Blockchain and Intellectual Property:

An Interdependent Relationship

1
 Blockchain is a New Type of Database

• “Shared Source of Truth”

• Distributed
• every participant has a copy
• Accurate
• trust mechanism used to verify entries
• Immutable
• the magic of cryptography

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 Chamber of Digital Commerce

• U.S based Trade Association

• Global Blockchain Forum
• Australian Digital Currency Commerce Association
• Japan Blockchain Association
• United Kingdom Digital Currency Association
• Association of Cryptocurrency Enterprises and Startups
Singapore (ACCESS)
• Blockchain IP Council
• Co-chairs
• Marc Kaufman, Rimon PC
• Patrick Murck, Cooley & Fellow at Berkman Klein Center at Harvard
• James Murdock, Blockstream

• “Promote innovation in blockchain and distributed ledger

technologies (DLT) by addressing intellectual property
issues”

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 Credit Where Credit is Due

• All patent search and analytics by

Questel Orbit
• Special thanks to Daniella Hoyos

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 Yin and Yang: Although two elements may be totally different in their
individual qualities and nature, they are interdependent and attract and
complement each other.

“Doubled-edged Sword”: From the notion that if two sides of the same
blade are sharp, it cuts both ways.

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 Our Agenda

• The “Yin”: Using IP theories to

protect blockchain technology
• The “Yang”: using blockchain
technology to protect IP

• The first edge: Criminal threats

presented by the use of
Blockchain technology
• The second edge: Blockchain
technology as a tool for law
enforcement

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 The “Yin”:
Using IP theories to protect blockchain
technology

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 Emerging Proprietary Rights
• Many implementations are Open Source
• Bitcoin
• Ethereum
• Hyperledger
• Emerging landscape of proprietary rights

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 Patent Filing Trends

350

Satoshi

Incomplete
296
300 Nakamoto
Whitepaper
250

200
Apr-17
159
137 138 142 Sep-17
150

111
100

50 33
16 19
5 11 5
1 3 0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

*http://historyofbitcoin.org/
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 Patent Filing Jurisdictions

113 26 37 34 70

30 11 29 71 204

6 21 36 6 14

WO 41 27 1 15

42 12 8 12

6 3 5 51

6 324

510

0 50 100 150 200 250 300 350 400

January June December Apr-17 Sep-17

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 Segments of the Eco-System

80

70

60

50

40

30

20

10

0
Academic Institutions Blockchain & Crypto- Financial Institutions Fintech Companies Technology Corporations
Currency Companies

Payments Mining Encryption Smart Contracts Authentication

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 Top 10 Players: Technology Category

UNIVERSITY OF ELECTRONIC SCIENCE & [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]
TECHNOLOGY OF CHINA
[BUBBLE SIZE] [BUBBLE SIZE]
PAYPAL
[BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]
HIGH TECH PRIVATE EQUITY FUND

HANGZHOU FUZAMEI TECHNOLOGY [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]

COINPLUG [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]

CLOUDMINDS [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]

BUBI NETWORK TECHNOLOGY [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]

BT
[BUBBLE SIZE] [BUBBLE SIZE]

BANKNOTE CREDIT CARD INDUSTRY [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]
DEVELOPMENT
[BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE] [BUBBLE SIZE]
BANK OF AMERICA

Payments Encryption Mining Smart

Identity
Contracts
Verification

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Trend by Technology Category

Incomplete

AUTHENTICATION 1 1 7 57

3 3 7 2 7 8 12 56 16 31
ENCRYPTION

MINING 1 1 2 2 26 21 20

PAYMENTS 1 3 3 5 11 13 22 76 93 146

SMART CONTRACTS 2 5 9 37

2002 2004 2006 2008 2010 2012 2014 2016 2018

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 What does the future hold?

• Increased patent filings/Increased risk

• Patent Assertion Entities
• Need for parties to have an IP strategy
• Ecosystem collaboration will be critical to foster
innovation
• Patent quality
• “Innovation Agreements” (Blockstream)
• Patent pool

14
 Branding Opportunities

• The top players are diverse

• Legacy technology
• Large financial
• Academic
• Newcomers
• Players will be seeking brand recognition
in this ecosystem
• Protection and enforcement will be critical

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 The “Yang”:
Using Blockchain Technology to Protect IP

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 What is Intellectual Property?

“ … refers to creations of the mind.” (WIPO)

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 IP is Defined by Documentation

• Database
• Trademark Registration
• Patents
• Ownership records

• Trusted Authorities
• EUIPO
• USPTO/State Databases
• EPO
• Spotify

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 Is there a Better Way?

• Track ownership/transactions
• Effect payments
• Integrate data
• Provide transparency

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 What if we carve it in stone?

• Immutability
• Mutual Trust
• Transparency

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 Imagine the Possibilities

• IP components
• Ownership
• Identity
• Provenance
• Supply chain
• We can record and verify with certainty!
• “Smart Contracts” can control business processes

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 Existing Implementations

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 The Double-Edged Sword

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 Criminal Activity

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 Criminals Rely on Opacity of Provenance

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 Blockchains can Provide Transparency

• Enforcement agencies can be a node

• Immutability allows forensics
• Chainalysis

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 In Summary …
• IP and blockchain are interrelated
• Blockchain is transformative
• IP protection will drive innovation in the ecosystem
• Blockchain technology will transform IP protection
and enforcement
• Blockchain technology provides opportunities for
both pirates and law enforcement

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 Marc Kaufman
marc.kaufman@rimonlaw.com

Chamber of Digital Commerce

www.digitalchamber.org

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