Blockchain and Intellectual Property Law: An Analysis
Blockchain and Distributed Ledger Technology (DLT) are a matter of
time because many areas are exploring the possibilities of these technologies,
which are emerging with new users every day. Is there a place for such
techniques in intellectual property laws and practices? Let's analyze!
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| Blockchain Technology and Intellectual Property Law |
Blockchain and Intellectual Property Law: An Analysis of Various Encryption Algorithms for Security
What is Blockchain Technology?
Blockchain
technology is
known for the presence of encrypted currencies such as "Bitcoin"
or "Ethereum". This is an open record of information that can be used
to record and track transactions.
Named
Data Networking (NDN) is
used to exchange that record and verify its integrity.
The purpose
of this and other distributed registry technologies is to ensure that the
registry is transparent and reliable: It allows different parties to find out
what will be recorded in advance in the registry and the inability of any party
to change that content after it has been registered.
Each
transaction or "block" is sent to all participants in the network,
and each "node" in the network (i.e., each participant's computer)
must be verified by solving a complex mathematical transaction. Once the
block is verified, it is added to the record.
From the
information perspective, the real innovation of distributed record technology
is that it ensures the integrity of the registry by subjecting it to collective
control which does not require a central authority.
In other
words, many computers hosting the blockchain verify and validate transactions.
Therefore,
this technique is "almost invulnerable" because changing any
information in the registry requires the hacker to launch a simultaneous
cyberattack on all copies of the record (approximately).
Although the
traditional concept of a blockchain is an open, non-existent network, there are
"private" cluster-based platforms that allow only some members to
manage the registry.
Clustering Approaches for Financial Data Analysis
Since
distributed record technology creates a series of information that is safe,
dated, irreversible, and unchangeable, it has found applications in the areas
of trademark protection, enforcement, and marketing and consumer awareness.
With the
advent of new uses almost every day, these technologies have exceeded the
world's boundaries of financial technology. They are used to track goods along
the supply chain.
This is a
feature of many sectors that are heavily dependent on intellectual property and
are interested in dealing with product tracking and counterfeit goods and
parallel markets, including pharmaceutical, automotive, luxury and consumer
goods.
Many
different industries accept blockchain technology due to its many
potentialities, capabilities, and uses.
Different
types of data can be added to a series of blocks: they are not limited to
encrypted currencies, transactions and contractual information, but also data
files such as images, videos, and designs.
This is only
the beginning, as the development of this technology continues with the
emergence of new types of distributed records such as a hash graph, which seeks
to solve the problem of keeping pace with the expansion of transactions.
Intellectual property innovation and new product development
Legally, the
proliferation of such technologies is facing many possible obstacles (including
applicable law or order, data security, and privacy).
However,
blockchain technology and other distributed log technologies involve
intellectual property protection and the clear capability of registering for
those areas which are heavily dependent on intellectual property.
The data can
be provided in the registration phase or as evidence in front of the courts. It
also involves a promising and cost-effective way to speed up processes.
Potential
uses include:
Development
and enforcement of agreements related to intellectual property rights
(IPRs); Such as licensing agreements or exclusive distribution networks,
through intelligent
contracts; and timely transfer of payments to rights holders.
Blockchain
or Cluster-chain technology can also be used for authentication, certification,
and tracing purposes in order to detect or retrieve counterfeit, stolen or
imported goods from parallel markets.
Artificial Intelligence and Intellectual Property
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| Blockchain Technology and Intellectual Property Law |
The
Role of Artificial Intelligence in Intellectual Property
It is
considerable potential for the management of intellectual property rights in
blockchain technology. Registering
intellectual property rights in a distributed registry rather than a
traditional database would change to "intellectual property rights".
This is an
idea that Intellectual property offices should use the techniques of records
distributed in the establishment of "intellectual property rights
and artificial
intelligence” as a centralized system managed by the competent intellectual
property office and an irrevocable description of the lifecycle of all
registered intellectual property rights.
The record must be accompanied. Such details
may include the date of the first registration or commercial use of any
trademark; the date of the license of any design, patent, or assignment, otherwise
it will also provide a practical solution for data collection, storage and
availability requirements.
With the
facility of verification of intellectual property rights, there will be many
benefits of the possibility of tracking the entire life cycle of the rights. It can also
simplify procedures for proper diligence in transactions relating to
intellectual property properties, such as in mergers and acquisitions.
The privacy
issue of intellectual property rights holders can be addressed by the system
under a prior consent mechanism.
Evidence‐Based Intellectual Property Rights
A record of
the owner would become a potential reference to trademark owners for their rights
and to what extent those rights are used in the market.
This can be
especially useful in those countries where proof of first or actual use is
required or where the scope of usage is to be established, particularly in
disputes and other actions concerning the recognition of famous marks or the
response to a request for cancellation of a non-use mark.
For example,
gathering information on the use of a trademark in an official trademark
registry based on blockchain technology could allow the IP offices concerned to
obtain near-instantaneous notifications.
This will
provide reliable and dated evidence of the actual use of the trademark in the
market - two key factors to demonstrate first-use, actual use, or gain a
distinctive/secondary meaning or brand reputation.
Similarly,
distributed record technology can be used to detect defensive detection
technologies to interfere with previous techniques in order to prevent third parties from taking patents for such technologies.
Safe Creative: Copyright Registry
Blockchain
technology can also play an important role in the context of unregistered IP
rights such as copyright and unregistered design rights, evidence of their
creativity, use and eligibility and their status.
Deleting the
original design or function and the details of its author on a cluster-based
platform will result in the creation of a dated record and an authoritative
guide to demonstrate the above elements.
Many
start-up companies in cluster technology, are developing databases based on
distributed log technology as a useful practical solution for copyright
protection as well as digital rights management.
Smart Contracts and Digital Rights Management (DRM)
We hear a
lot about the concept of "smart contracts" in the context of
blockchain technology and other distributed record technology.
Some
cluster-based platforms allow the recording, implementation, and monitoring of
contractual data ("smart contract execution"), which may be useful in
the area of digital rights management and other IP-related transactions.
Smart
contracts can be used to prepare and implement intellectual property
agreements, such as licenses, and allow the timely transfer of payments to
rights holders; intellectual-property "smart information" on
protected works, such as songs or images can be encoded in digital format.
KODAKOne
platform is based on blockchain technology to manage image rights and its
own encrypted currency.
The Enforcement of Intellectual Property Rights
The record
of the owner, licensor etc. will enable all participants in the supply chain,
including consumers and customs authorities to verify the originality of the
product and distinguish it from the counterfeit product.
Cluster-based
records, which contain information about intellectual property rights, allow
the source to be authenticated as it can record objectively verifiable details
about the date and place of manufacture of the product, details of the
manufacturing process and the sources of the raw materials used.
These types
of cluster-based solutions are rapidly expanding and enable users to verify
product authenticity and provide guarantees to companies, authorities,
consumers, and insurance companies.
The product
may be supplied with stickers, seals or security systems (visible or hidden)
that are anti-tampering and erasable and related to blockchain technology.
The most
common applications of distributed record technology can play an important role
in combating counterfeit goods.
For example,
a mark owner can inform the customs authorities of the safety characteristics
of the original products, and the absence is an easy way for those authorities
to disclose counterfeit products.
In addition,
linking these mechanisms to blockchain technology has enormous potential to
tell consumers about the risks of counterfeit goods and the methods of
verifying the authenticity of the products they purchase.
This
technology can also be used for certification marks to ensure that products
meet specific criteria or standards, such as the wool mark, which certifies
that the goods are 100% woolen.
Supply Chain Management (SCM)
Markers can
benefit from the ability to trace goods through a series of unchangeable blocks
to enforce contractual distribution commitments, identify gaps in their product
distribution system, as well as to detect parallel imports and identify
parallel market activity.
This
mechanism can also be used to ensure that products meet certain regulatory
requirements, such as those applied in the pharmaceutical sector, and product
safety checks.
Who Owns Blockchain Technology?
Recently,
many patent applications have been filed for inventions related to blockchain
technology because of their enormous potential.
Banks and
financial institutions were the principal depositories for such applications.
But with the proliferation of blockchain technology, a wide range of sectors
are filing patent applications.
The majority
of patent applications concerned methods for enhancing or using the original
blockchain technology as revealed by its supposed mysterious inventor, Satoshi
Nakamoto.
Some call
for blockchain technology to be open by licensing its code under Open Source
Licenses or creating patent groups.
Blockchain
technology, like other promising new technologies, has not been delivered by
patent applicants, for example, the Chamber of Digital Commerce - an American
defense group promoting the emerging industry based on blockchain technologies.
The Chamber
recently established the Blockchain Intellectual Property Council
(BIPC), which aims to develop a defense strategy to deter patent collectors
of blockchain technology.
However, the
unknown identity of the block-chain technology did not impede the rapid spread
of the technology.
Speculative Realism Problems and Prospects
With the
proliferation of blockchain technology, industry workers and technology
developers will need to collaborate on interoperability standards and
protocols.
Various
government agencies and IPR registries, such as the European Union Intellectual
Property Office (EUIPO), are conducting research into the technical potential
of the blockchain; the European Commission plans to establish an EU Blockchain
Observatory and the US Congress recently established the Blockchain Working
Group.
Many
organizations discuss global standards for self-executing contracts.
Thus, it
appears to be only a matter of time before the law addresses possible obstacles
to the generalization of the use of blockchain technology such as the
applicable law or judicial system, the enforcement of smart rights, the
question of data security and the inviolability of personal life and the
adoption of reliable rules and definitions of smart contracts. Blockchain technology then enters the world of intellectual property laws and
practices.