The new market-creating method for contents distributing in the Internet
(P.A.F)

□The new market-creating method for contents distributing in the Internet
1. Applies the method of the security business to the Internet system and is business method to distribute securitised contents through the Internet.
2. Not like the other download service, gives a chance to receive money to creator before starting in download contents.
3. Gives strong support to creator, taking advantage of the Internet as marketing media.
4. Maximizes the profit of creators, users, and supporters without any intermediary marketing system.
5. Needs no distribution system since all the procedure and flow are done in the Internet.
□Outline of the method
1. The system administer This method consists of four different parts, the system administer, the creators, the supporters and the general users through the Internet.

- The system administer advertises for some intellectual content and sells the shares on the Internet after getting all rights to the content divided proportionately. He does all the system management and receives his share of the support money (paid for securities by the supporters) and of the purchase money (paid for the content by general user).
2. The Internet
3. Creator
- The creator supplies an intellectual content (music, film, cartoons etc.) and receives his share of the support money and of the purchase money.
4. The supporters
- It is The supporters that makes this method unique. The supporters is the group of patrons and in the first place, they buy the securities of their favourite content, the rights of which are divided proportionately. Before the download service is given to the user, they function as the patrons. Once the service has been given, they act as publicity managers, for example with word-of-mouth activity. They receive a share of the purchase money basing upon distribution ratio.
5. General user
- General user downloads his favourite intellectual content into his PC or cellular and pays for it.

□Management steps
Step1 (see fig.1)

Contents registration
1) A creator registers his contents (a work) with a system.

2) Content must be unpublished, which right has not given to the others.

3) Registration is on per content basis( not a creator basis).

4) Registration is free.

5) Any field of contents acceptable.(music,movie,novel,etc.)

6) There is a different system administer for every contents field.

Step2

A distribution ratio agreement
1) Creator and system administer have an agreement beforehand.(make a contract on shares)

2) The distribution ratio of support money (securities sales) is determined between creator and a system administer beforehand.
-- Creator 80%.
-- System administer 20%.

3) The distribution ratio of purchase money (caused by download) is determined.
-- Creator 30%.
-- System administer 10%.
-- The supporters 60%.

Step3

The supporter recruitment determined
1) The unit price (a share) of the support money determined.
-- 5,000 JPY per share (right to receive 5% of the purchase money of the content A.).

2) Capacity (the number of the supporters) determined.
-- Capacity 12 shares.

3) The total of the support money calculated.
-- Total 60,000 JPY.

4) Flotation Period determined.
-- Flotation Period 2 weeks.

Step4

Start selling contents securities
1) Start previewing of contents at web page.

2) Start to recruit the supporters.

3) Each supporter pays the support money for the shares he bought.
(ex. two shares 10,000 JPY)

Step5

Distribution of support money
1) After the floatation days expired (if sold out), the support money should be distributed basing upon ratio determined at step 2.
-- Creator's share 80%(48,000 JPY).
-- System administer's share 20%(12,000 JPY).

2) Flotation days may be extended if the securities have not sold out.

Step6 (see fig.2)

Start Contents download service
1) General user starts to down load content.

2) Down load fee, value of purchase money, has been determined by system administer beforehand.
-- 100 JPY per download for content.

3) Down load fee distributed for every fixed period basing upon agreement
-- Creator's share 30 JPY per download.
-- System administer's share 10 JPY per download.
-- Supporters's share 60 JPY per download.


□The numbers such as ratio are reference value.

□Promotion to down load contents for general user
1. The site, if the contents were plenty, would be accessed by a lot of general user.
2. Visitors to web will enjoy finding gems and support its creator, buying securities as a part of supporters and downloading content as general user.
3. On the site, not only systems administer but also creator and each supporter can confirm his share to win whenever they want.
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