People gather at a K-pop dance meet-up organized via social media in London on October 18. Reuters-Yonhap
David Kostiner, Co-Founder and Head of Intellectual Property at Aria Protocol Labs / Courtesy of Aria Protocol
Intellectual property (IP) has become one of the most powerful economic drivers of the digital age, particularly in entertainment, where content can power entire industries.
Korea’s global success in exporting K-pop, webtoons and dramas provides a striking example.
Yet, despite an estimated value of $60 trillion, the global intellectual property market remains largely illiquid and opaque. Most transactions take place behind closed doors, negotiated through private contracts or corporate licensing agreements.
This lack of transparency has left the market underleveraged, industry officials say.
A report from the Korea Intellectual Property Institute found that securitization and tradability of domestic music copyrights could create a market worth up to 22 trillion won ($14.9 billion). This is nearly 10 times the value of Korea’s music industry’s exports in 2024, which totaled around 2 trillion won.
A blockchain startup is betting it can change that.
The Aria Protocol, created in January, builds a tokenized IP platform that allows these rights to be split, traded and monetized on the blockchain. The company’s founders say the technology could provide fans, investors and institutions with direct exposure to underlying intellectual property assets.
Although it targets a global audience, Korea stands out as one of the earliest beneficiaries. With strong content exports and a digitally native population, the country is seen as a natural testing ground. The model is also particularly suited to fan-driven industries like K-pop, where loyalty and engagement are high.
It’s no surprise that the project quickly gained traction in Korea. At a meeting in Seoul held on November 1, more than 1,200 attendees were in attendance – a remarkable crowd for a crypto-focused event amid the current market decline.
The technical foundations of the platform are also rooted in Korean innovation.
It is built on Story, a blockchain layer developed by Lee Seung-yoon, who gained national attention after selling his US company Radish to Kakao in 2021 for around 500 billion won. Story became his next venture, aiming to build open IP infrastructure for the digital age.
People line up to attend Aria Protocol’s first meeting at a building in Seoul on November 1. Courtesy of Aria Protocol
“Rights holders will not need to negotiate paperwork with each interested collaborator,” said David Kostiner, co-founder and chief intellectual property officer of Aria Protocol Labs, in a recent written interview with The Korea Times. “Investors are directly exposed to the cultural and financial value of intellectual property as it proliferates in the form of remixes and other ‘derivative’ works made from the original work.”
For example, through digital contracts, rights holders can naturally retain their rights to revenue while earning additional royalties when others create derivative content, such as remixes or adaptations. Creators and investors can also collect their share of royalties.
“We are creating living economies where remixes, adaptations and derivative products can generate shared value between creators, rights holders and investors.”
So far, Aria Protocol has acquired the copyrights to 48 songs, including music from Miley Cyrus, Justin Bieber and major K-pop groups such as BTS, BLACKPINK and Taeyang. Investors can purchase its APL tokens representing fractional ownership in these works, with projected annualized returns of between 5 and 8%, according to company estimates.
“Intellectual property can become a stable, income-generating asset, just like real estate, by making it liquid,” Lee said at a company event on September 23.
To date, over $10.95 million has been invested in Aria Protocol through over 4,000 digital wallets. In September, the team also closed $15.5 million in strategic and seed funding, valuing the company at $50 million.
“Aria was founded by music industry veterans who have decades of experience in rights acquisition, licensing and catalog management. This expertise has allowed us to create a legal and operational framework that rights holders and institutions trust,” said Kostiner.
Asked if there had been any pushback from traditional rights holders – such as large entertainment companies accustomed to retaining control – Kostiner said the goal was to build structures that benefit creators without disrupting existing business models.
“We work closely with labels, publishers and catalog owners to structure compliant tokenization models that create a ‘win-win for all’ situation,” Kostiner said. “Aria has no impact on ‘Web2’ or real-world activities, so it is an ideal partner to complement any business. »
