Blockchain Technology Protection

Blockchain technology is revolutionizing the way in which financial transactions are handled today. And over the next few years, it could have a slew of implications for the legal world as well. Undoubtedly, this will impact large companies and fintech startups among others. However, small businesses that use this tool to their benefit, stand to be positively impacted as well.

Invented in 2008 to power the digital currency Bitcoin, blockchain has transformed how financial transactions are stored. In its simplest terms, blockchain is a decentralized electronic ledger that is open to the public. Each block is a record of new transactions that stands on its own, with the successive blocks adding on to the chain and creating a “blockchain.”

Because blockchain technology does not rely on an intermediary like a bank to control the transactions, and is impermeable to outside attackers, it has been touted as a new way to manage records beyond even the financial sphere. Recently, intellectual property has captured attention as one area that stands to benefit from the deployment of blockchain technology.

Blockchain and Intellectual Property

A shared, decentralized public ledger that resists hackers sounds like the ideal solution for intellectual property (IP) registries. By employing blockchain, when a user wishes to copyright a work, he or she would simply register the work to a blockchain — and that entry could never be modified or corrupted. Some platforms are already using this technology to create a record of copyright ownership, and to track how the work is being used on the internet in possible infringement cases.

Another possible use in the IP realm revolves around licensing. Blockchain offers users a feature known as smart contracts, which are programs that create and enforce a pre-set contract on their own. The license would be automatically tied into the work itself, and there would be no need for a user to track down the holder of the license — a time-consuming and often expensive process that sometimes results in copyright infringement. Authors could also assign a Bitcoin address to their creations, which would in turn allow a user to quickly and easily compensate the author for use of the work.

Benefits of blockchain in Intellectual Property

Managing intellectual property could potentially be easier than ever with the advent of blockchain technology. This is good news for small businesses. The resistance to fraud and the database-style registry are appealing enough reasons on their own. IP registries in their current iteration are much more expensive to maintain and control. Add in the lower maintenance and administrative costs, and the blockchain could transform the way in which intellectual property is catalogued in the coming years.

Challenges of Blockchain

The benefits of the blockchain in IP are immense, but as the technology is still in its infancy, there are numerous challenges, too.

For one, once an entry has been made in blockchain, it cannot be corrected. Also, the processing power required for these transactions is such that only a certain number of transactions can be made every hour. And finally, the complexities of the blockchain may prove to be a steep intellectual hurdle for the average user to climb, and even seasoned techies may find themselves bewildered as the technology continues to evolve.

Have Questions? Contact The Brand Protected®.

Blockchain technology appears to be proliferating, which means it may be a good time to begin exploring and analyzing the potential opportunities or risks that blockchain may create for your start-up. Our team is here to assist you in understanding how this technology can help your small business; and help guide you through the technological innovations that become available while using them to your advantage.

The Brand Protected® provides insightful legal and business counseling, personalized contractual agreements, and aggressive protection of your company’s intellectual property. As the owner of a fledgling, or thriving, start-up, your time and energy should be focused on growing your business. We stand ready to provide you with the peace of mind that is accompanied by protecting your intellectual property and brand. CONTACT our office to schedule a call with our team.