Register Asset as Derivative

This use case is for artists or creators who are registering their NFT asset as a derivative of an existing intellectual property (IP) asset. If you're building upon an existing IP and want your derivative work to inherit and enforce the same license terms as the original (parent) IP, this scenario will guide you through the process. Additionally, users can enable royalties, pay royalties, and claim royalties using a snapshot ID.

Pre-requisites

You can refer this link for basic setup before you can start with the following steps.

Step 1: Register asset as an derivative work

In this step, you will register an asset as a derivative work using the IP module's registerDerivates function, with an internal license check.

const data = await korSDK.registerDerivates({
    tokenContract: tokenContract,
    tokenId: tokenId,
    parentIP: parentIP,
});

By executing this step, you successfully register your asset as a derivative work using the registerDerivates function. This process involves specifying the tokenContract, tokenId, and parentIP, ensuring that the asset is legally recognized as a derivative, with internal license checks automatically applied.

Step 2: Activate Royalty

In this step, you activate royalty on an IP using activateRoyalty function. This allows users to pay royalties and claim royalty tokens associated with the IP. The process involves creating a royalty token and distributing shares to the user, which can subsequently be further distributed by the user as needed.

const data = await korSDK.activateRoyalty({
    ip: ip,
    royaltyTokenName: royaltyTokenName,
    royaltyTokenSymbol: royaltyTokenSymbol,
    mintRTSupply: mintRTSupply,
});

By executing this step, you have successfully activated royalties for the IP. Users can now pay royalties and claim their respective royalty tokens.

Step 3: Pay Royalty

In this step, you pay royalty using payRoyalty function. The royalty tokens will be distributed among the holders based on their respective shares and will be available for them to claim.

const data = await korSDK.payRoyalty({
    ip: ip,
    amount: amount,
});

By executing this step, you have successfully paid the royalty. A snapshot ID will be generated as output, and the tokens will be distributed among the holders based on their respective shares, making them available for claim.

Step 4: Claim Royalty

In this step, royalty token holders can claim their tokens using the collectRevenue function. The claim is made based on the snapshot ID generated during the royalty payment step.

const data = await korSdkObj?.collectRevenue({
      ip: ip.current.value as `0x${string}`,
      snapshotId: Number(snapshotId.current.value),
});

By executing this step, you have successfully claimed your royalty tokens.

By following this workflow, you’ve successfully registered your NFT asset as a derivative of an existing intellectual property (IP), ensuring it inherits the license terms of the parent IP. This process is ideal for creators building upon existing IPs, allowing derivative works to maintain the same legal protection. Additionally, you have implemented functionalities to activate, pay, and claim royalties.

If this specific approach doesn’t suit your use case, explore other tutorials to find the best fit for your NFT and IP needs!