Earlier this week, Microsoft announced plans to launch a blockchain platform that will keep track of collecting and disbursing royalty payments for software developers, musicians, authors, and other creatives and copyright owners. The system will effectively cut out third-party, ‘middleman’ services that collect a premium for their services, taking profits away from creators.
Microsoft said that the platform, which has been created in collaboration with Ernst & Young (EY), will start out in its online gaming system. Microsoft has also collaborated with companies like Ubisoft to implement the system.
EY and Microsoft launch blockchain solution for content rights and royalties management for media and entertainment industry https://t.co/liQhwSKWRa
— Microsoft News (@MSFTnews) June 21, 2018
15 Million Traders Choose FBS!Go to article >>
“EY and Microsoft designed the solution to serve any industry where intellectual property or assets are licensed to other parties and where the creators are paid royalties based on royalty agreements,” both companies said in a statement.
’Millions of Transactions’ Each Day
After successful deployment, the platform is estimated to be capable of processing millions of transactions each day. Fortune reported that at present, receiving a sing royalty payout can take as long as 45 days.
Blockchain has long been cited as a perfect match for royalty payments. Its transparency and immutability make it virtually impossible to falsify or alter transactions; smart contract capabilities make it possible to automatically collect and disburse payments.
Microsoft is the latest major company to take the public dive into blockchain. Large entities across the tech and financial spheres, including IBM, JPMorgan, and Apple; in fact, Microsoft’s new platform was built using Quorum, a blockchain designed by JPMorgan, along with Microsoft’s Azure cloud technology.
According to a statement published by both companies, EY is involved in a number of other blockchain initiatives, including the development of blockchain products for automotive services, a marine insurance blockchain platform, and a suit of blockchain audit technologies.
EY Global and EY Americas Blockchain Finance Lead, Deep Ghumman, said that “Enterprises are looking to use blockchain technology to solve their business challenges…The rights and royalties blockchain solution on Microsoft Azure is a great example of how blockchain will transform the way we do business.”