Introduction
Property is generally of two kinds – tangible property and intangible property. Tangible property includes the things humans can touch and see, like land, cars, etc.; intangible property includes property in the abstract form, such as ideas, innovations, etc.
Intellectual property (IP) is a form of intangible assets or property. The World Intellectual Property Organisation (WIPO) defines ‘intellectual property as ‘IP refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.’ The need for protection of IP Rights was felt as early as the 15th century in Italy. With the growth of legal systems around the world, the concept of IP protection also exploded in the 20th century. The WIPO was set up in 1967 as a United Nations (UN) agency to protect IP rights. Finally, the Trade-Related Aspects of Intellectual Property Rights (TRIPS) was signed by World Trade Organisation (WTO) members in 1994 and requires setting up minimum IP protection standards.
The growth of the internet after the 2000s has led to the fourth industrial revolution, known as the IT revolution. This revolution has resulted in the growth of many technologies like Artificial Intelligence, Cloud Computing, Blockchain, etc. The IP regime in the world contains laws for the protection of these technologies, but these technologies have the potential to be utilised in the protection of IP rights themselves. This blog will focus on the Blockchain technology and its role in IP Protection.
Issues in the Present IP Protection Regime
Before going into how blockchain technology can help protect IP rights, we need to see why we need it in the first place. With the growth of technology, the various forms of IP rights also evolve. Our present framework is not ready to deal with the rapid evolution and, therefore, faces many issues. Some of these issues are:-
- Data Theft: The rapid evolution of the internet has also led to increased cybercrime. Instances of data hacking, phishing, etc., are all rising. As the IP information is to be shared worldwide, it makes it easy for hackers to steal IP records. The theft is generally made from the servers of poor countries unable to incur heavy costs for data protection.
- IP Ownership: The growth of technology has led to the emergence of new forms of IP, like Non-Fungible Tokens (NFTs). Such technologies are alien to our present IP regime, which has no effective way to protect these technologies.
- Lack of accessible data: The TRIPS mandates the sharing of IP records between the member states to maintain the originality of IP. However, in reality, these records are hard to obtain due to the lengthy process involved. Overall, it leads to the circumvention of the IP regime by registering it in a poor foreign country.
- Time Delay: Time is of the essence to IP applications, and a few seconds of delay can destroy the work of a lifetime. Unfortunately, the present IP regime is overburdened with the number of pending applications. In India, getting a single patent takes around 4-6 years.
What is Blockchain?
Blockchain serves as a decentralised ledger technology that ensures secure data exchange. Within a blockchain, information is stored in blocks featuring encrypted and immutable data linked to other blocks. Each block includes the data itself, the block’s hash, and the previous block’s hash. The interconnected nature of these blocks establishes a tamper-resistant system; attempting to alter one block will impact others, leading to immediate detection and invalidation.
Decentralisation allows every connected computer to access blockchain data without intermediaries, providing transparency in all transactions. Utilising a consensus algorithm ensures democratic validation or invalidation of transactions, requiring a majority decision from relevant participants. This combination of data encryption and the consensus algorithm virtually eliminates the possibility of data hacking or tampering.
Role of Blockchain in IP Protection
Blockchain is known for its immutability, transparency, and efficiency, which can be incorporated into IP protection. The new blockchain regime can help in solving the problems mentioned above in the following ways:
- Creation of IP: As blockchain is immutable, it can help detect the IP’s first creator. This single benefit has the potential to significantly reduce the number of IP litigations around the world.
- Accessible data: The IP records can be maintained in the blockchain, which is immutable. The data storage will help share IP records between the various countries and synchronise the records between the countries. This will greatly reduce IP protection circumvention related to registration in third-world countries.
- Detecting counterfeiting: The storage of IP data on the blockchain will provide evidence of product genuineness and help in checking product authenticity. It would also mean that fake and counterfeit products would be much easier to detect, helping in the prevention of IP violations.
The blockchain would also incorporate the protection of new technologies like NFTs and smart contracts as they form a part of it. Overall, blockchain technology can help maintain the benefits of the present IP protection regime while providing additional benefits.
Conclusion
The dynamic challenges faced by the current IP protection framework demand innovative solutions. Blockchain technology emerges as a transformative force, addressing issues such as data theft, ownership complexities, and accessibility delays. Its immutable and transparent features ensure secure storage and sharing of IP records, enhancing detection capabilities and reducing litigation. The integration of blockchain into the IP protection landscape offers improved efficiency, accessibility, and adaptability to emerging technologies like NFTs and smart contracts. Embracing blockchain represents a pivotal step towards a resilient and responsive IP protection framework, aligning with the evolving needs of the digital era.
