The Ministry of Commerce has collaborated with the Flips.IP platform to enhance funding opportunities for music copyright owners.
Commerce Minister Pichai Naripthaphan said the Flips.IP platform is a joint initiative between the Department of Intellectual Property (DIP) and Flips Innovative Co Ltd.
It will serve as a financial innovation that allows artists and music companies to transform their copyrighted works into digital assets in the form of digital tokens.
Therefore, they can generate revenue from their intellectual property.
This initiative will allow Thai artists seeking funding to use their creative work as collateral for loans through partnerships with various Thai banks.
He said creators in the Thai music industry face challenges accessing funding for producing new content, acquiring necessary equipment or promoting their music to a wider audience.
Artists can issue two types of digital tokens including utility tokens and investment tokens.
Utility tokens provide holders with access to services and special privileges such as listening to songs before their official release or participating in exclusive activities with the artists.
Investment tokens allow holders to receive returns from the revenue generated by music copyright.
Both tokens will be regulated by the Securities and Exchange Commission, Mr Pichai said.
The Thai music market was valued at over 3.6 billion baht in 2023, ranking first in Asean and 26th globally. It is expected to grow continually, according to the Global Music Report 2024 released by the International Federation of the Phonographic Industry.
Duangrit Bunnag, advisor to the Soft Power Steering Committee, said the platform focuses on new artists, functioning like a startup crowdfunding initiative to attract investors interested in or passionate about their work.
Before inviting investments, the platform will evaluate the market value of the music copyright and then facilitate fundraising.
Converting digital tokens into cash will be mediated by commercial banks, he said.
Currently, the value of the Thai music market is approaching 4 billion baht and is expected to grow further if music copyright is increasingly converted into a form of funding asset, he said.
Nusara Kanjanakul, director general of the DIP, said music copyright owners must register their copyrights with the department before digital assets can be made available for investment.
This ensures clear ownership and protects the rights of copyright owners, allowing them to benefit from investments while preventing unauthorised use of their works.
