The notion of "blockchains" seems to be all around us, including as part of discussions regarding both information technology and intellectual property rights (IPRs). After listening to a myriad of different views and opinions, reading blog posts, articles (including by Guest Kat Rosie Burbidge, here) and conference papers, one cannot fail to wonder: will blockchain indeed revolutionise the IP world?
What is blockchain?
The first questions have to be: What is a "blockchain" and what are its main characteristics, benefits and weaknesses? In the language of cryptocurrency, a block is a record of new transactions (that could mean the location of cryptocurrency, medical data, or even voting records). Once a block is completed, it is added to the chain, creating a chain of blocks: i.e., a blockchain. As such, blockchain is a way of organizing digital information. Although use in cryptocurrencies is its most well-known manifestation, the scope of its potential applications is much more extensive than that. What blockchain offers is a secure (and indisputable as to its traceability) chain of events. What you can see following a blockchain transaction is both the nature of the event as well as the exact order in which an event has occurred. For example, you may see the value of bitcoins transferred and the date on which the transaction occurred.
Making changes in the blockchain records is very difficult since in order to manipulate a blockchain, you would have to such a large number of changes in the records that it would be essentially impossible to do so. This also means that what is stored in blockchain is much more reliable than any data stored in decentralized databases. In fact, a transaction (or other information) stored in blockchain (a “ledger”), which has been accepted as “correct” may not be altered. This secured chain of transactions does not have to be available to the public; indeed, it could only be visible to holders of a special digital “key”. As a result, some blockchains are closed, intended to be used only by certain pre-specified target groups, while other blockchais are open.
The most well-known blockchain today, Bitcoin, is based on an entirely open database, to which anyone may add at any time. However, even in a blockchain that is open to the public, the real identity of the people behind the ledgers may not be revealed without access to their particular digital “key”. Furthermore, a public blockhain might also contain confidential information. As a result, you might be able to see the blockchain and even contribute to it, without however being able to gain access to the information that has been stored in previous ledgers.
Access to information stored in a ledger might not be granted, or be subject to first accepting pre-specified terms and conditions, such as a confidentiality agreement. Blockchain has the potential of providing for rather complex structures of storage and access. Taking into consideration that a blockchain database may also include search engines and key terms, the information stored is searchable by participants, should they choose to do so.
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| A blockchained IPKat |
What may blockchain do for IP?
Against this backdrop, this Kat wishes to venture the following guess: while it is difficult to predict all potential IP-related applications of blockchain, the impact of blockchain will be most significantly felt in the field of management of IPRs. More specifically, blockchain could be used by inventors wishing to find potential investors, while at the same time safeguarding the novelty of their inventions. In this case, a ledger might consist of a short description of the character and goal of the invention, while those wishing to gain access to more information on how the invention works would then have to accept the provisions of an agreement (a so-called “smart contract”). This could even be the case for patent holders wishing to find potential licensees for related know-how and trade-secrets in addition to the patented invention. Alternatively, inventors might be interested in publishing their technological developments in order to guarantee their freedom to operate by destroying novelty for others working in the same technological field.
The secure character of blockchain might also constitute a reliable source of prior art for patent offices worldwide. In this respect, even the requirements of the Nagoya Protocol (see here for the entire text of the Protocol) might be successfully fulfilled by means of blockchain databases. In fact, it might be worthwhile for national governments to opt for blockchain databases, instead of having to invest in the establishment of costly Clearing House institutions.
Blockchain need not be limited to patents; it might also be used in the field of copyright-protected works. Publishing a song, text or other work, under a blockchain database may provide a solid proof of authorship or date of publication that can be used in court proceedings. Furthermore, blockchain could provide a platform for the registration of copyright transfers (not otherwise registered) facilitating parties interested in entering into a licensing agreement, thereby significantly reducing transaction costs.
Based on the foregoing, a strong argument can be made that blockchain technology will be able to facilitate the management of IPRs; as well, publications under a blockchain environment might be used as evidence in IP-related law proceedings. What more can it do for IP? Let's wait and (presumably) see.