Blockchain And IPR: Unchaining Conventions And Unblocking New Paths

Introduction

Technology influences legal development and vice-versa. The evolution of intellectual property law exemplifies this interplay, as its progression and enforcements have consistently been driven by advancements in technology. With the advent and increasing sophistication of blockchain technology, there is a perception that a new wave of technological transformation is on the horizon, potentially reshaping IP law.

Blockchain, with its unique attributes, presents an opportunity to revolutionize the way we protect, manage, and enforce intellectual property rights . This system produce an information chain that is transparent and, in theory, unchangeable. These attributes have the potential to revolutionize intellectual property offices by streamlining the registration process and making it more accurate, secure, quick, and economical. Additionally, the technology might present a chance to improve the transparency and efficiency of rights management data. This blog discusses the blockchain’s impact on various intellectual property domains and out of the block, unchaining the archaic methods of IPR protection.

Copyright and Blockchain

The ease with which digital content can be copied and distributed has made copyright issues in the digital age more complicated. A lot of these problems have a promising answer in blockchain technology. The decentralized and immutable ledger of blockchain technology can be utilized to offer a transparent and safe way to record and handle copyright data. This lowers the possibility of infringement by ensuring that the ownership and date of creation of digital works are unquestionably recorded. Additionally smart contracts on blockchain can automate licensing agreements and royalty payments making it easier to enforce copyrights. These contracts can be set up to take effect when predetermined criteria are satisfied, guaranteeing that creators receive timely and just compensation. Furthermore, blockchain technology can help settle trademark disputes. The blockchain’s complete and unchangeable records offer transparent proof that can be utilized to quickly and fairly settle disputes regarding trademark ownership or infringement. As a result traditional legal proceedings take less time and money.

Trademark and Blockchain

Blockchain technology’s anti-counterfeiting method helps business to generate unchangeable documentation of the authenticity of their products by giving each one a unique identification number. This traceability and transparency helps the retailers and consumers to quickly confirm the legitimacy of products, safeguarding consumers against fake goods and assisting businesses in upholding their reputation, and guaranteeing data integrity.

Furthermore, by streamlining the licensing and enforcement procedures, the application of smart contracts improves brand protection. When predetermined triggers are met, these self-executing contracts can take specified actions, like penalising unauthorized use or start licensing agreements when products are sold. This lessens the requirements for manual enforcement, which facilitates the supply chain compliance and brand protection. The immutability of blockchain technology guarantees that trademark data cannot be changed or fabricated, thereby mitigating the possibility of IP theft and infringement. In order to ensure compliance and reduce disputes, smart contracts can automate processes such as licensing agreements and royalty payments.

By providing a distinctive digital representation of assets, NFTs enable businesses to tokenize their brands and safely confirm ownership on the blockchain, thereby enhancing brand identity protection. By enabling brands to create and enforce trademark rights in the Metaverse and fostering authenticity and trust in digital interactions, blockchain technology also facilitates the easy management and security of digital assets in virtual environments.

Patents and Blockchain

In the world of patents, Blockchain technology offers a clear record of invention development, filing dates, and ownership changes, which can simplify the process of managing patents. It supports the patent application procedure by producing an unalterable, transparent record of an invention's progress that aids in proving the inventor's ownership of the creation. Blockchain can also help monitor how patented technology is used, which will make it easier for patent holders to enforce their rights and get paid fairly for their inventions.

But since it is an invention, let us look into the scope of patentability of blockchains. The majority of blockchain based services are just repurposing the current blockchain technology which is essentially dependent on computer programs and algorithms. Section 3(k) of the Indian Patent’s Act says that the computer programs and algorithms are not considered to be inventions and there is a dilemma in interpreting the term “per se”. That being said, the latest trends suggest that the inventions with regards to computer might qualify for patent protection if they offer a technical solution to a technical issue if it can provide a solution to a technical problem or has a useful application.? A blockchain based invention could be patentable if it significantly improves underlying technology. Nonetheless, determining the extent of such improvements remains challenging. Blockchain technology is essentially a database used to record transactions, and according to the 2017 CRI Guidelines, a database is classified as a computer program per se, making it non-patentable under Section 3(k) of the act.

In the case of Telefonaktiebolaget Lm Ericsson v. Intex Techologies , the Delhi High Court interpreted “per se” to mean that patentable innovations are those that involve a technical contribution or effect rather than just a computer program. Later in the case of Ferid Allani v. Union of India & Ors , it was again stressed that inventions exhibiting a technical effect or contribution are patentable even if they are based on computer programs and albeit, computer programs would underpin innovations in domains such as blockchain, artificial intelligence and digital technologies, the court highlighted that this did not mean that such innovations were ineligible for patent protection. Therefore, to accommodate system-generated ideas, there is a need for streamlined regulations and procedures and a bird’s eye view examination on the patentability is essential.

Conclusion

To sum up, blockchain has enormous potential for IP management in the future. Emerging trends show that blockchain is being adopted more widely across industries, that it is being integrated with other cutting-edge technologies and legal frameworks are changing to make room for this new paradigm. Blockchain technology is poised o revolutionize how intellectual property is managed, offering a more secure, transparent and efficient system for safeguarding creations of the minds. As technology continues to advance and its applications broaden, blockchain’s role in reshaping the IP landscape becomes increasingly critical unlocking new opportunities for innovation and protection in the digital age.