The Use Of Blockchain In Trademark And Brand Protection | Caldwell Intellectual Property Law

Blockchain is a type of distributed ledger know-how, wherein a safe, clear, time stamped, and authenticated document of each transaction is created and reported to everybody on the blockchain platform.[i] Each new block refers back to the earlier blocks, creating the cryptographically linked chain of knowledge. New blocks can’t be fashioned with out the knowledge being verified by the earlier blocks. A document of the date and time and different related info is created at any time when information is entered on a block. Subsequent blocks within the chain should embrace info and transaction information from all earlier blocks. Basically, it’s a chain of tamperproof info.

Widespread examples of blockchain know-how at work embrace cryptocurrencies—similar to Bitcoin and Ethereum—and good contracts. The music streaming platform Spotify makes use of blockchain to match artists with license agreements and tracks. De Beers has labored with diamond producers to implement blockchain know-how to securely observe diamonds throughout the total worth chain from mine to cutter to polisher throughout to jeweler.[ii] Blockchain quietly works within the background of so many programs that make the industrial world flip, its prevalence and contribution largely go unnoticed.

Blockchain and Model Safety

Model and trademark safety has begun to see advantages from blockchain know-how. A couple of prevalent makes use of of blockchain on this capability have emerged over the previous a number of years:

Lowering Counterfeits: Blockchains will help scale back counterfeit items from hitting the patron market, providing a stage of consolation concerning authenticity to luxurious model trademark house owners. For instance, every luxurious branded product receives a singular identifier, similar to a QR code. When a person purchases the product, they will use the QR code to entry its certificates on-line, which has been cryptographically signed by the model and everybody down the road of the availability chain, verifying the authenticity of the product. Resellers of luxurious items also can profit from the usage of blockchain to confirm authenticity.[iii]

Rising the Effectivity of the Trademark Registration Course of: At a number of factors in a trademark software’s lifecycle the applicant should present use of the mark, whether or not as proof of use within the software course of or to point out acquired distinctiveness. If proof of precise use of the trademark, together with frequency and dates of use, could possibly be added to a blockchain and recorded on the USPTO, it could possibly be simply shared and out there for everybody to see on a blockchain. This might scale back points with chance of confusion by making the power to test on a registered mark extra environment friendly and dependable.

Self-Executing Sensible Contracts for Licensing of Trademark Rights: A wise contract is a self-executing, or self-enforcing, settlement written in pc code and signed by the events utilizing cryptographic signatures As a result of it’s self-executing, it doesn’t want third get together involvement or exterior oversight. The code and the settlement stay on a blockchain community and the code mechanically controls the execution and transactions below the settlement. A wise contract can mechanically monitor and calculate every time a royalty fee is due, in accordance with the phrases of the contract, and mechanically make a fee to a predetermined pockets owned by the trademark holder. This makes for a trouble free and simply enforceable trademark licensing settlement.[iv] [v]

In fact, each rose has its thorn, and you will need to take into account the downsides of utilizing blockchain in model safety.

Whereas utilizing blockchain know-how is a contemporary answer that’s exemplary of a ahead pondering firm, “old-fashioned” belief nonetheless performs an necessary position in how efficient blockchain really is. Blockchain can be certain that info has not been altered, but it surely does nothing to verify the integrity of the knowledge recorded on the outset. Thus, an preliminary stage of belief within the taking part events is paramount, whether or not that’s the total provide chain or two unbiased events to a wise contract.

Moreover, with out an agreed upon and internationally adopted set of requirements to be used in model safety and IP rights, implementation of blockchain and its benefits could be tough and inconsistent.

As long as each the advantages in addition to the restrictions of utilizing blockchain know-how within the safety of name and IP rights are rigorously thought of, blockchain will be an necessary asset for the way forward for any industrial enterprise.

To study extra in regards to the blockchain and mental property, learn: Blockchain Technology: Patents Vs Open Source an Event with MIT Enterprise Forum, Is a Blockchain Innovation Patent-Eligible?

[i] https://www.wipo.int/wipo_magazine_digital/en/2020/article_0002.html

[ii] https://computerrock.com/en/weblog/blockchain-in-action-16-inspirational-examples

[iii] https://earlymetrics.com/luxury-brands-using-blockchain-to-fight-counterfeiting/

[iv] https://www.investopedia.com/terms/s/smart-contracts.asp

[v] https://en.wikipedia.org/wiki/Digital_signature