Paper: arXiv 2304.10490

Authors: Seyed Mojtaba Hosseini Bamakan, Nasim Nezhadsistani, Omid Bodaghi, Qiang Qu

Abstract

With the explosive development of decentralized finance, we witness a phenomenal growth in tokenization of all kinds of assets, including equity, funds, debt, and real estate. By taking advantage of blockchain technology, digital assets are broadly grouped into fungible and non-fungible tokens (NFT). Here non-fungible tokens refer to those with unique and non-substitutable properties. NFT has widely attracted attention, and its protocols, standards, and applications are developing exponentially. It has been successfully applied to digital fantasy artwork, games, collectibles, etc. However, there is a lack of research in utilizing NFT in issues such as Intellectual Property. Applying for a patent and trademark is not only a time-consuming and lengthy process but also costly. NFT has considerable potential in the intellectual property domain. It can promote transparency and liquidity and open the market to innovators who aim to commercialize their inventions efficiently. The main objective of this paper is to examine the requirements of presenting intellectual property assets, specifically patents, as NFTs. Hence, we offer a layered conceptual NFT-based patent framework. Furthermore, a series of open challenges about NFT-based patents and the possible future directions are highlighted. The proposed framework provides fundamental elements and guidance for businesses in taking advantage of NFTs in real-world problems such as grant patents, funding, biotechnology, and so forth.

Complexity vs Empirical Score

  • Math Complexity: 1.5/10
  • Empirical Rigor: 2.0/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper provides a conceptual, qualitative exploration of applying Non-Fungible Tokens (NFTs) to intellectual property and patent management. It lacks mathematical formalization, empirical data analysis, or backtested market mechanics, functioning primarily as an architectural framework and discussion of open challenges.

Research Flowchart

  flowchart TD
    A["Research Goal: Framework for IP & Patents as NFTs"] --> B["Identify Requirements & Challenges: Cost, Time, Liquidity"]
    B --> C["Analyze Underlying Technologies: Blockchain, NFTs, DeFi"]
    C --> D["Develop Layered Conceptual NFT-Patent Framework"]
    D --> E["Formulate Application Guidance: Grants, Biotech, Funding"]
    E --> F["Key Outcomes: Open Challenges, Future Directions, & Layered Framework"]