Custos Media Technologies, a startup, which is based in South Africa, tries to use blockchain technology to struggle with the media piracy problem. In recent days, it has made an important agreement with the famous Technology Innovation Agency, which will finance of 5.9 million Rand to the Custos Company over the following two years.
The Stellenbosch-based company has created the special technology for identification and tracking lawless pirate’s activity using blockchain. The illegal file sharing in the internet became a very important problem nowadays, so the Custos was funded of more than $ 400,000 to solve this problem.
Because of its idea, the Custos Media Technologies has been funded by the Technology Innovation Agency in the past, to the tune of R500, 000. The Technology Innovation Agency, created by the South African government provides some fiscal assistance to that small and medium businesses and institutions using different funds.
The technology developed by Custos, looks like unusual method of solving internet piracy problem. It works by inserting some bitcoins in the part of media. The startup tries to use something like the watermark to be tracked on the blockchain, which should help to identify violations once the media file leaves the initial recipient.
The watermark used as an identifying code, which will be unique to every customer buying the media. This watermark will be used to access a special bitcoin fee. After the sharing of the media content, the third-party gains possession of the media can cash in the code, for the finder’s fee. Using this technology the creator of the media can then check the blockchain ledger to find the beginning of the leakage.
Some new money injections was in April 2016 where the startup was given more than $265,000 from prolific industry investor Digital Currency Group and a South African indivudual depositors. Before that, the Custos raised an extra investment of R2,100,000 last year from Innovus Technology Transfer. All in all, the company has raised over $800,000.
G-J van Rooyen, the CEO of Custos Media Technologies, said that this funding agreement will let his company to speed up product development, and at the same time gives some extra resources, which help to access the widest possible market. Fred Lutz, the chief operating officer of this startup noted that the final purpose of Custos Media Technologies is to target Hollywood and to add the main famous movie studios to the list of its customers.