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Intellectual Property Tokenization: The Future of Licensing
In case intellectual property tokenization is successful, it may democratize the process of accessing licensing markets and make more participants trade, invest, and collaborate. This may move the levels of power out of the large intermediaries and towards creators themselves.
Meanwhile, the future of IP tokenization relies on a number of external developments. The legislations should also be changed to accept token licenses as a valid contract. Interoperability standards have to be developed to allow the communication between various ecosystems. Lastly, education will play a vital role--the creators will have to learn how to tokenize their work and the legal professionals will have to understand these new tools.
Conclusion
Intellectual property tokenization is a bold move to bring about licensing modernization. It offers efficiency, transparency and increased access by converting abstract rights into programmable and tradable digital tokens. However, in the absence of legal definitions and common foundations, the system will be more of an experiment, not a transformation.
This does not necessarily mean that the future of licensing might not be in full replacement of traditional systems but a combination of tokenized solutions with the traditional ones. A hybrid model, where blockchain was used to take over royalty automation, micro-licensing, and global access–where standard legal structures do the heavy lifting on enforcement- would be an effective solution.
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