How can a regulated blockchain revolutionize the entertainment industry

Posted by L3COS Jul 03, 2020

blockchain network


For a long time now, the entertainment industry has struggled to fight piracy and copyright issues. This has had a lot to do with the fact that for so long the players in the industry have misplaced the problem or dealt with it in the least adequate way.

As ICT becomes mainstream, many companies are working to develop solutions that can address piracy issues. Among these solutions, blockchain is one of the most efficient. But, blockchain technology also carries some downsides, as it is not regulated and can be hard to apply in real life. Piracy as a cybercrime should be fought using the law. The fact is, there’s no law without a regulatory body. And that’s where a regulated blockchain comes in.

Piracy and copyright challenges in the entertainment industry

In the past decade, the entire entertainment industry has suffered due to internet-related issues. Those problems include:


The issue of cost is not insignificant. Poverty and increasing costs of entertainment are some of the immediate causes of piracy. In the United States, cinema ticket prices are at an all-time high of $9.16 as of 2019, compared to 1948 when cinema tickets cost $0.36. This trend of increasing cinema ticket prices can be observed worldwide. 


It is also the lack of availability of some media that is one of the biggest causes of piracy. In response, there are numerous and increasing ways to download media illegally. The higher the lack of available legal means for downloading, the higher the number of illegal downloads in a region.

Strategies for facing piracy in the entertainment industry

Copyright law is one of the strategies used to counter piracy.

Before the emergence of the Creative Commons (CC), it was very difficult to regulate piracy on the internet. And even CC still has a hard time to fight against it. However, it must be acknowledged that the law remains a safe and effective means of countering the scourge of piracy.


As we are in the era of a digital revolution, one of the surest ways to fight digital piracy in the digital age is to develop digital solutions.

Media companies have tried to secure their products with copy-protection locks, encryption, and more. They also try selling their products directly to make it easier and cheaper for consumers. Apple’s iTunes Store is attempting to do so, so but the movie industry is still skeptical due to the traditional insecurity of online sales of movies. 


One way of solving all these issues is through the use of blockchain. A blockchain is a form of distributed ledger technology that records, verifies, and stores any transaction in the database.

Most associated with cryptocurrencies like bitcoin, ripple, and Ethereum, blockchain technology has the potential to offer multipurpose business applications for a large number of industries. And the entertainment industry offers an interesting use case because of the two challenges the industry has struggled with: the ability to protect and monetize intellectual property.

There are different kinds of blockchain out there — each one of them with its own specificity. This is how the different types can be used to address copyright and piracy issues in the industry.

Decentralized blockchain

Royalty Distribution

The collection and distribution of royalty payments in the music business have only become more complicated and opaque with the growth of music streaming services. 

Each time a song is played online or in the background of a television program, for example, the distributor must compensate the copyright owner — but disputes may arise as to the accuracy and compensation rates for such royalties.

Smart contracts built on a blockchain and tied to a given piece of music could add speed, precision, and trust to the process by executing contract terms automatically among qualified parties. This would allow more accurate monitoring of the use of a song, faster payment of royalties, and greater transparency of contractual terms and the distribution of revenues between artists and other stakeholders.

The elimination of content aggregation

The decentralized structure of blockchain could allow content creators, such as musicians or writers, to distribute their works directly to consumers, which would sidestep traditional distribution channels and give a larger share of the revenues to the content creators themselves. This could have an impact on everyone, from major media houses to independent bloggers, by helping artists establish a direct relationship with consumers.

Regulated blockchain

Blockchain is a decentralized technology. This can be great, on the one hand. But, on the other, it can become an issue in relation to legal stuff and regulation. One question that highlights this issue is: How do you regulate something in an unregulated environment?

The ideal solution for this is the regulated blockchain. A regulated blockchain is a shared network with an authority at its top. Now, how will a regulated blockchain help fight against piracy?

Protecting sensitive data

Storing digital goods in a regulated blockchain will make it safe and piracy-free, as it has the same benefits of a decentralized blockchain transparency, stability, P2P connection, resistance to attacks and collusion. Due to this architectural decentralization, L3COS has no single point of failure, which makes it technically unhackable.

blockchain digital content marketplace


The extra benefit with L3COS is that you can review your information in the system and see how it is used. You own and manage your digital footprint. And tapping the benefits of L3COS is easy, regardless of your technical literacy.

Reducing corruption and fraud

The traceability enabled by blockchain technology makes fraud difficult to commit. All actions taken by the users of the system leave sufficient information (a digital footprint) available for regulatory review, making it easy to hold people accountable for their acts.

With L3COS, you unlock unmatched levels of visibility into each transaction and record for full accountability and collaboration between teams. Also, it negates the likelihood of falsified information and hacking with immutable and incorruptible blockchain-based record keeping.

Digital rights management

Currently, the solution increasingly proposed for the backup of digital information and identity protection is the blockchain technology.

As blockchain technology replaces the central authorities that distribute data and validate transactions, enforcing digital rights against offenders still requires legal proceedings.

L3COS’s regulated blockchain enables that. Using it, creators can then use the system to monitor their images, videos, and the likes for infringements and refer to the time-stamped blockchain to prove their ownership. And as the enforcement of these rights remains the responsibility of the copyright owner, they will have to resort to legal proceedings when they find that their works are distributed without authorization. The regulatory body would then take action in sanctioning the wrongdoer.


The entertainment industry has been through many struggles to offer better and cheaper services, including fighting against piracy. From tracking copyright violation to protecting privacy and copyright, the industry has finally realized that giving consumers what they want in the easiest and cheapest way is the best solution to stopping piracy. But regulation is the best way to nip piracy in the bud.

Blockchain has shown us how secure it can be, but regulated blockchain has more to offer. Although it’s just emerging, it’s sure to transform the way content is created, consumed, and protected.


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