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Blockchain: changing the registration of intellectual property rights (ip) and strengthening the protection of unregistered ip rights

It is with great pleasure that Anne Rose, Associate and Co-Head of the Blockchain Team, Mishcon de Reya, London, UK, published on the WIPO Portal July 2020.

Blockchain platforms create a transparent and (supposedly) immutable (i.e. immutable) chain of information. These features can create opportunities for IP offices to change the registration of IP rights by making the process more cost-effective, faster, and more accurate. more and safer. Furthermore, this technology can create opportunities for effective change and improve the efficiency and transparency of rights management information.

Blockchain platforms can offer IP authorities the opportunity to change the registration of IP rights and improve the efficiency and transparency of rights management information. (Image: Rick_Jo / iStock / Getty Images Plus)

What is the basic concept of blockchain technology and what is its potential to enhance the trademark and industrial design process and provide proof of use? As for unregistered industrial design and copyright rights, how can blockchain technology provide better proof of the creation of unregistered industrial designs or new copyrighted works?


Blockchain technology: The basics

Simply put, blockchain is a form of distributed ledger technology that creates a secure, transparent record of every transaction and reports the transactions that have been made to everyone on the blockchain platform. For example, if I wanted to prove the creation of this article (i.e. my copyright) on a blockchain, it would not store this actual article. Rather, it records a hash (hash – a unique encrypted string of letters and numbers) that uniquely identifies the article, allowing authorship to be verified and providing proof that the author The creative work (i.e. this article) existed at a given time, although it did not reveal its actual contents. This hash is then linked to any other hash that was generated at the same time, and they are recorded in a “block”. Each of these blocks is then transformed into a hash, with each new block also referencing the previous block’s hash, creating a cryptographically connected chain of blocks. Any modification to an older block will break the chain because hashing that block will no longer be validly referenced in subsequent blocks.

Blockchain technology can make industrial design and trademark registration more efficient by cutting down on some processes and procedures.


Industrial design or trademark registration: current status

To better understand the potential applications and value of blockchain technology in protecting intellectual property, let us register an industrial design or trademark in the European Union (EU) and/or the United Kingdom (UK). Before registering an industrial design or a trademark, you need to decide where you want to protect it, for example, in the European Union and/or the United Kingdom. Second, you need to look at the registrarability issues. For an industrial design, it has (i) “new”; and (ii) does it have a distinctive feature (i.e. does it give a different overall impression to an informed user than any design previously known to the public)? As for a trademark, you need to consider whether the mark is distinguishable and registrable, as well as the goods and/or services bearing it for which you wish to be protected. You will also want to not have any prior rights conflicts by performing the appropriate lookups. You can now use the Design View and TMView applications of the European Union Intellectual Property Office (EUIPO) to check the legal status of industrial designs and trademarks in Member States EU, but it may also be necessary to perform broader searches, using the WIPO Global Industrial Design Database and Trademark Database, for example, or by performing trademark searches. commercial. Finally, you need to pay the registration and application fee at the EUIPO and/or the UK IP Office. Assuming no rejection by the Registrar or a third party objection, the industrial design can be granted within a period of time from the filing date and the mark can be registered within four months. from the date of application.

Blockchain platforms create a transparent and (supposedly) immutable chain of information. However, designing a blockchain-based registration mechanism for registered and unregistered IP rights raises a number of legal, technical and socio-economic issues that need careful consideration. . (Image: Just_Super / iStock / Getty Images Plus)


Industrial design or trademark registration and proof of use

Blockchain technology can make industrial design and trademark registration more efficient by reducing some of its processes and procedures. For example, for some trademark applications, if it is not possible to demonstrate that the mark is inherently distinctive, it is necessary to demonstrate that the mark has acquired distinctiveness through the use of . If it is thought that the necessary changes have been made in the law to allow actual use of a mark (for example) that should be added and recorded in the official register, proof and information about the use the fact that a trademark in commerce, as well as the frequency of such use, can easily be shared and available for all to see on a blockchain. If the trademark owner decides to provide that information freely, this will save considerable time and cost. By acknowledging its potential, WIPO is facilitating dialogue on blockchain to better understand its potential use in the IP context.

In order to establish and maintain exclusivity of a trademark in the European Union and the United Kingdom after registration, it is important for the right holder to demonstrate actual use of the mark for a specified period of time. . The ability to provide evidence of continuation or prior use of a trademark can be a laborious process involving time-consuming and expensive collection of relevant records to justify trademark use. brand.

For blockchain technology to thrive in the management of IP rights, an internationally agreed and supported set of standards is required.

To help with this process, it is possible to implement smart contracts on the blockchain (i.e. computing code that automatically performs its input processing when activated). Such a contract may provide proof of first or subsequent use of the mark, which can then be presented (if accepted) to the court/Registrar as evidence. In May 2020, WIPO launched WIPO PROOF, a new digital business service that provides a digitally signed certificate to prove the existence of a digital file at a specific date and time. By eliminating the conventional reliance on accounting and other records (which may not be sufficient to substantiate actual trademark use) and maintained paper records, the cost of proving use can be significantly reduced. This can therefore lead to a reduction in the risk of challenges to trademark registration.


Unregistered IPR: industrial design rights and copyright

Blockchain technology can also aid in the creation of registers of unregistered IPR rights such as industrial design rights and unregistered copyrights as it can easily provide proof of when they were created. , rights management information (if any) and legal requirements.

However, it is necessary to think carefully about the design of such a platform. A blockchain-based registry, to which any member of the public can upload rights management information as a timestamp entry, will only be useful if a third party is involved. competent and reliable third party such as an IP agency or a Collective Management Organization. Alternatively, the right holder can also be the account holder, meaning that the Registry will not only record but also facilitate the transaction of IP rights. To realize the full potential of a new blockchain-based copyright management system, a large number of rights holders will need to use it, and it will require a sufficient number of copyrighted works. As Alexander Savelyev states, “however, as the number of users increases, this system will become even more valuable and can attract more users”. Assuming that these methods are scalable, reliable, and easy to apply, it is conceivable that exploitation of a work (e.g. phonogram) might depend on registration in a register. digital one. However, given the challenges involved in creating a blockchain-based registered holder with unregistered rights that might consider protecting their intellectual property using our new business service. WIPO, WIPO PROOF (read more below).

WIPO PROOF – Trusted Digital Proof

WIPO PROOF is a new digital business service that provides a date and time stamped digital fingerprint for any file, proving the file’s existence at a particular time. This new service complements WIPO’s existing intellectual property (IP) systems. It is tailored for an increasingly digital world where innovation and creativity are enabled by technology, big data and global collaboration..

Another issue to consider is the authenticity of the information on the blockchain. Blockchain is an append-only ledger – information can only be changed in exceptional circumstances. If information about a copyrighted work is entered incorrectly, nothing can be done without proper technical and administrative systems and processes to remedy the situation.

Another issue to consider is how to manage a scenario where copyright is transferred outside of the blockchain network. For example, take a situation where you have an online token, which represents an off-chain good (like a copyright in a book). In this context, it is important to ensure that whatever happens to the goods off-chain (i.e. copyright in the book) is correctly recorded in the digital ledger. Without proper human coordination, instead of reducing information and increasing reliability, the introduction of a blockchain-based system could have the opposite effect.


 Given the challenges involved in creating a blockchain-based registration mechanism, those with unregistered rights, I consider protecting their intellectual property through WIPO PROOF, WIPO’s new business service.(Photo: WIPO)


Conclusion

This article briefly looks at some of the benefits and limitations of using blockchain technology in registration and provides proof of the use of ITT. For blockchain technology to flourish in the management of IP rights, an internationally agreed and supported set of standards is required. It is important for regulators and policymakers to work together to help shape the implementation of this technology in relation to the registration of IP rights.

For unregistered IP rights, such as copyright, we looked at some of the benefits and drawbacks of using blockchain technology. There are many issues from legal, technical and socio-economic perspectives to consider. Only by addressing these issues will blockchain achieve sufficient levels of scalability, reliability, and market acceptance to have an impact on copyright in the digital environment.

This article considers matters from the perspective of English law and nothing in this article constitutes legal advice. There are many topics that this article does not cover, including, for example, the use of blockchain in rights management and anti-counterfeiting.

Source: Blockchain: Changing the registration of intellectual property rights (IP) and strengthening the protection of unregistered IP rights


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