Smart Contract Patent Licensing With NFT Ledger Records
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Solution Overview
Problem
The manual drafting and execution of patent licensing agreements are complex and time-consuming, and there is a need to improve the ability to license patented technology efficiently.
Innovation Solution
Utilizing a distributed ledger infrastructure with non-fungible tokens (NFTs) to automate the licensing process, including the use of smart contracts to manage patent licenses and transactions on blockchain networks.
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 patent applies preliminary action by pre-defining licensing terms, conditions, and parameters in smart contracts before actual licensing transactions occur. This allows the licensing framework to be established in advance with all legal provisions coded, enabling rapid execution of specific licensing agreements without manual drafting each time. The distributed ledger also maintains preliminary records of patent ownership and licensing history that facilitate quick verification.
Solution Approach 2:
The patent uses copying by creating standardized smart contract templates that can be replicated and customized for different licensing scenarios. Instead of manually drafting unique agreements, the system copies and adapts pre-vetted legal frameworks encoded in smart contracts, significantly reducing time consumption while maintaining legal precision through proven templates.
2Adaptability or versatility
If manual drafting and execution of patent licensing agreements is used, then flexibility in negotiation is improved, but operational complexity and resource requirements increase
Solution Approach 1:
The patent applies dynamics by making smart contracts configurable and adaptable within predefined parameters. The system allows dynamic adjustment of licensing terms, royalty rates, and conditions through coded parameters that can be modified within the smart contract framework, maintaining negotiation flexibility while automating the complex operational aspects of agreement management.
Solution Approach 2:
The patent introduces an intermediary layer in the form of the distributed ledger and smart contract platform that mediates between patent owners and licensees. This intermediary automates complex verification, tracking, and enforcement operations, reducing operational complexity for the parties involved while preserving their ability to negotiate terms within the established framework.
3Extent of automation
If distributed ledger infrastructure with smart contracts is used, then automation and efficiency are improved, but system complexity and implementation difficulty increase
Solution Approach 1:
The patent applies universality by designing a multi-functional smart contract platform that handles multiple licensing operations (creation, transfer, enforcement, tracking) through a single integrated system. This universal platform reduces implementation difficulty compared to separate systems for each function, as the distributed ledger infrastructure provides a common foundation for all licensing activities.
Solution Approach 2:
The patent implements self-service through autonomous smart contracts that automatically execute licensing terms, track compliance, and enforce agreements without continuous human intervention. The system serves itself by automatically verifying conditions, distributing royalties, and maintaining records, which reduces the need for complex manual oversight mechanisms.
Data Source
AI summary
A method for utilizing a patent distributed ledger includes a computing device of a computing infrastructure obtaining an indication of potential use of a set of patents by a user computing device and issuing a bilateral licensing request to the user computing device. The method further includes interpreting a request from the user computing device to cause a license of the set of patents for use by the user computing device to produce licensee information and identifying a non-fungible token (NFT) associated with the set of patents. The method further includes establishing agreed license terms and agreed payment terms of a smart contract to produce a new smart contract and causing generation of a new block with the new smart contract for a blockchain of the patent distributed ledger associated with the NFT.