What is Blockchain?
Blockchain is a secure and transparent technology for storage and transmission of information with no centralized control body. Blockchain is based on fool-proof mathematical calculations.
High security is an important benefit of Blockchain. Transactions among participating members are encrypted and any data stored in Blockchain is certified as well as timestamped. The recorded data can be neither modified nor deleted. Moreover, using such a service saves time, as Blockchain transactions are ultrafast. Most importantly, the digital footprint (hash) associated with intellectual property is the only element of communication, and it ensures data confidentiality.
Protection of intellectual property can be simplified and strengthened by Blockchain.
An important issue in protecting intellectual property rights against counterfeiting is providing a “Proof”. Blockchain can supply all the different types of proofs and is especially useful for managing intangible assets. Establishing a proof via Blockchain lets intellectual property right owners obtain a proof of creation that can serve them in case of a litigation, and thus guarantees an effective protection of intellectual property rights.
Blockchain can also be used to document and date an intellectual property right infringement as well as to trace an infringement. In order to do so, a simple screenshot related to the infringement can be submitted to the Blockchain system.
Blockchain service can also be used as a solution for copyright distribution, especially when there are multiple copyright owners. It can clearly identify right owners and allocate their copyrights. Through a Smart Contract feature available on Blockchain, one can make an instant payment to copyright owners by purchasing a license according to predefined conditions.
Blockchain can create and enforce intellectual property agreements, such as license agreements and exclusive distribution networks by means of smart contracts. Thus, a real-time payment to intellectual property rights owners could be provided.
It can also be used to verify authenticity of products. By registering in Blockchain each stage of products’ life cycle, from manufacturing to introduction on the market, full traceability is ensured. This possibility could be of interest to many Intellectual Property rights intensive industries, including the pharmaceutical, automotive, luxury goods and consumer goods industries, where product traceability is essential for addressing the product counterfeit concern.
Blockchain owns significant benefits for intellectual property, since it can help simplify the management of intellectual property assets and protect them more effectively against any potential litigation. Furthermore, the financial burden related to the protection of intellectual property would be significantly reduced.