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Development of Digital Copyright Licensing Frameworks Utilizing Blockchain Technology

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25 April 2025

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28 April 2025

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Abstract
Emerging technologies have made copyright licensing more complex and involved a broader range of stakeholders, disrupting the traditional balance between licensing and information sharing. At the same time, they have fostered innovation in licensing models to better support the dissemination of information. One promising approach to addressing the key challenges of copyright licensing in the digital era is the use of blockchain-based digital licensing. By examining blockchain through the lenses of its technological foundation, business applications, and new forms of production relationships, this paper explores how its core features—decentralization, trustlessness, traceability, and immutability—align with the needs of copyright licensing. It argues for the legitimacy of blockchain’s role in this domain, highlighting how decentralization supports the foundational goals of copyright licensing, how smart contracts align with established licensing procedures, and how blockchain enforces contractual obligations and equitably distributes benefits through consensus mechanisms. The paper proposes a blockchain-driven digital copyright licensing model that integrates decentralized registration and verification, smart contract-based rights allocation and management, and a redefined licensing marketplace.
Keywords: 
;  ;  
Subject: 
Social Sciences  -   Law

1. Introduction

The 20th National Congress of the Communist Party of China (CPC) emphasized the necessity of enhancing legal safeguards for intellectual property rights. The 14th Five-Year Plan for National Economic and Social Development and the Long-Range Goals Through 2035 position digitalization as a pivotal strategic tool to drive socioeconomic progress, explicitly outlining the framework of the digital economy system for the first time and designating blockchain as one of seven core industries in the digital economy. Amid rapid advancements in information and network technologies, the surge and diversification of intellectual property infringements have posed significant challenges to copyright licensing and complicated the protection of creators' rights. Copyright licensing, which involves granting exclusive or non-exclusive rights to users over copyrighted material, is central to copyright transactions.
Traditionally, digital copyright procedures involve applying for certification through institutions like the China Copyright Protection Center, embedding authenticated digital identifiers into works, and distributing encrypted content in markets (Wang and Sun, 2023). However, the evolution of digital technologies has propelled blockchain-based copyright licensing into a globally debated issue (Li and Lai, 2022). A review of over 394 international publications using keywords such as "blockchain," "intellectual property," and "digital copyright" reveals academic focus on three primary areas, as summarized in Table 1, which highlights research trends in this field.
Currently, extens Currently, extensive literature indicates that academic research on blockchain and digital copyright remains in its infancy. In the United States, scholars emphasize legal frameworks and technological tools for digital copyright protection, including the use of blockchain and digital watermarking in copyright transactions and content distribution (Magnuson and William J, 2020). European researchers tend to concentrate on legal safeguards and regulatory policies, exploring how copyright law, data protection regulations, and cybersecurity legislation support the growth of the digital publishing sector (Zomaya et al., 2021). International bodies such as WIPO and UNESCO have also undertaken studies in this area, offering global standards and policy guidelines (Bonnet and Teuteberg, 2023). In China, scholars primarily examine the shared challenges in copyright licensing and highlight blockchain's strengths in safeguarding digital copyrights (Abd Ali. et al., 2023). However, studies specifically addressing blockchain-based licensing models are still limited (Li, 2022), with most discussions centering on the technology’s potential in particular use cases within digital copyright.
Nevertheless, the practical implementation of digital rights licensing continues to encounter numerous challenges and dilemmas. One major issue is the ambiguity surrounding the ownership of digital rights. The widespread occurrence of digital copyright infringement, combined with the absence of a standardized rights confirmation system, makes it difficult for parties involved in copyright transactions to determine whether a work is authentic or pirated. Additionally, the processes for authorizing and circulating digital rights licenses lack clarity. Moreover, the high transaction costs and inefficiencies further complicate the process, as parties must invest significant time and resources to locate the rightful owner or an intermediary. This situation creates a conflict between effective copyright licensing and the rapid dissemination of information (Xiong, 2022), ultimately undermining the functioning of the copyright market. To address these issues and enhance both licensing efficiency and information flow, this paper proposes the development of a blockchain-driven copyright licensing model that balances protection with service delivery.

2. Explanation and Features of the Blockchain Concept

Blockchain technology, as a cutting-edge computing paradigm, combines various advanced technologies—such as distributed data storage, peer-to-peer networking, consensus algorithms, and cryptographic methods—to establish a decentralized and trustworthy infrastructure. Its key attributes—decentralization, trust minimization, traceability, and immutability—position it as an effective solution for addressing challenges in digital copyright management. Beyond being a technological breakthrough, blockchain also introduces a novel business framework and redefines production relationships. By leveraging decentralization and smart contracts, it facilitates the emergence of intelligent collaborative systems and decentralized autonomous organizations, thereby enhancing the long-term viability of social enterprises.

2.1. The Concept of Blockchain: Innovative Technologies, Novel Business Models, and New Forms of Production Relations

Blockchain, a composite technology integrating distributed data storage, peer-to-peer transmission, consensus mechanisms, and encryption algorithms, serves as the foundational framework for Bitcoin transactions (Blockchain Whitepaper, 2022). Its defining characteristics—decentralization, immutability, and traceability—position it as an optimal solution for addressing challenges in digital copyright protection. The blockchain system employs multiple interconnected source code components to ensure robust security, particularly within decentralized storage architectures. By utilizing asymmetric encryption and merging trustless protocols with distributed data storage, it guarantees the integrity and reliability of digital rights licensing.
In the realm of copyright, blockchain applications offer mechanisms to verify the originality of intellectual property. First, the technology synthesizes distributed storage, network protocols, encryption, and consensus mechanisms to create a decentralized, transparent, and tamper-proof infrastructure (Data Bureau, 2016; Nakamoto, 2022). Second, as an innovative business model, blockchain reduces costs associated with intellectual property registration, verification, and licensing through dedicated management platforms. This shift streamlines digital rights processes, minimizes inefficiencies, and enables marketplaces to leverage technological and legal expertise for smoother transactions and new commercial opportunities (Ren et al., 2024). Third, blockchain’s decentralized architecture and distributed ledger systems redefine production relations by enhancing equity distribution, cost-effectiveness, and operational efficiency in social enterprises. The automation enabled by smart contracts fosters intelligent collaborative organizations (Melanie, 2015), while its governance innovations promote transparency in decision-making and advance decentralized autonomous entities.

2.2. Blockchain Characteristics: Decentralization, Lack of Reliance on Trust, Traceability, and Permanence

The alignment between blockchain technology and digital copyright stems from the seamless incorporation of technical attributes such as decentralization, trustlessness, immutability, and traceability into the copyright licensing framework.
Firstly, decentralization—where data is distributed across equally positioned nodes, each possessing the same level of authority and where no single node controls the stored data—necessitates inter-node competition for data selection (Aoki and Schiff, 2010). Leveraging blockchain's decentralized architecture helps dismantle information silos and facilitates consensus mechanisms for copyright registration and validation. All nodes on the blockchain operate under a unified protocol (Lv, 2019), and any data update requires authorization from other nodes, eliminating the need for third-party trust mechanisms.
Secondly, the trustless nature of blockchain ensures anonymity while supporting data transparency (Chen and Cai, 2020). Through the use of mathematical models and cryptographic algorithms, the system's transparency is maintained. Parties involved in digital rights transactions can rely on publicly available ledgers and shared algorithms to build trust, without needing to disclose or verify personal identity or creditworthiness, nor rely on third-party endorsements.
Thirdly, immutability presents challenges to the “right to erasure” granted by data protection laws (Li, 2023). According to the Cybersecurity Law of the People's Republic of China, individuals have the legal right to request the correction or deletion of personal information. However, once data is recorded on a blockchain, altering or deleting it becomes highly impractical without controlling over half the network nodes (i.e., over 51%). This characteristic may hinder legal entities from fulfilling their data deletion obligations and complicate digital governance.
Lastly, traceability is achieved through timestamping technology (Wang and Xiang, 2020). When data is recorded on a blockchain, a unique and unalterable digital signature is generated to mark the exact entry time. A hash value representing the digital rights information is created via cryptographic algorithms and linked sequentially with previous blocks through their hash values. This chronological structuring enhances the credibility of the data. The blockchain’s capacity to comprehensively log and preserve historical data introduces innovative solutions for managing digital copyright licensing (Wang et al., 2022).

Author Contributions

Conceptualization,L.L. and Y.Q.; Software, L.L.; Formal analysis, L.L.; Investigation, L.L.; Writing – original draft, L.L. and Y.Q.; Writing – review & editing, L.L. and Y.Q.; Supervision, Y.Q. Funding acquisition, L.L. and Y.Q.; All authors have read and agreed to the published version of the manuscript.

Funds

This research was funded by the National Social Science Fund of China, grant number 24FFXB056;the General Program of National Natural Science Foundation of China,grant number 72374176;the Research Project of Zhejiang Provincial Department of Education of China,grant number Y202455057; and the Project of Zhejiang Law Society of China,grant number2024NC38.

Conflicts of Interest

The authors declare no conflicts of in-terest.

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Figure 1. Digital copyright decentralized registration and authentication module.
Figure 1. Digital copyright decentralized registration and authentication module.
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Figure 2. The digital copyright licensing smart contract process module.
Figure 2. The digital copyright licensing smart contract process module.
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Figure 3. System architecture of blockchain-based copyright licensing model.
Figure 3. System architecture of blockchain-based copyright licensing model.
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Table 1. Trends in research.
Table 1. Trends in research.
Research perspectives Main content or point of view Literature represents scholars and publication dates
The technical basis for blockchain to facilitate the protection of intellectual property (1) the transformative impact of blockchain on the IP industry; (2) decentralization reduces information asymmetry among rights holders; and (3) the potential and limitations of blockchain for copyright. Don & Alex, 2016; Satoshi, 2022; Finck, 2019; Lovett, 2020; Tietze & Granstrand, 2020; Amna & David, 2021; Ozden, 2022; Mohd Najwadi et al., 2023;Han, Q.M & Wang, G., 2018; Zhang Y, 2019, Zhang, Q, 2017, Liu ,P,X, 2021, Li,Y,M & Lai,L,N, 2022, Li,M & Shen,S,B, 2023
The application of blockchain in digital rights protection (1) The characteristics of the blockchain are compatible with the basic principles of copyright; (2) Does blockchain help improve copyright distribution? hair pattern; (3) Blockchain can record the complete chain of creation, dissemination and transaction of works. Balazs et al., 2019; Ahyoung & Mucheol, 2020; Priyanka, 2020; Zomaya et al., 2021; Tietze, 2021; Bonnet, S. & Teuteberg, F, 2023;Chang & Han, 2018, Hua,J, 2018, Lei,L, 2018, Shi,M,Z, 2019, Zhang,B,Q & Li,L, 2019, Yi,R & Dong,XM, 2020, Chen W,J, 2021
The impact of blockchain technology on intellectual property law (1) the use of distributed ledger code as a means of law enforcement; (2) measures for the implementation of blockchain regulatory laws; and (3) blockchain offers an opportunity to rethink copyright law. Filippi & Wright, 2019; Finck & Moscon, 2019; Magnuson & Willianm J., 2020; Sunny et al., 2020; Abd Ali, SM., et al., 2023;Wu,H,D, 2014, Kong,X,Q, 2015, Liu,Y,L, 2020, Li,W,M, 2020, Zhou,J, 2018, Yang,D, 2017, Liu,Z and Ma,Z,G, 2019, Xie,J,D et al., 2021, Dong,T, 2022, Lai,L,N and Li,Y,M, 2023
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