Architecture Design
Last updated
Last updated
IPillar streamlines the intellectual property licensing process by facilitating interactions among three key roles:
IP Licensors
IP Users
IP Validators
IP Licensors select one or more NFT-based IPs to be licensed through the IPillar License Protocol. They can customize the minimum usage price, with the lowest possible price being 1u (unit).
IP Users browse and choose the NFT IPs they wish to use. They then pay the corresponding licensing fees to complete the transaction. Upon successful purchasing, IP Users can immediately use the licensed IP within the agreed-upon terms and limitations.
Any third party can use the IPillar License Protocol's smart contracts or SDK API to verify the authenticity and validity of an IP license held by an individual or organization. This ensures that IP Users have the proper permissions and access to the licensed intellectual property.
There are two main categories of IP licensing in IPillar:
License by Time
License by Quantity
The License by Time category is suitable for IP usage scenarios where the user can withdraw their usage at any time. Users can reasonably use the IP within the specified time frame, adhering to the terms and conditions outlined in the licensing agreement. Common use cases include trade shows, offline events, webpage displays, advertisements, and game characters. If the usage time period exceeds the agreed-upon time limit, the IP must be withdrawn from the market, otherwise any individual can take legal action based on on-chain licensing data.
The License by Quantity category is applicable for scenarios where immediate withdrawal of IP usage is not feasible. Users can reasonably use the IP within the specified number of utilizations, adhering to the terms and conditions outlined in the licensing agreement. Common use cases include IP licensing in merchandise and other physical products. If the usage count exceeds the agreed-upon quantity, the IP usage must be halted, otherwise any individual can take legal action based on on-chain licensing data.
IPillar License Protocol employs an Auto Market Maker (AMM) mechanism that automatically adjusts the licensing price of an IP using algorithms. This mechanism ensures that the pricing is more in line with market demand, significantly reduces negotiation costs for both parties, and enables immediate transactions, improving overall licensing efficiency.
When licensing an IP, users can define the minimum rental price, which defaults to 1 USD.
After each transaction, the rental price of the NFT automatically increases according to the pricing function and the market condition.
If the NFT is not rented for a certain period of time, its rental price automatically decreases according to the pricing function, with the lowest possible price being the minimum rental price.
The longer the licensing period or the larger the quantity licensed, the cheaper the price. For specific discount rates, please refer to the pricing function.
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