Time-restricted copyright monetization through CopyrightShares of CopyrightChains (powered by NIM).

A new financial model for creators seeking immediate liquidity without permanent ownership transfer

The UK Competition Appeal Tribunal’s dismissal of Rowntree v PRS Limited exposed fundamental flaws in traditional copyright management. The case, which sought to address £200 million in unallocated “Black Box” royalties, failed because existing legal frameworks are unable to resolve technological shortcomings in digital rights administration. Alfons Karabuda (Composer and cultural rights advocate. Honorary President of the European Composer and Songwriter Alliance, Chair of the Polar Music Prize Award Committee, and former President of the International Music Council and Skap) wrote a brilliant article emphasizing the folly of sawing off the very branch of the economy the creators are all ultimately sitting on: https://www.alfonskarabuda.com/2025/08/28/ever-felt-like-suing-yourself/

This landmark rejection signals an urgent need for alternative approaches.

Traditional models require creators to wait months for royalty distributions, while also denying them access to future earnings potential. CopyrightChains addresses this through time-restricted CopyrightShares that enable immediate liquidity while maintaining permanent ownership.

Wyoming Series LLC regulatory framework

CopyrightChains operates through Wyoming’s Series LLC structure, providing comprehensive regulatory compliance that transforms each copyrighted work into a legitimate business entity. This framework addresses the systemic problems exposed in the Rowntree case by creating transparent, legally protected structures for copyright ownership and revenue distribution.

Each copyright registration automatically creates a separate Wyoming Series LLC, which has a distinct legal identity, liability protection, and asset segregation. The Series LLC becomes the legal owner of the copyright tokens, enabling professional business management while maintaining clear ownership records and facilitating regulatory compliance across multiple jurisdictions.

Wyoming’s Series LLC statutes provide several critical advantages for copyright monetization. Each series operates as an independent legal entity with separate liability protection, preventing disputes or financial issues from one work affecting others in a creator’s portfolio. The structure enables unlimited series under one umbrella organization, keeping administrative overhead to a minimum while providing robust legal protection.

The regulatory framework simultaneously satisfies multiple compliance requirements. Securities law compliance is facilitated through established exemptions, including Regulation D for private placements and Regulation A+ for public offerings. The AI Training Act requirements are met automatically through blockchain ledgers that record every instance of AI training usage with immutable timestamps.

Real-world implementation example

1. Content creation: A new (musical works) composition is created.
2. Registration process: The creator submits the composition to the CopyrightChains platform. AI algorithms verify originality and generate:

a. CopyrightID: 0x9c86d5bdfbb04527d1f3e2db0b518fd4b727bc85dd4c2f88e1105a52d7bb3f41

b. Token Address: 0xd7c3ce30929397574a2B566CC532e0671a8d0649

c. Vault Address: 0x42596a9AF10bFa441A6289C336acd78Ad9F3CAc3

d. Series LLC ID: WY-SERIES-1–329d898a

3. Ownership distribution: The creator issues 1,000,000 CopyrightShares, retaining 50% personally, assigning 25% to a co-writer, and offering 25% to investors.

Revenue Distribution As the composition generates income, royalties are collected at the Token Address and automatically distributed to the creator, co-writer, and investors in proportion to their CopyrightShare holdings.

Trading mechanisms: Investors can sell their stakes through the Vault Address on OTC exchange or on any public exchange that supports the tokens.

Legal Enforcement: If infringement occurs, CopyrightShare owners can pursue legal action under the Series LLC name, which is legally identified as 0x9c86d5bdfbb04527d1f3e2db0b518fd4b727bc85dd4c2f88e1105a52d7bb3f4.

Time-restricted monetization mechanics

The vault system enables creators to sell future royalty rights for specific periods while maintaining permanent ownership. Lock periods range from 30 days to 25 years, with longer commitments commanding higher upfront payments. Multiple concurrent offerings allow flexible cash flow management across different portions of a creator’s catalog.

Smart contracts automate all administrative functions. Payments flow directly from revenue sources to token holders based on proportional ownership. Time locks expire automatically without manual intervention. The Fair Return Ratio ensures that creators receive a minimum of 70% of royalties, regardless of token distribution, with this baseline being legally protected and unchangeable without the creator’s consent.

International compliance integration

The Wyoming Series LLC structure facilitates compliance across major jurisdictions. EU MiCA regulations classify CopyrightShares as Asset-Referenced Tokens, with automatic white paper generation and CASP registration workflows for offerings exceeding €5 million annually. UAE Digital Assets Law provides specific provisions for asset-backed tokens, with Dubai Financial Services Authority frameworks supporting global distribution.

Export control regulations are handled automatically, with Commerce Department licensing triggered for transfers exceeding $5 billion in aggregate value. The system monitors offering volumes and initiates appropriate regulatory procedures when approaching jurisdictional thresholds.

Market advantages and risk mitigation

This approach eliminates traditional financing drawbacks without creating new vulnerabilities. Unlike publishing deals requiring permanent rights transfers or advance systems creating recoupment obligations, time-restricted monetization provides immediate capital while preserving long-term ownership value.

Technology risks are mitigated through comprehensive insurance, multi-signature security protocols, and regular audits. Market risks are addressed through diversification strategies and conservative valuation methodologies. Regulatory risks are managed through ongoing legal monitoring and automatic compliance updates.

Future outlook

The Rowntree case demonstrated that traditional legal remedies cannot address systemic technological problems in copyright management. As noted in expert testimony, attempting to resolve these disputes through existing frameworks can feel like “suing yourself” when costs ultimately impact the same community seeking relief.

Time-restricted monetization through Wyoming Series LLCs provides a technological solution that benefits all stakeholders without adversarial dynamics. Institutional investor participation continues to increase as intellectual property gains recognition as a legitimate alternative asset class. Cross-platform integration expands monetizable revenue streams while international regulatory development supports global market access.

For creators and representatives, implementing these systems represents a significant opportunity to optimize financial outcomes while maintaining creative control and intellectual property ownership. The regulatory framework provides the legal certainty and investor protection necessary for sustainable market development.

You can read Alfons Karabuda’s article here: https://www.alfonskarabuda.com/2025/08/28/ever-felt-like-suing-yourself/

If you would like a detailed legal and regulatory report, please contact us at info(at)allnim.com.

Disclaimer.

The CopyrightShares described herein are tokenised securities that represent a right to future royalty payments for a limited period. They are offered only to qualified investors who understand the risks of illiquidity, regulatory compliance, and potential loss of capital. Purchasers should consult their own legal, tax, and financial advisors before investing. The offering complies with U.S. Regulation D, EU MiCA asset-referenced token rules, and UAE real-world asset licensing, but does not constitute a guarantee of returns or protection against regulatory changes.