Blockchain & Trademarks

As a trademark attorney, invariably the first question we ask our clients is - Do you own this mark? When was this mark first used  in commerce? And so starts the collection of documents that help establish ownership and priority. Or you can utilize Blockchain. 

Blockchain, is a decentralized P2P network that maintains a secure ledger of transactions.  A highly attractive feature of this platform is that the transactions in question cannot be altered or tampered with.  Blockchain is, therefore, a critical tool, especially where the ownership, priority or authenticity of the goods/services are pivotal, as is the case in trademark and brand protection.  

US Trademark applications referencing blockchain in the description first appeared in 2014. (See Brief History - Blockchain & TMs).  However, it was not until 2016 that marked a turning point and a definite uptick in such trademark applications and registrations in the US.  So what's all the excitement about?

This technology is plenty useful, but with specific relevance to trademarks, the three things that truly stand out is the ability to establish:

• ownership
• priority
• authenticity

Companies are creating solutions to take advantage of these features. Cognate, a US based Common Law Trademark Registry, is using Etheruem blockchain to create a ledger, a time stamped "smart contract" that records "the mark, class, date of first use, a specimen of use, etc." and "facilitates, verifies, or enforces a contract, transaction or agreement which cannot be altered or tampered with."  Essentially, this "immutable, time-stamped record of the registrant’s rights" goes to establish ownership and priority.    

Another great example of how useful blockchain is to protecting ones brand is evinced by its utilization in the Fashion industry.  The Provenance App used by Designer Martine Jarlgaard, logs a story of how the garment came to be, covering all stages from raw material, to production, inventory control, warehousing, supply chain, and finally to the retail store.  Every step is logged in blockchain and a consumer can view this on that App thus becoming immersed in the story and being able to authenticate for him/herself that it is indeed the same soft alpaca sweater they paid for. (Also See #Whomademyclothes).  Blockchain is a definite boon in the fight against counterfeiting as well.