Blockchain startup Story Protocol protects creators from AI scraping

Jason Zhao, chief protocol officer and co-founder of the PIP Labs, speaks during a press meeting in Seoul, Thursday. Courtesy of PIP Labs

PIP Labs, the developer behind the blockchain startup Story Protocol, vowed Thursday to help creators protect their intellectual property (IP) and generate sustainable revenue amid an increasing prevalence of AI-driven copyright theft.

"We believe that all intellectual and creative works can fall under the category of IP, and all of them are going to face dramatic changes in this new age of AI," Jason Zhao, chief protocol officer and co-founder of the PIP Labs, said during the press meeting in Seoul.

"Story is trying to solve a problem of how IP will be monetized when the entire internet is being scraped by these AI models."

Lee Seung-yoon, CEO and co-founder of PIP Labs / Courtesy of PIP Labs

Zhao previously worked as the youngest product manager for Google's AI lab, DeepMind. In 2022, he co-founded PIP Labs with Lee Seung-yoon, who founded the mobile fiction platform Radish in 2016 and successfully sold it to Kakao for 500 billion won ($374 mil.) in 2021.

Zhao highlighted that AI models are currently utilizing people's data and IP without compensation, which can lead to AI imitating the works of creators or even style. Yet, the current legal system is too slow, complex and costly for most creators, especially those without access to intermediaries to secure IP deals.

"AIs might put your recommendation, your photos and IPs in their answers, but they aren't going to give you anything," Zhao said. "Why would anyone continue to create if no one is going to compensate for the work?"

Story Protocol's platform allows creators to register their IP and outline terms for their use. It also allows creators to receive compensation from various parties, who can then adapt and further utilize the content for secondary purposes. The firm uses blockchain technology to track registered IP usage automatically.

To date, more than 200 entities, including David Goyer, who wrote the script for "The Dark Knight" trilogy, have registered over 20 million intellectual properties on the platform, according to the firm.

"Creators, even if they are not familiar with web 3.0 or the technology, can still have their work backed by the law," Zhao said.

During the conference, PIP Labs also announced that it raised about $80 million in a series B funding round, with its value reaching over $2.2 billion.

The round was led by Andreessen Horowitz, one of the world's largest venture capital firms, with participation from Polychain Capital. Notable investors also include HYBE founder Bang Si-hyuk and Paris Hilton. This brings PIP Labs' total funding to around 191 billion won.

Ahead of Story Protocol's mainnet launch later this year, the firm will begin hosting a series of events for IP developers starting in September.