In a thought-provoking op-ed published in July 2023, actor Joseph Gordon-Levitt raised a crucial question regarding the ethics of artificial intelligence in creative industries: if AI uses your work, should it compensate you for it? This inquiry is gaining traction as the intellectual property (IP) landscape evolves, particularly with the advent of blockchain technology. The Story Protocol, a blockchain initiative focused on intellectual property rights, is at the forefront of this conversation, and it has garnered significant attention from investors, recently securing an impressive $80 million Series B funding round led by the prominent venture capital firm Andreessen Horowitz (a16z).
The emergence of large language models (LLMs) has raised critical questions about copyright and ownership. AI companies have increasingly relied on vast amounts of creative content from the web to train these models, leading to a wave of lawsuits. For example, the New York Times is currently embroiled in legal battles with OpenAI over allegations of copyright infringement. Similarly, several content creators on platforms like YouTube have taken legal action against companies like Nvidia, claiming that they have unfairly profited from their content without consent. In contrast, some media organizations, like News Corp, have sought to monetize their content by striking licensing deals with AI firms, such as OpenAI, for substantial sums exceeding $250 million.
SY Lee, co-founder and CEO of PIP Labs, which is the initial core contributor behind Story Protocol, articulated the central issue in an interview: “Without great original IP, the AI models don’t develop.” He emphasized the notion that AI systems might be “taking and stealing all your data without your consent,” a sentiment resonating deeply within the creative community. This raises the question of equity in the digital landscape: Are creators adequately compensated for their contributions when their work is utilized in AI training?
To address these challenges, the Story Protocol employs a novel approach by converting intellectual property into what they term “IP Legos.” These modular and programmable assets can be licensed, managed, and monetized through smart contracts on a blockchain. This innovative framework empowers creators to regain some control over their work by embedding specific licensing and royalty terms directly into their intellectual property. As Lee explained, “With Story, creators can embed licensing terms directly into their IP, ensuring that anyone who uses it must adhere to their rules.” This initiative aims to establish a sense of sovereignty over creators’ data, allowing them to protect their work against unauthorized use.
The implications of these developments are profound for the entertainment industry and beyond. Lee asserts that the current state of AI poses significant threats to the incentive for creators to produce original content. He elaborated, “In the past, Google was kind enough to drive some traffic to your content, and that still killed many local newspapers.” This analogy highlights the precarious balance between technological advancement and the sustainability of creative industries. As AI systems become more sophisticated, the risk of diminishing returns for original IP grows, leading to a potential crisis in creativity.
Moreover, the Story Protocol represents a viable use case for blockchain technology that transcends traditional finance or decentralized finance (DeFi) applications. Lee criticized the proliferation of DeFi projects, stating, “It’s all just infrastructure masturbation – another minor tweak, another DeFi chain, another DeFi app.” He emphasized the need for innovative solutions that address real-world problems rather than simply rehashing existing ideas. The Story Protocol aims to provide a meaningful alternative by creating a system where creators can protect their work and receive fair compensation in an increasingly AI-driven landscape.
Looking ahead, the launch of Story’s mainnet is anticipated later this year, with more comprehensive details expected to be unveiled during the Korea Blockchain Week in Seoul this September. The outcomes of this initiative could have far-reaching implications for the future of creative industries and the evolving relationship between technology and intellectual property.