NFT-Based Content Securities for Creator Production Funding

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Solution Overview

Problem

Content creators face challenges in securing production costs and generating additional revenue beyond ad-based income, limiting innovation and creativity due to financial constraints.

Innovation Solution

A content securitization system that issues non-fungible tokens (NFTs) as content securities, allowing content creators to share revenue with investors, with distribution based on holding ratios and contribution scores.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If content creators rely on existing ad-based revenue structure, then they can maintain current operations, but they cannot secure additional production costs or funding for innovative content

Engineering Contradiction:

Improverevenue generation capabilityVSAvoidfunding structure

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent transforms the traditional ad-based revenue model into a securitized revenue model by changing the financial parameters. Content securities are issued that represent ownership stakes in future revenue streams, allowing creators to convert expected future revenue into current capital for production costs

Inventive Principle:

Principle #35Parameter changes

Solution Approach 2:

The patent introduces content securities as an intermediary financial instrument between content creators and investors. These securities act as a mediator that enables capital flow from investors to creators while establishing a formal revenue-sharing mechanism through registered ownership rights

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of manufacture

If content creators cover production costs personally, then they can maintain control over content, but they face limitations in significant development or creativity due to production cost constraints

Engineering Contradiction:

Improvecontent production capabilityVSAvoidproduction cost

Core Design Contradiction:

Ease of manufactureVSQuantity of substance

Solution Approach 1:

The patent segments the production funding into multiple investor contributions rather than requiring single-source personal funding. By dividing ownership into multiple content securities, the system enables aggregated capital from multiple small investors to finance larger production budgets while maintaining creator control

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent creates a universal funding mechanism that can serve multiple functions: raising production capital, distributing revenue shares, managing investor relations, and enabling scalable content production. The content security system acts as a multi-functional platform for both financing and revenue management

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Quantity of substance

If content creators issue content securities to secure production costs, then they can receive external investment, but they must share revenue generated from the content with content security investors

Engineering Contradiction:

Improveproduction costVSAvoidrevenue share

Core Design Contradiction:

Quantity of substanceVSLoss of energy

Solution Approach 1:

The patent implements preliminary revenue allocation by registering ownership ratios at the time of security issuance. The system pre-calculates and pre-assigns revenue shares to each security holder based on their ownership percentage, eliminating the need for complex post-production revenue division and ensuring transparent, predetermined distribution

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent creates a self-service revenue distribution system where the smart contract automatically calculates and distributes revenue shares based on registered ownership ratios. The system serves itself by using blockchain technology to automatically execute revenue distribution without requiring manual intervention or complex administrative processes

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS20250292222A1Content securitization system

Publication Date: 2025.09.18 CHOI WONJIN

AI summary

Disclosed are a content securitization system and an operation method thereof. The present invention relates to a content securitization system and an operation method thereof, the content securitization system comprising: a content securities issuance unit configured to issue content securities on which distribution rights to profits to be generated from content of a content creator are written; a content securities sales unit configured to sell the content securities issued by the content securities issuance unit; a profit distribution unit configured to settle profits generated from the content as content profits; and a profit distribution unit configured to distribute the settled content profits to the content creator or a content securities investor.