Blockchain Adoption in IP: Key Challenges
Blockchain is a game-changer for the IP ecosystem but we can't ignore the challenges. Integrating blockchain into IP warrants huge investment, expertise and careful planning.
Despite blockchain’s game-changing potential in IP rights management, there are hurdles and aspects to consider for its successful integration. Integrating blockchain technology within existing IP management systems demands significant investment and expertise and requires careful planning for a successful migration.
The challenges include:
Legal uncertainty
The legal status of blockchain in IP is questionable because it is a relatively new technology. Many features of the blockchain are new to the legal system, creating uncertainty. For example, the absence of a central authority is a key blockchain hurdle that creates legal uncertainty in its adoption in IP.
Industry-Wide Adoption
Industry-wide adoption of blockchain in IP is hindered by the lack of standardization in blockchain platforms. The stakeholders may shy away from blockchain due to its lack of a clear market leader or standard.
Absence of Interoperability
Numerous blockchains are in circulation, operating with various standards and protocols. This absence of interoperability within different blockchain networks adversely impacts communication and data-sharing capabilities.
Complex Implementation Process
Integrating blockchain into existing IP databases is not that easy. Companies may find it challenging as they need to have specific resources and technical expertise for the integration of blockchain technology into IP.
IP enforcement challenges
While the security and restriction of unauthorized access to IP rights under the blockchain will never be a question, enforcing rights in the real world could be challenging.
Jurisdictional Challenges
Since blockchain technology is borderless, it might complicate jurisdictional oversight. A dispute involving blockchain records may cover different jurisdictions, which might cause legal uncertainty.
Global Efforts in Blockchain and IP: WIPO's Role
The World Intellectual Property Organization (WIPO) has partnered with IP offices and other stakeholders for the smooth integration of blockchain into the realm of IP. Some of the initiatives are:
Blockchain Task Force
The WIPO launched the Blockchain Task Force under the Committee on WIPO Standards (CWS) to draft a new WIPO standard for the application of blockchain technologies in IP ecosystems.
Events & collaborative projects
WIPO has conducted many events based on the IP-blockchain integration. Such events focus on aspects such as blockchain technology and its impact on IP, the practical application of blockchain on IP etc. The organization is focusing on collaborative pilot projects, capacity-building initiatives, and public-private partnerships.
Harmonisation of IP & Blockchain
WIPO is working to develop a harmonized approach towards the integration of blockchain into IP worldwide. The organization is focusing on aspects like regulation, governance, and standardization of blockchain technologies in IP ecosystems.
Blockchain for IP: Best Practices and Recommendations
Since using blockchain in IP is challenging, IP owners need some guidance. Use the following recommendations while using blockchain for IP rights management:
- Choose the right platform
- Be vigilant while designing smart contracts
- Protect the privacy and security of IP data using encryption, hashing, zero-knowledge proofs, and access control.
- Collaborate with other stakeholders
Conclusion
Blockchain technology is rapidly evolving along with transforming the realm of IP. With the advent of blockchain, we can see a drastic change in the way IP rights are managed, licensed, and enforced. Blockchain’s transformative power rests in the benefits it offers such as an immutable record-keeping system to streamline IP licensing processes and boost enhanced collaboration and trust among stakeholders.
Real-life applications of the blockchain such as Blockai, Bernstein and Verisart have shown us how far the technology has elevated IP rights management.
However, we need to be mindful of the technology’s limitations such as legal uncertainty, industry-wide adoption, jurisdictional challenges etc. The contributions made by organizations such as WIPO also underscores the bright future of blockchain adoption in IP.
