Professional Documents
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Block Chain
Block Chain
Zeeshan Rahman
B.A.LL.B (Hons)
Student of Centre for Juridical Studies, Dibrugarh University
10 August 2023
Abstract
Blockchain technology has revolutionized copyright management systems by offering
decentralized solutions for protecting and enforcing intellectual property (IP) rights. This
paper investigates the potential of decentralized copyright management systems utilizing
blockchain technology from an IP law perspective within the Indian context. Existing
copyright management systems encounter challenges related to transparency, inefficiency,
and centralized control. Leveraging blockchain's distributed ledger technology, this paper
critically examines the benefits and challenges associated with implementing blockchain-
based copyright management systems in India. Additionally, it evaluates their compatibility
with the current IP laws. The study begins by providing an overview of India's copyright
landscape, emphasizing the importance of copyright protection and the necessity for an
efficient copyright management system. It then delves into the fundamental concepts of
blockchain technology and explores its potential applications in copyright management, such
as digital rights management, ownership verification, licensing, and royalty distribution.
Taking into account the IP law perspective, this paper analyzes the legal implications of
employing blockchain technology in copyright management systems in India. It explores the
implications for copyright registration, enforcement, and the role of intermediaries like
collecting societies. Moreover, it assesses the challenges concerning privacy, data protection,
smart contracts, and jurisdictional issues that may arise during the implementation of
blockchain-based copyright systems. Furthermore, the paper evaluates India's regulatory
framework and its readiness to embrace decentralized copyright management systems
powered by blockchain technology. It discusses the potential amendments required in the
existing IP laws to accommodate blockchain-based systems and proposes approaches for
integrating blockchain into the current copyright ecosystem. This paper contributes to the
ongoing discourse on decentralized copyright management systems in India by adopting an
IP law perspective. It identifies the opportunities and challenges that blockchain technology
presents and attempts to provide valuable insights for policymakers, legal practitioners, and
stakeholders within the copyright industry.
Introduction
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provisions determining the minimum protection to be granted, as well as special provisions available to
endeavours. The Act is in place with international copyright standards, including those that
developing countries that want to make use of them.
have been set out in international agreements such as the Berne Convention. 1 The Copy Right
Act has been enacted to protect a variety of creative works, including literacy, musical,
cinematographic etc. The term of copyright protection varies from content to content
depending on the nature of said content, it ranges from the lifetime of the copyright holder
plus 60 years for literacy, dramatic works etc, to 50 years for cinematographic works. The
Act also highlights the various rights that the copyright holder holds, these include exclusive
rights to reproduce, perform, distribute and adapt their works. These rights help the right
holders to control how their content is used, They can even sell their rights to other
individuals. India's copyright landscape has evolved to address contemporary challenges,
including those posed by digital technologies and the internet. Digital rights management,
anti-circumvention measures, and the protection of technological protection methods were all
addressed by the 2012 modification to the Copyright Act. These modifications sought to
bring Indian copyright law into step with the digital era, making it easier to safeguard digital
property and thwart online piracy.
In India, collecting organisations are essential to the administration of copyright. For the
public performance and transmission of their works, organisations like the Indian Performing
Right Society (IPRS)2 and Phonographic Performance Ltd. (PPL)3 administer and collect
royalties on behalf of the authors and rights holders. India’s copyright law also includes
multiple provisions dealing with fair use of the content for purposes such as criticism,
education, review, news reporting and research, For these purposes permission from the
copyright holder.4 However, these provisions have certain limitations and all of the people
who want to use copyrighted content must adhere to the principle of “fair use”. The copyright
1
2
3
4
Phonographic Performance Limited India, commonly known as PPL India, is an Indian collective rights
management organization (CMO), founded in 1941.
The Rapid advancement of technology in the last few decades has reshaped all the industries
and minds of people alike. With the use of technology content creation has become so much
more efficient and easier, But with the advancement of technology there arose multiple
challenges in the field of copyright. Among these multiple technologies, blockchain has
emerged as a major driving force in technological advancement. It has the inherent potential
to revolutionize data storage, verification etc. There are multiple sectors which show promise
for the application of blockchain technology, one area that holds tremendous promise is the
Intellectual Property Sector. Blockchain technology5 has the potential to transform it into an
evolutionary management system. This paper attempts to explore the fundamental tenets of
blockchain technology and also examines its potential implementation in India.
At the centre of blockchain technology lies a foolproof ledger that transcends its initial use in
cryptocurrency systems like Ethereum, Bitcoin etc. The establishment of a decentralised,
open, and secure digital repository for transaction records is required by this unique
technique. Blockchain networks are maintained by a decentralised network of users, often
known as nodes, rather than a single authority. These nodes collectively validate and record
transactions within blocks. Each block is linked to its predecessor cryptographically, forming
a sequence of interconnected blocks, hence the term “blockchain”. The Decentralized system
used in blockchains eliminates the need for intermediaries, fosters transparency and also adds
to the security of the copyright holders. The unalterable nature of stored data ensures that
every transaction that takes place in the blockchain. As stated earlier the blockchain is made
up of blocks and each block is unique. No changes can be made to the blockchain without the
consensus of the network. These attributes of the system coupled with a few others, have
paved the way for applications spanning well beyond cryptocurrency, with supply chain
management, healthcare, finance, and especially intellectual property rights management at
the forefront. The landscape of IP management has had multiple challenges from the
beginning, particularly in this era of technological evolution in the field of the world wide
web. The verification of ownership, tracking the utilization of content for fair use and the
enforcement of copyright holders’ right has never been more complex and difficult. India is
one of the biggest hubs for start-ups in the world, it is distinguished by a thriving creative and
technological ecosystem. The implementation of blockchain technology in India for
Intellectual Property management holds immense promise.
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Nevertheless, challenges persist. Regulatory frameworks in India must evolve to embrace
blockchain-based Intellectual Property management systems. When implementing such a
complicated system in India a few concerns arise relating to jurisdiction, the enforcement of
said agreements and the admission of blockchain-based evidence in the legal proceedings.
Concerns regarding data privacy and the protection of sensitive data inside a public
blockchain network need to be reduced at the same time. The transformative potential of
blockchain technology in the realm of intellectual property in a country such as India with its
huge start-up ecosystem is undeniable. Its ability to provide us with transparent records, that
are tamper-proof and an automated and quick process can resolve multiple problems
associated with Intellectual Property Management. However the deployment of such a
technology on a large scale still poses multiple challenges as stated earlier, One must keep in
mind the legal, technical and regulatory aspects. We shall further dive into the use of
blockchain technology in Intellectual Property Rights in India via in-depth analysis, case
studies, and identification of multiple challenges that one shall face in implementing this
system.
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In the ever-evolving and complex landscape of intellectual property rights management, the
need for a system of transparent and tamper-proof recording keeping system is of great
significance. Traditional recordkeeping systems have failed in aspects of data opacity,
vulnerabilities to alteration and the cumbersome long verification process. Blockchain
technology promises to bring about a much-needed evolution to recordkeeping by combing
transparency and security in an intricate manner that empowers creators, rights holders and
stakeholders throughout the landscape. Transparent and tamperproof recordkeeping through
blockchain brings about the creation of an incorruptible digital ledger that keeps a record of
every transaction, modification or event related to an asset of IP recorded in the system. As a
result, the historical development of an IP asset transforms into a timeless, unalterable, and
accessible narrative. Moreover, the decentralized system used by blockchain guarantees that
no single person or entity can alter records, which in turn can build an environment of trust.
In this case, as we say that Bayer Corp licensed its patented medicine to Nacto
Pharma Limited, But the company didn’t abide by the terms that were set by
Bayer Corp. If this were set up by blockchain then the smart contract feature
along with the royalty feature would have made this a much smoother affair as
the infringement of right would have been spotted sooner and Bayer Corp
wouldn’t have had to lose so much money in litigation.
If blockchain technology is implemented it would reduce the legal expense of multiple
creators and copyright holders by almost half. With blockchain, there can be hard proof
regarding ownership that can be produced in the court of law which n turn reduces the time
required to fight a case which in turn reduces the money that the creator has to pay the
advocate
Case Laws
Drawbacks of Blockchain
Blockchain technology provides multiple advantages to the IP management system, But
everything has a bad side as two sides to a coin, one must also acknowledge the challenges
that one may face in the implementation of this system. The key drawbacks are as follows:
1. Technical Complexity:
Blockchain technology is very complex and not so easy to use by the general public, A lot of
expenditure will have to be incurred in educating the common man about this system. A
system such as this requires extensive knowledge and expertise. For many organizations, this
will not be possible and this can in turn become a serious barrier to the adoption
2. Scalability Issues
Blockchain networks, mainly the public ones face scalability challenges when there is a
surplus of transactions. Networks such as Bitcoin and Ethereum have encountered multiple
challenges relating to speed and higher fees for transactions during high demand. These
hindrances can hinder the efficient management of data.
3. Energy Consumption:
Blockchain technology uses a lot of electricity to operate. This is due to the various
computational processes that take place to validate transactions and create new blocks.
4. Privacy Concerns:
While blockchain offers transparency through its systems it also raises privacy concerns.
Once data is added to the blockchain it cannot be removed or altered in any way. This creates
a problem as striking a balance between transparency and data privacy can be a complex
endeavour.
5. Loss of Control:
Due to the decentralised nature of blockchain, network users each have a certain amount of
control over data and transactions. This can result in a loss of control over the management of
IP assets, even though it is a strength in terms of transparency and security. For those who are
used to having centralised control over their intellectual property, this might be a cause for
concern.
6. Irreversibility of Transactions:
Once information is added to a blockchain, it cannot be changed. This feature improves
security and prevents tampering, but it can also be problematic if mistakes happen. Errors in
transactions or data entry are difficult to fix and may have expensive consequences.
2. Validation of Smart Contracts: The Copyright Act could be changed to confirm the legal
enforceability of smart contracts, enabling automated licencing and royalty distribution
through blockchain.
4. Blockchain as Legal Evidence: The changes should make it clearer whether blockchain-
based data can be used as evidence in copyright-related court cases. This acknowledgement
would highlight the function of blockchain in producing a permanent record of transactions,
supporting the veracity of the evidence provided.
6. Cross-Border IP Protection: The Act may be amended to deal with international disputes
involving blockchain-recorded copyright transactions in light of blockchain's potential to
facilitate international collaboration and the protection of IP rights. This would provide a
legal framework for resolving disputes that cross national boundaries.
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7. Data Privacy and Security: The changes should take into account the privacy issues raised
by blockchain's transparency. Maintaining the confidentiality of sensitive data requires
ensuring compliance with data protection laws while utilising the advantages of blockchain
technology.
While the integration of blockchain technology into India’s IP rights management system
presents various possibilities, it requires careful consideration and a regulatory framework
that considers its unique features, Amendments to the act are necessary to harness the true
potential of blockchain technology.
Conclusion
It can be concluded that India is still a long way from implementing blockchain technology in
the country. But with the implementation of blockchain, many possibilities open up.
Blockchain technology provides us with multiple advantages but at the same time, there are
multiple complications in implementing said technology. The Copy Right Act, of 2012 needs
to be amended on a large scale. But it can be seen that blockchain technology in India is a big
possibility.
REFERENCE
1. Enrico Ferro et al., Digital Assets Rights Management through Smart Legal Contracts
and Smart Contracts, 100142 Blockchain: Res. & Applications (2023),
2. B.P. Singh & Anand Kumar Tripathi, Blockchain Technology and Intellectual
Property Rights, 24 J. Intellectual Property Rights (Jan.-Mar. 2019), pp. 41-44.
3. Junyao Wang, Shenling Wang, Guo Junqi, Yanchang Du, Shaochi Cheng &
Xiangyang Li, A Summary of Research on Blockchain in the Field of Intellectual
Property, 147 Procedia Computer Science 191-197 (2019),
4. Mane, Vishwasrao & Khot, Namita, Copyright Act, 1957: A Study concerning
Selected Cases in India, 336 J. Advancement in Library Sci. 341 (2019).