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The current trademark and Brand Protection Market Faces Some Challenges Which Blockchain Technology is Willing To Solve.
Trademark and brand-protection strategies today include legal channels, such as intellectual property legislation and trademark registration, as a foundation for protection. Technology, proactive enforcement, and legal action are also part of the strategy.
Technological solutions like digital watermarking and blockchain can provide innovative methods of authentication and traceability. Brands could also monitor, investigate, and cooperate with law enforcement to detect and address infringement instances quickly. However, brand protection methods must constantly evolve and adapt because counterfeit operations are dynamic.
Blockchain Technology & Brand Protection
In the blockchain platform, the chain of information is created through each new block referring to the previous blocks, which are cryptographically interconnected. The information entered on a block creates a record of the date, time, and other relevant information. Moreover, Subsequent blocks in the chain must include information and transaction data from all previous blocks. Essentially, it is a chain of tamper-proof information.
Cryptocurrencies, such as Bitcoin and Ethereum, and smart contracts are some common examples of blockchain technology at work. Spotify uses blockchain to match artists with license agreements and tracks.
De Beers has implemented blockchain technology to securely track diamonds across the full value chain from mine to jeweler. Blockchain works quietly in the background of many systems that make the commercial world run, and its prevalence and contribution mostly go unnoticed.
What are the Current Problems in the Brand Protection Market?
The current trademark and brand protection market faces some difficulties which slow down the growth at which businesses could operate. Trademark and brand-protection strategies today include legal channels, such as intellectual property legislation and trademark registration, as a foundation for protection. Technology, proactive enforcement, and legal action are also part of the strategy.
However, brand protection methods must constantly evolve and adapt because counterfeit operations are dynamic. Therefore, it’s getting harder to manage laws that apply across different countries. To prevent people from breaking these laws when they cross borders, a revolution is needed.
How Blockchain Technology Could Help in Brand Protection
Blockchain technology has begun to benefit brand and trademark protection. Blockchains can help prevent counterfeit goods from hitting the consumer market, providing luxury brand trademark owners with a sense of authenticity. A unique identifier is assigned to every luxury branded product, in the form of a QR code, for instance.
Moreover, when a person purchases the product, they can use the QR code to access its certificate online, which has been cryptographically signed by the brand and everyone down the line of the supply chain. This ends up verifying the authenticity of the product.
Blockchain Could Also Benefit Luxury Resale
Resellers of luxury goods can also benefit from using blockchain to verify authenticity. At multiple points in a trademark application’s lifecycle, the applicant must show use of the mark. This can be as evidence of use in the application process or to show acquired distinctiveness. The trademark’s usage could be documented on a blockchain, along with the frequency and dates of its use, and then recorded with the USPTO, making it easily accessible to all.
The information could be shared on a blockchain, making it accessible to all. This would minimize any issues arising from confusion by streamlining the process of verifying a registered mark, making it more efficient and dependable.
An agreement and its code could be stored on a blockchain network, and the code would govern the execution and transactions related to the agreement. Furthermore, a smart contract can automatically monitor and calculate each time a royalty payment is due.
According to the terms of the contract, the payment will be made automatically to a specific wallet owned by the trademark holder, ensuring a convenient and enforceable trademark licensing agreement.
Cons Of Adding Blockchain Tech In Brand Protection
However, it is important to consider the downsides of using blockchain in brand protection. Although using blockchain technology is a modern and forward-looking solution, trust remains an important factor in determining the effectiveness of blockchain.
While blockchain can ensure that information has not been tampered with, it cannot verify the integrity of the information recorded at the start. Therefore, trust between the involved parties is essential, whether it is the entire supply chain or two independent parties to a smart contract.
Moreover, the implementation of blockchain and its benefits would be difficult and inconsistent without agreed-upon and internationally recognized standards for use in brand protection and IP rights. The careful consideration of both the advantages and limitations of using blockchain technology to protect brand and IP rights can make it an essential asset for the future of any commercial enterprise.
An Overall Look At The Integration
The use of blockchain technology is transforming the way businesses combat counterfeiting, guarantee supply chain transparency, and handle digital rights.
Smart contracts enhance brand protection measures by mechanizing licensing and enforcement procedures. Moreover, these self-executing contracts are designed to carry out certain tasks in response to particular triggers.
They are useful for brands to protect their trademark usage rights. In addition to this they can automatically penalize unauthorized use or start licensing agreements when products are sold.
Due to this, enforcement procedures that require manual intervention are rendered unnecessary, which simplifies the process of safeguarding brands and ensuring compliance across supply chains.
Blockchain technology does carry some downsides, however these can be solved by being rational and combining human efforts. Overall, this technology is ready to solve the problems associated with the current scenario of the brand protection market.
Summary
Trademark and brand-protection strategies include legal channels, technology, proactive enforcement, and legal action. The use of blockchain in brand protection has some downsides, but they can be solved by combining human efforts. Overall, blockchain technology is ready to solve the problems associated with the current market scenario.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
