What Does Blockchain Have To Do With Intellectual Property?

Introduction

The era of digitalization is often regarded as one of the most fluid eras in human civilization. With each new day, disruptive technologies advance at an exponential rate. These disruptive technologies include Artificial Intelligence, Internet of Things, Cloud Computing, Visualization, and Blockchain. Change is a constant feature of emerging technologies. In doing so, they change how we live and operate.

With no end in sight to the ever-rapid growth of technological advancements, it is imperative that we similarly adapt to emerging technologies. This brings to question the required legal protection for emerging technologies. Similarly, we should consider how disruptive technologies have affected the law. One of the leading emerging technologies is blockchain.

What is Blockchain?

For starters, imagine a collection of financial accounts or records of transactions in a digitalized form. Blockchain is a digital system for documenting transactions in multiple computing devices simultaneously. It is a decentralized ledger distributing and linking stored information amongst peer-to-peer networks. The distinguishing factor between blockchain and other databases is how it stores information.

Key Features of Blockchain

To better understand blockchain, here are its key features:

●????? Chain of Block: Unlike the traditional method of databases, as seen in a Google spreadsheet, data in blockchain are stored in blocks and digitally linked together through a cryptographic hash. Resulting in the term Blockchain.

●????? Blockchain Hash: Before any change can be effected on the stored data, the foreign input would be compared to the previous data to ensure that the data has not been tampered with, thereby creating a secure chain.

●????? Decentralization and Peer-to-Peer Network: Persons in a blockchain network are identified as nodes. Any action carried out in the blockchain network would be simultaneously affected by every participant’s copy of the ledger. Due to its decentralized nature, no single person has exclusive control over it. As a shared database, any information entered into the system is permanently recorded and viewable live to everyone with access. #Blockchain

●????? Immutability: On a deeper analysis of blockchain, the question of whether or not blockchain is immutable arises. However, on a surface level, the nature of blockchain is based on a cryptographic security system. Due to the link between a block and the one before, altering transactions recorded on blockchain is difficult and nearly impossible.

Let’s Talk Blockchain and Intellectual Property

The relationship between blockchain and intellectual property is symbiotic. While blockchain receives the legal protection of intellectual property, the development of intellectual property can depend on the technologically advanced features of blockchain.

The intellectual property rights obtainable through blockchain include the following:

●????? Patent: As a software-based technology, the importance of patents can not be overemphasized. Innovative ideas, processes, and algorithms qualify for patent protection in the fast-paced world of Blockchain.

In 2021 alone, IBM led the highest number of patent applications, with 345 applications . One of which is “A Blockchain for Program Code Execution ," a patent for an innovative approach that addresses the issue of executing program codes securely.

●????? Copyright: For the software, cryptographic algorithms, and programs involved in blockchain technology, copyright offers protection against their usage by unauthorized parties. Copyright to a code or software automatically applies after it is reduced into a tangible form of expression.

●????? Trademark: Blockchain is a technology built on trust and security. The trademark of blockchain companies is a representation of their identities. With the perpetual threat of hackers and other security threats, trademark protection sustains the integrity of authentic blockchain companies. Similarly, you can legally protect the brand name of an innovative program in blockchain.?

Challenges in Intellectual Property Administration

In the enforcement and administration of intellectual property, these challenges are often encountered:

●????? Difficulty in Proving Ownership: Intellectual Property aims to protect creators and their creative works legally. In certain instances, it could be difficult to identify the owner of a creative work when there are multiple claims to it. This has often resulted in intellectual property litigation.

●????? Intellectual Property Documentation: Record keeping is important in intellectual property management. Intellectual property documentation involves record keeping of intellectual property agreements such as non-disclosure agreements, confidential information, licensing agreements, and transfer of ownership. Regulatory and administrative bodies of intellectual property also face the challenge of safekeeping IP documents.

●????? Intellectual Property Rights Infringement: IP rights infringement is the unauthorized use or claim of intellectual property. Infringement of intellectual property rights remains a cog in the wheels of IP. IP rights infringement can be in the form of copyright, trademark, patent, and trade secrets theft.

●????? Unauthorized Access: In conducting business activities, information is the bedrock of business management. This information could be confidential information or a trade secret. Businesses' databases are often targeted by cyber hackers, which constitutes the risk of data breaches and security threats. Employees of the organization can also perpetrate unauthorized access. The illegal use of trade secrets and vital data by unauthorized employees has been the root cause of numerous IP disputes. #IntellectualProperty

●????? Inefficient Registration and Verification Processes: The registration process for some intellectual property rights could be cumbersome. The lengthy and cumbersome registration process could discourage IP applicants. After registration, the issue of record keeping affects verification processes. Whether registration was conducted through traditional paperwork or digitally, such data is vulnerable to illegal alterations and forgery.

How Blockchain Addresses Intellectual Property Challenges

The distinctive features of blockchain as an emerging technology have the potential to revolutionize IP administration by addressing its key challenges.

●????? Proof of Ownership: Determining intellectual property ownership, especially in copyright disputes, can be challenging. As an immutable ledger, blockchain would reflect the original and first data inputted, differentiating the original owner from subsequent infringements. Identifying an asset's antecedent answers the question of "First to file ."In an IP dispute, the time stamp attached to the data serves as evidence for the original owner of the rights. Blockchain can also be used to generate certificates of ownership.

●????? Streamlining Registration and Verification Processes: As a solution to IP registration and verification challenge, IP registries can conduct asset registration using blockchain. When the filing process of an IP asset is conducted using blockchain, changes can be tracked to establish an ownership history. Transfer of IP assets can be conducted through blockchain, which can also serve as an authenticator of IP assets and as a nearly automated payment platform for the exchange. Also, blockchain can create a unified identity framework through which multiple verifications can be conducted across multiple platforms.

●????? Enhancing Security Against IP Infringement: According to the Organization for Economic Cooperation and Development (OECD), counterfeit and pirated goods represented at least 3.3 percent of the world's trade in 2016. The airtight security of blockchain improves access control. In the event of unauthorized access or usage of an IP asset, the digital footprints of the transaction would enable a digital forensic to identify infringers. This can be particularly important for trade secrets and copyright protection.

●????? Digital Rights Management: Using blockchain, licensing agreements can be automated. The enforcement of licensing agreements can be ensured through blockchain as it can automatically manage permissions. Smart contracts conducted with blockchain secure the distribution of digital content transparently.

●????? Global Reach: Blockchain is not geographically restrictive. This makes conducting IP asset searches easier. Before an IP rights application, such as a patent or trademark, parties can search the database to ensure such rights do not exist.

●????? User-Oriented Identity: As a peer-to-peer network, users can sustain their data privacy by controlling information shared with service providers. A self-sovereign identity gives IP owners total ownership and control of their digital identities, thereby restricting access to their data.

?Conclusion

The potential benefits of blockchain intellectual property are self-evident. Different organizations have engaged in the real-life application of blockchain for their IP. Adopting blockchain in intellectual property administration would effectively address key challenges faced by intellectual property rights owners. With the rapid development of blockchain, a world of possibilities in intellectual property widens. It can be said that the future of effective IP management is secure.