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System 7 Builds Intellectual Property Supply Chains
System 7 Builds Digital Rights Management Consensus
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System 7 Builds Intellectual Property Supply Chains

Information sharing among business partners forms the foundation of the Intellectual Property Supply Chain:  customers and vendors, agents and distributors, producers and creatives, marketing and legal.  Unique to intellectual property, any single company or individual may play from one to all of these roles. Over the past decade the Internet has simultaneously increased marketplace complexity and allowed partners to demand more timely and detailed information.  In cases where the end-product itself is digital (music), actual delivery becomes an integral element of information flow.  Intellectual Property stakeholders in physical products (apparel designers) wish to monitor final consumer distribution through these information flows as well.

Contracts play the pivotal role in Intellectual Property Supply Chain Management.  Transactions of various types (payments, royalties, deliveries, approvals) are relevant as well.  However, without a unifying contract intelligence, transactional information becomes dead financial reporting unable to dynamically alter product distribution plans to reflect current marketplace and supply channel reality.  Without contract intelligence semi-manual business processes offer general ledger consolidation as the only point of information useful for clear-eyed global decision making.  The greater the complexity of the Intellectual Property Supply Chain, the greater the obscurity faced by management.  Best case, information that could be available on a daily, weekly or monthly basis, is gathered annually, or worse, through continuous ad hoc scrambling.  A contract-driven information systems relationship automates delivery of the following exchanges:

Licensee to Licensor

Contract Performance Status – Pending & Executed Sub-Distribution Deals
Contract Payment Calculations – Estimated & Actual Royalty Statements
Concept Approval Submission – Preliminary & Final Intellectual Property Use

 Licensor to Licensee

Contract Performance Status – Advance & Guarantee Recoupment
Contract Payment Calculations – Participation Estimates, Participation Statements
Concept Approval Response – IP use rejection, modification, acceptance

 Supply Chain

Consumer Distribution Performance – Subscription Estimates, Yield Rates
Rights Availability/Commitment – Granted Rights Validation, Marketing Analysis
Critical Event Management – Market Release Dates, Wholesale Availability

System 7 Role

Transactional processing – Validation, Quality Assurance, Integration
Sarbanes-Oxley – Auditability, Transparency, Control Points
Contract Intelligence – Fully operational on both sides of each exchange

Essential to the above exchanges is the ability for computer systems on both (or all) sides of the equation to interpret and validate the information being moved.  Present “success” in this field is generally achieved with use of spreadsheets on one or both ends of the exchange - abuse of a personal productivity tool.  Use of System 7 to produce and receive data gives direct access to early-stage information through queries, digital dashboards and reports specifically designed for widespread use. 

Search Engines

The majority of the information exchanged within a supply chain is confidential to that supply chain, and in some cases, to subdivisions within the overall chain. A goal of the intellectual property supply chain is to produce industrial rights availability information of sufficient consistency, detail and reliability that it becomes valuable material for intellectual property search engines for publication to a larger subscription or membership based business population. Should this information be published for relatively broad consumption, the opportunity for advertising revenues emerges for the operator of this search site.

The following rights, terms, payments, media and business information flows form the foundation of Intellectual Property Supply Chain Management:

System 7 Builds Intellectual Property Supply Chains

Digital Rights Management has proven to be extraordinarily elusive, with a number of standards, methods, patents and concepts competing for support within the media, publishing, research, music, software and hardware industries.  Everyone sees an opportunity for control.  Everyone sees danger in ceding control to others.  A merger between business rights management and consumer rights management resolves this apparent paradox.  System 7 operates as a vehicle for developing business rights management standards that streamline business information and authorization interchange today.

Five System 7 capabilities drive convergence of IP supply chain and digital rights infrastructure:

Rights Inheritance allows a single contract to define rights ownership for millions of intellectual property assets and to allow new, related assets to be created without human intervention

Collateral Contract Analysis continuously updates rights availability information from current acquisition and sales contract activity

Unlimited Asset Groups enable Digital Delivery and Digital Asset Management systems to understand their contents without metadata corruption

Contract-Driven Materials Deliveries automatically engages Rights Clearance and Account Release at each shipping/transmission authorization

Dynamic Royalty/Rights Definition interprets licensee royalty statements against governing contractual grant of rights, regardless of divergence of grant levels or sub-groups

System 7’s Custom Rights Framework is the evolutionary result of 20 years of intellectual property business systems practices:  Real people using real software to accomplish real business tasks.  The diversity of consumer delivery mechanisms obscures the core business issues driving the creation, production and delivery of intellectual property products.  This diversity may diminish over time.  The requirement for businesses to understand, communicate and control their rights to patents, copyrights, trademarks, proprietary works, likenesses and authorizations will not.  The drive to organize wholesale, retail and consumer use of these products in relation to an incorporated intellectual property profile remains valid in perpetuity.  Layers upon layers of participant/vendor/licensor relationships require consistent rights-based performance reporting and payment infrastructure from bottom to top.

Granted Rights Standardization (B to B)

Royalty Reporting Definitions
Participation Statement Formats
Availabilities/Validations
Expiration Confirmations

 Contract Reference Attachment (B to B)

Concept Approval Submission
Digital Asset Management
Intellectual Asset Components
Document Archive Management

 Product Rules Attachment (B to B)

Replay Limits
Distribution Channel
Specified Device
Release Authorization

Consumption Control (Business to Consumer)

Portable Devices
Desktop Computers
Entertainment Consoles
Editing Prevention

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