Blockchain Smart Contracts for Software License Expiration Control

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Solution Overview

Problem

Existing software licensing systems face issues with unauthorized copying and distribution, revenue loss, and reliance on a single entity for validation, which can lead to security risks and lack of transparency.

Innovation Solution

Implementing smart contracts on a blockchain to manage software licenses, ensuring automatic expiration and renewal, reducing dependency on centralized authorities, and maintaining transparency and security through decentralized validation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Device complexity

If a single entity is used for license validation and verification, then the licensing process is simplified and centralized, but security risks increase and transparency is reduced if that entity fails or becomes compromised

Engineering Contradiction:
Improvelicensing system complexityVSAvoidlicense validation security
Core Design Contradiction:
Device complexityVSReliability

Solution Approach 1:

The patent segments the centralized validation function into distributed validation across multiple blockchain nodes. Instead of relying on a single entity, the licensing system is divided into independent validators that collectively perform verification, thereby reducing the impact of any single point of failure while maintaining system functionality.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The blockchain acts as an intermediary layer between software providers and users, enabling trustless validation through cryptographic proofs and smart contracts. This intermediary mechanism eliminates the need for direct trust in a single validating entity while maintaining simplified interaction through standardized protocols.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Ease of operation

If traditional centralized licensing is used, then validation is straightforward through a single authority, but transparency and security are compromised when that authority fails

Engineering Contradiction:
Improvelicense validation simplicityVSAvoidlicensing transparency
Core Design Contradiction:
Ease of operationVSLoss of information

Solution Approach 1:

The blockchain-based system implements continuous feedback through immutable transaction records that transparently log all licensing operations. Each validation, issuance, and renewal event is recorded on the blockchain, providing verifiable feedback that enhances transparency while maintaining operational simplicity through automated smart contract execution.

Inventive Principle:
Principle #23Feedback

3Adaptability or versatility

If manual license management is used, then flexibility in handling edge cases is maintained, but overhead and inefficiency increase

Engineering Contradiction:
Improvelicense management flexibilityVSAvoidlicense processing efficiency
Core Design Contradiction:
Adaptability or versatilityVSProductivity

Solution Approach 1:

The system implements self-service through automated smart contracts that handle license issuance, validation, and renewal without manual intervention. The smart contracts autonomously execute licensing logic based on predefined conditions, eliminating manual overhead while maintaining flexibility through programmable validation rules and configurable license terms.

Inventive Principle:
Principle #25Self-service

Data Source

PatentUS20260079738A1Software licensing system on blockchain
Publication Date: 2026.03.19 EBAY INC
  • US20260079738A1 patent drawing
  • US20260079738A1 patent drawing
  • US20260079738A1 patent drawing

AI summary

Systems and methods are directed to managing access to a software instance stored on a virtual machine on a blockchain using a smart contract. The system receives, from a client device of a user, an authorization request to access the software instance. The authorization request can include a token associated with the user. In response to receiving the authorization request, the system accesses the smart contract. Based on the token, a determination is made, through the smart contract, whether the user is an owner of a license to the software instance. In response to determining that the user is the owner, a further determination is made, through the smart contract, whether the license has expired without renewal. Based on the license having expired without renewal, the smart contract autonomously triggers the virtual machine to destroy a container comprising the software instance.