San Francisco-based startup Story Protocol has successfully raised $80 million in Series B funding to tackle the growing issues of intellectual property (IP) theft exacerbated by artificial intelligence.

This latest funding round values Story at $2.25 billion, reflecting significant investor confidence in its potential to reshape IP management.

Story Protocol enables creators to tokenize their intellectual property on the blockchain, establishing ownership and setting usage rules through smart contracts.

The platform aims to shift current content market dynamics, allowing creators to better capture the value of their work and manage royalties effectively.

Co-founder S.Y. Lee emphasizes the urgency of protecting intellectual property, warning that ongoing unauthorized data usage could severely harm existing frameworks.

Lee has criticized Big Tech for profiting from stolen IP, arguing that the current AI landscape undermines incentives for original creation.

The technology is gaining traction, with over 200 teams developing more than 20 million IP assets across various sectors, including AI and IP finance.

With intellectual property theft costing the U.S. economy an estimated $600 billion, the need for robust management solutions like Story is more pressing than ever.

Investors, including Andreessen Horowitz and Polychain Capital, have praised Story's vision for a modern approach to IP compensation in the digital age.

The Story system is designed to function like 'Legos,' where blocks contain metadata that define pricing and usage restrictions, creating a feedback loop between creators and IP owners.

Ultimately, Story aims to create a sustainable IP ecosystem, enabling creators to track and license their content more effectively while ensuring they receive compensation when their work is used.

To attract developers, Story offers incentives such as grants and technical assistance through initiatives like the Story Academy, which includes an accelerator and incubator for projects.