Blockchain can be an important tool for copyright holders. Blockchain offers copyright holders a new form of DRM that was absent from previous iterations. DRMs are a form of technical protection measures copyright holders employ to protect their copyrighted works. The closest example we have to a DRM in the real world is a lock and key. The nature of blockchain technology allows copyright holders to create a private ledger and then add or remove users. Copyright holders can set the parameters of their individual blockchain and then create access and content control mechanisms to regulate and monitor the use and access of their works.
This post seeks to create awareness around the use of blockchain technology by:
- making copyright holders aware of the potential of the technology;
- propose a system that can please both holders and users;
- create automatic payment systems for holders when users wish to obtain access thereby preventing disputes centred around royalties.
Blockchain: The way forward?
The fourth industrial revolution has brought the use of financial technology (fintech) into the forefront. Fintech companies and banks are becoming commonplace. Blockchain technology, which is what many types of financial technology is based on, can have many other uses outside of the financial institution industry. Sony has flirted with the idea of using as a form of DRM to prevent the piracy of their games.
How does Blockchain work?
A simple explanation of blockchain technology is that it is a record of data that computers manage. Changing data in a blockchain without changing the rest of the data is impossible. As the data stores in a blockchain, each computer linked to the blockchain will similarly store the data. Should anyone attempt to change the data, they would end up changing the whole system of data. This prevents data from corruption or copying. Digital ledgers are the foundations of blockchain. The three most important kinds of ledgers are:
- A public ledger which has no restriction on access and any person can use this ledger to transact.
- A private ledger which has a restriction on access and only persons who have been invited to the blockchain is able to transact.
- Hybrid ledger in terms of which this ledger is a combination of public and private ledgers and allows you to place restrictions on how people can transact but anyone can come on board to transact.
Blockchain, copyright, and DRMs
DRMs allow copyright holders to restrict access and use of their works. DRMs are quite contentious. While they have improved the overall quality of copyright protection, they have also caused copyright users quite a few problems from access and use perspective.
Since DRMs restrict access to and use of copyrighted works, they have prevented copyright users from taking advantage of the fair use rights or fair dealing exceptions granted to them under copyright law. Legislation like the Digital Millenium Copyright Act (DMCA) and the EU’s Information Society Directive (Infosec directive) has caused wide-ranging problems by placing DRMs above fair use rights and the fair dealing exceptions.
Blockchain offers copyright holders the ability to create a system of access and content control. Mycelia is an example of how blockchain is being used to provide persons with access to copyrighted musical works. Mycelia connects musicians and buyers from the industry and uses blockchain technology to conclude smart contracts between parties.
A new approach in South Africa?
The copyright amendment bill will formally introduce DRMs into South African law. This could be an interesting opportunity for us to create a new legal framework around blockchain technology and copyright protection that is still finding its feet on a global scale. Imagine an instance where artists could conclude contracts without the need for collection societies. Artists would get the royalties that are due to them and those who wish to use the works for fair use would be able to access the works with ease.
