Blockchain technology and intellectual property intersect in various ways, presenting opportunities and challenges for creators and businesses. Blockchains can be used to manage and protect intellectual property rights, but they also raise complex legal and practical questions.
Blockchain for IP Management
Blockchains can enhance various aspects of intellectual property (IP) management. A digital asset can be represented by tokens and administered digitally via smart contracts running on blockchains. Non-Fungible Tokens (NFTs) representing digital art works, and other intellectual property, are examples of intangible assets. Blockchains offer the capability to control the disposition of property as digital assets via smart contracts. Using blockchain applications, it is possible to apply blockchains to control intellectual property.
Copyrights
Copyrights grant exclusive rights to authors of original works. Copyrights allow authors to control the reproduction, distribution, adaptation, performance, and display of their works for a limited period. Copyright protection starts upon fixation of the original expression. Copyright ownership provides the owner with exclusive rights, including reproduction, adaptation, distribution, performance, display, and digital transmission rights.
Trademarks
Trademarks are signs that distinguish the goods or services of one enterprise from those of others. Trademarks help consumers identify the source and quality of products or services and help businesses build their reputation.
Patents
Patents grant exclusive rights to inventors of new and useful products or processes for a limited period, usually 20 years. Patents allow inventors to prevent others from making, using, or selling their inventions without their permission.
To gain more information about how smart contracts can improve customer engagement, see: “Smart Contract Customer Engagement”
Legal Challenges and Considerations
Despite the potential benefits, several legal challenges and considerations arise when using blockchain for IP management. Some of these challenges involve copyrights, trademarks and patents. It is important to note that copyrights protect an expression, not an idea or a function. There is a fairly extensive range of copyrightable subject matter including works that are literary, dramatic, musical; performances e.g. pantomime, choreography; fine arts work, e.g., pictures (still and motion), graphics, sculptures; audiovisual and sound recordings and architectural works.
The patentability of purely software inventions is less universally acclaimed. Of course, software may also be a component of some other invention. Yang & Hwang (2020) identified more than 300 blockchain related patents.
Considering these complexities, it is crucial to stay informed and seek expert advice when dealing with blockchain technology. Learn more about these issues in “Blockchains, Smart Contracts, and the Law” .
References
Yang, Y. J., & Hwang, J. C. (2020). Recent development trend of blockchain technologies: A patent analysis. International Journal of Electronic Commerce Studies, 11(1), 1-12.