IP Management and Protection
The process of identifying, protecting, and exploiting IP assets is called IP management and protection. Businesses and individuals apply strategies and practices to safeguard their intellectual property and maximize their value for effective IP management and protection. IP management is crucial for many reasons to all IP holders. Protecting IP rights preserves the exclusive rights of the owner. It helps the IP creator to enjoy monetary and non-monetary benefits such as recognition, and goodwill, and it prevents unauthorized use and profit from the protected IP as well. Establishing IP rights helps to gain a competitive edge in business through distinction. After IP registration, IP owners have access to different methods to exploit their IP rights. Owners may sell, license, franchise, joint venture and partnership, distribute and license networks, and so on. One of the important roles of effective IP management comes in choosing the IP owner who should opt for the exploitation of the IP rights. For example, for a company that has developed a new technology, it is crucial to determine if they want to file for patent protection for the invention or protect the invention by keeping it as a trade secret. Due to reasons like these Intellectual property is the backbone of many businesses.
Traditionally, all of the types of IP are awarded distinct types of legal protection. There are different legislation governing different forms of IP, and the legislation varies with jurisdiction. In India there is the Copyright Act, 1957, Patents Act, 1970, Trade Marks Act, 1999, and trade secrets are protected through Contract Act, 1872. Through these legislations, the rights of an IP holder are protected in India. Countries are also a party to various IP-related treaties and conventions that attempt to set a global standard for IP protection. India is a party to numerous treaties and conventions. After joining the World Trade Organization in 1995, India has taken steps to protect IP rights at an international level.
Although these acts have protected IP up until now, every method of IP protection has its challenges, especially while analyzing the laws in the backdrop of a world with fast-paced technological advancement. The process of protecting IP is still dependent on various formal and informal methods. The formal method of IP protection comprises patents, trademarks, and such, and the informal method includes the use of secrecy, publishing, restricted access to knowledge, division of work, and so on. However, these systems still face an array of challenges. From the problem of proving ownership, authenticity, managing distribution rights, establishing and enforcing digital rights, inefficiency in search, compliance challenges, and document preservation, these challenges are faced by all the stakeholders in the IP management and protection ecosystem, i.e., the regulating authority, IP owners, sub-licenser and such.
3.2. Blockchain Technology
To evaluate the feasibility of the proposition made in this research paper it is important to understand how blockchain technology works and its features that make the technology promising for the IP sector. Blockchain technology works through a system of digital blocks, each block contains a set of information which are all linked together and create a chain of information, thus, the name ‘Blockchain’. After that, the blocks are distributed across computer networks. Each computer that receives the data is called a ‘node’. Each block is also given a unique identifier called ‘hash’. The chain of the block is linked with a timestamp and the hash function. Now, if any party wants to add a new block of information then the other nodes must agree that the block is valid. The information on the blockchain will be visible to any party that has the node, making the system transparent. However, anytime someone changes the information on the blockchain the hash function and timestamp will automatically change thus, making all the nodes aware of the change. Thus, any alterations made to the data is easily detected.
3.3. Blockchain and IP Management
Blockchain’s most prominent feature is that it provides cryptographic security of data and a sophisticated method of data transmission. These features help in creating ‘Smart IP Rights’ meaning that all the IP rights that will be recorded in a distributive ledger rather than a traditional database. Similarly, IP regulating authorities could also adopt “Smart IP Registers” and record every information relating to an IP. The Smart registers would be able to track down the life cycle of each IP along with the ownership and transfer, along with any other type of development.
Apart from the general features of blockchain that aid in IP management, blockchain technology could play a crucial role in protecting different IPs in different ways. Each IP has its own way in which it needs to be protected. Patents and copyrights need to be disclosed, while clearly and explicitly mentioning the name of the creator, in the case of trade secrets, the confidential information needs to be stored in such a manner that no one except for a few trusted individuals should be able to access the information. In both these cases blockchain’s immutability feature is for the protection of copyrights and patents, while blockchain of a different kind can also be used to create tamper-resistant storage by making unauthorized access extremely difficult.
3.4. Challenges
Blockchain technology does paint a rosy picture of its purpose in the IP sector, and it clearly can do what it promises. However, we still need to acknowledge that blockchain is a comparatively new technology that the tech world is still trying to figure out. The issue of blockchain can be seen with the scalability of the technology, as blockchain is a complex system and still has not been very widely adopted by businesses. Integrating blockchain technology into the existing system will also be a major challenge. The cost of implementing, educating, and training to properly use blockchain technology is also a major consideration for deciding whether to adopt the technology or not. Apart from these challenges, legal recognition and lack of regulatory frameworks is also big hurdle that blockchain technology needs to overcome.
Blockchain offers promising solutions to several long-standing problems in the IP Sector. Blockchain’s immutability, tamper-resistant storage, and verifiability could enhance IP management and protection considerably. It can create a more efficient system for recording, tracking, and safeguarding IP rights, which is particularly relevant in this era of dynamic technological evolution.
However, the challenges associated with blockchain technology also should not be underestimated. The difficulty in scalability, integration into existing systems, cost, and the need for legal recognition, laws, and regulations also pose risks to the sustainability of the technology.
As of now, the answer to whether blockchain should be adopted as a mainstream technology in IP management is not definitive. Overcoming the hurdles that come in the implementation phase may not be everyone’s cup of tea. In the context of private players, businesses, and individuals, upon assessing their goals and the resources that they have at their disposal, and other various factors should decide if the investment to be made in the adoption of blockchain technology is going to be worth it. For some the enhanced security, traceability, and transparency may justify the use of blockchain, however, for others, the challenges may outweigh the potential benefits of the technology.
In the long run, as blockchain technology is being adopted in various fields the use of blockchain does seem to be advantageous, and with technology the more widely it is used the easier methods of adoption are introduced. Although, in the initial stages blockchain might not be easy to be adopted by everyone.
3.5. Blockchain Technology for IP Protection in Developing Nations
The government procedures in developing nations are quite infamous for their bureaucratic procedure and problems of rampant corruption. The process of IP registration takes longer in developing nations compared to developed nations. Blockchain technology’s immutability, verifiability, and transparency features could be an extremely potent tool to overcome the inefficiencies and obstacles in the IP protection and management process. Blockchain helps to digitize and modernize the functioning of any entity. India has also worked on a blockchain implementation strategy, in which the Indian Government is planning to make use of blockchain technology in various areas of operation, including the IP sector. However, some prerequisites are needed to implement blockchain technology. Access to the internet and sophisticated technology are the main components of blockchain technology.
Conclusion
In conclusion, combining blockchain technology and IP management holds immense promise. Blockchain’s core features, immutable, time-stamped, recording, and data storage offer solutions to a spectrum of IP-related issues such as counterfeiting, piracy, and trade secrets protection. However, this potential remains largely untested in real-world scenarios for an extended timeframe. Issues of scalability, feasibility, legal acceptance, and security must be addressed properly. Blockchain technology may not be the need of the hour for many reasons but it is highly likely to be the norm of the IP sector in the future.