- Tech giant Microsoft partners with EY consulting firm to launch enterprise blockchain solution for content rights and royalties’ management.
- This would be used by media and entertainment industry to track royalties faster and for process time reduction.
Microsoft Inc. recently partners with EY consulting firm to launch what could be said to be one of the largest enterprise blockchains for content rights and royalties’ management.
According to the two firms, the solution which was originally designed for Microsoft’s game publishers to process rights and royalties would now have a wider use. The solution can now be employed by any enterprise which accumulates royalties on contracts bases and where intellectual properties or assets are licensed.
The companies stated that anyone who generates lots of transaction monthly in paid royalties can use the blockchain solution, these include production houses, authors, music publishers, developers, etc.
Before now, royalties are calculated along the value chain using the manual methods which are managed through offline data sources. However, this new solution is launched to increase transparency and trust among industry players. This launch of the solution will also cause a significant reduction to operational inefficiencies inherent in the manual method of processing rights and royalties, as it eliminates manual reconciliation.
More so, the blockchain network practically makes the sales transactions visible to all participants in real-time and this helps the participants to quickly and more effectively respond to market needs.
The solution is built using the Microsoft’s Azure cloud infrastructure and blockchain technologies, and Quorum permissioned blockchain protocol, this ensures confidentiality of agreements between participants. The Bank for International Settlements (BIS) mentioned that bitcoin blockchain as well as other blockchain backing cryptocurrencies consume lots of electrical energy and memory space and is less efficient in comparison to the permissioned blockchain.
When giving an answer to the question as to whether the solution would be better than the traditional manual method. Microsoft’s General Manager of Finance Operations, Grace Lao, said:
“Deploying this blockchain solution will allow us to efficiently manage high volumes and automate processes, while at the same time improve partner satisfaction and enhance compliance. Smart contract technology is far more flexible and scalable than any prior solution for managing business agreements. We look forward to deploying this solution across our gaming ecosystem and exploring additional blockchain applications for other finance processes at Microsoft.”
Paul Brody, the blockchain’s global innovation leader for EY consulting firm stated that the blockchain network is undoubtedly an upgrade from the traditional manual process, which allows decentralized transactions. He said:
“There are two reasons why a blockchain is a much better solution for this particular challenge. The first comes from smart contracts themselves, which allow for a much more flexible approach to business logic. Smart contracts are much more flexible tool for handing lots of unique business agreements while ingesting lots of transactions and preserving the privacy between parties. Secondly, this isn’t just about Microsoft and their business partners–it is ultimately intended to be a general tool set for any company to do digital rights and royalty contracts with any other. That means no centralized control and each company being assured of its own operational privacy.”
The move has set Blockchain fans boasting about the several solutions and applications for the blockchain distributed ledger.