Skip to main content

Programmable IP Licenses (PIL)

When a SealedIP auction settles, the contract mints a PIL license token to the winning bidder via LicensingModule.mintLicenseTokens. That token is the actual artifact of value: it is what the winner takes home and what gives them the rights they paid for.

This page explains what a PIL is, what it can and can't grant, and how SealedIP's five preset terms map onto the broader PIL framework.

What PIL is​

Programmable IP License (PIL) is Story Protocol's standard for expressing IP licensing terms as on-chain data. A PIL terms struct has ~15 fields covering:

  • Commercial use — can the licensee use the IP commercially?
  • Derivatives — can they make derivative works? With approval? With attribution?
  • Royalty policy — how do downstream revenue flows route?
  • Revenue share — what percentage flows to upstream IP?
  • Transferability — can the license be transferred to another wallet?
  • Expiration — does the license expire?
  • Currency + minting fee — what does it cost to mint the license outside an auction?

A specific combination of those fields is registered with the PILicenseTemplate contract and gets a permanent licenseTermsId. The terms struct is hashed and deduplicated, so identical terms always return the same id — the first user to pick a preset funds the registration, and everyone else reuses it.

The five SealedIP presets​

Rather than make sellers fill out 15 fields manually, SealedIP exposes five curated PIL presets. Each is a sensible default for a common licensing posture.

1. Personal use only​

Flavor: Locked Story PIL id: 2834 (hackathon demo terms) Allows: Personal/research use only Forbids: Commercial use, derivatives, transfers

The most restrictive license. The license token cannot be transferred to another wallet. The licensee cannot make derivatives. The licensee cannot use the IP commercially. Good for sellers who want full control over redistribution.

2. Non-commercial · Social remixing​

Flavor: Free remix, no commercial Story PIL id: 1 (Story Protocol canonical preset) Allows: Non-commercial use, derivatives with attribution Forbids: Commercial use

The "let the world build on it" license. Anyone can remix, but only non-commercially. Derivatives inherit the same terms (derivativesReciprocal: true), which keeps the whole chain non-commercial.

This is Story Protocol's canonical preset. It's pre-registered as terms id 1, so picking this preset doesn't require a registration call.

3. Commercial · No remix​

Flavor: Commercial, no remix Allows: Commercial use with attribution, transfer Forbids: Derivatives, remixing

The licensee can use the IP commercially (in their products, in their marketing, etc.) as long as they attribute the original. They cannot make derivative works.

Uses Story's RoyaltyPolicyLAP (Liquid Absolute Percentage) as the royalty policy, even though there's no revenue share configured — the policy is required for any commercial-use license.

4. Commercial remix · 5% revenue​

Flavor: Commercial · 5% revenue Allows: Commercial use, derivatives, transfer Royalty: 5% of every downstream remix's revenue flows back to the original IP

The license that tracks the whole derivative tree. Every derivative pays 5% of its revenue to the original IP via Story's LAP royalty policy. Derivatives inherit the same terms (derivativesReciprocal: true), so a remix-of-a-remix also pays 5% upward.

Best for IP creators who want to enable a creative ecosystem and capture upside from downstream success.

5. Creative Commons · Attribution​

Flavor: Free for everything Allows: Commercial use, derivatives, transfer Royalty: None Requires: Attribution

CC-BY-style: free for any use, including commercial and derivatives, with attribution. No revenue share, no minting fee. The maximally permissive preset.

What the license token actually is​

The license token minted at settlement is an ERC-721 NFT in the PIL LicenseToken collection on Story Aeneid (0xFe3838BFb30B34170F00030B52eA4893d8aAC6bC). Each token's metadata encodes which licenseTermsId it grants and which ipId it grants rights for.

The license token can be displayed in any NFT viewer, sent between wallets (if the terms allow transfer), and queried on-chain to verify the holder's rights. It's not a JPEG — it's a programmable receipt for a specific bundle of rights to a specific IP.

Picking the right preset​

Your goalUse this preset
Sell a one-off license to a single user, no remixesPersonal use only
Let the world play with your IP non-commerciallyNon-commercial · Social remixing
Sell commercial usage rights without enabling remixesCommercial · No remix
Build an ecosystem of remixes and capture upsideCommercial remix · 5% revenue
Maximize reach, ignore royaltiesCreative Commons · Attribution

Sellers can change the preset on each auction (a single IP can be relisted under different terms). Bidders should always check which preset is attached on the auction detail page — click the #N chip to see the full terms.

Reading deeper​