Distributed Ledger Patent Licensing With Smart Contracts And NFTs
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Solution Overview
Problem
The manual drafting and execution of complex patent licensing agreements are time-consuming, and there is a need to improve the ability to license patented technology using non-fungible token-based distributed ledgers for clear asset title.
Innovation Solution
A computing infrastructure utilizing blockchain technology to automate the licensing process by creating non-fungible tokens for patents, verifying patent validity, establishing smart contracts with license and payment terms, and updating patent distributed ledgers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual drafting and execution of patent licensing agreements is used, then legal precision and customization are improved, but time consumption and operational complexity increase
Solution Approach 1:
The system performs preliminary actions by pre-defining license templates, terms, and conditions in the smart contract code before actual licensing occurs. This allows standardized legal frameworks to be prepared in advance, reducing the time needed for manual drafting while maintaining legal precision through proven templates.
Solution Approach 2:
The patent replaces the mechanical system of manual legal drafting with an automated computational system. Smart contracts on the blockchain automatically generate, execute, and enforce licensing agreements through code-based logic, substituting human lawyers and manual processes with algorithmic automation that maintains legal precision through deterministic execution.
2Adaptability or versatility
If manual patent licensing processes are used, then flexibility in negotiation is improved, but productivity and transaction speed decrease
Solution Approach 1:
The system introduces dynamics by allowing license parameters such as duration, scope, and payment terms to be programmatically adjusted within predefined boundaries. The smart contracts can dynamically adapt to different licensing scenarios while maintaining automated execution, enabling both flexibility and high-speed processing simultaneously.
Solution Approach 2:
The licensing process is segmented into modular smart contract functions that can be independently configured and executed. This segmentation allows flexible combination of different license types, terms, and conditions while maintaining automated efficiency, as each module can be independently optimized and reused across multiple transactions.
3Reliability
If traditional licensing agreements are used, then comprehensive legal coverage is improved, but device complexity and processing overhead increase
Solution Approach 1:
The smart contract platform provides universality by implementing a multi-functional system that combines legal agreement generation, payment processing, license enforcement, and record-keeping in a single automated framework. This universal platform maintains comprehensive legal coverage while reducing overall processing complexity through integration rather than separate manual processes.
Solution Approach 2:
The blockchain smart contract acts as an intermediary that formalizes and enforces licensing terms through immutable code. This intermediary layer provides comprehensive legal coverage by automatically executing agreed-upon terms while simplifying the interaction between patent holders and licensees, reducing processing complexity through automated mediation rather than manual negotiation and enforcement.
Data Source
AI summary
A method includes a computing device of a computing infrastructure interpreting a request from a patent owner computing device to make available for licensing a set of patents to produce patent basics of a smart contract for the set of patents, The method further includes verifying, with a patent issuance computing device of the computing infrastructure, validity of the patent basics. When the patent basics are valid, the method further includes establishing available license terms of the smart contract for the set of patents, establishing available payment terms of the smart contract for the set of patents, and causing generation of a non-fungible token associated with the smart contract in the patent distributed ledger.