Multiple industries are already exploring the possibilities of using blockchain technology, thus making it the hottest topic nowadays. Since blockchain ensures comparatively lessened administrative burden, low maintenance cost, and resilience to avoid fraud, every next day arises with new cases of its use in different sectors. But how can the blockchain technology affect the Intellectual Property (IP) industry?
People often have a misconception that blockchains are Cryptocurrencies like Bitcoins. Yes, cryptocurrencies indeed use blockchain technology, but this advanced technology itself is much more than several online currencies. In general, blockchain is a distributed or open ledger of statistics used to track and record transactions that are verified or exchanged on peer-to-peer networks. By allowing verification of transactions and advance identification of future entries, blockchain maintains a reliable record. Parties can not alter the entered data afterward. Moreover, no block or transaction can add to the ledger until all participants (nodes) in the network verify it.
As each transaction gets validated by multiple participants, the process leaves nearly no scope of hacks because to change any information, hackers have to strike each copy of the ledger.
Role of blockchain in the IP industry
At this moment, authenticators like the governments of various countries and other administrative bodies are the managers of Intellectual Property Rights (IPR). Sad but because of physical limitations, this system seems incapable to meet the pace of continuous developments in the digitized and globalized market. Hence, there is a need for a more feasible and reliable alternative that is blockchain, a possible successor to this physical system in the existing digital space.
Blockchain can benefit the IP industry in many ways, such as:
“How to protect my ideas?” is the foremost question that almost every individual or company comes across while it creates new ideas. In those circumstances, most owners look for a patent to protect their assets.
A blockchain is an excellent option that keeps the companies and individuals away from worries by allowing them to identify and place their innovations on a reliable record. By giving precise information about the first creator of the ideas, this technology can avert expensive litigation issues.
Ownership and Licensing
With limitations in the current physical system, verifying the ownership or licenses of the patent appears quite challenging. Most companies often trade IP assets without updating the ownership status, thus making it difficult for others to attain a license for their products. These difficulties further result in patent disputes that blockchain can prevent by providing accurate records of licensing and ownership associated with IP assets.
Anti-Counterfeiting and Supply Chain Management
The aspect of blockchain to show the ownerships and licenses in the records facilitates the people to track assets on the supply chain. Apart from this, blockchain-connected imprints enable the authorities and customers to differentiate between genuine and counterfeit products.
No doubt that this advanced technology is in its early stages at present, but persistent growth and propagation can aid businesses in solving problems related to the IP industry. Implementing new technology in an industry that already has proven methods is challenging and demands many efforts. Still, if the Intellectual property industry succeeds in winning the challenge of adopting a precise path for blockchain technology, it could enjoy amazing benefits. For more visit: https://www.trademarkmaldives.com/