Bitcoin blockchain anti-piracy startup Custos raises $400,000 to fight piracy

Rage Review : South African Bitcoin blockchain startup Custos Media Technologies has received $400,000 in new funding, mainly to identify illegal file sharing and track piracy through Bitcoin blockchain. Every user who purchases the company's services will receive a unique identification code watermark. If the user's content is shared or leaked, the third party can obtain the cash in the code as a "discoverer's reward." Custos COO Fred Lutz revealed that its ultimate goal is to make large film studios in Hollywood its customers.

Translation: Nicole

Custos Media Technologies, a South African bitcoin blockchain startup that uses the bitcoin blockchain to identify illegal file sharing and track piracy, has received $400,000 in new funding.

Custos Media Technologies, a South African startup that uses the Bitcoin blockchain to combat media piracy, has partnered with the Technology Innovation Agency (TIA) to receive 5.9 million rand (about $400,000) in funding over the next two years.

Bitcoin rewards for downloaders?

Blockchain technology is seen as a unique way to combat media piracy, namely by rewarding media with Bitcoin. The watermark can be tracked on the blockchain, which can be used to identify and authenticate infringements while erasing the information of the original media recipient and buyer.

For each user who purchases the media, the watermark is a unique identifier that can be used to verify the "finder's fee", which is presented in the form of digital currency. If the content is shared or leaked, a third party can get the cash in the code as the "finder's fee". At this time, the alarm will be triggered, and the content producer can then check the Bitcoin blockchain ledger to find the source of the leak.

In a nod to blockchain technology, the South African startup Stellenbosch has received R500,000 in funding from TIA, a government initiative established by the South African government to provide financial support to businesses, institutions and small and medium manufacturing enterprises (SMMEs).

GJ van Rooyen

Custos CEO GJ van Rooyen said:

TIS has once again demonstrated their commitment to supporting early stage technology companies in South Africa. Their funding agreement will enable Custos to develop its products while opening up resources to bring the products to a wider market.

The fresh influx of funding follows a seed round in April 2016, with the blockchain startup raising $265,000 from prolific industry investor Digital Currency Holdings (DCG) and private South African investors. Prior to this, Custos raised its first investment round of R2.1 million from Innovus Technology Transfer last year. In total, the company has raised R12 million (over $800,000).

In a past interview with CCN, Custos COO Fred Lutz revealed that the South African company’s ultimate goal is to have major Hollywood film studios as clients.