IP Review Winter 2019/20

8 Blockchain When blockchain was first developed in 2008, few could have predicted just howmuch interest there would be in applying the software-based technology to a wide range of real-world problems, from financial transactions to asset tracking and privacy controls. Blockchain: a rapidly changing patent landscape A patent filing report jointly collated by the Swiss Federal Institute of Intellectual Property and Withers & Rogers LLP makes it clear that the extent of blockchain’s potential is only just emerging, and many of the world’s leading tech companies want a stake in its future. Patent filings related to blockchain technology are outpacing those of other dynamic fields The number of blockchain patent families filed around the world initially grew slowly following the technology’s inception in 2008. However, from 2016 onwards, the number of published patent applications has accelerated dramatically. As of August 2019, a total of over 6000 patent families have been filed globally. As a result of this surge, the number of blockchain patent filings now outstrips the number of patent filings in other exciting areas of computing research. Quantum computing has been an area of considerable research interest for decades. Patent filings in the quantum computing space reflect that, with an increase in activity in recent years. However, despite the relative infancy of blockchain technology, the number of blockchain patent families worldwide has managed to exceed that of quantum computing since 2017. Owing to the relative rates of growth, the gap between the number of patent filings in the blockchain space and in other technology areas is likely to widen even further in the coming years. Blockchain technology is being researched and adopted on a global scale The majority of the blockchain patent applications filed globally from 2010 to August 2019 have originated from inventors in China (~3,200) and the US (~1,300). The US has traditionally been seen as the global leader of software development and computing technology, so it may be surprising to some that the majority of blockchain patent applications now originate from China. The sheer quantity of Chinese patent filings indicates that there is a considerable amount of research being done in China in relation to blockchain technology. Of course, quantity does not necessarily impart quality. Our closer analysis reveals that few Chinese blockchain patent applications are cited as being relevant to subsequent patent applications around the world (so-called “forward citations”). Furthermore, many Chinese blockchain patent applications are not also filed in other countries around the world. These two metrics are often used as indicators of patent value, and taking this into consideration, our analysis indicates that on average the US originating patent applications are more valuable than the Chinese originating patent applications. Extending this analysis further, the UK is in third position for “valuable” blockchain patent applications. This demonstrates the important role UK innovators are playing in blockchain research and development, ahead of countries such as Germany, Japan IP review winter 2019/20