Blockchain anti-piracy provider Custos receives $265,000 in seed funding to expand customer base

Custos Media Technologies, a South African company working to combat media piracy using blockchain technology, has raised $265,000 in seed funding from Digital Currency Group (DCG) and a private South African investor.

The company uses a technology that watermarks bitcoins into media, which is tracked through the blockchain to identify infringements. The system uses crowdsourcing to offer rewards to resource downloaders who identify pirated content. Custos stated in a press release on its website that media content creators and distributors will be able to embed identification codes in each of their content.

Operation Mechanism

The code embedded in each piece of content can be used to deposit and withdraw money - the broker's fee - in the form of cryptocurrency. If the content is leaked or shared and a third party gets their hands on it, they can use the code to redeem the broker's fee.

By analyzing the cryptocurrency transaction ledger, it is possible to know whether the originally authorized user leaked or shared the content, and then alert the content creator. The creator can then impose legal or financial penalties on the user, or restrict his or her access to future content. At the same time, cumbersome security measures will not inconvenience authorized users.

A strong start

Custos is one of South Africa’s largest film producers and distributors, as well as one of the country’s largest broadcasters, but it is still in the LaunchLab incubator at the University of the Western Cape.

Custos CEO CJ van Rooyen said:

“The company will use the funds raised to expand its customer base, especially those companies that have lost tens of millions of dollars in production costs due to leaks.”

Custos COO Fred Lutz said

"Large studios can afford these losses, but it is a huge blow to small independent producers," he said, adding that piracy could cause studios to be unable to pay their employees or go bankrupt.

DCG founder and CEO Barry Silbert said

“Custos has developed an innovative Bitcoin application for content creators, this time addressing the cost issue.”

Custos received its first investment of R2.1 million ($140,000) last year from Innovus, the technology transfer office of Stellenbosch University in South Africa.

Future goal: Hollywood

Custos is currently targeting independent producers, but its ultimate goal is Hollywood.

Custos is also currently testing a solution for protecting e-books.

Lutz said identifying and verifying the first infringer is just the first step for Custos, which is exploring how blockchain can make media consumption, distribution and production more equitable.

Blockchain is already driving some industries to restructure, Lutz said, noting that Custos will help protect content in this wave of decentralization.

Original article: https://www.cryptocoinsnews.com
By Elliot Maras
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/custos-gains-seed-funding)