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I have been asked to compile a status report for the owners of CopyrightCoins (CCIM), including those of you that have not yet exchanged your redemption codes into CopyrightCoins.
Not to worry, you still have until 30th of June 2019 to do so.
Since GDPR came into effect in May 2018, I have been sending out only personal emails and occasionally public emails for those of you that registered under the new GDP regulation.
This will no longer be the case. As we are entering a very intense phase of our business development, only public newsletters will be sent out – so if you want to kept updated on what’s going on you have to register for the newsletter here:
Also, if you have a question, please use our ticket and help system here:
The reason for this is described in the following and can be best described as:
Sorry for all of you that have been reading the newsletter regulary, this is a bit of repeat information and references to earlier newsletters.
At its core, cryptocurrency is a medium of exchange but lacks a critical component — practical and convenient use.
One of the challenges is scalability with two problems — the time taken to consolidate and validate blocks of transactions, and the fees associated with doing so.
The two most significant currencies running on blockchain — Bitcoin and Ethereum — experience prolonged transaction times and very high transaction fees.
Bitcoin can handle approximately 60 transactions per second, which pales in comparison to Visa’s peak rate of 47,000 per second.
This is not the case with CopyrightChains that can handle 6,000 transactions per minute. The technology behind CopyrightChains set on 21st October 2018 a record of 6.1 million transactions. (see article in the newsroom: https://copyrightcoinsnews.com/2018/10/waves-sets-record-for-maximum-transactions-per-day/)
In Bitcoin and Ethereum the transaction fees are so high that micropayments — small and frequent payments — are entirely infeasible. Currently, buying a coffee with Bitcoin would require paying a transaction fee that might be more than the coffee itself. Blockchain desperately needs infrastructure.
This is not the case with CopyrightChains that operates with nano-payments that is entirely free from fees within the ecosystem. I.e. transfer of CopyrightCoins (CCIM) from one CCIM wallet to another is free.
However, the transaction of royalties from DSPs (Digital Service Providers) to Copyright owners is currently incurring a fixed transaction fee of 1.5%.
The exchange of CCIM to any other currency is incurring a fee of 0.03 CCIM (not including 3rd party fee for transfer to bank account). See earlier newsroom article: https://copyrightcoinsnews.com/2018/09/all-fees-can-now-be-paid-in-copyrightcoins/
Simply put, volatility is when something has an unstable price.
Royalties from copyrighted content as in music where royalties keep coming in 70 years after the creator’s death have low volatility.
High volatility, on the other hand, is what could be hampering cryptocurrency adoption. That’s when prices can swing massively either up or down in a matter of hours as we have seen over the last 24 months with bitcoins, ether and other cryptocurrencies.
This is not the case with CopyrightCoins as we have always classified the CCIM as stable coins (even before stable coins became a favourite expression) See the definition in our newsroom: https://copyrightcoinsnews.com/2018/07/why-are-copyrightcoins-classified-as-stablecoins/
With regulatory bodies coming down hard on initial coin offerings (ICOs) lately, the ICO’s have all but vanished from the cryptocurrency community out of fear from regulative crackdown
This is not the case with CopyrightCoins – already in October 2017 received a confirmation from the Estonian finance inspection that CCIM was not a security and exchange of CCIM NOT a payment service.
See the full reply in the newsroom: https://copyrightcoinsnews.com/2018/06/crossover/
Security and asset-backed tokens appear to be one of the prominent points on interest in the cryptocurrency communities these days.
Securities tokens represent a legal right to ownership of the intrinsic value of the issuing company. They provide significantly higher value to the holder, while potentially reducing the risk. Put simply, a token has inherent value, meaning it is already worth something today, based on the value it gives the holder, vis-à-vis the issuer, regardless of potential future value which may be ascribed to that token.
Further, securities tokens are intended as investments because they provide more basic structure, rights, corporate governance, processes, code of conduct, etc.
See first description of STO in early article in our newsroom:
Typically, a songwriter’s catalogue that contains hit records is worth ten times its net publishing share (NPS). In a digital market, songwriters are routinely seeing multiples of 10 to 12 times NPS and, in some cases, a multiple of up to 16 for their Copyrights.
The principle of CopyrightCoins is based upon the royalties that flows through the system and as such the value of CopyrightCoins is backed by the value of royalties and not solely based upon bid and ask as all other currency in existence.
The value of a Copyright ownership is reflected in the popularity of the song. If the song is part of a back catalogue (i.e. older than 18 months) there is a reasonably good backdrop for estimation of that particular song’s royalties and that value can be expressed in a formula coded into smart contracts.
If we only look at the Copyright in Musical works (composer and text-writer, i.e. songwriter), it’s fairly easy to estimating the value.
The simplest one is often used on classic back catalogues (green leaves) where you add up the publisher’s share each year and subtract some unique synch licenses or other anomalies of income, and you divide the total by the number of years of data and that equals the net publisher’s share or “NPS” per year. This method is used if a minim period of 10 years can be documented and then the average will be multiplied with 5 for a ten years exclusivity and given in advances.
This model is based upon the principle that the first year or two of a hit song’s life is pretty much its maximum value and the song’s income over time will continue to regress, flatten out or disappear over a long period. The total of this regressing income flow is the approximate value. If the song’s royalties can be show over the last three years and has been regressing with 15% each year, a conservative estimate based upon ten years exclusive administration rights will show a reasonable advance paid on that basis. It worth remembering that we are paying advances and if the songs popularity picks up the copyright owners will still receive the full royalties after the advance is recouped.
As you can see, there are well-established forms for evaluation of musical works – easy to audit and easy to price.
To acquire exclusive administration rights for content, advances are back in the content business.
The Internet Media Copyright Association (IMCA) has issued 24.7 billion CCIM that all are pegged for paying advances to Copyright Owners with 700 million already available. In addition to the 150 million Euro that are available through the Copyright Securities system.
Advances will be offered according to the level of security in the royalty flow created by the content, Just like the old days, the more popular the content, the faster the advance is recouped.
For instance, a high-performance catalogue might be producing an average streaming revenue of 1m Euro per annum over ten years. We might in this case, offer an advance of 5m CopyrightCoins and 5m Euro (or any combination thereof) to secure exclusive administration. Of course, in the context of NIM’s promise of “MORE MONEY FASTER”, recoupment is likely to take place much faster than the ten years covered by the advance.
THIS IS A NO-BRAINER – NOT A GAMBLE
Notwithstanding that CCIM is a stable cryptocurrency, It will be subject to rises and falls in exchange-rate-value as the public market dictates. However, Copyright owners and creators who assign their online rights to Internet Music in exchange for CopyrightCoins will always enjoy a minimum exchange rate guarantee of 1:1 parity CCIM/Euros
Should the Market exchange rate for CCIM exceed the guaranteed minimum, recoupment can take place even faster, or the copyright owner can make a profit on the CCIM advance paid. Usually, this administration can and will be done through one of our white label partners.
See the newsroom article about NIM’s White Label Content Mesh (WLCM) solution https://copyrightcoinsnews.com/2018/10/introducing-nim-white-label-content-mesh-a-service-solution/
Traditional currencies such as USD or EUR.
The CopyrightChains ecosystem is a blockchain ecosystem with a main blockchain “CopyrightChain” and two sub-chains “CopyrightCoins sub-chain” and “CopyrightShares sub-chain”. The ecosystem is developed, administered and commercialised by New Internet Media.
A CopyrightID serves as a uniform identification of a copyright within the CopyrightChains ecosystem. The CopyrightID is the identification of the copyright smartcontract. It is roughly the equivalent to International Securities Identification Number (ISIN) as defined in ISO 6166. For backward compatibility and metadata retrieval from the back catalogues in certain industries such as music, it contains reference to international reference standards (such as ISWC and ISRC in music).
A CopyrightShare is a tradable financial asset representing the share in ownership of an copyright owner on a copyrighted content. CopyrightShares give the owner the right to receive royalties in the form of CopyrightCoins.
CopyrightCoins are the vehicle for the payment of royalties to owners of CopyrightShares. All royalties in the CopyrightChains ecosystem will be paid in CopyrightCoins. From CopyrightCoins anybody can exchange into any currency of their choice at their convenience, through a cryptocurrency wallet and via a cryptocurrency exchange. CopyrightCoins are not regarded as a security by the Estonian finance inspection and are under governance by IMCA.
A CopyrightID is a proof that a legal entity (person or company) have registered an intangible asset (creating a uniquely identifiable reference) representing a copyright or intellectual property right. CopyrightShares are non-fungible assets of that CopyrightID and CopyrightCoins are fungible assets that represents dividend in the form of royalties that a CopyrightShare produces.
Copyright Securities (CSec), regulated securities brokered by an accredited investment house and/or broker. The policy is to maintain Copyrightcoins (CCIM) price stability at a minimum of 1 Euro = 1 CopyrightCoin – always backed by the flow of royalties under exclusive administration.
To secure exclusive administration right of musical works, IMCA is offering to pay advances to the copyright owners and have allocated 700 million CCIM to that effect. In addition to 150 million Euro Copyright Securities investment, all secured in audited and proven royalties income. These 150 million (plus interest) will NEVER leave the ecosystem, as soon as recouped it will be available for additional advances.
A programmatic incentive for content consumption… aka getting paid for listening, viewing, playing, reading and sharing!
CopyrightsTokens primary function is to reward the user for consumption of content, something that includes sharing content on social media.
Viral marketing will always be rewarded.
CopyrightsTokens can be exchanged into CopyrightCoins that are tradable into other cryptocurrencies and fiat currencies.
Imagine a digital screen without content.
You can’t, because every moment we spend on a smartphone, PC, tablet or smartwatch is enriched and made vital with digital content: images, text, video, audio, product reviews and more.
Which raises two crucial points:
Relevant and quality content makes a cornerstone of the user experience.
And the users’ expectations follow a simple law: they always increase over time.
To combine the two point is not only challenging, but it’s also very costly!
Which is why NIM created the Content as a Service (CaaS) concept to secure the creators of content (starting with music) a reasonable income. At the same time giving the Digital Service Providers (DSPs) easy access to licensed material.
However, the challenges in putting together a highly specialised user experience (for example) in the streaming of music and near real-time payments of royalties more often than not created massive extra cost that is difficult to defend in a very marginal business.
We believe it all start with regulated registration and trade of copyrights.
A regulated registration of copyrights and Intellectual property rights is a significant step in making creators of content able to live upon their creativity. And by using blockchain (CopyrightChains), a immutable provenance is created for each registration.
It’s important to know that names are not unique but the identifier, CopyrightID, is unique. Whenever you are looking for a copyright, search and confirm it is the right one by checking the CopyrightID.
The CopyrightID will be created automatically for you and looks something like this:
The Name: Write the name of your copyright.
A description: Write a description for your copyright. You are also (for instance) able to include website links which is particularly useful considering the description as of now is unchangeable;
Total CopyrightShares: Define the total supply of your CopyrightShares. The total amount can either be fixed at issuance or increased later by making the CopyrightShares re-issuable (default).
Reissuable: Re-issuable defines if a Copyright issuer can increase the CopyrightShares supply at a later point or not. If set to “Reissuable”, the issuer can increase the amount any time. It’s also important to know that if re-issuable is set to true at the beginning, it can still be changed to false at a later stage;
Decimals: Set how many decimals your asset shall have. For example, if you set 8 decimals as in Bitcoin, your CopyrightShare can be divided down to 0.00000001. If you set 0 (default), your shares/splits can only be transacted in whole pieces (1, 3, 15);
The image shows the details for the song Fallen Angel (NB! Only the Musical Works details as no recordings is registered yet)
You can now send CopyrightShares to all the owners of this copyright. In this case, 250 000 goes to Guy Fletcher, 250 000 to Doug Flett and 500 000 to BMG/CHRYSALIS Music as publisher (see CopyrightShares description in the Cheatsheet above)
That is the basis for each time the song Fallen Angel is licenced and paid for in CopyrightCoins. NIM will ALWAYS know what percentages each copyright shareholder has and ALWAYS paid the right owner the right amount according to CopyrightShares. That is also the case if Dough want to sell 100 000 shares in Fallen Angel. This sale can be done on a similar DEX that is used for CopyrightCoins; only it’s for copyrights.
Instantly after confirming the sale of 100 000 CopyrightShares in Fallen Angel from Doug Flett the new owner will start receiving royalties and Doug will get the agreed price for the trade of 100 000 CopyrightShares in Fallen Angel deposited in his wallet.
So, registration of CopyrightShares (both initially and at transfer) is essential for receiving royalties. Equally important is trade in Copyrights, when CopyrightShares has changed hands, it will immediately reflect in the ownership shares of the Copyright and royalties received from the DSP will always be sent to the right shareholder.
Which is why a motion to register and trade in Copyrights are presented to the Swedish parliament before Christmas. See link below for full text (Sorry, only in Swedish)
You can see a rough translation in our newsroom:
A fascinating side effect (partly by design) is that registration and trade of copyright will solve the controversy of Article 13 (and also to an extent article 11) see article in our newsroom: https://copyrightcoinsnews.com/2018/09/article-11-and-13-approved-by-european-parliament/
Basically (and we expect a lot of discussion around this) if it’s not registered it’s public domain and as such can be used for free.
For instance, you film you sisters birthday on you mobile and you want to put the song “Happy birthday” as music always make a video better. Since this is a copyrighted song (most popular in the world), Facebook and YouTube will have to refuse upload under article 13 UNLESS you make a quick stop at one of NIM’s partners MaaS (Music as a Service) and register the use of “Happy birthday” as a UGC (User Generated Content) BEFORE uploading the video.
Since the Copyright is registered and you registered the use (take 15 seconds) neither Facebook nor YouTube will have any objections, and they will pay the royalties to the owners of Happy Birthday, each time it’s played.