NFT Copyright Protection via Blockchain Smart Contracts

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Solution Overview

Problem

The digital music industry faces challenges in copyright protection and royalty distribution, with frequent unauthorized plagiarism and uneven income distribution favoring larger record labels over smaller creators.

Innovation Solution

A method utilizing blockchain technology and NFTs, combined with smart contracts, to manage and protect digital music copyrights and automate royalty distribution, ensuring transparency and fairness.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If traditional streaming digital music services are used, then convenience of music distribution and access is improved, but copyright protection capability deteriorates due to easy copying and anonymous network usage

Engineering Contradiction:
Improveconvenience of music distribution and accessVSAvoidcopyright protection capability
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The patent introduces blockchain technology as an intermediary layer between music distribution and copyright protection. The blockchain network acts as a neutral mediator that records all music transactions and ownership transfers immutably, while smart contracts automatically enforce copyright rules without requiring centralized authorities. This resolves the contradiction by maintaining distribution convenience through decentralized access while significantly improving copyright protection through cryptographic verification and immutable recording.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces traditional mechanical copyright enforcement mechanisms (centralized databases, manual monitoring, legal proceedings) with cryptographic and algorithmic systems. Blockchain's cryptographic hashing ensures music file integrity, while smart contracts automatically detect and prevent unauthorized copying through programmed rules. This substitution eliminates the weaknesses of manual systems while maintaining ease of digital distribution.

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

2Device complexity

If traditional royalty distribution models are used, then operational simplicity is maintained, but fairness of income distribution deteriorates due to prorated models favoring large record labels

Engineering Contradiction:
Improveoperational simplicityVSAvoiduneven income distribution
Core Design Contradiction:
Device complexityVSObject-generated harmful factors

Solution Approach 1:

The patent implements self-service royalty distribution through smart contracts that automatically calculate and distribute royalties based on pre-programmed rules. The system autonomously tracks music usage, calculates owed amounts according to agreed percentages for each stakeholder (artists, producers, labels), and executes payments without human intervention. This eliminates the need for complex manual accounting while ensuring fair distribution according to actual contribution, resolving the contradiction between operational simplicity and distribution fairness.

Inventive Principle:
Principle #25Self-service

Solution Approach 2:

The patent incorporates real-time feedback mechanisms where smart contracts continuously monitor music streaming data, sales, and usage metrics. This feedback loops back to automatically adjust royalty calculations and distributions, ensuring that each stakeholder receives their entitled share based on actual performance. The transparent tracking and automatic adjustment eliminate the opacity of traditional prorated models while maintaining systematic operation.

Inventive Principle:
Principle #23Feedback

3Reliability

If blockchain and NFT technology are implemented for copyright management, then copyright protection and royalty distribution fairness are improved, but system complexity increases

Engineering Contradiction:
Improvecopyright protection and royalty distribution fairnessVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the copyright management system into distinct functional modules: music minting (creating NFTs), trading (buying/selling music), and royalty distribution. Each module is handled by dedicated smart contracts with specific responsibilities. This segmentation allows the complex blockchain system to be broken down into manageable, independently verifiable components, reducing overall system complexity while maintaining high reliability through modular design and clear separation of concerns.

Inventive Principle:
Principle #1Segmentation

Data Source

PatentUS20250045808A1Method of Copyright Protection and Royalty Distribution Based on NFT and Smart Contracts
Publication Date: 2025.02.06 LI CHARLES CHANGQING
  • US20250045808A1 patent drawing
  • US20250045808A1 patent drawing
  • US20250045808A1 patent drawing

AI summary

The invention discloses a copyright protection and royalty distribution method based on a NFT and its associated smart contracts. The smart contracts govern the initial minting, derivative minting, and trading of the NFT as well as the royalty distributions of every trades in the lifetime of the NFT, This method uses blockchain and NFT technology to manage and protect the copyright of digital music. The ownership and trade transaction records of the NFT are verified through blockchain technology and the distribution of digital music royalties are automated via smart contracts. According to the method of the present invention, the copyright of digital music can be made more transparent and secure, the distribution of royalties can be more just and efficient, and copyright infringement and improper resale can be avoided.