INTERNATIONAL PATENT LICENSING & NFTS - SPECIAL REFERENCE TO INDIA & USA
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Abstract
NFTs or non-fungible tokens are unique tokens that are created on a blockchain. The term non-fungible means distinguishable and unchangeable. This means that unlike other tokens such as BTCs that exist on the blockchain are identical to each other, NFTs are distinct from one another. NFTs have existed since 2017. The year 2021 saw NFTs becoming mainstream with an average of 60k NFTs sold per day. NFTs cannot be changed. Hence, if software or music or art or any other item has been minted into NFT, it shall not change. A lot of companies around the world have started minting their assets onto NFTs such as IBM & Nike. The issue lies where a patent owner mints his work onto an NFT. The issue also lies in the consequence of the purchase. Although the person has purchased the NFT, he doesn't get the ownership or any of the rights of the owner. To take effect of such consequence where the NFT purchaser gets the rights as well it has to be in a contract. The USA leads in the aspect of monetization of Patents and licensing throughout the world. The patents in the USA are governed by the US Patent Act. Patents in India are governed by the Patents Act, 1970. Licensing of patents through NFTs can be done through smart contracts. This paper deals with the aspect of international licensing of patents through NFTs with special reference to Indian & USA laws. The paper will also deal with the challenges and potential of the international licensing of patents through NFTs. The paper shall be limited to the jurisdictions of India and the USA.
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