The Intellectual Property Industry Could Benefit from Using Blockchain Technology

The Intellectual Property (IP) industry already uses third-party authenticators for trademarks and patents in the form of national patent and trademark offices, in addition to some international organizations. So will the industry benefit from Blockchain technology?

The blockchain is decentralized ledger technology that allows transactions to be recorded in an immutable way. All participants have access to the ledger; it’s a public database. The database records transactions between two or more parties permanently and disseminates a copy to all parties involved, with no need for a third party to authenticate the transaction.

The blockchain is accurate since records are found on not one but many computers around the world. Each new block in the chain is formed with a copy of the previous block attached so that in every case a past record is included in the next version of the Blockchain. Plus, the entire system is secured by military grade cryptography.

Current IP regulators and authenticators were formed in the pre-digital age. Most countries have their own systems for IP management. Although there is some consistency, there is also a great deal that differs in each individual jurisdiction.

Since the birth of the internet, online businesses have been able to internationalize very quickly and effectively. However, managing their brands and ideas over multiple territories presents many challenges, demanding a great deal of time and cost. It is here that blockchain could potentially resolve some problems.

There are three areas where blockchain could provide a solution for the IP industry:

Generating Ideas

Blockchain could take away the problem of protecting ones’ idea by allowing individuals and companies to identify their own innovation then record within an immutable Blockchain. Any future problems concerning who was the first to create an idea would be easily identified through the Blockchain’s timestamp. This could solve many complex and costly legal battles that take place; problems surround the creation of an idea that isn’t immediately protected.

Licensing and Ownership

Though the purpose of the IP system is to allow companies that innovate to be rewarded for their ideas when complex products like computers or cars are created, there are questions surrounding IP ownership. This is compounded by the fact that verifying ownership of patents can be tricky. Companies don’t always update ownership status when trading IP assets, making it hard for even legitimate companies to license others’ IP properly.

Blockchain technology could offer precise and accurate ownership records of IP assets for an industry. Moreover, Licencing agreements could be created and recorded through the Blockchain itself, delivering an objective and up to date ledger.

IP Transactions

In a global economy, it is incredibly challenging to manage IP. Companies need to decide where to get their protection for their ideas and then individually apply for protection in relevant areas. If you have more than a few ideas, as a company you’ll face a mountain of complicated paperwork. Thus, managing this process is time-consuming and costly.

Blockchain provides a chance to place an initial idea on the Blockchain. Once it’s updated, it estalishes a geographical scope. If an identical Blockchain is used by a network of law firms around the world, then each of those firms could initiate the process of protection. They would update the Blockchain accordingly. This dramatically reduces complexity, possibly encouraging more companies to protect ideas.

Thus, it is possible for blockchain technology to significantly support new ideas and those that work with them to create revenues from innovation. Of course, this will not happen overnight. Using Blockchain in an industry that already has proven (albeit often slow and challenging) methods will be even more tricky.

But overall Blockchain could be more impactful on the IP industry than it has been in the financial services industries. The hurdle to overcome will be in creating the proper adoption path for this technology.

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