Author: Ralph Anand L, School of Excellence in Law, TNDALU, Chennai
To the Point
The Evolution of modern technologies has brought significant changes throughout various fields where legal field is no exception. Intellectual Property (IP) is relatively a conception that has been long held since The Statute of Anne in 1770 formalizing the copyright protection. Registrations of this Intellectual Property requires humongous paperwork and has a complex procedure. The introduction of Blockchain Technology can solve this issue and provide an efficient system of registering IP. This system can enable hassle-free registering in the form of encrypted document fostering transparency and issue of license with a strong de-centralised network making it tamper free and almost irreversible. This article provides a streamlined ideas on introducing blockchain system into trademarks and tackling the legal requirements supplementing with a deeper understanding about the technology and its work progress in the current lifestyle.
Abstract:
Blockchain Technology is the hot topic in current financial world especially in promoting cryptocurrencies globally. This technology when understood in-depth and implemented can have a robust change in various systems such as Land Records, Digital Currencies and Token, Supply Chain Management, Healthcare and many. What was evolved as paper works and hardcopies have been converted into digital data in India today. Block chain technology can harness and lead a breakthrough when implemented into Intellectual property especially in Trademark Registration whilst promoting digital India initiatives. This article enhances the knowledge of the reader giving a brief idea into the legal perspective of promoting this technology in Intellectual property along with current progress and relevant caselaws where the courts have commented on the efficient use of technology.
Use of Legal Jargon:
Blockchain technology uses numerous jargons such as ‘Smart Contracts’, ‘Digital lender’, ‘Decentralised Autonomous Organisations’, ‘Tokenization’ and many which requires a specialised understanding. Integrating Blockchain into Trademark administration necessitates precise and consistent terminologies to avoid any ambiguities in future. Currently the Trademark Act,1999 regulates the registration and registry of trademark. Current registration process involves filing of application, vetting of application by the registrar and issue of certificate where everything is made online. Though blockchain also requires internet, it uses a different system of storing information also called decentralised server and network where every information can be made publicly available without the need of third – party intervention such as the government. As for the government to implement these technologies, there requires a stringent guideline eliciting these jargons in an understandable manner and methods for
The Proof:
Trademarks is not entirely about random names and logos. It confers many other such as Product Mark, Service Mark, Collective Mark, Certification Mark, Sound Mark, Shape or Pattern mark and even Trade Dress/Packaging. These multiple marks bring together the conception of trademark and make the company achieve an undisputed place in people’s mind and hearts. Registering these trademarks is no simple task. In recent years, trademark registry is known to have flaws such as Lack of Authentic Records, Plagiarism, Transfer of ownership and delayed process. Blockchain technology can be implemented at this juncture to solve these issues. This technology makes an irrebuttable blockchain ledgers protected by cryptographic security networks and considered as evidence to determine the ‘first-to-file’. This technology also provides a platform for synchronized search databases with data such as Description, Trademark Number, Application Date, Origin and Status both internally and externally. Enabling blockchain technology can even pay way in collaborating World Intellectual Property Offices (WIPO). MSMEs can be largely benefitted as this technology can provide a user-friendly, cost efficient rather free domain to provide information and invest their resources.
Government of India’s think-tank NITI Aayog has made consistent pursuit in exploring AI and Blockchain-enabled Indian enterprise along with platforms like ‘IndiaChain’ still in progress. Apart from this, the government of Andhra Pradesh in agreement with ChromaWay, a Swedish startup has engaged in structuring the state’s land registry using blockchain technology which could allow the owners to collateralise property and take loans. This enables tracking of ownership and transferring of title hassle-free, mitigating frauds and errors (Quartz, 2018). Similarly, the government has Maharashtra has also called upon academics and researchers to incorporate blockchain technology along with other government services, creating avenues for e-governance. Blockchain Technology when harnessed properly has immense potential in catering the needs of IP offices and adaptation of this technology can lead to faster examination, reliable record management, smart licensing and contractual agreement. Blockchain also reserves itself a few restrictions and addressed this technology can reap to the fullest.
Case Laws
United American Corp. v. Bitmain & others (2021)
The United American Corporation (UAC) filed an anti-trust lawsuit in The US Distict Court, Southern District of Florida alleging that a group of players in the blockchain ecosystem conspired to take control of the Bitcoin Cash Network. The claimed that the defendants allegedly used hashing power and centralized influence to override the proof-of-work consensus protocol, thereby harming decentralization. The court held in favour of the defendants and this became a notable case where the court affirmed that hard forks are a feature, not a flaw, of decentralized systems, and not inherently illegal.
K. R. Chinna Krishna Chettiar v. Sri Ambal & Co. & Anr. (1970)
This case involved the question of whether the registration of a similar mark to a previously registered mark should be allowed. The Supreme court of India held that trademarks which similar can lead to confusion and deception. In this circumstance, registration must be refused when it violates the rights of previously registered similar trademarks. This notifies that if that even if blockchain is introduced no similar trademarks should be registered and any application must be rejected at the onset.
Conclusion
Incorporating Blockchain Technology into the realm of Intellectual Property, especially in trademark registration, can be witnessed as a revolutionary initiative. This augments transparency, efficiency, and security of the IP. By leveraging a decentralized and tamper-proof ledger, Blockchain can seek to resolve issue such as delays, duplications, and authenticity of records in the trademark registration process. Anything without legal protection could pave way for a greater damage therefore this necessitates for a streamlined legal infrastructure. As demonstrated by initiatives like IndiaChain and state-led blockchain implementations, showcases that the Indian legal and administrative ecosystem is gradually embracing this change. When harnesses properly, Blockchain can serve as a powerful ally in fortifying India’s Intellectual Property regime and advancing the broader goals of Digital India
FAQS
1) What is Blockchain Technology?
Blockchain technology uses cryptography to storage data and ensures a distributed digital ledger across computer networks. This enables transparent and unalterable record-keeping without relying on a central authority, allowing peers to verify transactions directly
2) What are some advantages of this technology when used for trademark?
When used for trademarks, blockchain ensures transparent and secure registration processes, prevents duplication or tampering, and enables real-time verification of ownership. It also streamlines international coordination and reduces administrative delays through smart contracts and synchronized databases.
3) What information can be stored in Blockchain Technology regarding Trademarks?
Blockchain registry can store several information as to trademarks such as
• Description of the trademark
• Trademark Number given by the authority
• Trademark Application Date
• Origin of the trademark
• Status of the trademark
4) Are there any legal cases which address Blockchain Technology?
As of now there are no caselaws pertaining to issues in blockchain technology. Reference of United American Corp. v. Bitmain & others (2021) can be used to understand more about the relation of Antitrust law and blockchain technology where the court held disagreements or actions during open-source governance events (like forks) are not necessarily anti-competitive or unlawful, especially in permissionless, decentralized systems.
References
https://download.ssrn.com/2024/11/8/3800734.pdf?response-content-disposition=inline&X-Amz-Security-Token=
https://nopr.niscpr.res.in/bitstream/123456789/49934/1/JIPR%2024(1-2)%2041-44.pdf
https://qz.com/1148361/budget-2018-indias-government-wants-to-kill-bitcoin-but-it-loves-blockchain/
