Blockchain for Timely Transfer of Intellectual Property

This article examines how blockchain technology can facilitate innovation by streamlining the licensing process of intellectual property (IP). In the traditional world, there can be tension between inventors and developers when it comes to licensing IP before a patent is granted. Developers need more information about the IP in order to estimate its value, while inventors are hesitant to disclose too much information for fear that developers will use it to develop and commercialize the IP without licensing it. The blockchain's ability to create a transparent and secure record of the inventing process can alleviate these concerns. On the one hand, blockchain's traceability helps protect IP from infringement, encouraging inventors to disclose more information about their high-value IP. On the other hand, developers have more incentive to license IP rather than infringe on it because of the risk of punishment. The size of the community maintaining the blockchain is a crucial factor in ensuring the validity of the blockchain. A community that is too large or too small would not be able to reach equilibrium. These findings provide insights into how blockchain can be used to improve the economics and marketing of IP.