AIP-481: Building the Modular IP Layer with ApeCoin

PROPOSAL NAME:

Building the Modular IP Layer with ApeCoin

INTRO:

Welcome to IP3.cc, where NFT holders can license, monetize and activate the value of their NFT IP easily.

Introducing NFT IP as an asset class:

IP3.cc is the gateway where NFT holders (BAYC/MAYC/BAKC/PUNKS etc.) can protect, utilize and monetize their IP assets in IP3 Layer. An advanced IP layer which has been architecturally designed to combine law, smart contracts and assets, into a seamless and frictionless experience for both asset owners and consumers.

The ability to monetize the individual IP parameters which are permanently linked back to the original NFT provides additional value and revenue streams for the asset holders.

Combining law, blockchain immutability and asset ownership rights:

Built on ethereum, utilizing $Apecoin, users register their NFT IP on the platform, allowing the owner to set their IP terms based on the in real life application use case, this includes a wide variety of options which have been legally approved such as whether or not derivative works can use the IP commercially, enabling the owner to set what cost for example.

This creates a fair, legal IP backbone for all participating NFT’s for which there are currently 80 collections committed within our MVP.

Through a robust legal structure which will underpin the NFT asset class, participating NFT owners will be legally supported and provided with the educational assistance to understand their rights and responsibilities.

IP3.cc performs 4 core functions;

  1. Allows the NFT holder to decide what IP licensing criteria can be applied to the asset, which creates the ‘IP Asset token’. This is cemented in a legitimate legal framework with smart contracts that can be updated.
  2. The ‘IP Asset’ and subsequent license is then available in the marketplace for consumers to purchase, enabling them a legal license agreement for use.
  3. Royalties are provided back to the NFT Holder
  4. Education and dispute resolution being in place so NFT Holders can have sufficient support if their licensing terms are not adhered to.

A Robust Architecture:

For the purpose of this AIP, it is crucial that the DAO understands that IP3.cc has already undergone meticulous backend design and each module has been purposefully scoped and developed to ensure a robust and high integrity workflow system is built.

A scalable system comprising of seperate ‘IP Assets’, ‘Licencing’, ‘Royalties’, ‘Non-profit’, ‘On-chain IP protection’, ‘IP Licensing market’, ‘IP-related merchandise Market’ and ‘Dispute resolution’ modules is required to enable legal interoperability on the back end, whilst providing a seamless, minimalistic front end user experience.

As Apechain becomes established, implementation of the scalable infrastructure will ensure a consistent robust blockchain techstack, making it secure, immutable and seamless for the asset holder.

Legal Framework:

Legal representation has been consulted in major jurisdictions pertinent to local laws across US, Europe and Asia. As IP laws and regulations in some locations have their nuances, it’s important that these are reflected in terms and conditions of the holders ‘IP Asset contracts and support is provided.

Whilst we can provide support and education in regards to legal disputes and a facility for remediation - individual IP infringement is the responsibility of the asset owner to pursue.

Market Adoption and Revenue:

Specific strategies include basic social outreach and engagement, the more advanced strategies include reaching out to IP brokers, manufacturing outlets across a variety of industries. We anticipate the drive and adoption is not only the responsibility of IP3.cc but also the asset holders themselves. By providing the infrastructure, IP3.cc enables Asset owners to attract, negotiate and execute their IP terms and conditions.

With 50% of fees generated given back to Apecoin DAO in perpetuity, we feel this is more than enough demonstration of our commitment to the DAO and long term relationship.

IP3.cc Process Flow:

The first step to enrolling an asset on IP3 Layer is to ‘register’ the NFT asset. By doing so, this will create a ‘bonding smart contract token’ referred to as the ‘IP Asset’, which has the ability to update the metadata based on the changing IP parameters which are approved/denied by the holder account of the original ‘IP’ asset.

This provides the security required for the original asset, as it is never committed, staked or put at risk in any way.

The ‘IP Asset’ is then used within the ‘licensing module’ to update the metadata to the owner’s IP allowed or denied preferences.

The matching market will list their IP and present these terms to help them to match the commercial needs of personnel who wish to use IP from a chosen collection.

When a match is made and the IP usage fee is created, this is then transferred to the wallet holding the original asset.

In the event that an NFT is sold or changes hands, the NFT itself remains the access token to the IP account, allowing for easy access and catering for the open market. If an asset is sold during the period of a revenue generating event, the funds will continue to be dispersed to the wallet holding the asset. This scenario could have a positive effect on the asset value.

Access to the ‘IP Token’ account is linked back to the original asset.

In the event the asset is stolen, phished or exchanges hands due to nefarious actions, these events will need to be reported and managed on a case by case basis.

With over 200+ NFT IP options available, IP3.cc has already attracted holders from over 80 different collections. Any Ethereum collection can onboard and benefit from this IP Layer integration.

TEAM DESCRIPTION:

Three seasoned business professionals with over a combined 50+ years industry experience. Based out of Canada, recognised the need for immutable IP rights and rewards. As NFT and ApeCoin holders, we recognise over the years the need to protect our asset rights against infringement, but also provide that frictionless experience to be able to monetise and protect our IP.

As premium collections are increasing through a variety of different industry genres and use cases, now is the time to put in place a scalable solution to meet the demanding IP needs of asset owners.

Core Team:
https://x.com/IP3CC

Jack, CEO – a highly accomplished professional, serves as a Senior Developer at a prominent FAANG company. He has demonstrated his exceptional skills by winning ETH Hackathons and holds a Ph.D. from a prestigious top-tier university in the United States.
Telegram: @IP3cc

Sonny, CTO - 8 years full stack experience, 3 years experience in web3 development, ex-META and ex-Microsoft. A Eth Denver, Eth and Eth San Francisco prize winner. Speaker at NFT NYC 2022. Computer science and AI Majors from University of Southern California (USC).

Vapor - product designer and strategist with over 3 yrs of experience in the SaaS industry, skilled in UI/UX and product management. She has thrived as a creative director and product design lead in various startups and excels in leading small teams and working in fast-paced, high-pressure environments.

PROPOSAL DESCRIPTION:

This AIP is designed to showcase the complete scope of the project, including the current build stage of https://www.ip3.cc/.

With a functioning MVP landing page, we require support to accelerate the completion of the product.

The remaining outstanding items include:

  • Build out of the front end UI ensuring complete seamless workflow from user onboarding, through to IP sales and revenue funnels.
  • Backend contracts, although written, require implementation.
  • Backend infrastructure scaling to support system growth
  • Team scaling for accelerated development to include an additional UI/UX designer and developers continuing through to post deployment support.
  • Contract auditing and security systems require implementation

IP3.cc allows holders to determine their own IP use for their asset, providing these licenses on an open marketplace for all consumers to be able to purchase, utilizing the IP within the agreed legal parameters. It is a much wider IP use case, providing for greater opportunity; overall increase in brand awareness through increased decentralized IP usage.

For example - I own a BAYC - i can apply multiple licenses to it allowing for people to lease the right to use the IP for advertising, physical merchandise, comic books, animations etc. Now my asset is accessible to 4 different addressable markets.

This AIP is focused on increasing the capacity of IP utility, whilst providing the legal framework and monetization structure to support it. As we support all NFT collections, this will positively affect the utility of ApeCoin also.

External to product development, it is crucial that this AIP supports the peripheral strategic components that will ensure success:

  • Strategic marketing plan and execution
  • Education schedule and material to be delivered to NFT holders
  • Legal Consultation and preparation of agreements, smart contract integration.
  • Maintenance and technical infrastructure support

BENEFIT TO APECOIN ECOSYSTEM:

IP3.cc provides a robust, scalable IP platform which is dedicated to enhancing the rights and commercialization for NFT holders.

Its legal framework, backed by immutable provenance on the blockchain, will ensure that it is the first and best in class for delivering value back to holders.

As the payment currency will only be in $Apecoin, it guarantees that the final payment settlement will always be in $Apecoin, providing a consistent and balanced tokenomic model which contributes to the whole ecosystem.

We aim to position IP3.cc as the preferred NFT IP solution and are able to provide the following long term and consistent benefits back to the Apecoin Ecosystem:

  • ApeCoin will be applied in merchandise Market for consistent and available brand awareness
  • The platform charge 2.5% trading fees for licensing and merchandise Market
  • All NFT IP listed on Licensing market should pay 1 apecoin for each listing

Core Benefits to Apecoin DAO:

  1. 50% fees generated will be given to Apecoin DAO in perpetuity
  2. Licensing fees will be paid in ApeCoin only
  3. All trading fees within the marketplace will be paid in ApeCoin only
  4. With IP3 Layer being accessible to all NFT collections on the ethereum network at first, this enables for a broader adoption and utility of Apecoin as it will be the only settlement form of payment.
  5. Fiat processing mechanism will be utilized to allow for easy onboarding of new capital with a frictionless payment system.

DEFINITIONS:

Core system database modules explained:

  • IP Assets - There are two types of IP assets involved in IP3 Layer, real world original assets. The original asset which is known as the ‘IP’, whilst the ‘original asset bond token’ is known as the ‘IP Asset’.

  • Licencing - The ‘IP Asset’ is then tied to the ‘IP account’ which stores rights and licenses based on the owners ‘IP’ signatory.

  • Royalties - The royalty module allows for automatic revenue flow from the ‘IP Asset’ license purchaser and the ‘IP’ owner

  • Non-profit - IP license to non profit organization

  • On-chain IP protection - A comprehensive legal framework library which is continuously updated in accordance with IP rights and laws. This is utilized to update the ‘IP Asset’ license logs.

  • IP licensing market - The approved licenses from all ‘IP’ owners are provided in one module to underpin the front facing marketplace which is available to consumers.

  • IP merchandise market - Physical products relating to the original ‘IP’. This can be inclusive of the original ‘IP’ asset or even physical merchandise for example.

  • Dispute Resolution - It is important that users have a sufficient means and process flow for raising and resolving disputes. The main reason for a dispute would be plagiarism or the use of one’s ‘IP’ without adhering to the terms and conditions stipulated and available through the ‘IP Asset’. It is important that arbitration policies, penalties and resolution processes are established, enabling for both ‘IP’ holders and ‘consumers’ to be supported.

STEPS TO IMPLEMENT:

Project Start Date: April 2024

Project End Date: On-Going

  • Research and Design

Smart contract standard research, technical architecture and module design. Appropriate development stage gating schedule

  • MVP construction

Initial MVP product status achieved. Preliminary tech stack and modules have been developed.

  • UI/UX Design

Designs required to be finalized for the remaining product and verticals.

  • Legal Consultation

Acquiring and establishing the full legal framework for IP3.cc. Integrating the legal framework into smart contracts and enabling them within our module stack.

Smart Contract and Blockchain Integration

Integrating the legal framework into smart contracts and enabling them within our module stack. Connecting all tokenized aspects and blockchain integrations.

Payment Service Provider

Fiat onboard facility will be implemented so payment can be executed with a traditional mastercard / visa converting to ApeCoin. All web3 transactions will also be applied in ApeCoin.

Smart Contract Audits

It is imperative that newly built smart contracts or any alterations adhere to a strict auditing program and schedule.

IMPLEMENTATION MILESTONES

*Costs and timelines are estimated and may be subject to change.

Milestone 1

Start Date: upon receipt of funds from the ApeCoin DAO

Administrative, initial legal framework and project setup:

i. Project management, legal consultation and engagement

ii. UI/UX software design and development

iii. System Infrastructure architecture and planning

iv. Web3 components and architecture integration

v. IP Education material design and development

Cost: 296,000 Apecoin

Timeline: 3 month

Milestone 2

Start date: upon completion of milestone 1

Financial settlement integration

i. Smart Contracts integration and EVM compatibility

ii. Payment solution integration

iii. Smart Contract audits

iv. Automation of revenue distribution

v. Security mechanisms, encryption and sybil attack vector protections

vi. Dispute mechanism integration

vii. MVP launch on testnet

Cost: 235,000 ApeCoin

Timeline: 2 months

Milestone 3

Start date: upon completion of milestone 2

Product Go To Market Phase

i. PR and Marketing

ii. Initial Social Marketing Campaigns and KOL/brand engagement

iii. Legal framework and smart contract integrations

iv. Smart Contract final audit pre launch.

v. Beta release and collection onboarding campaigns

vi. Smart Contract monitor and risk management workflow setup

Cost: 140,000 Apecoin

Timeline: 3 months

Milestone 4

Start date: upon completion of milestone 3

Market activation monitoring phase

i. Production quality assurance testing

ii. Bugs and improvements campaign

iii. Community feedback and iterations

iv. Full production launch

v. Full Social Marketing campaigns and KOL/Brand Engagement

Cost: 110,000 Apecoin

Timeline: 1 months

Estimated total timeline: 9 months

At the completion of Milestone 4 and the submission of the final Report, this proposal will be deemed complete.

REPORTING EXPECTATIONS:

IP3.cc ApeCoin DAO AIP Budget and Reports

  • Reports will be made available in the IP3.cc ApeCoin DAO AIP Budget and Reports Google spreadsheet.
  • A report will be released after each milestone completion to break down the budget vs deliverables. Once the final milestone 4 is complete - a comprehensive report will be provided which will be available for 1 month after proposal completion.

KPI’s:

  • Amount of ‘IP Asset’ Created
  • License Marketplace Transaction Volume
  • Platform Revenue
  • Daily active users

OVERALL COST:

Total amount requested from the ApeCoin Ecosystem Fund is 781,000 ApeCoin/$469,000 USD.

Budget:

Product Development - 240,000 APECOIN

  • UI/UI Design
  • Smart Contract Development
  • Front-end Developer hire
  • Back-end Dev hire
  • Product Design and Management
  • Internal security monitoring and integrity alert system

Marketing - 210,000 APECOIN

  • PR and Media coverage
  • Social media campaigns
  • Joint brand collaborations and campaigns

Educational Packages - 96,000 APECOIN

  • NFT IP Protection
  • IP Licensing Education

Legal & Consultant - 85,000 APECOIN

Security - 50,000 APECOIN

  • Smart Contract Audits
  • Platform Security Audits (external)

Maintenance and Support 100,000 APECOIN

2 Likes

Really well thought out proposal.

Can you help us understand how this compares/contrasts to the OverPassIP model?

2 Likes

I’m trying to understand this proposal, but some of the details are over my head. Looking at IP3.cc, is this a way for someone to purchase the license rights to an NFT from the NFT owner in order to monetize the brand? So for example, if I wanted to make a BAYC-branded item, such as a clothing line, but I don’t own the NFT, I could negotiate a license deal with the owner of one of the NFTs to use their IP for my branding?

Can I also ask about the legal structure? Is it an IP contract that is on chain?

1 Like

Hi David,

Correct - your example is good.

IP3.cc performs 4 core functions;

  1. Allows the NFT holder to decide what IP licensing criteria can be applied to the asset, which creates the ‘IP Asset token’. This is cemented in legitimate legal framework with smart contracts that can be updated.
  2. The ‘IP Asset’ and subsequent license is then available in the marketplace for consumers to purchase, enabling them a legal license agreement for use.
  3. Royalties are provided back to the NFT Holder
  4. Education and dispute resolution being in place so NFT Holders can have sufficient support if their licensing terms are not adhered to.

Additionally - Yes - IP Asset Smart Contracts will be on chain.

1 Like

Thanks for the quick response! Okay, that makes sense. So this is a very interesting idea from an IP standpoint, then. Purchasing even one of the NFT collections that you represent would be prohibitively expensive for many people, but with IP3, someone could have access across a range of blue chip NFTs to brand their product or service. Cool idea man!

2 Likes

Hi VonFrontin,

From a quick glance, OverpassIP is concentrating on pudgy penguin IP and linking through to the available pudgy penguins physical products - it is a narrow window of IP utility based on pudgy penguin product line utilizing participating holders assets, eg. 1 pudgy NFT = 1 type of pudgy toy.

IP3.cc allows holders to determine their own IP use for their asset, providing these license’s on an open marketplace for all consumers to be able to purchase, utilizing the IP within the agreed legal parameters. It is a much wider IP use case, providing for greater opportunity; overall increase in brand awareness through increased decentralized IP usage.

For example - I own a BAYC - i can apply mutliple licenses to it allowing for people to lease the right to use the IP for advertising, physical merchandise, comic books, annimations etc. Now my asset is accessible to 4 different addressable markets.

This AIP is focused on increasing the capacity of IP utility, whilst providing the legal framework and monetization structure to support it. As we support all NFT collections, this will positively effect the utility of ApeCoin also.

Hope this helps.

4 Likes

Hi, I really like the overall idea of this proposal. Monetizing IP is something I’m personally very interested in. Could you help me with a few questions?

About Legal Framework:

  • The proposal states, “This creates a fair, legal IP backbone for all participating NFTs.” Can you provide specifics about the legal consultations you have engaged in? Have you received endorsements or validations from recognized legal authorities in the NFT or IP space?
  • How will you handle legal disputes across different jurisdictions, especially given the global nature of the NFT market?
  • While the proposal outlines a robust legal structure, how will IP rights be enforced in practice? What mechanisms are in place to ensure compliance from all parties involved?

About Market Adoption and Revenue:

  • With “over 200+ NFT IP options available, IP3.cc has already attracted holders from over 80 different collections.” What specific strategies do you have in place to attract IP buyers to the platform?
  • The proposal states that “50% fees generated will be given to ApeCoin DAO in perpetuity.” Can you provide a detailed financial projection of how much revenue this might generate for the DAO over time?
1 Like

Thanks Jack.

I know Overpass’s current scope is limited to Pudgy IP and items as they are early on, but I believe they are still planning on expanding to other IP and use cases.

My question was more about how the legal framework and monetization framework.

Will all this occur on-chain similar to the Saasy Labs solution created for Overpass?

How will IP limitations by collection be enforced?

How will funds flow back to the IP owner?

1 Like

What happens when you sell the NFT?

2 Likes

Hey Yue,

Legal Framework:

Legal representation have been consulted in major jurisdictions pertinent to local laws across US, Europe and Asia. As IP laws and regulations in some locations have their nuances, it’s important that these are reflected in terms and conditions of the holders ‘IP Asset contracts’ and support is provided.
Whilst we can provide support and education in regards to legal disputes and a facility for remediation - individual IP infringement is the responsibility of the asset owner to pursue.

Market Adoption and Revenue:

Specific strategies include basic social outreach and engagement, the more advanced strategies include reaching out to IP brokers, manufacturing outlets across a variety industries. We anticipate the drive and adoption is not only the responsibility of IP3.cc but also the asset holders themselves. By providing the infrastructure, IP3.cc enables Asset owners to attract, negotiate and execute their IP terms and conditions aswell.

A detailed financial projection will not be provided at this time as it includes strategic sensitive information, however, with 50% of fees generated given back to Apecoin DAO in perpetuity, we feel this is more than enough demonstration to our commitment to the DAO and long term relationship.

Thank you for the questions.

Hi VF,

Correct - all on chain.

IP limitations need to be reflective of the original IP issuance, the reflected in the user case terms and conditions for that specific collection.

Funds are collected through the market place at the ‘point of sale’ and distributed back to the asset owner in ApeCoin.

Thank you

2 Likes

Hi Smartape,

Access to the ‘IP Token’ account is linked back to the original asset.

In the event the asset is sold during the period of a revenue generating event, the funds will continue to be dispersed to the wallet holding the asset. This scenario could have a positive effect on the asset value.

In the event the asset is stolen, phished or exchanges hands due to nefarious actions, these events will need to be reported and managed on a case by case basis.

1 Like

This raises an interesting question about the utility of holding a BAYC, MAYC or other NFT. My understanding is that there are three primary utilities to having the original NFT: one is that the holder may receive airdrops. These have been immensely valuable in the past. Second is the “I’m in the club” element of having the NFT, which is like conspicuous consumption, and third is the ability to use the IP from the NFT. This proposal would delegate the third utility. I wonder if it’s possible to delegate the airdrops as well. Property being a basket of rights, it’s interesting to consider how this basket can be distributed.

If it’s part of the asset, I believe that the airdrops - since they are going to the asset - would move with it.

Hi @JackIP3 ,

The community feedback period for your proposal would be ending in roughly 24 hours.

  • If you’re content with the feedback received, your next steps are to finalize your proposal using the AIP Draft Template.

  • A moderator will reach out to the author to finalize the AIP Draft. Upon receipt of the final Draft, we will review and provide instructions on the next steps.

  • Are you ready to proceed to the next phase or do you wish to extend community discussion for another 7 days?

We look forward to hearing from you.

-@Facilitators

This topic was automatically closed after 7 days. New replies are no longer allowed.

Hi @JackIP3 ,

Thank you for your ideas [and the ApeCoin DAO community for the insightful discussions].

A moderator will reach out to the author to finalize the AIP Draft using the appropriate template.

  • Once the AIP Draft is confirmed by the author and meets all DAO-approved guidelines, it will receive an AIP ID number and move forward for Draft Analysis Review.
  • @JackIP3 please see your messages for the next steps.

Follow this Topic as further updates will be posted here in the comments. In accordance with DAO-approved guidelines, if the author does not respond within 30 days, the proposal will be automatically transferred to the Withdrawn category, and the author can re-submit the idea.

-@Facilitators

Hi ApeCoin DAO Community,

@JackIP3 has completed editing their AIP Idea to be their AIP Draft.

This proposal has been assigned the AIP ID Number 481.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

Our team has reviewed and discussed @JackIP3 's AIP Draft and have sent a list of initial questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators