While blockchain is often mistakenly associated exclusively with cryptocurrency, its applications and implications extend far beyond Bitcoins. Among supply chain management and decentralized finance (DeFi), the use of blockchain technology in protecting intellectual property (IP) stands as a crucial application that has the potential to revolutionize existing practices, offering transparency and enhancing security.
Blockchain technology is a digital ledger system that works on a decentralized peer-to-peer network. It is encrypted, immutable, and can store any kind of data – the true copy of which exists with every participant of the system, instead of a central authority.
For blockchain systems, data is stored in encrypted and independent digital “blocks” that are linked using “hash pointers,” which link one block to another, creating a blockchain. Along with the data, each block contains an independent time stamp, and the ledger so formed is stored in a decentralized manner. Thus, modifications require the consensus of the whole network, and tampering is virtually impossible.
These features become particularly appealing when met with the requirements of an ideal intellectual property regime.
Enhancing IP Infrastructure through Blockchain Adoption
Blockchain technology has the potential to revolutionize the Intellectual Property Rights(IPR) regime by addressing various challenges and enhancing the efficiency and effectiveness of IP.
The maintenance of records in different IP offices around the world is one such case. For an example, take a patent application. The search for prior art related to the patent application takes substantial manpower since the related data exists in silos. Even if a patent officer scours through every such database, the possibility of human error still exists – which could either lead to the denial of the patent to a vital innovation or a wrongful grant of one.
Blockchain technology can be utilized for Record Keeping, Ledger Maintenance, and Data Verification in IP offices – which can ensure real-time updates with tamper-proof records. Such a consolidated platform will be able to provide synchronized searches across databases for any anticipatory research. As an added benefit, the database based on blockchain will not be controlled by any single entity and rather, the decentralized system will aid in collaboration between the different IP offices.
Filing data for intellectual properties in a blockchain can also have substantial evidentiary value – which will be paramount in establishing first inventorship, and first use-in-trade and will help in correctly determining rights in this “first-to-file” regime.
Blockchain technology can also be useful in detecting and preventing counterfeiting – which could be beneficial for logistics providers and customs authorities in applications from preventing IPR violations to preventing the sale of counterfeit drugs.
Apart from its application in the early life of IP , blockchain also has immense potential to transform operations in the later phases. Smart contracts enabled by blockchain can streamline licensing and contractual agreements. They can even facilitate real-time payments of royalties—all with minimized costs and manpower.
It would even provide public information on enforced and expired IP rights which can enable informed decisions on the part of Micro Small and Medium enterprises at minimal costs.
Global Innovation
The potential that blockchain technology holds has been identified and its application is in the nascent stage in the global forum.
Registration
In 2021, the European Intellectual Property Office (EUIPO) launched the first-ever European IP Registers in Blockchain platform. TM-View and Design-View – the premier search services for trademarks and designs respectively, have been updated to use blockchain technology under the hood, which provides for reliable, efficient and secure delivery of information. A total of eight offices – including the national IP offices of Latvia, Malta, Estonia, Lithuania, Poland, Portugal and the EUIPO are currently leveraging blockchain technology in this manner; which simplifies priority rights claims and evidence transfer between different IP offices.
Anti-Counterfeiting and Protection
Along with this effort, the EUIPO is also making efforts to use blockchain technology in global supply chain product authentication applications – so that logistics operators and customs authorities can leverage the technology to detect counterfeiting. The European Logistics Services Authentication initiative, using the European Blockchain Services Infrastructure, is termed as the EBSI-ELSA project, has concluded proof of concept trials and aims to be an open-source platform to authenticate products and the exchange of data between different actors in a supply chain. Currently, the EBSI-ELSA project is enabling two public organizations, six private companies and a customs authority to utilize their operations powered by blockchain.
In 2023, the European Commission launched a blockchain regulatory sandbox – indicating its interest in adopting blockchain technology across multiple sectors in the long run.
Ultimately, it is hoped that IP offices around the world will aid the efforts of the EUPTO, and strive to utilize the potential of blockchain technology in intellectual property rights.
Integrating Blockchain in India’s Intellectual Property Landscape
As the decade has brought multiple disruptive technologies ripe for utilization, blockchain technology is also being embraced by the government, albeit at a slow pace. Private actors may use any and all applications of the technology, but because of the territorial nature of IPR, the government has the sole control over the application of this technology to the IPR regime.
Through the National Strategy on Blockchain released by the Ministry of Electronics and Information Technology in 2021, the government’s vision to adopt blockchain in sectors like healthcare, agriculture, finance, voting and e-governance is clear. The government aims to develop a national-level infrastructure for blockchain, enabling the use of “Made in India” technologies under the BICA stack, i.e. Blockchain, Internet, Cloud and Artificial Intelligence by 2027.
Along with this, the government should also consider the application of blockchain technology to the Indian IPR regime, in line with EUIPO’s efforts. This can aid the regime by overhauling the IP infrastructure that can sometimes be inefficient, ensuring transparent and secure management of intellectual property rights, facilitating streamlined processes for IP registration, verification, and enforcement, and fostering collaboration among stakeholders both domestically and internationally.
Conclusion
Like other disruptive technologies emerging in the 21st century, blockchain also has immense potential to transform the landscape in various sectors. Particularly in IP, blockchain can provide cost-effective and faster methods to enhance the registration, protection, and licensing of all kinds of intellectual properties. The Indian government’s supportive approach towards blockchain technology is appreciable, and it is hoped that it will realize the immense potential of the same in the IPR regime also.
