Hey folks - Joe here - welcome to Edition #63 of The SEG3 Report, which comes to you off the back of an incredible day 1 of SEG3 London.

We’re going to be sharing some of the key takeaways of SEG3 London in next weeks instalment, but for today, we’ve got two incredible guest pieces from Graham Robinson on protecting and monetising your IP in an AI & UGC world, and Derick Tsai on how the League of Legends IP has grown across mediums and generations. PLUS, some big news from today’s event…

Let’s dive in…

Contents: Edition #63

• Can you protect IP in an AI & UGC world?

• How the League of Legends IP scales across platforms and generations

• PGF expands to full pro season & inks 7-figure deal for franchise team

Can you protect IP in an AI & UGC world?

In today's digital world, individuals can produce professional-grade content like music, videos, and digital products faster and more easily than ever. Powered by AI tooling, content creators are no longer just fans. They are becoming part of the creative ecosystems surrounding major brands.

This rapid evolution is forcing a fundamental rethink. Traditional IP protection no longer works.

For decades, brands focused on enforcement, targeting counterfeiters and infringers on major platforms through slow, manual processes. Legal teams concentrated their efforts on the most damaging, high-exposure content, assuming that smaller infringements were insignificant. But the reality has shifted. The vast majority of IP interactions today are not malicious thefts. They are passionate fans creating, remixing, and expanding on the IP they love.

Historically, many brands chose to ignore this fan-driven activity unless it grew large enough to pose a direct threat. However, as AI tools supercharge the quality, scale, and speed of community-created content, ignoring these small infringements is no longer viable. What once seemed harmless now has the potential to scale rapidly, impacting brand reputation and IP value before a brand can react.

The approach must change. Brands must shift from protection to management. They must become stewards of their IP, focusing not just on stopping bad actors but also on embracing the creative energy of their communities.

At Yakoa, we have built an automated system that helps brands track how their IP is used online. Our technology provides visibility across platforms, enabling brands to move beyond reactive takedowns. In addition to protection, we empower brands to engage proactively through retroactive licensing, offering monetization pathways to creators who already build on branded IP. This turns potential conflicts into partnerships and unlocks new revenue streams.

Managing IP today means seeing the full picture. Brands must be able to distinguish between harmful infringements, such as counterfeit goods or reputational risks, and the creative work of engaged fans who could be powerful brand advocates. Automated systems allow brands to categorize these uses at scale, ensuring the right action is taken quickly and thoughtfully.

Why Now?

New infrastructure is emerging to support this shift.

Just last week, Roblox announced its License Manager and IP Catalog, giving brands the tools to pre-approve IP use and enabling creators to build experiences legally. Roblox is empowering fans by creating a scalable system where brands and creators both win.

Fortnite has also introduced royalty-based collaborations with LEGO atop its already-popular island creator toolkit, giving creators a direct financial stake in the success of the content they build. Protocols like Story are laying the foundation for open, blockchain-based IP licensing that will allow creators to innovate with confidence.

These developments highlight a clear trend. Communities want to create, and the brands that learn how to say yes thoughtfully and systematically will reap the benefits of deeper fan loyalty, broader reach, and new revenue opportunities.

At Yakoa

We are proud to be building the future of IP management. Our mission is to empower brands to monitor, monetize, and protect their assets in a way that respects creators and unlocks new value.

We believe the future of IP is not about litigation. It is about empowerment, turning what was once seen as infringement into a source of growth and community connection.

How the League of Legends IP scales across platforms and generations

Over the past 16 years, Riot Games has done what few companies have achieved: it’s built League of Legends into a global IP spanning games, animation, music, fashion, and esports—adored by hundreds of millions of fans worldwide. That kind of longevity raises the question: What does it actually take to build a franchise that’s not just relevant today, but resonant for decades to come?

In short—how do you create IP that scales across platforms and generations?

Why should you care?

TL;DR: If you’re a studio investing in IP, this is the question that defines your long-term relevance. The next generation of great franchises will come from teams that know how to design rich narrative ecosystems built to endure. Because when crafted with intention, an IP can become an operating system for meaningful, lasting connection.

In full: Great IP isn’t just creatively inspired—it’s strategically architected, with long-term infrastructure and narrative clarity baked in from the start. This piece outlines 10 keys for building franchises that scale emotionally, narratively, and commercially over decades. While Riot’s League of Legends ecosystem serves as a living case study—the takeaways apply to anyone building cross-medium brands today.

Key #1 - Mission Statement: At the heart of every great IP expression is a core insight about the human condition. Arcane nailed this with one heartbreaking question: “Are we still sisters?” Both seasons explored whether Vi and Jinx’s familial bond could survive being torn apart by circumstances far beyond their control. It was this emotional core that grounded Arcane’s spectacle and transformed it into something timeless.

Key #2 - Genre Innovation: Successful IPs take familiar genre conventions and reframe them through a fresh, culturally relevant lens. League of Legends does this by infusing the fantasy genre with sci-fi tech, modern streetwear, and even K-pop. This genre remixing keeps the IP creatively flexible, globally accessible, and endlessly remixable across games, music, fashion, and events.

Key #3 - Accessibility: League’s core games are complex, but the IP’s premise is simple: mythic Champions locked in conflict across a living, evolving fantasy world. That high-concept clarity powers its broader reach. Low-friction expressions like Arcane (topped Netflix charts in 52 countries), K/DA (630m+ views), cinematic trailers, and even pop-up events invite new audiences into the universe—without requiring them to master the game first.

Key #4 - Brand Hooks: Memorable IPs anchor themselves in the senses. From Jinx’s iconic shark cannon (Fishbones) to the sweeping battlefield of Summoner’s Rift to the viral hooks of K/DA, League embeds unforgettable sights, sounds, and symbols into its DNA. These mnemonic cues build brand stickiness—and create moments fans love to share, remix, and cosplay.

Key #5 - Story-Driven Worldbuilding: Great worldbuilding isn’t just about aesthetics—it’s emotional infrastructure. Piltover and Zaun aren’t just visually distinct; they’re built on opposing ideologies: utopian progress versus anarchic survival. These societal forces push characters like Vi, Jinx, Ekko, and Viktor into difficult moral choices. Taking this approach turns the world from a static backdrop into the engine of character development.

Key #6 - Transferability: Enduring IPs migrate seamlessly across formats. League’s conceptual core—mythic conflict and Champion identity—has scaled into Riftbound, Teamfight Tactics, Arcane, music videos, and even high fashion collaborations with Louis Vuitton. This emotional spine allows Riot to expand into new mediums while preserving brand consistency. For a deeper dive into how game IPs can scale across formats without losing narrative integrity, see my piece on Medium Mapping. 

Key #7 - Characters: Franchises scale when characters become emotional access points for audiences. League’s roster encapsulates rich universal archetypes like: the reckless genius (Jinx), the fallen idealist (Jayce), the relentless protector (Vi), the visionary radical (Viktor), and the prodigy with purpose (Ekko). These characters allow audiences to find themselves in the IP, fueling lifelong attachment.

Key #8 - Strategic Storytelling: Smart IPs phase their narratives. Arcane didn’t launch with the full Champion roster—it started with a tight ensemble (Vi, Jinx, Ekko, Viktor, Jayce), layering depth and resonance before expanding outward. This way, each new expression strengthens the IP’s emotional foundation and primes audiences for future formats or spin-offs. These ideas ladder up to a broader framework I call the 6-Stage Franchise Lifecycle—detailing how IPs can seed, scale, and sustain emotional relevance over decades.

Key #9 - Evolution: When culture shifts, IPs must evolve. League has grown from a hardcore MOBA into a multimedia juggernaut—embracing animation, fashion, music drops, and in-person games like Riftbound (TCG). Each expression keeps the brand relevant while evolving to attract new audiences. Static franchises fade. Dynamic ones become generational.

Key #10 - The Human Heart: Spectacle hooks attention. Emotion builds loyalty. Arcane delivered both—but what endured was its raw human core: abandonment, guilt, sibling love, and systemic injustice. The best IPs don’t just wow—they wound. They reflect universal truths back to us, even when cloaked in fantasy. That’s what builds audience loyalty.

Bonus - Vibe: A great IP isn’t just content—it’s a mood, a rhythm, a texture. League’s layered modern fantasy aesthetic—the painterly visuals, pulse-pounding score, kinetic animation—creates a distinct emotional frequency. In an age of scroll culture, vibe is what sticks. When players or fans feel it, they know they’re in the world—even before the logo appears.

As companies like Riot, Supercell and Netflix continue to expand into new storytelling formats, the opportunity to shape global mythologies has never been greater. But it requires clear narrative intent and long-horizon strategic design.

The next generation of culture won’t be powered by isolated hits. It will be shaped by ecosystems—designed to last, led by studios who think in decades, not quarters. The real question isn’t just what story to tell next—but how to design the system where a thousand stories can bloom.

[by Derick Tsai - Sr. Creative Director, Riot Games & Founder, Magnus Rex: An IP Development Studio | Prev: Bungie, Nike]

PGF expands to full pro season & inks 7-figure deal for franchise team

The Professional Grappling Federation (PGF), the world’s fastest-paced grappling league and a driving force in the evolution of modern Jiu-Jitsu, announced today the successful sale of one of its franchise teams in a seven-figure deal. The team, now officially named The New Hope Kings, has been acquired by New Hope Regeneration, a national leader in regenerative therapy and athletic recovery. The team is one of the league’s four founding franchises.

This landmark transaction marks PGF’s official entry into the professional sports franchise model – mirroring systems used in leagues like the NFL, NBA, and Formula 1 – where teams are independently owned and can appreciate in value over time.

The announcement comes on the heels of a breakout year for the PGF. Season 7 alone generated more than 11 million views across social media and broadcast platforms, fueled by the league’s cinematic storytelling, fast-paced rule set, and viral growth. PGF content is distributed globally through platforms like UFC Fight Pass, helping establish the league as one of the most-watched properties in the sport.

Heather Grace Gracie, co-owner and member of Jiu-Jitsu’s royal family – the Gracie Dynasty – adds:

A New Era of Professional Jiu-Jitsu Season 8 will debut The Kings on the league’s biggest stage yet, beginning with the PGF Draft on June 25, followed by weekly matchups starting July 23, and culminating in a championship playoff on September 10.

The 2025 season introduces the league’s Full Season Format, replacing the former one-week tournament model. The new 12-week structure features team rosters, athlete contracts, rivalries, and long-form fan engagement – bringing structure and sustainability to professional grappling.

With multiple additional ownership conversations already underway, the PGF is accelerating toward its vision: a global professional Jiu-Jitsu league built on permanent teams, franchise economics, fantasy sports integration, and year-round digital content.

In other news this week…

• SailGP launch real-time 3D tabletop racing with new AR technology: read here.

• FIFA announces innovations upcoming for Club World Cup: read here.

• LEGO & Netflix launch One Piece products: read here.

• KATSEYE join Toca Boca World: read here.

• NHL & Sony announce multi-year technology partnership: read here.

• McLaren Racing launch Motion Simulator: read here.

• Adidas launch IRL Minecraft merch: read here.

• LIV Golf & Salesforce partner to enhance fan & player experiences: read here.

• Developers can now keep 100% of the first $1 million in net revenue per product on Epic Games Store: read here.

Working on anything cool, or have a press release you would like us to cover? Send it in for the chance for it to be covered in next week’s edition!

That’s all for now folks - thanks again for reading the latest edition of The SEG3 Report and if you found it of interest, do consider sharing with a friend!