A ‘blockchain’ can be thought of as a virtual register, whereby not only the data it contains is recorded in the register, but also its changes. The register is then encrypted and stored decentrally, i.e. on all user computers participating in the blockchain. Due to this multiple storage, no subsequent changes can be made to the data blocks, which guarantees a high level of security and makes the use of central intermediaries (e.g. banks) obsolete.
 

Blockchains are a useful tool in the field of intellectual property. For example, because of their unambiguous dating, they can be used as a basis for proof of manufacture. They can also be used to digitally manage and enforce intellectual property rights or to conclude licences and pay fees in real time. These possibilities can lead to efficiency gains in the fight against trade mark and product piracy, or the fair distribution of royalties in the music industry. However, before it can be used, it must be clarified whether blockchain technology meets the security requirements of sensitive data.

Sources/further reading:

• WIPO (2018): Blockchain and IP law: A Match made in Crypto Heaven?
• Recht und Netz (2018): Blockchain-Technologie und Immaterialgüterrecht