Trademark of Blockchain Technology and virtual Currencies

Introduction:

In ancient times, the medium of exchange between people is through mutual exchange of goods which is known as a barter system. However, with the development in trade and exchange system, a common medium i.e currency found its place as a source of the medium of exchange. Currencies in form of coins, notes were circulated in the market and regulatory bodies were established to regulate such transactions.

In earlier times the transactions were recorded in a book which is known as a ledger, but with the advancement in technology, the process of maintaining a ledger was replaced with computer system entries. In recent times the data is maintained digitally through a database, which helps in ease of business and other transactions. 

Since technology advancement is a never-ending process hence, the current system of using digital databases has found an alternative in cryptocurrencies. Cryptocurrencies are a type of virtual currencies that can be used in electronic form. Virtual currencies are stored and transacted only through a designated software including mobile, computers, or through digital wallets and the transaction occurs over the internet only. Virtual currency is a subset of the digital currency group which exists within the blockchain network. 

The emergence of cryptocurrencies and blockchain:   

Back in the year 2009, based on the paper published by Satoshi Nakamoto, Bitcoin was introduced globally as an electronic cash system that aims to replace the traditional currency system. Blockchain technology which was based on an advanced data storage management system introduced Bitcoin. This blockchain technology is the heart of every cryptocurrency system.

A blockchain is a specific type of database which differs from a typical database in a way that blockchains store data in blocks that are chained together. As new data comes in it is entered into a fresh block. Once the block is filled with the data it is chained with the previous block, which makes the data chained together in systematically chronological order. Different types of information can be stored on a blockchain but commonly used for legal transactions. In simple words, a blockchain is a type of database of collected information that is stored electronically on a computer system. Collected or stored information is typically structured in table-like format to allow for easier searching.

Trademark of blockchain and cryptocurrency: 

There is a blockchain business that can register and protect trademarks. Blockchain is used by various industries to verify supply chain transactions. The idea of blockchain is to create an absolute record of the product’s life cycle, the technology proves to consumers that the product is authentic and provides some comfort to trademark owners against counterfeit brands. Since most of the blockchain companies are private some form of regulatory system will be needed to ensure that the working of the system is aligned with the public’s interest.

The block technology is often described as immutable i.e the information stored on a blockchain cannot be tampered with. However most of the blockchain technology is in a developing stage, therefore there are possibilities that it can be hacked. There are several issues involved while considering trademark protection to blockchains and cryptocurrency.

The primary issue involved in the trademark of blockchain is a proprietorship. Blockchain is a practice that contains several different algorithms and source code. The Indian Patent Act does not provide protection to algorithms or computer programming.  The public blockchain technology has no control or ownership, therefore lack of centralized control over such technologies makes it uncertain to protected under trade law. 

Secondly, in respect of public/ community blockchain-related technologies, obscurity forms a core principle to the extent that it's been termed a ‘necessary evil’. The necessity of obscurity or perhaps pseudo-anonymity is stressed upon, keeping in mind the breaches of knowledge, hacking, or perhaps seizure of persons connected to a cryptocurrency address. Blockchain technology isn't owned/ controlled by anyone, thereby being strictly localized, however, such decentralization doesn't, in itself, build the blockchain system trustworthy or threatening to frauds.

Many times it was assumed that the localized nature of the technology is undesirable. Localized management ensures that there's no single authority through that, changes could also be effectuated to the blockchain, thereby creating a trust-less system (i.e. one not controlled by one authority). In this sense, though it should be useful to grant trademark protection to blockchain-connected technologies, thereby overcoming the contradiction in terms, such protection shouldn't be extended at the price of doing away with its core infrastructural characteristics decentralization.

Recent times have seen a surge within the discussion close trademarking of blockchain-connected technologies across the globe. However, the trademarking of those technologies requires AN overhaul of the understanding and application of trademark laws to the digital house. These technologies, being ‘disruptive’ in nature, have majorly compacted the environment in a very method that their reconciliation with existing laws would be a stretch. Consequently, it's price exploring the necessity for the event of the latest jurisprudence, with these technologies in perspective. The purpose of granting a trademark is not only to indicate the origin of the goods or services but also to prevent counterfeiting & passing off.  The primary purpose of granting trademark protection to blockchain and cryptocurrency is to prevent them from counterfeiting. Granting a trademark will enable the proprietors to take action against any such infringement.   

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Consulting & Governance shall not be responsible for any errors caused due to human error or otherwise.