David Kostiner, co-founder and chief IP officer of Aria Protocol Labs / Courtesy of Aria Protocol
Intellectual property (IP) has become one of the most powerful economic engines of the digital age — especially in entertainment, where content can fuel entire industries.
Korea’s global success in exporting K-pop, webtoons and dramas offers a vivid example.
Yet despite an estimated $60 trillion in value, the global IP market remains largely illiquid and opaque. Most transactions occur behind closed doors, brokered through private contracts or corporate licensing deals.
This lack of transparency has left the market underleveraged, industry officials say.
A report from the Korea Institute of Intellectual Property found that securitizing and making domestic music copyrights tradable could create a market worth up to 22 trillion won ($14.9 billion). That’s nearly 10 times the value of Korea’s music industry exports in 2024, which totaled around 2 trillion won.
One blockchain startup is betting it can change that.
Aria Protocol, established this January, is building a tokenized IP platform that allows such rights to be fractionalized, traded and monetized on blockchain. The company’s founders say the technology could give fans, investors and institutions direct exposure to underlying IP assets.
While it is targeting a global audience, Korea stands out as an early beneficiary. With strong content exports and a digitally native population, the country is seen as a natural testbed. 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 has gained early traction in Korea. At a Seoul meetup held on Nov. 1, over 1,200 attendees turned out — a notable crowd for a crypto-focused event in the current market dip.
The platform’s technical foundation is also anchored in Korean innovation.
It is built on Story, a blockchain layer developed by Lee Seung-yoon, who gained national attention after selling his U.S.-based company Radish to Kakao in 2021 for roughly 500 billion won. Story became his next venture, aimed at building open IP infrastructure in the digital age.
People line up to attend Aria Protocol’s first meetup at a building in Seoul, Nov. 1. Courtesy of Aria Protocol
“Rights holders won’t need to negotiate paperwork with every interested collaborator,” said David Kostiner, co-founder and chief IP officer of Aria Protocol Labs, in a recent written interview with The Korea Times. “Investors gain direct exposure to the cultural and financial value of IP 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 income rights while earning additional royalties when others create derivative content, such as remixes or adaptations. Creators and investors can also earn their share of royalties.
“We’re creating living economies where remixes, adaptations and derivatives can generate value shared between creators, rights holders and investors.”
So far, Aria Protocol has acquired copyright in 48 songs, including music by Miley Cyrus, Justin Bieber and top K-pop acts such as BTS, BLACKPINK and Taeyang. Investors can purchase its APL tokens representing fractional ownership in these works, with projected annualized yields between 5 and 8 percent, according to company estimates.
“IP can be made into a stable, income-generating asset, much like real estate, by making it liquid,” Lee said at an event hosted by the company on Sept. 23.
To date, more than $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 business at $50 million.
“Aria was founded by music industry veterans who have decades of experience in rights acquisition, licensing and catalog management. That expertise allowed us to create a legal and operational framework that rights holders and institutions trust,” Kostiner said.
When asked whether there has been pushback from traditional rights holders — such as major entertainment companies accustomed to retaining control — Kostiner said the goal is 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,'” Kostiner said. “Aria does not impact any ‘Web2’ or real-world activities, so it is a perfect partner to complement any business.”