With IP becoming increasingly important in a this modernize world, it is essential to keep up with the latest technology in order to protect your IP portfolio. One possible method is with Blockchain– a system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer-to-peer network.
Blockchain is no longer just for cryptocurrencies. With its tamper-proof, decentralized ledger system, it offers new solutions to longstanding issues in IP ownership, enforcement, and licensing. Furthermore, initiatives like WIPO’s Blockchain Task Force are working toward international standards and collaboration, suggesting that it may very well be the future of IP protection
Below, we highlight key ways blockchain can potentially assist IP protection.
- Immutable Proof of Ownership and Creation
Blockchain can provide an unchangeable timestamp that verifies when a work was created and who created it. This is particularly valuable in copyright and patent disputes, where proving priority can be difficult. By registering creative works or inventions on a blockchain, creators can establish indisputable evidence of authorship and originality without relying on a centralized registry. Tools like Bernstein and Blockhain already offer such timestamping services for creators.
- Transparent Ownership and Transfer Tracking
Ownership of IP rights often changes hands—through assignments, mergers, or acquisitions. Blockchain can track these changes with a publicly verifiable audit trail, helping avoid conflicts or duplicate claims. This can simplify due diligence in M&A and reduce friction in royalty distribution. For industries like music, fashion, and tech, where IP portfolios are dynamic, blockchain offers clarity and accountability in real time.
- Smart Contracts for Licensing and Royalties
Smart contracts (self-executing agreements coded into a blockchain) can automate IP licensing and royalty payments. Once predefined conditions are met (e.g., a song is streamed or an artwork is downloaded), payments are automatically sent to the rights holder. This could potentially minimizes disputes, delays, and intermediaries. It’s a promising approach for digital media platforms and NFT marketplaces alike.
- Building Decentralized IP Marketplaces
Blockchain can support the development of decentralized platforms where creators can register, license, or sell IP directly to buyers or licensees. These marketplaces could eventually function like open registries, reducing dependence on national IP offices and costly legal infrastructure, which could potentially be useful for creators in emerging markets.
Challenges and Conclusion
Despite its promise, blockchain adoption in IP face some key hurdles. There’s legal uncertainty around blockchain’s evidentiary status and enforceability in court, especially since it lacks a centralized authority or universal legal recognition. Interoperability is another issue—multiple blockchain systems exist, many of which are not compatible, making standardization difficult. Furthermore, Integration with existing IP databases and legal frameworks also demands substantial technical expertise and investment. Without global consensus and regulation, blockchain’s borderless nature may raise jurisdictional complexities in IP enforcement. Regardless, with need to be on guard for the latest methods of IP protection and all developments concerning IP. For more information regarding this topic or any IP related inquiries, contact us at ambadar@ambadar.co.id
