4 Benefits of Blockchain in Protecting Intellectual Property
Blockchain technology has recently gained market traction as one of the most exciting technological developments. Basically, blockchain is a digital ledger where the stored data are encrypted, distributed, and synchronized to all computers that are interconnected in the network. Only interconnected users have control over the data. With this system, the data is not vulnerable to manipulation and leakage/breaching.
While the technology came to prominence as ‘the backbone’ of cryptocurrency, it has been developed to wider uses, including those pertaining the intellectual property. Here are four potential benefits of blockchain in intellectual property:
1. Proof of creation
There are various types of data that can be added to a Blockchain, including texts, photos, and videos. The time stamp facilitates the creators to prove what type of work they create and when they created the works, particularly in court or in the process of registering their works. Blockchain can provide solutions in protecting intellectual property and digital rights management.
2. Traceability of goods
For brand owners, it is important to monitor the progress of goods in a supply chain and to ensure that their products are distributed correctly so that any case of parallel import can be prevented and regulatory requirements are met. Every stage of distribution will be recorded and stored in the ledger.
3. Fighting counterfeiting act
Not only can Blockchain help to prevent parallel import, but it can also help in the case of counterfeiting. The ledger can record many details of the product made by brand owners, including information about who owns the product, when the product was made, details of the logo and others. This way, brand owners and consumers can easily authenticate their products and distinguish them from a fake one. For example, A giant software company has collaborated with pharmaceutical giants in developing the technology to combat drug counterfeiting.
4. Evidence of use
The ledger can also record the time when a registered IP right was first used in the market. Such data can help if a dispute in a non-use case happen. In Indonesia, this technology can also help the authorities in implementing Laws No. 13/2016 about patent.