Non-fungible tokens should be given an unprecedented purpose until then. The technology giant IBM (International Business Machines Corporation) will register patents on the blockchain through NFTs, turning them into digital assets and facilitating negotiations involving intellectual property.
Patent firm IPwe has been working with IBM for years to develop blockchain solutions. The two companies announced last Tuesday (20) that they will start creating non-fungible tokens to represent patents.
NFTs facilitate patent trade
IBM already has a division dedicated to blockchain technology that provides corporate customers with the ability to register and track entire segments of production chains. Now, together with IPwe, the company should offer the infrastructure to represent intellectual property through non-fungible tokens, storing all its information in an encrypted network and facilitating the trade of patents.
“Tokenization of intellectual property will help to reposition patents to be more easily sold, traded, traded or monetized, bringing liquidity to this asset class,” the companies said in a joint statement. The patent NFTs will be stored by IPwe and hosted on IBM’s cloud network, developed by its blockchain division.
Patent market has trillion dollar potential
According to Erich Spangenberg, founder of IPwe, a maximum of 5% of all patents on the market are evaluated for negotiation. Thus, the entrepreneur believes that there is an opportunity for the development of a sector that can potentially be worth more than US $ 1 trillion. For that, intellectual properties would have to be easily identified, authenticated and simple to negotiate, something that NFT technology should allow.
For Spangenberg, today it is very difficult to make transactions involving patents due to the lack of transparency about who is the owner and what exactly is patented. According to him, this problem could be solved with NFTs, which would store all important information in blockchain, allowing simple and quick queries, while protecting the exclusivity of the token.
IPwe already offers a global intellectual property marketplace, a platform on which to register, buy, sell and consult patents from around the world. Now, that project is expected to evolve with the help of IBM to incorporate blockchain technology and non-fungible tokens into its system, Spangenberg told CNBC.
Both companies hope to expand the patent market for large and small customers. IPwe hopes that corporations, governments, universities and even startups will be able to start selling intellectual property in a more accessible way. For that, the project should start to be tested in the beginning of the second semester of 2021.
Current patent market is poorly optimized
For Jason Kelley, general manager of global strategic partnerships at IBM Services, the current patent market is extremely “under-optimized”. According to him, it is a commercial sector that covers practically the entire economy. In addition, the COVID-19 pandemic has intensified the “digitization of things”, bringing greater receptivity to commercial and technological innovations.
That said, migrating patents to the blockchain would be “a perfect fit”, allowing for verification, validation and improving trust between the parties involved in the transaction. “Patent tokenization opens markets. You can value different ideas and negotiate them with greater capacity, validity and confidence, ”said Kelley. “We are just scratching the surface of a billion dollar market.”
With information: CNBC