Arweave's Universal Data License UDL: The Future of Web3 Content Creation

Arweave recently introduced the Universal Data License (UDL), a new feature designed to give creators in Web3 greater control over their content. This is achieved by allowing creators to define licenses for their content to be used by others.

Creators can program the Common Data License as they wish, defining its royalties, splits, duration of the license, and more. This is a major upgrade because any file uploaded to Arweave can be monetized!

Combined with Arweave’s permanent data storage (permaweb), UDL lays the foundation for the creator industry of the future.

Let’s see how it does this.

UDL - A GAME CHANGER

UDL allows creators to attach a “license” tag to their uploads. These tags are similar to metadata and provide specific instructions on how to use the content. What’s more, they can also be used to compensate the camera according to the creator’s wishes. This effectively turns every file, whether it’s an image, music, video, or document, into a business opportunity.

UDL can programmatically define license terms through predefined tags, covering aspects such as derivative works, commercial use, license fees, currency, license duration, and payment address.

By default, the Base License grants the Licensor (the person using the Content) the following rights:

• copy
• show
• public display

But it does not grant the following rights by default:

• Distribution content
• Content for commercial use
• Make derivative works

But all parameters can be specified by the user.

If you want to dive into the technical details of the General Data License and all the different licensing options, you can check out the

Creators can allow derivative works and set different conditions, such as attribution, attribution, license transmission and revenue sharing.

Let’s take a look at how a UDL might work in the music industry.

Using UDL in the Music Industry

Say a rock band uploads their new single to Arweave and adds a “license” tag that says others can create derivative works (like remixes) provided they share a percentage of the revenue with the band. This percentage can be any number the band decides, from 0% to 100%.

Now suppose a DJ decides to mix this single.

When the remix brings in revenue, the band will automatically receive their share, according to the license label. The distribution of royalties is managed by smart contracts, ensuring a transparent and secure payment process. This means that none of the members of the band will lose their share of the royalties, which is a common problem in the traditional music industry (we’ll explore this below).

It is worth noting that in this case, if there are multiple royalty recipients, a smart contract can be designated to handle the splitting and receiving addresses of the royalties, otherwise, if there is only one artist, an address (without a smart contract) can be designated as receiver.

This approach could automate the music industry and solve common challenges like losing future royalties for their contributions after members leave a band. UDL ensures that royalties are always paid as they are hardcoded into smart contracts stored on Arweave’s permanent network.

Practical advice: It’s a good idea to double-check a real-life royalty distribution agreement before hardcoding it into a smart contract.

However, if a band is generous, they can also simply add a reputation attribution license that only requires them to be named as the original creator.

To read about all the different payment methods available through UDL, see

COMMERCIAL USE AND LICENSE

UDL is not limited to music, it applies to all forms of digital content and can handle licensing for commercial use.

• The “Commercial Use” tab can be set to allow or disallow commercial use of the content.
• If commercial use is permitted, use the “License Fee” tab to specify a monthly or one-time license fee.
• The fee can be denominated in the specified currency selected by the user. *Alternatively, the “Expires” label can also be used to indicate when a license term expires.

For example, a designer can upload assets to Arweave and set a license tag indicating that the company can use them subject to paying a one-time or monthly license fee on the direct chain.

Let’s look at some potential use cases.

Example of commercial use and licensing using UDL

Imagine a popular stock image platform such as Shutterstock, which hosts millions of images, videos, and other creative material. These platforms charge a fee to authorize the use of these resources, and this model can be replicated on-chain, with each resource becoming a non-fungible token (NFT) on Arweave, utilizing UDL.

Likewise, educators may allow others to modify and use their course materials for a fee.

For example, Udemy is an online learning platform where educators can sell courses to students around the world. These educators receive a portion of the course fee each time a student enrolls in a course. However, while purchasing a course on Udemy allows you to use and study the course content personally, it does not necessarily grant you the right to use the course material for commercial purposes.

Udemy’s terms of service state that when you purchase a course, you get a license to view and learn from the course content, but that license does not include commercial use, such as reselling the course content or creating your own courses with it. This means that course creators cannot generate potential revenue from these commercial and third-party uses.

Under UDL, educators can upload their course content to Arweave with a license tag attached. This label can specify, for example, that the content can be used or modified by others in exchange for a certain fee. If their content is widely used or adapted, they could earn significantly more than the traditional Udemy model. Additionally, every transaction is transparently recorded on the blockchain, so there is no risk of lost or unclaimed payments.

Likewise, UDL could bring about the same type of change for YouTube creators. Currently, content creators on YouTube make money through advertising revenue, brand partnerships, and audience donations. However, UDL opens up a new revenue stream for YouTubers. If their videos are widely used or sampled, they can earn additional income on top of their existing YouTube earnings.

Prevent Royalty Loss

We estimate that UK authors can lose tens of millions of pounds each year due to inefficient collection systems, lack of transparency and unclaimed royalties, particularly for emerging and non-mainstream authors. "

—Excerpt from “Where Are the Missing Song Royalties?” by The Business of Music Global

Under the traditional model, creators lose millions in royalties every year due to inefficient payment systems, lack of transparency, and unclaimed royalties. UDL can help eliminate these losses by providing an explicit, on-chain system for defining and enforcing licensing agreements.

Each license agreement is transparent, efficient, and automated, greatly reducing the risk of human error and delays, preventing creators from receiving royalties in a timely manner.

And, because these agreements are immutable and stored on the blockchain, creators don’t have to worry about royalties disappearing if they change their contact information or fail to claim them in time.

UDL on Arweave takes inspiration from open source software and extends it to all forms of digital creativity. It empowers creators to express themselves freely, knowing that their work will be respected and fairly compensated.

All creators, from musicians to designers, educators to filmmakers, can benefit from the opportunities offered by the Common Data License on Arweave.