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Some theoretical subjects about the application of blockchain in the enforcement of Intellectual Property rights – IPFLAME

Some theoretical subjects about the application of blockchain in the enforcement of Intellectual Property rights

By IPFLAME

09/12/2021

By IPFLAME

09/12/2021

The explosion of information and communication technology has brought about profound and comprehensive changes in all aspects of social life. Blockchain technology – one of the main technologies and increasingly widely applied in the industrial revolution 4.0 also promises to bring such powerful effects – including influences with the field of enforcement of intellectual property rights.

1. Definition of blockchain

Blockchain is a decentralized database that stores information in blocks of information that are encrypted and expanded over time. This technology is resistant to data changes and is guaranteed by its design using a decentralized computing system with high error tolerance. Therefore, Blockchain is suitable to record events, process transactions, notarization, identifying or origin proving.

2. Blockchain and IP rights verification, enforcement

Blockchain has many basic characteristics, including “immutability”. Accordingly, all the transactions within the network are stored in blocks. It is virtually impossible to modify or falsify the data in these blocks. Recorded transactions cannot be deleted or reversed. Transactions cannot be forged in the ledger because the same records are stored in a number of nodes and bound by a hash function that ensures data integrity. To get to know who the owner of the trademark is, or who is legally licensed… authorities can easily search in the Ledger.

Another basic characteristic of Blockchain is “traceability”. Particularly, Blockchain allows users to track from the first transaction because all the transactions are verified with time seal and they cannot be modified. In theory, this makes better transparency than traditional system. This characteristic allows to objectively verify the goods origin (when and where goods are created); production process and product circulation. From there, it brings practical benefits to each different group of subjects as follows:

– For customers: Customers can verify the origin of the goods they need;

– For authorities: Authorities can easily track down the origin of the goods, producers, to consolidate the necessary information to prove an IP infringement act.

3. Blockchain and infringement scope determination

As an important application of Blockchain, there are more and more kinds of “virtual money” (crypto currency)appear and increasingly being perfected. Till now, there are many different definitions of “virtual money” but there is a common point that virtual money “can be used to trade, pay for other kind of goods, services” (1). In theory, IP infringement objects can use valuable “virtual money” such as BTC, ETH, USDT instead of using VND currency to proceed transaction related to infringement goods, this will surely make it difficult to investigate and verify the money flow, benefit proof.

Virtual money in Vietnam is not in the list of prohibited business goods and services, but it is not a means of payment or negotiable instrument and has not been regulated by law, and there is no regulatory framework. Virtual money transactions are not protected by law. Academically, it is interpreted in Article 105 of Civil Law 2015 as follow: “Property comprises objects, money, valuable papers and property rights”. To concretize, it is also interpreted in Article 115 of Civil Law 2015: “Property rights are rights which are able to be valued in money, including property rights to subjects of intellectual property rights, right to use land and other property rights.”. “Virtual money” can be valued as currency because of its’ economic and using value, therefore it can be considered as a form of property right like Intellectual property rights. Thus, as defined in Article 105 and 115 of Civil Law 2015: Virtual money can be considered as a form of property. Then, using “Virtual money” to proceed trading related to infringement goods can also be sanctioned like using VND currency.

(1) Virtual money and Legal challenge in the scene of industrial revolution 4.0 – Faculty of Civil Law, Hanoi Law University