As generative AI reshapes industries, the issue of intellectual property (IP) protection in the AI era has become increasingly prominent. Currently, AI models rely on massive amounts of data—including text, images, videos, etc.—for training, and most of this data is intellectual property. However, most IP holders neither receive reasonable compensation nor lose control of their works when their works are used. The recent lawsuit filed by the New York Times against OpenAI reveals this contradiction: well-known IP holders have begun to fight back against unauthorized use in AI training. It can be seen that the legal and ethical issues surrounding IP in the process of AI development have become particularly urgent.
Story, located near Stanford University in Silicon Valley, is trying to solve this problem. The startup is located in the heart of the global innovation center, gathering many top AI companies and well-known Layer 1 blockchain projects such as Aptos and Sui. Story is a Layer 1 blockchain focused on intellectual property. It provides a new solution for the protection, sharing and monetization of intellectual property by converting IP into programmable digital assets. With this technology, IP holders can participate in AI-driven innovation and decentralized collaboration more safely. Recently, Story also reached a cooperation with the well-known AI company Stability AI, becoming the first blockchain integrated with the mainstream large language model (LLM). Story has performed well in the capital market. It has raised a total of US$140 million, and three consecutive rounds of financing have been led by top venture capital firm Andreessen Horowitz (a16z)-this is a first in the blockchain industry. Chris Dixon, founder and managing partner of a16z Crypto Fund, recently elaborated in detail for the first time in an interview with EO, a well-known technology YouTube channel, why he led the investment in Story three times. He bluntly stated that without blockchain solutions like Story to provide reasonable compensation for creators and data holders, AI will have a devastating impact on the creative economy of the Internet. He pointed out: "When people can directly use Midjourney to generate illustrations, who will pay illustrators? Many creators will lose their economic model for survival."
Story stands at the intersection of AI and blockchain technology, and its significance goes far beyond the technology itself. Intellectual property is considered one of the most valuable asset classes in the world, covering multiple industries such as media, technology, and medicine, with a total value of more than US$61.9 trillion (data source: Brand Finance Global Intangible Finance Tracker 2023). From brand image to code technology, from virtual characters to patent research, these all belong to IP. However, this huge asset class of IP currently still lacks effective monetization channels, making it difficult for IP holders, companies, and investors to obtain due returns or protect their own achievements in the rapidly developing AI era. The emergence of Story provides a viable solution to this problem.
AI cannot do without data, but it raises IP issues
From Stability AI's Stable Diffusion to OpenAI's GPT, the operation of AI models relies on massive amounts of training data. However, most of this data comes from copyrighted works and is often collected and used without authorization or payment. Recently, the New York Times sued OpenAI, which is not only an ordinary legal dispute, but also regarded as a watershed in intellectual property protection in the AI era. The New York Times accused OpenAI of using its articles as training data without permission, and this lawsuit may become an important symbol for determining future intellectual property rules.
This confrontation between "traditional media" and "new AI forces" has profoundly exposed the limitations of the existing IP system. The New York Times accused OpenAI of using its content without authorization. This is not only a legal game, but also a comprehensive impact on the traditional IP framework. In today's rapidly developing AI technology, the old IP system that relies on manual contracts and centralized management is inefficient and difficult to adapt. When intellectual property protection becomes a "war for all", human society urgently needs a more efficient solution.
Although IP is valued at $61.9 trillion globally, the technologies surrounding the monetization, expansion, and digitization of these assets are still lagging behind. Traditional licensing processes are lengthy and complex, and are almost unsustainable when faced with AI's high-speed demand for massive data. With the continuous iteration of AI technology, a strong IP framework that can both protect the rights of IP holders and promote innovation has become an imperative choice.
Story: Pioneer of the global IP blockchain
Story is providing infrastructure to solve bottlenecks in the IP space. Through its protocol, IP holders, businesses and investors can transform intellectual property into digital assets for more efficient tracking, trading and monetization. Story combines blockchain technology with a proprietary legal framework, which not only enables IP holders to control their works, but also brings them a new revenue model.
Story's programmable IP asset function allows equity holders to flexibly set asset usage rules, such as whether to allow use for AI training, commercial purposes, or completely restrict use. This mechanism ensures that the data used for AI models is both in compliance with legal regulations and can bring fair benefits to original IP holders. Compared with the traditional IP system, Story's blockchain technology can execute rights in real time, while breaking the efficiency bottleneck of traditional processes and providing a better solution for AI's huge data needs.
Story's partnership with Stability AI has fully demonstrated its potential. Stability AI, known for its open source model Stable Diffusion, uses Story's infrastructure to access legally licensed data sets. By assetizing and recording IP on the blockchain, Story has built a high-quality and protected data pool to support AI training while providing a transparent source of income for IP holders. This collaboration has resolved the conflict between AI developers and IP holders, turning assetized IP into a sustainable market that protects rights holders and drives innovation. In an era where IP is gradually becoming a core asset in the AI economy, Story provides a revolutionary solution with the transparency of blockchain and a strong legal framework.
The New York Times’ lawsuit against OpenAI highlights the importance of Story’s infrastructure. Conventional wisdom suggests that this is just a legal dispute, but in fact, this case reflects a deeper game between IP and AI: who will control and profit from human knowledge in the digital age?
Story engraved the opening of the lawsuit into its genesis block, not to take sides, but to record this critical moment. This case reveals the limitations of the existing system - traditional IP holders are struggling to keep up with the rapid development of AI technology, while AI companies extract value from unauthorized data. The confrontation between The New York Times and OpenAI exposes that the centralized management model is no longer able to meet the needs, and a new path is needed to break through.
Currently, AI companies’ reliance on unauthorized data poses legal risks to developers and threatens the interests of IP holders. Without a clear authorization and compensation mechanism, the AI industry will face endless legal disputes, which will ultimately hinder innovation.
Story provides a proactive solution by putting IP on the chain. It not only ensures that IP holders receive the benefits they deserve, but also provides AI developers with a way to use data legally, fundamentally avoiding disputes.
It is Story's performance in addressing these challenges that has attracted the support of many giants in the fields of technology and finance. Since its establishment, the company has completed multiple rounds of financing, totaling more than US$140 million, with a valuation of up to US$2.25 billion. What is particularly noteworthy is that venture capital giant a16z has led three consecutive rounds of investment, and this high-level investment trust further verifies Story's potential.
This support shows that Story’s proposed IP solution is not just a theoretical idea, but a necessity. As intellectual property gradually becomes the core “currency” of the AI economy, Story aims to make its assetization infrastructure the industry standard.
At present, the global valuation of intellectual property has reached 61.9 trillion US dollars, which not only represents the value of creative assets, but also drives the global smart economy. However, in the absence of modern infrastructure, this huge asset class of IP has not been fully explored and utilized, and is even at risk.
The future of IP will not be determined by litigation, but will be redefined by technologies that can transform ideas into programmable assets.
