Patents and Intellectual Property as NFT

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The proposed framework encounters some challenges, which should be solved to reach a real developed patent verification platform. First, technical problems are discussed. The consensus method that is used in the verification layer is not discussed in detail. Due to the permissioned structure of miners in the NFT-based patents, consensus algorithms like PBFT Consensus, Federated Consensus, Round Robin Consensus designed for permissioned blockchains can be applied. Also, miners/validators spend some time validating the patents; hence a protocol should be designed to profit the miners. Some challenges like proving the miners' time and effort, the price that inventors should pay to miners, and other economic trade-offs should be considered. Different NFT standards were discussed. If different patent services use NFT standards, there will be some cross- platform problems. For instance, transferring an NFT from Ethereum blockchain (ERC-721 token) to EOS blockchain is not a forward and straight work and needs some considerations. Also, people usually trade NFTs in marketplaces such as Rarible and OpenSea. These marketplaces are centralized and may prompt some challenges because of their centralized nature. Besides, there exist some other types of challenges. For example, the novelty of NFT-based patents and blockchain services. Blockchain-based patent service is not tested before, and maybe the procedure of patent registration and concepts of the Patent as NFT system be ambiguous for people who still prefer conventional centralized patent systems over the decentralized one. It should be noted that there are some problems in the mining part, as well. Miners should receive certificates from the accepted organizations. Determining these organizations and the way they accept referees as miners needs some considerations. Some types of inventions in some countries are prohibited, and inventors are not allowed to register or create an invention of those types. In NFT-based patents, inventors can register their patents publicly, and maybe some collisions occur between inventors and the government. There exist some misunderstandings about NFT's ownership rights. It is not clear that when a person buys an NFT, which rights are given to him/her exactly; for instance, they just have property rights or have moral rights, too. 5. Conclusion Blockchain technology provides strong timestamping, the potential for smart contracts, proof-of-existence. It enables creating a transparent, distributed, cost-effective, and resilient environment that is open to all and where each transaction is auditable. On the other hand, blockchain is a definite boon to the IP industry, benefitting patent owners. When these intrinsic characteristics of blockchain technology are applied to the IP domain, it helps copyrights. This paper provided a conceptual framework for presenting an NFT-based patent with a comprehensive discussion of many aspects: background, model components, token standards to application areas, and research challenges. The proposed framework includes five main layers: Storage Layer, Authentication Layer, Verification Layer, Blockchain Layer, and Application. The main purpose of this patent framework was to provide an NFT-based concept that could be used to patent a decentralized, anti-tamper, and reliable network for trade and exchange around the world. Finally, we addressed several open challenges to NFT-based inventions. Referencies 1 Nakamoto, S. Bitcoin: A peer-to-peer electronic cash system. Decentralized Business Review, 21260 (2008). 2 Buterin, V. A next-generation smart contract and decentralized application platform. white paper 3 (2014). 3 Nofer, M., Gomber, P., Hinz, O. & Schiereck, D. Business & Infomation System Engineering. Blockchain 59, 183-187 (2017). 4 Regner, F., Urbach, N. & Schweizer, A. NFTs in practice–non-fungible tokens as core component of a blockchain- based event ticketing application. (2019). 5 Entriken, W., Shirley, D., Evans, J. & Sachs, N. EIP 721: ERC-721 non-fungible token standard. Ethereum Improvement Proposals (2018). 6 Radomski, W. et al. Eip 1155: Erc-1155 multi token standard. Ethereum, Standard (2018). 7 Dowling, M. Is non-fungible token pricing driven by cryptocurrencies? Finance Research Letters, 102097 (2021). 8 Lesavre, L., Varin, P. & Yaga, D. Blockchain Networks: Token Design and Management Overview. (National Institute of Standards and Technology, 2020). 9 Larva-Labs. About Cryptopunks, (2021). 10 Cryptokitties. About Cryptokitties, (2021). 11 nbatopshot. About Nba top shot, (2021). 12 Fairfield, J. Tokenized: The Law of Non-Fungible Tokens and Unique Digital Property. Indiana Law Journal, Forthcoming (2021). 13 Rosenfeld, M. Overview of colored coins. White paper, bitcoil. co. il 41, 94 (2012). 14 Wang, Q., Li, R., Wang, Q. & Chen, S. Non-fungible token (NFT): Overview, evaluation, opportunities and challenges. arXiv preprint arXiv:2105.07447 (2021). 10

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