Non-fungible tokens (NFTs) continue to be the subject of great interest. However, it is sometimes unclear how companies can take advantage of this technology and how to initiate an NFT project to achieve certain business goals.
In addition to the success of play-to-earn games and avatar projects such as Bored Apes, non-fungible tokens are beginning to impact other industries as well. In this article, we want to look at two examples of real-world applications.
In the past few weeks, we have already seen some use cases. Today we are going to analyze another one.
Patents and Copyright
Patents and intellectual property are other areas that can benefit from non-fungible tokens (NFTs). The current patent system, which is commonly used internationally, relies on patent registries governed by authorities to register, cancel and track licenses and ownership of the registries.
The patents themselves clearly have value.
There are many lawsuits over intellectual property theft or disputes to determine the originality of an idea.
The problem is, how do you value a patent? How do you put a patent on a balance sheet and what do you then do with that patent? There are companies that just buy patents, such as those that buy domains for websites.
For all companies that own patents, the use case for an NFT is clear: they can now tokenize those patents. And this is where the greatest value arises, being able to buy, sell, lease or license them.
They can also split it so that potential investors can own a portion of a patent and split the income from its use.
NFTs are a great way to protect intellectual property and patents; they also allow users to prove ownership of any content, which is not possible with traditional intellectual property rights tools such as trademarks and copyright.
Ownership of a patent/idea can be distinguished, mainly by its history… The blockchain is in fact immutable, which means that the owner of the NFT could prove that he or she is the original creator of work at any time.
NFTs are a practical tool for automating and simplifying these processes. Tokens can be used to provide proof of ownership of a particular registered patent or intellectual property (IP).
Once digitized, NFTs can be used to record and track the entire IP history. Any change, update or history of ownership can be tracked at any time and securely recorded on the blockchain.
IP tokenization was proposed in 2021 by IPwe and IBM. The plan was to use NFT to represent patent records and securely record them on a blockchain, in this case, IBM’s blockchain.
Once the infrastructure is in place, patents will be much easier to track, sell, trade, market or monetize so as to provide a more liquid experience for innovators and investors.