KOR Protocol Secures $7.5 Million to Address AI Intellectual Property Challenges
KOR Protocol, an on-chain platform designed to manage creative rights and royalty payments, has raised 7,5 Millionen US-Dollar in a Series A funding round. Led by 1kx and Blockchain Capital, the round values the company at 100 Millionen US-Dollar. The startup aims to solve the growing disconnect between AI-generated content production and the traditional entertainment industry’s ability to track ownership and distribute payments.
Solving the AI Content Ownership Gap
As generative AI lowers the barrier to content creation, the entertainment industry faces a tracking crisis. According to data from the music platform Deezer, nearly 75.000 AI-generated songs are uploaded daily, accounting for roughly 44 % of new submissions. Despite this volume, these tracks represent only 1 % to 3 % of total streams, and KOR Protocol notes that approximately 85 % of AI-generated streams are considered fake, preventing accurate royalty distribution.
KOR Protocol operates as a “clearinghouse for creative assets” built on the Coinbase Base Layer-2 network. By utilizing stablecoins for transactions, the platform seeks to bypass the sluggish payment infrastructure typical of legacy entertainment systems. The company reports having already logged one million sign-ups, linked over 400.000 wallets, and generated more than 2 Millionen US-Dollar in gross revenue. Its partner network includes industry entities such as Black Mirror, Beatport, Imogen Heap, and the Banijay Group.
Strategic Investment in Intellectual Property Infrastructure
The 7,5 Millionen US-Dollar funding round drew participation from a broad group of investors, including Republic Crypto, Sfermion, Animoca Brands, Solana, Avalanche, Alumni Ventures, and SevenX. The company has confirmed plans to launch a proprietary token to integrate its platform’s economics into the broader Web3 ecosystem.
This investment reflects a wider trend toward “programmable intellectual property” on the blockchain. In 2024, Story Protocol secured 80 Millionen US-Dollar in a Series B round, an event that Chris Dixon, founder and managing partner of a16z crypto, described as evidence that AI is forcing a fundamental rethink of digital ownership. While Story Protocol focuses on developing a dedicated blockchain for IP, KOR Protocol distinguishes itself by building on existing Ethereum-based infrastructure. This approach allows creators to manage rights without being forced to migrate to a new blockchain network.
Operational Features and Leadership
KOR Protocol’s platform provides three core functions: securing copyrights, routing content to appropriate labels, and automating licensing and royalty payments. Current applications running on the protocol include:
* KORUS: A tool for artists to release official remix packages.
* Pacer: An AI-driven management tool for music releases and audience engagement.
The startup is led by CEO Ritty Quin, an electronic music producer, alongside co-founder Inder Phull, who previously co-founded Pixelynx before its acquisition by Animoca Brands. The team is positioning the platform to capitalize on the 31,7 Milliarden US-Dollar global recorded music market, as estimated in the 2026 Global Music Report for 2025, where streaming accounts for nearly 70 % of revenue.
Key Takeaways
* Funding: KOR Protocol raised 7,5 Millionen US-Dollar at a 100 Millionen US-Dollar valuation in a round led by 1kx and Blockchain Capital.
* Infrastructure: The platform utilizes the Coinbase Base network to facilitate automated, stablecoin-based royalty payments.
* Market Problem: With a significant portion of new music uploads being AI-generated, the industry struggles to verify ownership and ensure creators are compensated.
* Competition: KOR competes with other IP-focused blockchain projects like Story Protocol and Camp Network, though it differentiates itself by utilizing established Ethereum-based infrastructure rather than creating a new blockchain.