, has already raised $24.25 million in funding, with notable personalities in the music industry assisting with the funding.

In its press release, the company stated that it was formed through cooperation among researchers, technologists, media executives, and creative performers to assist in proper monetization of owners of intellectual property.

Bluecoat Vice President Itai Schweitzer said, “The integration of blockchain technology into digital rights industries is inevitable. Any time you have a situation where there is a network of people where trust is an issue, that is a great use case for a blockchain and a landmark opportunity for Bluecoat.”

The business model proposed by Bluecoat bears some similarities to existing content monetization sites such as Yours.org, and Keyport TV, both paying creators in Bitcoin SV.

Among Bluecoat’s investors are ABBA’s Benny Andersson, who is said to have been actively investing in technology since 2001, hip-hop/R&B producer Mark Pitts, Will.i.am, David Guetta, Maverick Management partner Gee Roberson, and entrepreneur Vishal Grover.

Bluecoat’s whitepaper states that transaction costs had previously made it difficult for consumers to pay for every track they play, but blockchain allows for cost-efficient micro-cent payments. Since every user action is tracked accurately, content providers are guaranteed their “fair share.” The company suggested ad-sponsored content such as YouTube videos be monetized with ad-free options for a small fee.

The whitepaper foresees content aggregators will “lose their dominant market position” when creators establish more direct relationships with their audiences.

“Media business models have to be adjusted to new balances of power. With fair billing models, aggregators can meet the requirements of content producers in good time,” the whitepaper read.

Customer-to-customer sales are expected to become more transparent and secure, making for reduced distribution of unlicensed content. According to the whitepaper, “[N]ow a subscriber can access their blockchain content and share it with a friend. The subscription holder will then be charged directly with the fee for the specific content they shared. This permits easy and legal sharing of paid content among users, and forms an additional source of revenue for aggregators and copyright holders.”

The company plans a private sale of a token called ‘BCT’ next year. By 2020, it hopes to begin to secure media partners.