From Bureaucracy to Blockchain - How Story Transforms the Model of Interaction and Ownership of Intellectual Property

Article content

Introduction
Why intellectual property is a key asset in the digital age.
How technology has changed other areas and what this means for IP.
What problems exist in the traditional system (example of Ukraine)
How Story is changing interactions and intellectual property ownership.
What does a comparison of the two approaches show, and what conclusions can be drawn?

Introduction

In today’s article, you will discover how Story is transforming the way we interact with intellectual property, compare modern approaches with traditional methods, and see just how much easier managing assets can be with blockchain technology

For this piece, we consulted with an expert in copyright and intellectual property, who revealed all the bureaucratic hurdles, delays, and costs involved in the classic system

In a world where content is increasingly created online and with the help of AI, intellectual property is not just an asset - it’s a strategic resource

We’ll show how Story makes the process transparent, fast, and accessible for any owner-from individual creators to large companies

This article is useful for anyone looking to effectively manage their intellectual assets and stay one step ahead

Why intellectual property is a key asset in the digital age

When you open the Story Foundation website, you will see the slogan “AI's next leap depends on unlocking the $80 trillion IP asset class.” It clearly conveys that intellectual property is a colossal asset of our time

In a world where artificial intelligence is constantly absorbing all possible knowledge and your authorship can be violated in just a few clicks, Story provides reliable protection for intellectual assets and makes their management simple, transparent, and secure

Here are a few examples from research:

To better understand how important intangible assets (patents, trademarks, copyrights, software, data, brands, etc.) have become in today's world, it is worth referring to a study by Ocean Tomo, a consulting company specializing in intellectual property valuation and analytics

In their study, they showed that back in 1975, intangible assets accounted for only about 17% of the market capitalization of companies in the S&P 500 index, while in 2020, this figure reached almost 90%. This clearly demonstrates that the global economy is built primarily on intellectual resources rather than physical assets

The S&P 500 is important for assessing intangible assets because it is one of the main indicators of the American and global economies, covering the largest and most influential companies in various industries https://oceantomo.com/intangible-asset-market-value-study/

Despite disruptive global crises and rising interest rates, aggregate intangible investment touched US$6.9 trillion in 2023, more than doubling from US$2.9 trillion in 1995.

Since 2008, the intangible investment growth rate has tripled that of tangible investment, which rose to US$4.7 trillion in 2023, the report shows

One game changing but invisible trend in our global economy is the rise of intangible assets as the driver and holder of value in our global economy

Even in the current period of economic uncertainty, intangible investment is thriving and consistently outpacing total tangible investment, surging both in high-income economies like the United States and Europe as well as in fast-emerging economies like India

https://www.wipo.int/pressroom/en/articles/2024/article_0008.html

Intellectual property assets are the foundation of the new economy, which continues to grow steadily even in times of global crisis, creating long-term competitive advantages for companies and entire countries

How technology has changed other areas and what this means for IP

In this section, we would like to highlight one idea that we believe to be important

Every new technology follows the same path. At first, it is viewed with incomprehension and suspicion

Then it goes through a stage of testing and development. Next comes gradual acceptance, when users begin to realize its advantages.

And eventually, this technology becomes so natural that we can no longer imagine our lives without it

Story has already come a long way - it has shown that intellectual property can exist in a new form: transparent, digital, and protected by blockchain

To make this section easier to understand, we suggest looking at examples that are familiar to all of us

They clearly show how new technologies have gone from mistrust to full acceptance by society

The Internet and digital services. While the Internet seemed like a novelty in the late 1990s, today it is the foundation for business, education, and communication. Instead of paper letters, we send electronic documents

For example, Ukraine has an excellent example of an online service called “Dія,” which combines a huge number of government services and documents

What a few years ago required queues at government offices and stacks of paper is now available in a few clicks on a smartphone

This shows how digital solutions can make complex bureaucratic processes simple and understandable for everyone

Cryptocurrencies Ten years ago, they were seen as an experiment for enthusiasts

Today, the situation has changed dramatically - large companies, including Tesla, Microsoft, PayPal, and others, accept cryptocurrencies as a form of payment; international banks are integrating blockchain into their systems, and entire countries are beginning to consider digital assets as part of their financial strategy

Mobile phones They used to be heavy, expensive, and available only to a select few. Today, everyone has a smartphone - it is our wallet, camera, work tool, and means of communication

Technology that once seemed like a luxury has become indispensable in everyday life

E-commerce At first, online shopping was met with distrust - people were afraid of fraud or delivery problems
Now Amazon, Alibaba, and eBay have become commonplace - buying any product takes just a few clicks, and trust in digital commerce is so high that most purchases in the world are made online

Opening an exclusively offline store is now considered a rather unusual decision

Music and movies online Not so long ago, we bought cassettes and CDs, and watching a new movie was only possible at the cinema or after it was released on DVD
Today, Spotify and Netflix provide instant access to any content - legally, quickly, and conveniently

The consumption model has changed forever, making the digital format the new standard.

Intellectual property is next on this list

Story is laying the foundation for a new standard where IP becomes digital, transparent, and secure

What problems exist in the traditional system (example of Ukraine)

Before writing this part of the article, we consulted with an expert on copyright and intellectual property

This allowed us to describe the current state of the traditional system in Ukraine, its strengths and weaknesses, as well as the challenges that authors, businesses, and innovators face on a daily basis, as accurately and relevantly as possible

We will describe the main state institutions responsible for registering intellectual property in Ukraine copyrights, trademarks, patents, and other objects

This will help you understand how the traditional system is structured, what stages applicants face, and why the process is often complex and lengthy

We will explain the process from the emergence of an idea to registration, and possible future lawsuits, protection of rights, tracking of sales, or granting others the right to use your intellectual property

In Ukraine, the main body that registers copyright and issues the relevant certificates is the Ukrainian National Office of Intellectual Property and Innovation (UKRNOIVI, formerly Ukrpatent)

By law, copyright registration is not mandatory, as the right arises from the moment the work is created

However, in practice, it greatly facilitates protection in the event of a legal dispute, during negotiations with publishers, customers, or partners, as well as when transferring or licensing rights

The existence of a certificate confirms authorship and can be a decisive argument in cases of conflict or doubt regarding the ownership of a work

The current procedure is as follows:

Submission of an application.

The author or their representative (e.g., a lawyer) submits an application

This can be done online through the NIPO system with a digital signature or by sending paper documents by mail

The application must be accompanied by information about the author, information about the work (whether it has been previously published, whether it is derived from other works), and a copy of the work

The process of collecting documents is often complex and confusing: any mistake can delay the process or lead to rejection, which creates additional time and financial costs for the author, so collecting and submitting all the documents yourself can be a difficult process. Especially if you are doing it for the first time

To do this correctly and quickly, you will have to use the services of a specialist (a power of attorney is attached) in this field, who will charge an additional fee for their work

There is also an additional state fee of approximately 255 UAH ($6)

Potential problems:

If you need to replace the submitted copy, this cannot be done within the framework of the submitted application. You will need to submit a new set of documents and an application, and pay a new state fee
If there is an error in the application, it can be corrected within the submitted application. For example, the title of the work or something else, at the request of an expert
If, after registration, there is a need to change the data, for example, the author's full name, it is necessary to submit a corresponding request and pay the fee

Waiting for the certificate

After submitting the documents, the application undergoes a formal examination

Experts check that the application has been filled out correctly, that the materials submitted are in order, and that the fee has been paid. If everything is in order, the application is accepted for consideration

The time frame depends on the complexity and type of object:

for simple applications (e.g., literary or artistic works), the procedure usually takes about 2 months.
for legal entities (LLCs, companies) or complex objects, consideration may take significantly longer - up to 18 months.

If there are any questions or inaccuracies, the author or their representative may receive a request from an expert asking for additional explanations or documents

After the review is complete, the applicant is sent a certificate of copyright registration in paper form, and an entry is made in the official state register

Tracking the use of registered intellectual property

In the traditional system, the entire burden of control falls entirely on the author or copyright holder. It is up to them to monitor whether their work is being used without permission: to search for pirated copies, check publications, track sales or commercial use

There are no automated tools or state mechanisms to help do this systematically

In our opinion, the future lies in automatic tracking of the use of your intellectual property

Story implements this with the Story Attestation Service (SAS), which we will discuss in more detail later

Protecting rights in practice

There are two ways to solve the problem of the use of your intellectual property:

Without going to court, the copyright holder has the right to send the infringer an official claim stating the fact of the violation of their rights and may make additional demands, such as payment of monetary compensation.
In this case, having a copyright registration certificate becomes a strong argument that confirms your position and can be used in negotiations for an amicable settlement of the conflict

Before doing so, you need to understand whether there has been a violation at all

Ukraine has a law on copyright and related rights, and the general nuance in the law is that the idea itself is not protected

For example, if you have an idea to write a book and someone else does it before you, your idea is not protected by law

In the event of a serious violation of rights, the next step is to contact a lawyer and file a lawsuit. Before doing so, it is essential to assess whether the work is completely identical, whether it has undergone significant changes, and whether the fact of copyright infringement can be proven Such an analysis is critical to successful defense in court

How much does it cost?

In addition to the state fee, you will have to pay for the services of a lawyer and an expert who assesses the infringement

If the case is won, the court may order the other party to compensate these costs along with the amount of damages

It is important to note that it is a lawyer, not a regular attorney, who represents the interests in court

Traditional intellectual property protection in Ukraine is possible, but it often requires significant effort, time, and financial costs on the part of the author

Legal action offers more opportunities for compensation, but it is a complex and lengthy process that requires a professional lawyer

Use of copyright by other persons

The transfer or permission to use intellectual property is carried out through a written agreement. This may be:

Full transfer of rights (sale) - for a fixed amount agreed upon by the parties
License to use - temporary permission, for example, to use software, with payment on a monthly or quarterly basis or as a percentage of sales

Agreements are signed both in paper form and electronically (PDF, Dія.Підпис, other electronic signatures), which also allows for the preparation of acts and confirmation of payments

At the same time, control and tracking of actual payments also rests entirely with the author or copyright holder, as there are no automated mechanisms for monitoring the use of a work in the traditional system

Lack of integration with international systems

Another significant problem is that the Ukrainian intellectual property registration system is virtually isolated from global databases

If an author has registered their work in Ukraine, it is quite difficult for foreign partners or investors to find information about it

Instead, the idea of creating a single global intellectual property hub, where anyone could quickly check who owns a work, what rights apply to it, and whether it is openly available for licensing, seems much more effective

Of course, today this sounds more like a vision of the future. But we believe that thanks to Story, we are gradually moving closer to creating such a global intellectual property hub

Imagine that in the future, most countries realize the true value of this approach to owning and interacting with intellectual property.

At the legislative level, a single digital space is created where authors automatically record their authorship, and companies and users can transparently check rights and enter into licensing agreements

This will create new economic benefits, open up a global market for creators to monetize their ideas, and provide businesses with simple and understandable mechanisms for interacting with intellectual assets

Paper procedures can be improved as much as you like, but they will never be able to keep up with the pace of the modern world

Creators need tools that work as fast as they create content. That is why the future of intellectual property lies in blockchain, and Story is becoming the environment that makes this possible

How Story is changing interactions and intellectual property ownership

Story is a first-level blockchain created specifically for working with intellectual property.

Its task is to make IP “programmable” - any work can be registered, the conditions for its use can be defined, and remuneration can be received automatically

In the image below, we can see the key elements of the Story ecosystem

The ecosystem consists of several key elements:

Protocols & Services - tools for registering and confirming rights (Proof-of-Creativity, PIL, SAS, Agent TCP/IP)
IP Management Modules - modules for licensing, royalties, dispute resolution, grouping, and metadata management
Economy & Staking - $IP tokens and validators that ensure network security and economy
Ecosystem & Community - Story Academy, developers, authors, companies, and startups

Compared to the traditional system we looked at earlier, Story has significant advantages

Where the classic model requires months of waiting, piles of paper documents, and expensive legal services, Story offers instant registration, automated tracking, transparent licenses, and fair royalty distribution

Where protection is limited to the borders of a single country, Story immediately opens up a global digital space

Let's take a closer look:

Fast registration

IP objects are registered on the chain in a matter of seconds. In the basic version, the work is registered as an NFT with a unique token certifying ownership

You don't need to prepare paper documents, wait for expert opinions, or pay for legal services - just register the work on the network, and it immediately receives protection and digital status

Modular system

The platform contains modules for licensing, royalty distribution, and dispute resolution

The owner can choose the type of license (commercial or non-commercial use, the ability to create derivative works, etc.), and the protocol automatically distributes payments - you don't need to sign long paper contracts, monitor compliance with terms, or manually check receipts - everything is embedded in smart contracts that work transparently and accurately

From registration of the work to payment of royalties, the entire process is automatic, without unnecessary bureaucracy or human intervention

Legal bridge - PIL

Story uses a Programmable IP License (PIL), which is an offline document based on US copyright law

It describes the terms of use of the work (the right to commercial exploitation, whether derivative works are permitted, the term of validity, etc.) and is embedded in a smart contract

This ensures legal validity and allows licenses to be applied both on and off the blockchain

Forbes emphasizes that PIL is based on current US copyright law, making it potentially acceptable in various jurisdictions

Ease of monetization

The advantage of Story is that all processes take place without queues and paper documents Anyone can create or license a product, regardless of location or scale - whether they are an independent author working from home or a large international corporation

Imagine that you are a small creator who has published your work on Story

At the same time, a large company can instantly find it in the global registry, quickly review the license terms, and conclude an agreement in a few clicks

This opens up a new level of market access, where even a small idea can become a valuable asset for big players. In the traditional system, an author registers a work in one country, and it is invisible to others

In Story, IP immediately becomes a global asset

Automatic tracking (SAS)

Story Attestation Service (SAS) is a module that allows you to automatically record the use of a work (even in third-party products or derivative works) and do so transparently

This solves a problem that no one automates in the classic system

Ability to group and combine assets

Through the Grouping Module, different works can be combined into one larger asset (for example, several NFTs into a collection or a joint project by several authors)

This opens the way for collaborations and new business models

Agent TCP/IP

This is a unique feature: the protocol allows autonomous agents to purchase, license, or use IP without human intervention

For example, an AI agent can purchase a license for a dataset or music to train a model on its own. This opens up a new market for the AI economy

Story Academy and creator support Story is not only a technology but also a support ecosystem: grants, project acceleration, training programs for authors and startups

What does a comparison of the two approaches show, and what conclusions can be drawn?

To clearly show how different the approaches are in terms of simplicity, we have prepared the following table:

As the comparison shows, the traditional model is slow, bureaucratic, and costly, while Story offers speed, automation, and global accessibility

This makes intellectual property not only easier to protect, but also a real programmable asset, ready to be monetized and scaled worldwide

Intellectual property is becoming a new asset class, and Story is the infrastructure that makes this possible

Additional information

While preparing to write this article, we came across an impressive project by one of the Story participants, a Ukrainian user with the nickname w0nna_be

During the Surreal Buildathon, he adapted the Programmable IP License (PIL) and Portal to Ukrainian copyright law

His project includes:

a video presentation
a publication with explanations
a GitHub repository with the full text of the adaptation:

Link - https://x.com/w0nna_be/status/1938023392705147055 https://github.com/w0nnabe/PIL-Ukraine-Constitution/tree/main

The goal of this work is to show how Story can be harmoniously integrated into the Ukrainian legal field, making it possible to legally create, remix, monetize, and protect IP for our creators

It is particularly interesting that integrating Story into the legislation of another country, or vice versa, is possible; in our opinion, it simply requires time and the right conditions