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Blockchain & IP – Fin Tech

1. INTRODUCTION

what is the blockchain?

There is no denying the fact that Blockchain is "like"
ingenious invention â € "how misunderstood.

People mainly associate Blockchain with online currencies or
"Criptovalute" as "Bitcoin".

While it is true "Cryptocurrencies" are
mainly based on Blockchain technology but on technology
it's much more than being part of Fin-Tech
ecosystem.

The fruit of a person or a group of people known by the
pseudonym – "Satoshi Nakamoto", Blockchain
technology works by allowing the distribution of digital information
but not copied.

Blockchain allows you to record transactions in what is
described as a "decentralized ledger".

Working as a shared Google document, the ledger is a
public database that records transactions between two or more
parts permanently and distributes a copy to all relevant ones
parts, without the need for a third party to authorize the
transaction.

These records are held on a multitude of computers (called
nodes), and each new block is built on previous blocks and
contains data stored on all previous blocks.

Its decentralized nature coupled on a military level
encryption, contributes to its security.

Because all the blocks in the chain are interconnected and the previous ones
the blocks provide the basis for the subsequent blocks, the Blockchain is
practically unalterable.

Even theoretically, its modification would require cracking
cryptographic security used, previous retroactive change
blocks and simultaneous tampering of records on everyone
computers connected to the distributed ledger. This makes it
highly resistant to cybernetic attacks, as there is no central point of
vulnerability to the goal.

In simpler terms, Blockchain technology creates reliability
and transparent registration allowing multiple parts of a
transaction to verify in advance what will be entered on a register
without a single part that has the ability to change any ledger
voices later.

It would not be wrong to say that Blockchain Technology has
created the backbone of a new type of Internet.

2. link between blockchain and intellectual property

In order to understand the actual relationship between
Intellectual Property (IP) and Blockchain, it is necessary first
understand the technology and the flow of Blockchain and then about
advantages that Blockchain technology can actually provide.

A. BLOCKCHAIN ​​TECHNOLOGY AND FLOW

Transactions: Each transaction transfers from
one subject to another and is represented as a transaction from A
a B, B to C or C to D.

Therefore, the blockchain keeps track of all transactions
it occurred from its beginning until the last stage occurred in any
given the point of time.

blocks: All transactions are grouped
blocks. Each block collects all the transactions that occur in a
given the timeframe and keeps a reference to the previous block.
So, they are connected like a chain.

knots: The blockchain is distributed on the network
ie the "nodes". Each node contains a replica
or local copy of the entire Blockchain.

Majority of consent: Decisions on the network
they are made according to the consent of the majority. Each node modifies its own
local copy of the blockchain to create a mirror or replica state of
most network nodes.

Extraction: Nodes could passively store a
copy of the blockchain, or actively participate in the maintenance of
the blockchain, in the so-called "mining" process.

Wallet: A portfolio stores only the credentials (a
complex and immutable combination of numbers assigned automatically
and letters), which allow users to blockchain to transfer
cryptocurrencies they possess.

A single recipient is always assigned to each of them
wallet. A person willing to send any amount of cryptocurrency to
another person, the address of the recipient will have to be
specified together with the desired amount and with his / her
credentials, the transaction will be validated for his
completion.

This translates into a complete flow of transactions below
blockchain.

B. ADVANTAGES OF THE BLOCKCHAIN

Blockchain will be an integral technology for the growth of each and
each sector because of its potential uses.

Different types of data can be added to a Blockchain, from
cryptocurrency, transaction e contractual information
to data files, photos, videos and designs
documents.

Blockchain is also extremely safe and reliable. Whatever
the discrepancy in a record can be quickly identified and resolved.

The main objectives of Blockchain are: responsibility,
Security, transparency, identification and chain connection
events.

So, Blockchain is an effective solution in which a public record
of transactions is necessary to be updated quickly and
effectively, while not necessarily needing any regulator either
third-party authenticator.

This is where IP and Blockchain have a common
platform.

C. PPE LIMITATION

IP Rights (IPR) they are currently regulated by
third-party authenticators.

These authenticators are governments or administrative
bodies of the geographical regions in which the IP holder
wants to protect and enforce the rights
.

The limiting factor of such a system is its intrinsic physical
limitations. This system is already starting to show cracks.

The issues of piracy of literary, dramatic and authorial right
Musical works are a serious concern, which has been pushed
widely with the advent of Internet sharing techniques, e

how the market becomes more globalized and digitized, it
it will become more imperative to look for a more feasible way and
reliable alternative.

Nonetheless, concerns about intellectual property rights are not just limited to
application problems. It is also demonstrating proper management of IP resources
be an equally stimulating job. Thus IPR, in tandem with larger ones
contractual obligations, they need a new look into the current digital
landscape.

Moreover, many large companies today have a substantial part
of their industrial framework on the internet, and therefore physical and
geographical limitations decrease for these companies.
As a result, Blockchain is seriously considered as possible
successor of this "physical system".

The "classical-physical" model of IP rights
the demonstrations are proving to be inadequate in this new digital
. Age & # 39;

3. BLOCKCHAIN ​​& IP – POTENTIAL APPLICATIONS

The advent of the Internet has provided great encouragement to the IP
the industry must think outside the box and look for new and new ways
to protect intellectual property rights.

In the context of IP heavy industries, Blockchain technology
offers various obvious possibilities:

  1. IP registers

The most natural and obvious application for Blockchain inside
the realm of IP is their registration. Instead of opting for
register in a traditional centralized database, to
On the contrary, decentralized Blockchain can be used.

IP offices could also use a centralized system,
Technology-based blockchain, repository to record the full
life cycle of IP rights.

This will help to develop an indisputable record to list
an all-encompassing chronology of an IP, since its date
application.

This will really be extremely useful when it comes to complaints
for "revocation of non-use". This would also be useful
for audits, tasks, mergers and acquisitions.

Even unregistered intellectual property rights (author rights, etc.) can benefit from them
much from a Blockchain-based system as it could be of great help
issues related to proof of their conception and original
paternity.

  1. Smart contracts and digital rights management
    (DRM)

With a technology advancement, smart contracts can be
programmed to perform simple functions.

Smart Contracts must be gradually evolved with constancy
revision and update since the specified conditions will also change
over time. Smart Contracts can perform themselves, when specified
the conditions are met, without any manual intervention.

Smart Contracts work in automatic mode with its motu
authority until the specified conditions are met.

For example, combined with the concept of & # 39; Smart
Contracts ", you could license a copyrighted work e
the related royalty payments could be made to the licensor in
in real time once the job is used by the licensee.

The Blockchain or Distributed Ledger archives (based on DLT) might help
and facilitate the licensing of works protected by copyright or other IP
rights through the use of these "Smart Contracts".

  1. Anti-counterfeiting and supply chain management

Blockchain also offers many opportunities intact in the
sphere of off-line ecosystems in the field of intellectual property rights.

Paired with tags linked to Blockchain or scan
imprints on goods,
providing the ability to track the goods
an immutable Blockchain, master books showing the relative property o
authorized dealers would allow all people in the supply chain,
including consumers and authorities, to distinguish the true
products from counterfeit goods.

This would also allow producers of goods to enforce their own
contracts and could also be used to meet the regulations
requirements.

4. BLOCKCHAIN ​​and IP – CHALLENGES

Although Blockchain has the potential to revolutionize the
the current IP ecosystem, but to date there are many disadvantages e
side effects of an entirely Blockchain-based ecosystem.

Although some jurisdictions have taken cognizance
of Blockchain as admissible test, it will take a long time
its full legal adoption.

In addition, due to slow ticking transaction processes in
Blockchain, PI experts will still be required for legal issues and
exams.

The second big obstacle for the widespread use of
Blockchains is its incredible energy consumption.

Feed all the "nodes" and at the same time provide
It becomes an adequate cooling system for continuous operation
process that consumes a lot of energy.

Only these two negative aspects make Blockchain one of the most
expensive databases that you can imagine.

5. CONCLUSION

While the technology is still relatively in its early stages,
its growth and propagation can help solve many of the problems that
Holders of intellectual property rights have been confronted since the advent of
Internet.

As noted above, there are shortcomings in the Blockchain
technology, including the fact that it is based on a huge processing
power and can cope only with a limited number of transactions per
Now.

The biggest strength of the Blockchain ecosystem is that
it is immutable
.

Once an entry in the Blockchain is created, it is impossible
corrupt, and this makes it suitable for a world that requires greater
transparency and responsibility.

The common use of Blockchain is probably still far away, and
many people will have to be convinced of its practicality.

However, where there are outdated and ineffective systems
(or completely absent) on the spot, we could see Blockchain being introduced
to simplify and simplify the management of Intellectual
Property.

We at AMLEGALS expect that, through a large-scale adoption of
Blockchains in the IP sector, especially for digital and Internet-based
Businesses, violations of intellectual property, including copyright, may be contained
in the next years.

This content is purely an academic analysis below
"Series of legal information".

© Copyright AMLEGALS.

Disclaimer: the information contained in this document is
intended for information purposes only and does not constitute
legal advice, advice or publicity. This document is not
destined to face the circumstances of any particular individual
or corporate body. Reade should not act on the information provided
here without an adequate professional advice after a deepening
examination of the facts and circumstances of a particular
situation. There can be no guarantee that the
the judicial / quasi-judicial authorities can not take a position
contrary to the opinions mentioned here.

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