Business Opportunity:  A Solution for
Monitoring Digital Distribution, Payments and Copyrights

Problem/Need

The music, movie and media industries have not streamlined digital data handling nor leveraged interconnected technologies to address rapid changes in the digital marketplace. A comprehensive one-stop solution is needed throughout the value chain that provides accurate transaction accounting and secures digital media copyrights while reducing processing costs and increasing revenue streams.

The Solution

Leyi applies intelligent technology to deliver a complete system for digital audio/video production and rights management integrated with sales and market analytics to 1) Monitor, control and manage distribution channels, marketing, ad/product placement and royalty payments, 2) Protect and control neighboring rights, copyrights and secure all intellectual property rights, and 3) Generate market and trend reports in real-time for royalty control, YouTube monitoring, monetizing and collecting procedures. [See Appendix below]

Validated in World Markets

The system was used to monitor 2,000 digital broadcasters in Europe and 150 broadcasters in Asia to track royalty payments for music streaming, including Warner’s European music library. The results: 1) Reduced management costs and increased accuracy of digital transaction accounting reporting, 2) Increased royalty payments by 20% to 50%, and 3) Successfully enforced copyrights in all markets.

Business Strategy

1) Licensing the Technology to Companies, Industry Organizations and Government Agencies.
Telecom, radio broadcasting, TV and film companies, royalty collection societies and industry groups can use the system without interfering with their proprietary back-end and confidential data systems.

3) Establishing a B2C/B2B Digital Sales Platform to Support Technology Licensing Marketing & Sales.
The technology will be used to develop and launch a revenue-generating digital sales and streaming platform in multiple markets to demonstrate the technology to content owners and licensing clients.

2) Developing Firmware for Inclusion in New Computer and Mobile Devices.
A firmware version of the system can be licensed to computer and mobile device manufacturers in Taiwan and China. These firms represent 85+% of all computer and mobile devices sold worldwide.

Market and Sales Strategy

The B2C/B2B Platform will be launched simultaneously in the European, North American and Asian markets to generate revenue for Leyi and its partners. The platform will also be used as a marketing device to demonstrate how the technology can increase revenue for licensing clients. Leyi will target major telecoms, TV and digital broadcasters, and digital sales platforms as potential licensing clients.

Overcoming Market Resistance: Potential licensing clients may be reluctant to use the tracking and payment accounting system because they may fear potential revenue reduction in favor of digital product owners. Leyi overcomes this by 1) Showing how the system reduces costs and creates new revenue streams for licensing clients, and 2) Establishing license agreements with collection societies and government regulatory agencies to motivate companies to comply with new market directives.

Competitor Situation

While there are numerous metadata systems, content aggregators and radio/TV monitoring systems, none license their proprietary business systems. There are no major digital media platforms using watermark-based affiliated marketing apps, audio operating systems and proximity marketing tools.

Progress to Date

The technology received multiple patents in the U.S., Europe, Japan, Korea, Russia and China.

A growing number of European clients are using the technology to monitor their digital broadcast sales and protect copyrights. A major Asian TV media group and Telecom have signed Letters of Intent to license the technology to manage their digital media. Additionally, an Asian Collection Society is field-testing the technology for monitoring all digital broadcasting firms in their region. And a major Asian government regulatory agency, has agreed to sign a Letter of Intent for using the technology to monitor digital media transactions and manage metadata and copyright protections.

Competitive Advantage in the China Market

Leyi balances private and public business sectors in the Asian market to avoid the risks and problems typically experienced by international companies. The Chinese Ministry of Science and Technology reviewed and validated the business technology. As a result the National Government endorsed Leyi’s business model and technology as an effective solution for paying all royalties, protecting copyrights, and improving the digital media industries, thus giving Leyi a high-priority market status.

Business Growth and Goal

The B2C/B2B Platform will expand to multiple sites in the U.S., Europe and Asia to increase revenue and licensing clients. Leyi’s goal in China is to license the technology to SART for monitoring all digital sales platforms. The firmware venture expects a US$10 Billion IPO valuation within five years.

Business Opportunity

Leyi seeks partners and investors from the digital media and creative industries, infrastructure development firms and venture capital firms interested in developing new effective solutions for managing digital media markets worldwide.

Investment and business funding terms are negotiable. Leyi’s long-term goal is to offer an IPO exit for investors. Leyi may offer a buy-out opportunity to investors wishing to realize a return on investment before an IPO opportunity presents itself. Investors participate in revenue sharing until IPO exit.

Contact Information

For more information please email: info@leyimedia.com.

Appendix: Technology Description

Leyi’s technology partner, Cugate, Ltd, lead the development of the key business technology that creates a unique ID code for each digital or physical product so all online transactions can be tracked, recorded and analyzed to provide product owners with accurate payment accounting, market and consumer data analytics, and a wide range of business, marketing and sales services.

Delivers a One-Stop Service

The technology provides a “One Stop Service” that monitors, controls, manages distribution channels; protects and controls neighboring rights, copyrights and royalties; tracks for anti-piracy, IP-control and management; generates market and trend reports; royalty control and payments, YouTube monitoring and monetizing and collecting procedures.

ID Tag Encoding

The key technology creates an ID Tag code that uses multi-level watermark/footprint technologies to encode all types of digital media and merchandise with a unique code that cannot be deleted or changed, even when copied or streamed on other platforms. It provides easier and greater control of metadata compared to traditional ID3 and APE tag methodologies.

The ID Tag also supports Blockchain data and financial data encryption, ensuring 100% secured copyrights, multi-level marketing and interconnected consumer and industry transactions and consumer device background and proximity marketing, advertising pointers and affiliate marketing initiatives throughout the entire value chain.

Creates a Virtual Barcode

The unique ID Tag acts as a “Virtual Barcode” that links to a comprehensive database that creates an expandable metadata data structure allowing collection and analysis of all current and future content transactions. This allows reliable tracking of all transactions so that product owners and rights-holders receive all payments while capturing market and consumer data in all consumer networks.

Intelligent Data System

The Barcode links with intelligent software so each transaction can independently determine what information is needed and how it will be used, thus creating multiple layers of content and market data, diving greater control over managing licensing, terms of use and marketing initiatives.

Add-On Component Integration

The technology is an add-on component on top of a company’s existing technology, so they can easily expand their capability without modifying their existing content management systems. It provides automated control for ID Tag encoding and production to multiple digital and physical formats. This allows efficient management of large quantities of audio and video materials, and supports real-time broadcasts that can be securely tracked for payment accounting.

Business Features

  • Ad and Product Placement, Proximity Marketing and Affiliate Marketing: Helps traditional and mobile advertisers target specific regions, event areas via Wi-Fi, retail/kiosk areas and USB transactions. Enables content owners to directly manage and redirect advertisement.
  • CRM and Data Analytics: Captures market and consumer data to improve business and marketing activities. Drives Big Data analytics for business intelligence reports.
  • Royalty Collection: Provides weekly, monthly, or yearly reports for royalty collection.
  • YouTube Monitor: Sales monitoring for: Control, Monetizing, Collection and Anti-Piracy.
  • Real Time Chart and Radio Monitoring: Monitors digital radio worldwide on a 24x7 basis.
  • Music Synchronization: Provides search service to help professionals to find the right kind of music or tracks for movies, advertising, background music.