A Blockchain-Based Model to Improve Patent Authentication and Management Process

Abstract

Patent authentication and management is a vital activity for protecting individuals' and organizations' intellectual property rights around the world. As patents are territorial and data management for patent applications is primarily handled by local intellectual property offices, the patent authentication and management procedure are inefficient and time-consuming on a worldwide scale. Furthermore, data management concerns in the patent process frequently result in conflicts and legal actions among competing parties. Blockchain technology is generally recognized for its potential application in the development of decentralized, secured, and transparent systems with immutable records. As a result, it appears to be a viable solution for overcoming issues in the patent domain. The purpose of this research is to demonstrate how blockchain technology may help with patent authentication and management. To explore the process of the existing system and its shortcomings, interviews with relevant stakeholders and a comprehensive literature review are conducted. To overcome the highlighted barriers and limitations, a novel architecture and prototype of a consortium blockchain system are proposed, with regulated bodies as nodes such as the World Intellectual Property Office and Regional IP Offices handling the consensus mechanism. The proposed consortium blockchain design is based on the Ethereum architecture and is equipped with smart contracts. To arrive at conclusions, it is tested in a simulated environment with generated actors and data. The present study demonstrates that blockchain can ensure the reliability of patent data and real-time updating of records efficiently and at a low cost. Furthermore, patents that have been registered to this network become reliable across IP offices. Without relying on a single patent office, patent applications can be approved or rejected with the proposed architecture. The prototype model shows considerable improvement in establishing evidence of first ownership which helps minimize a significant number of litigations. The study further shows how Blockchain Serves as a distributed database which is very much useful in cross-validated reliable systems like secure document management for government processes.