FAQ
Why hasn't anyone tried this yet?
The reason why a venture like Nitrility hasn't been attempted before boils down to two fundamental misconceptions in the industry. Firstly, previous attempts to create IP marketplaces have often focused on bringing in large rightsholders like Sony, WMG, and UMG. While this approach seems logical for amassing a vast supply, it overlooks a critical aspect: the dynamism of a marketplace. These major rightsholders, with their extensive and saturated catalogs, struggle to maintain an engaging and evolving marketplace. Their inability to regularly update listings, adjust pricing, and promote new offerings leads to a static, uninteresting platform. Nitrility, on the other hand, targets smaller yet significant rightsholders and top-tier artists. This strategy allows for a more vibrant, dynamic marketplace where changes and updates keep the platform fresh and engaging.
Secondly, there's a prevailing belief that licensing terms are inherently complex, leading many to resort to creating brokerages rather than true marketplaces. These brokerages merely facilitate transactions without capturing the essence of a marketplace – self-service and autonomy. Nitrility challenges this notion by simplifying the core components of a license, making it feasible to automate the entire process and provide a true marketplace experience. We've distilled license terms to their essentials, enabling both rightsholders and buyers to transact directly and efficiently. This approach not only democratizes the process but also injects much-needed agility and innovation into the IP trading ecosystem. Hence, Nitrility isn't just building a marketplace; we're redefining the paradigm of IP transactions, making it accessible, dynamic, and user-friendly.
Why haven’t we reached out to the biggest music rights holders like Sony, WMG, and UMG?
Our approach deliberately sets us apart from competitors who are bogged down by their partnerships with massive music publishers. These giants struggle with updating and managing their vast catalogs effectively. To put it simply Sony, WMG, and UMG will not innovate or attempt to innovate because they have millions and millions of songs in their library. They can’t personalize licenses for each song, let alone set up profiles for each artist uder them.
In stark contrast, Nitrility focuses on partnering with a diverse range of artists and record labels who can actively manage their more manageable catalogs (still large but not as big Sony for example). This strategy ensures our marketplace is dynamic and constantly evolving. Simply put, while our competitors remain stuck in their ways, Nitrility is all about fostering innovation and flexibility in the IP market. Those questioning this approach are overlooking the clear advantage it provides. Don’t get us wrong, we still plan on partnering with the big 3 rights holders in the music space, but only when the time is right. We don’t want to make a platform that is cool and constantly changing, instantly boring and static by allowing these bigger rights holders to overwhelm and make the marketplace bland.
Why are we starting with Media licensing instead of Creator licensing?
Targeting media licensing first is a strategic maneuver to capture the most lucrative segment of the IP market that we can tackle right now with the position we are in. This decision is rooted in our in-depth market analysis, as outlined in the memo. By establishing a strong foothold here, we pave the way for a seamless transition into creator licensing, fortified with proven success and market credibility.
Opting not to initially target the creator market is a strategic choice grounded in market realities. The success of venturing into this realm hinges heavily on forming partnerships with major platforms like Meta, YouTube, and Twitch. These alliances are critical for recommending licenses through our API, yet securing them pre-launch carries significant uncertainty. We are tactically opting for a sector where demand generation is more within our control. This approach is not about shying away from challenges; it's about intelligently sequencing our market entry to ensure stability and success, setting a solid foundation for future expansion.
Why haven't we started aggregating demand/buyers from large media companies?
The focus on aggregating demand at this stage would be premature and counterproductive. Our current priority is to build a tangible, robust product and to amass a diverse supply of IP assets. It’s about crafting something that not only exists but excels. The demand from large media companies will inevitably follow, as outlined in our memo. Investing time and resources now to attract demand would be a misallocation, diverting focus from enhancing our platform. We are confident in our product's inherent value and market appeal. Proving its worth to potential buyers before it’s fully realized is unnecessary and distracts from our core mission of building an unparalleled marketplace and supply.
Why Use Blockchain Technology when you can achieve the same results using Web2 infrastructure?
Nitrility's fundamental value lies in the unquestionable authentication of IP licenses, a feature integral to our platform. Blockchain technology, with its immutable record-keeping, guarantees that once a license transaction is entered, it is permanently and indisputably recorded. This unalterable transaction history is vital in the realm of IP rights, where the authenticity of licenses carries significant legal and financial implications.
Platforms like YouTube, Twitch, TikTok, and others operate under DMCA safe harbor laws, making them liable to enforce copyright strikes unless content is verifiably licensed. The current ecosystem fails to recognize license ownership, leading to unwarranted strikes against creators. Nitrility bridges this gap, providing these platforms with irrefutable license ownership data. Our use of blockchain ensures maximum accuracy, which is critical for platforms to maintain their DMCA safe harbor status. In the domain of IP rights, where proof and reliability are essential, blockchain is not just a preferable choice; it's a necessity for the future of transparent and secure IP transactions.
How does Nitrility ensure the legal and regulatory compliance of its blockchain technology across different jurisdictions?
Nitrility's approach to blockchain technology is user-centric, emphasizing ease of use while ensuring legal compliance. We use Magic Wallet Link for seamless email-based logins, eliminating the complexity of traditional blockchain wallets like MetaMask. Our in-house data explorer negates the need for users to delve into blockchain data themselves. Additionally, our partnerships with payment processors like Moonpay and NoRamp facilitate cash transactions, steering clear of direct cryptocurrency involvement. All transactions are denominated in dollars, not crypto, simplifying the user experience and aligning with broader regulatory standards. This strategic implementation ensures compliance across jurisdictions while keeping the user experience straightforward and accessible. While on the backend we can still provide perfect blockchain-related data for license ownership and authentication.
What measures are in place to safeguard against potential IP fraud or misuse on the Nitrility platform?
Nitrility has implemented robust measures to combat IP fraud and misuse. Our platform leverages advanced blockchain technology, providing a secure and transparent ledger for all transactions. This ensures that every license and its usage can be tracked and verified, minimizing the risk of unauthorized use. Additionally, we have strict verification processes for rightsholders and buyers, including identity verification and ownership checks. Regular audits and real-time monitoring systems are in place to detect any suspicious activity. These comprehensive safeguards are designed to maintain the integrity and trustworthiness of our marketplace.
At Nitrility, we employ a rigorous approach to ensure IP integrity. We leverage extensive data to enforce cooperation among all rightsholders of a piece of IP. For instance, if an artist like Post Malone wishes to list a license for a song, our system mandates approval from all co-rightsholders associated with that song before the listing goes live. This process not only builds trust with buyers but also ensures utmost accuracy in IP compliance. Furthermore, we place the responsibility of proper IP selling squarely on the sellers, thereby upholding the highest standards of compliance and integrity on our platform.
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