Will Blockchain Soon Disrupt IP Protection?

"Lawyer Monthly" spoke with Dr. Richard Brunner, Global Head of Legal of the Dennemeyer Group, about the challenges that blockchain technologies pose to patent offices, copyright protection organizations and collecting societies.

Lawyer Monthly: How do you currently see the global IP landscape evolving?

Dr. Richard Brunner: Technology and globalization are the key drivers for the creation and protection of intellectual property. The increasing speed of technology development and shortening innovation cycles, on the one hand, and a progressing territorial expansion of sales markets on the other hand, challenge the traditional mechanisms of protecting Intellectual Property amid intensified competition that comes along with this development. Seen in this light, it is not surprising that the number of registered patents, trademarks, and designs are still on the upswing; however, a territorially fragmented protection of IP rights is in contradiction to globalization and dearly bought, especially considering that effective legal enforcement of intellectual property rights is still not at the level it should be in many jurisdictions.

LM: Can you exemplify this?

RB: IP strategists usually look at the importance of an innovation for the company's business, the market, and eventual other use cases, when making the decision if and where to apply for patents. IP protection comes at a cost that has to be measured in time, money, and the fact that one must disclose the invention even if the patent is not granted in the end. The grant procedure before the European Patent Office takes three to five years and requires validation in its 38 member states; for a more global coverage, PCT nationalizations and other national applications have to be considered. Obtaining and maintaining international patent protection is a costly venture, taking into account official fees alone. This contrasts the need for speed and cost efficiency in an environment of increasing competition. Consequently, companies have to find the optimal ratio between protected territory, speed, costs, risk of infringements, enforceability, and the importance of the IP right. Such evaluations should also look at alternative approaches to find the right balance.

LM: What is on the horizon in this regard?

RB: More and more often companies decide not to patent new technology, but seek to protect their know-how as trade secrets. Such protection is immediate and unlimited in time and space - at...