'Hallucination Bank' Platform Launches: AI-Generated Content Copyright Trading Goes Commercial

The NASDAQ of AI-Generated Content

On November 12, 2027, Singapore-based tech company Hallucination Labs officially launched its flagship product, Hallucination Bank — a platform dedicated to copyright registration, trading, and licensing for AI-generated content.

The platform allows users to register AI-generated text, images, audio, and video as "AI-Native Copyright Assets" (ANCA) and trade, license, and share revenue through built-in smart contracts. Blockchain technology generates a unique digital fingerprint and ownership chain for each piece of content.

"Humans have a well-established copyright system for their creations, but AI-generated content has remained in a legal gray zone," said Lin Jiawei, founder and CEO of Hallucination Labs, in an interview with NextPaper. "The core problems Hallucination Bank solves are: when AI creates content, who owns it? How is it priced? How is it traded?"

Business Model and Technical Architecture

Hallucination Bank operates on three levels:

Registration Services: After uploading AI-generated content, users receive a unique digital identifier via the platform's Multi-Modal Fingerprinting (MMF) algorithm, along with recorded metadata including creation timestamp, AI model used, and prompts. Registration costs $0.50 per piece.

Trading Marketplace: Registered AI content can be freely traded on the built-in marketplace. The platform charges a 5% transaction fee. Supported formats include one-time buyout, per-use licensing, and revenue sharing.

Copyright Protection: The platform partners with 12 major global copyright monitoring agencies to provide infringement detection and enforcement services.

Lin revealed that during its beta phase, Hallucination Bank secured content distribution partnerships with Getty Images, Shutterstock, and Visual China Group. On launch day, the platform attracted over 280,000 registered users, completed 12,000 transactions, and exceeded $3.4 million in total trading volume. The single largest transaction was a set of architectural concept designs generated by Midjourney V7, sold for $120,000.

The Debate: Should AI Content Enjoy Copyright?

The launch has reignited legal debates over AI content copyright. The U.S. Copyright Office ruled in 2023 that purely AI-generated content is not eligible for copyright protection. Hallucination Bank circumvents this by defining its copyrights as "derivative rights from AI-assisted human creation."

"The legal architecture is clever, but it's essentially walking a fine line," said Mark Lemley, professor of intellectual property law at Stanford. "If large volumes of AI content enter the market and gain de facto copyright protection, it could squeeze the livelihoods of human creators."

China's National Copyright Administration stated it is developing standards for AI-generated content copyright recognition, with guidance expected in 2028.

Meanwhile, Hallucination Bank faces content quality challenges. On launch day, a flood of low-quality AI content overwhelmed the platform, with the automated review system rejecting 34% of submissions. The company says it is optimizing its quality assessment model and plans to introduce community voting to assist moderation.

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The copyright and commercialization of AI-generated content remains in rapid flux. NextPaper will continue tracking developments.