Platform and Technology Market Advantages

Overview of the Business Technology

Leyi uses Cugate’s digital transaction tracking system in it business model and platform to track and monitor digital transactions on the Internet and mobile networks. The system produces comprehensive accounting data so that all payments are made to businesses and all royalties are paid to digital rights holders and artists.

Unlike traditional metadata management systems used for music and video materials, Cugate’s unique ID tag acts as a “Virtual Barcode” that allows Leyi to integrate Customer Relations Management, data analytics and market intelligence applications into a data-driven market service directly to digital and physical product sellers.

Validation of the Business Model

The Chinese Ministry of Science and Technology reviewed and validated Leyi’s business model and Cugate’s technologies, officially endorsing them as an effective solution for protecting digital copyrights and paying all royalties to artists and stakeholders. The business technology has been given top priority status because it provides an effective business model for improving the financial and copyright landscape of China’s digital media and creative industries.

The tracking technology was field tested by the China Audio Video Copyright Association (CAVCA, 中国音像著作权集体管理协会). The results showed that artists receive 20% to 50% more revenue because the payment accounting data was more accurate. This is a strong motivator for artists to work with Leyi as they create new content for the Chinese and world markets.

As a result Leyi’s business granted top priority status because it provides an effective business model for improving the financial and copyright landscape of China’s digital media and creative industries.

Market Advantages

As a result Leyi has been granted rights to develop and manage The National China Music Industry Park–Shanghai (CMIP, 国家音乐产业基地-上海) in the Shanghai. Companies registered in the CMIP using Leyi’s business platform benefit from reduced business risks due to unpredictable policy changes. As a priority company Leyi works closely with government agencies to adjust platform dynamics so client companies’ business is not significantly disrupted.

Even large Chinese competitors must use the technology if they want to expand their business operations in the CMIP’s entertainment destination sites. These large Chinese competitors focus on immediate revenue generating strategies and have not developed accurate accounting to pay digital product rights holders.

The tracking technology and transaction model motivates and locks in artists and consumers because the artists and right holders receive more money than they do the large competitors. All revenue from a digital transaction is shared with artists and consumers, including advertising fess and product purchases; unlike the larger competitors who typically keep advertising and other revenue to themselves.