This article has been written by Ms Indulekha T M , a 5th year student of SDM Law College , Mangalore
ABSTRACT
The emergence of blockchain technology has created possibilities across multiple industries, including Intellectual Property (IP). The registration and protection of intellectual property rights, such as trademarks could undergo a revolutionary change thanks to blockchain technology’s transparent and unchangeable information chain.
INTRODUCTION
In a time of exponential technological progress, blockchain has become a revolutionary tool that is changing conventional wisdom in a number of different industries. Trademarks are one area where it has a particularly significant impact. Trademarks are fundamental to building a brand, setting goods and services apart, and protecting intellectual property. The security, transparency and efficiency issues that plague the conventional trademark record management techniques are common. The decentralised, tamper-resistant technology known as blockchain promises to solve these issues and completely rethink the processes involved in registering, safeguarding, and enforcing trademarks.
BLOCKCHAIN
Distributed ledger technology, or blockchain, creates and disseminates a safe, transparent, time-stamped, and verified record of each transaction to all users on the network. The information is connected cryptographically by each subsequent block, which is based on the blocks before it. Without the information being validated by the preceding blocks, new blocks cannot be created. Every time data is entered on a block, a record of the date, time, and other pertinent details is created. Information and transaction data from each prior block in the chain must be included in subsequent blocks. It is essentially an unchangeable chain of data.
Smart contracts and cryptocurrencies like Ethereum and Bitcoin are typical applications of blockchain technology. Blockchain is used by Spotify, a music streaming service, to link artists with records and license agreements. Blockchain technology has been implemented by De Beers in collaboration with diamond manufacturers to securely track diamonds throughout the entire value chain, from mine to cutter to polisher to jeweller. Most people are unaware of blockchain’s existence and significance because it operates covertly in the background of numerous systems that power the commercial world.
BLOCKCHAIN IN PLAIN ENGLISH
A collection of technologies known as blockchain generates a distributed, encrypted ledger. The virtual currency known as Bitcoin is most likely the most well-known use of blockchain technology. Think about your bank account: How are you aware of your equilibrium? You put your trust in a central authority, your bank, to keep a record of all your transactions and provide you with an accurate account status (the word is derived from the Latin word for “credit”). As evidenced by numerous recent security breaches, central data repositories are large, profitable targets for rudharrriminale
THE TRADEMARK ROOM BLOCKCHAIN APPLICATION: A GAME CHANGER
A ground-breaking method for producing Non-Fungible Tokens (NFTs) and Smart Contracts for intellectual property and trademarks is provided by the Trade Mark Room Blockchain m application. Using blockchain technology, this application makes sure that ownership records and trademark documents are safely kept and unchangeable. By offering distinct digital tokens that correspond to particular trademarks, the use of NFTs enhances the ownership framework. This makes it simple to confirm ownership and streamlines the trademark licensing or transfer process.
Additionally, the application simplifies the administration and management of legal documents about trademarks. The application reduces the need for middlemen by automating several processes with the aid of smart contracts. This reduces the possibility of mistakes or conflicts while also increasing efficiency.
BLOCKCHAIN’S ROLE IN THE FUTURE OF IP RIGHTS REGISTRATION
Blockchain technology and the registration of intellectual property have enormous potential. Eliminating some of these steps and processes might improve the efficiency of the registration process for designs and trademarks. For example, in certain trademark applications, it will be necessary to provide evidence that the mark has become distinctive through use, rather than relying solely on the trademark’s inherent distinctiveness. A transparent and easily accessible record of this use could be made possible by blockchain technology, which would save a lot of time and money.
Furthermore, because blockchain technology can readily provide proof of creation date, rights management information, and jurisdictional requirements, it may also help create a register of unregistered intellectual property rights, such as unregistered design rights and copyrights.
CHALLENGES AND CONSIDERATIONS
Although blockchain technology has many advantages for intellectual property rights, some drawbacks and issues must be taken into account. For example, data on a blockchain is immutable, which means that it can only be altered under certain conditions. Without the proper technical and governance processes and systems in place to address the issue, there is very little that can be done if information on a work protected by copyright is entered incorrectly.
Managing a situation where copyright is transferred outside of a blockchain network is another matter to take into account. The introduction of a blockchain-based system may have the opposite effect of reducing information and increasing trust if proper human coordination is lacking. Despite these difficulties, blockchain technology has a lot to offer in terms of protecting and registering intellectual property rights. These difficulties can also be successfully handled if the proper procedures and systems are in place.
BLOCKCHAIN AND BRAND PROTECTION
Benefits from blockchain technology for brand and trademark protection have started to appear. Over the past few years, a few common applications of blockchain in this capacity have emerged:
Reducing counterfeits :
In addition to providing luxury brand trademark owners with a measure of authenticity assurance, blockchain technology can also aid in the reduction of counterfeit goods entering the consumer market. A QR code, for instance, is given to every product bearing a luxury brand as a unique identifier. The product’s certificate, which has been cryptographically signed by the brand and all suppliers along the supply chain, can be accessed online by using the QR code that the customer receives with their purchase. This helps to confirm the product’s legitimacy. Utilising blockchain technology to confirm authenticity can also be advantageous for luxury goods resellers.
Improving the process of Trademark Registration’s Efficiency :
The applicant for a trademark application must demonstrate the use of the mark at
various stages of the application process, either to demonstrate acquired distinctiveness or as proof of use during the application process. It would be simple to share and publicly accessible on a blockchain if proof of actual trademark use, including frequency and dates of use, could be added and registered at the USPTO. This could lessen the possibility of confusion by improving the effectiveness and dependability of the process of checking a registered mark.
Self-executing smart contracts for Trademark Licensing :
A self-executing, or self-enforcing, computer code agreement that is cryptographically signed by the parties is known as a smart contract. It doesn’t require outside supervision or third parties to get involved because it operates on its own. The agreement and
the code is active on a blockchain network, and the code automatically regulates the agreement’s execution and transactions. According to the terms of the agreement, a smart contract can automatically keep track of, compute and transfer each time a royalty payment is due to the trademark holder’s designated wallet. This results in a trademark licensing agreement that is simple to implement and enforce.
THE SECURITY PARADIGM: SAFEGUARDING TRADEMARKS IN A DECENTRALISED LEDGER
Trademark records have long been stored in traditional databases, which are frequently centralised and vulnerable to hacking. The susceptibility of these systems to cyberattacks and unapproved entry presents a noteworthy peril to confidential intellectual property data. The decentralised architecture of blockchain offers a convincing way to improve the security of trademark records.
Distributed ledger technology is the foundation of blockchain security. In contrast to conventional databases, which keep data in one central location, blockchain disperses data among its network of nodes. Every informational transaction is kept in a block that is connected to the one before it by a cryptographic hash. In doing so, a chain of blocks is formed, creating an open and transparent ledger. The cryptographic links and consensus mechanisms built into blockchain make it nearly impossible to change any information once a block is added to the chain.
Trademark records are kept safe from nefarious actors attempting to gain unauthorised access thanks to the decentralised and tamper-resistant characteristics of blockchain. Maintaining
the integrity and trustworthiness of intellectual property data is dependent on establishing a certain level of trust in the system. With cyber threats on the rise, blockchain integration provides a strong defence against possible trademark infringements and data breaches for businesses.
AUTOMATING TRADEMARK MANAGEMENT: THE ROLE OF SMART CONTRACTS
In addition to its security features, blockchain presents the idea of smart contracts, which simplify trademark administration even more. Self-executing contracts with coded terms are known as smart contracts. These contracts can automate different parts of the trademark registration and administration procedure.
Think of the customary difficulties involved in registering, renewing, and obtaining a license for a trademark. These procedures frequently entail a large amount of paperwork, manual verifications, and numerous stakeholders. By automating these procedures, smart contracts included in a blockchain can lower administrative costs, minimise the possibility of human error, and speed up the trademark management lifecycle in its entirety. For example, a smart contract could automatically check for trademarks during the registration process, validate eligibility, and execute the registration once all predetermined conditions are met. Similar to this, smart contracts can initiate automatic trademark renewals based on preset timelines, guaranteeing that trademarks are kept current without requiring continual manual intervention.
THE TRANSPARENT TAPESTRY: REAL-TIME ACCESS TO TRADEMARK DATA
Effective trademark management relies heavily on transparency, and blockchain’s decentralised ledger guarantees instant access to precise and untouched trademark data. Accessing and validating trademark data in conventional systems frequently necessitates navigating through red tape and bureaucratic procedures, which can cause delays and inaccuracies.
Stakeholders, including companies, attorneys, and consumers, have direct access to an open and current ledger of trademark records in a blockchain-based system. Not only does this expedite and improve decision-making, but it also cultivates confidence among the different stakeholders involved in the intellectual property domain.
Blockchain’s transparency is especially useful in situations where the trademark ecosystem involves several parties. Potential disputes are reduced and the veracity of trademark data becomes unquestionable with a shared, unchangeable ledger. This has significant ramifications for court cases since blockchain records can be used as unquestionable proof in disputes or infringement cases involving trademarks.
BLOCKCHAIN LAWSUITS
Blockchains are decentralised systems that don’t rely on a single central authority to confirm data updates made to the blockchain and validate its content. Therefore, there is often no obvious party to sue if a party wishes to contest some activity on the blockchain, such as for patent infringement. It can even be difficult to identify parties to transactions that have been made on the blockchain due to the ability to maintain anonymity during transactions (through the use of anonymous accounts). The following discusses a few of the potential problems with enforcing intellectual property rights on the blockchain.
The following topics are the categories into which lawsuits and litigation on the blockchain fall:
- Identifying and serving defendants on the blockchain
- Obtaining a judgment against a blockchain account
- Suing the service companies
- Legal assistance
CONCLUSION
To sum up, the combination of blockchain technology and trademarks presents a novel approach that promotes a transparent and safe atmosphere for trademark administration. Blockchain’s immutability ensures the integrity of trademark information, while its m decentralised ledger eliminates central points of vulnerability to ensure data security. The ensuing transparency provides a clear and impenetrable history of trademark records, which not only increases stakeholder trust but also expedites procedures. This synergy is further enhanced by smart contracts, which simplify administration by automating tasks. The partnership between blockchain and trademarks is emerging as a disruptive force as industries adjust to the digital era. It promises increased security as well as an improved, transparent and responsive framework for intellectual property management. The way trademark protection is implemented could be completely changed by this dynamic integration.
REFERENCES :
- https://www.google.com/gasearch?q=blockchain%20and%20trademarks:%20secure%20and%20transparent%20trademark%20records.&tbm=&shem=rime&source=sh/x/gs/m2/5
- https://www.google.com/gasearch?q=blockchain%20and%20trademarks:%20secure%20and%20transparent%20trademark%20records.&tbm=&shem=rime&source=sh/x/gs/m2/5