How Blockchain Solves the Intellectual Property Problem of AI

How Blockchain Solves the Intellectual Property Problem of AI


Blockchain Solves the Intellectual Property Problem of AI – as artificial intelligence systems become more advanced and valuable, questions around who owns and controls the rights to these AIs arise, but blockchain technology offers a decentralized, transparent way to manage intellectual property for AI systems.

Conflicting concerns over intellectual property have arisen in tandem with the captivating creative outputs of generative artificial intelligence. Who owns the final writing, music, photos, and other creations when AI algorithms are trained on large datasets? Because neural networks are opaque and “black box” in design, tracing the origins of outputs and assigning rights is challenging. 

Companies are now confronted with intricate legal challenges related to copyrights and patents for AI inventions. Who owns the top-performing AI-generated meme or trending topic? Plagiarism, disputes, stifled innovation, and other problems could arise from this opaque system. The immutable distributed ledger technology known as blockchain could answer the urgent issue of intellectual property in generative AI.

Blockchain technology addresses intellectual property rights system issues by facilitating better information traceability, more effective protection, and decentralized administration. Improving traceability and protection effectiveness allows for recording, securing, validating, and tracking original achievement registrations and related transactions.  In addition to securing users’ intellectual property and avoiding data leakage from third-party organizations, blockchain-based solutions guarantee user unlinkability and anonymous transactions. 

The usage of smart contracts in blockchain technology also makes IP administration more efficient in terms of retrieval and verification. Additionally, it safeguards intellectual property by fixing problems like data dependability, code plagiarism, and rights confirmation in crowdsourced testing services. Blockchain provides transparency, security, and efficiency to the intellectual property rights system via a decentralized, tamper-proof distributed ledger.

AI Origins Tracking Challenge

AI Origins Tracking Challenge
AI Origins Tracking Challenge

Finding the beginnings of AI-generated creativity has become a complicated puzzle with the advent of generative AI. Machine learning systems such as Chat GPT and DALL-E may learn to interpret human input and produce various outputs (such as text, pictures, and code) by analyzing large datasets for patterns. Unfortunately, many text corpora and image databases that train these AIs do not provide proper credit or express rights to the original creators.

As a result, many circumstances are legally unclear. So, who gets to own the finished product if an AI mimics Rembrandt’s signature style or writes lyrics that seem like a copyrighted song? The lack of clarity on the origins and ownership of data makes it difficult to trace the evolution of AI. It becomes challenging to justify the originality of a generative model when it copies or alters earlier work without giving credit.

Companies face challenges when using generative models without infringing on intellectual property or facing accusations of plagiarism due to AI origin tracking concerns. Currently, there are no established systems for monitoring the flow of training data into AI outputs or tracing the assets utilized to construct AIs. The absence of audits fuels worldwide uncertainty regarding extending copyright protections to AI-written works.

A critical issue arises in the quest to trace the roots of AI, given the proliferation and impact of generative models. Questions of ownership and infringement liability will only persist in hindering the deployment of AI in the real world if there is transparency on the origin of data, training methods, and the lineages of output. In the age of creative machines, striking a balance between innovation and IP rights is more important than ever.

How Blockchain Provides a Solution

Tracing AI’s creative lineage

Blockchain technology presents an intriguing opportunity to track the complex genealogy of AI-generated innovation, which is becoming increasingly common as generative AI grows in popularity. Lack of transparency into AI systems’ data sourcing, training, and output histories could be remedied using blockchain’s decentralized, tamper-proof ledgers.

Establishing the Creator Controls

Creators may reduce the dangers of AI misuse by integrating IP assets into blockchain-based smart contracts and setting clear ground rules for AI utilization. Technologists can transform how they secure and monetize their work by including usage conditions, attribution criteria, and pay mechanisms into data representations using non-fungible tokens (NFTs). Additionally, these open control methods limit the legal exploitation of generative models.

Managing infringement risk

Additionally, by recording full evidence trails of registered and unregistered IP rights, blockchain-powered ledgers reduce the likelihood of accidental copyright infringements caused by generative AI. Organizations can demonstrate legally acceptable content-sourcing practices, and creators can obtain automatic compensation for replications by tracing each data transaction underlying AI-generated content.

The consensus is that blockchain technology can potentially resolve the complex issues of ownership and authorship arising from creative work that does not involve humans. Blockchain is emerging as a web3 infrastructure that supports accountability, control, and visibility across the complex asset flows of machine learning, which is crucial as the influence of generative AI continues to increase exponentially.

Benefits of Using Blockchain for AI IP

Benefits of Using Blockchain for AI IP
Benefits of Using Blockchain for AI IP

Attribution and Ownership Clarity

With the proliferation of generative AI, blockchain is becoming an essential web3 infrastructure for resolving the complex ownership issues around machine creativity. Blockchain’s distributed ledgers have the potential to completely transform attribution and compliance processes by permanently recording evidence trails of IP rights, both registered and unregistered, that support AI outputs.

Digital authorship authentication allows creators to ensure that data assets are legitimate before they are incorporated into generative models. For creators to claim ownership of their AI works after they’ve been transformed or remixed, blockchain transactions must include verified proof of ownership. Artificial intelligence systems can no longer circumvent precise attribution requirements by repeatedly using copyrighted content without permission.

Empowering Streamlined Dispute Resolution

Furthermore, if concerns arise, the immutability of blockchain-based transaction records promotes responsibility. The capacity to present conclusive digital evidence of ownership, usage conditions, and creative lineage empowers innovators to resolve claims and disputes rapidly. Creators can proudly display their unique additions and IP rights without the hassle of drawn-out legal battles. Blockchain technology has the potential to simplify solutions by acting as an unbiased, immutable record keeper that follows the growth of generative AI output at every stage.

Incorporating web3 data integrity measures into generative workflows opens up new possibilities for justly rewarding human innovation, even in the face of challenges presented by AI. As artificial intelligence (AI) transforms whole industries, blockchain solutions allow for accurate contribution and ownership attribution while mapping intricate creative-financial asset flows.

Application of Blockchain in IP Protection 

Application of Blockchain in IP Protection 
Application of Blockchain in IP Protection 

1. Copyright registration

The right holder has a substantial advantage in IP disputes due to the copyright registration certificate’s usage as prima facie evidence, even though copyright registration is not a practical necessity in such cases. Thanks to its distributed ledger technology, legal agencies may find it easier to handle the anticipated increase in copyright registration obligations with the use of blockchain technology

By utilizing blockchain technology, users can access the copyright registration website whenever and wherever they want, allowing for a more streamlined registration procedure than the copyright registration agency can offer. As strong evidence of ownership, the registration details are permanently posted on the chain with an unchangeable timestamp. 

A more efficient method of copyright registration may be available to European SMEs through blockchain technology. The Office of the Central Cyberspace Affairs Commission announced the initial round of domestic blockchain information service registrations on 30 March 2019. 

Commercially available blockchains provide services tailored to the IP protection needs of European SMEs. Digital Copyright Identifier (DCI) registration is one service third-party platforms like the Anne Copyright Blockchain offer. 

Services using blockchain technology. Any time, any day of the year, businesses in and out of China have access to Anne’s mobile app’s digital copyright application channel. 

2. Trademark Use in the Past 

By recording the earlier use of a trademark, blockchain technology can verify that the claimant used the trademark at a given period. The right holder might create an information chain by uploading pertinent material to the blockchain, including a timestamp of the first trademark use. Proving earlier use would be a thing of the past with this approach. Businesses like “” are developing a blockchain to protect trademarks; thus, this technology should be available soon. 

3. Preservation of Trade Secrets 

A “hash algorithm” is at the heart of blockchain technology; it assigns a unique “hash” (sometimes a numerical sequence) to every piece of data that is added to the chain. The blockchain stores the hash value of the encrypted trade secret. 

Thus, it may be used as proof that the file existed at a specific moment. The particular substance of the trade secret remains concealed as the recorded data is in the form of a hash value rather than the trade secret itself. So, blockchain technology can prove something exists without disclosing any confidential information. 

Theft of trade secrets can also be traced using blockchain technology. Theft of trade secrets typically occurs when personnel within an organization commit a crime. Employees may go into business for themselves or join a rival company after a theft, making it difficult for the plaintiff to establish that the trade secret had been taken. One benefit of blockchain technology for European SMEs is that it creates a digital trail of downloaded data, which can help the trade secret owner identify who stole their information. This can subsequently serve as credible proof in a legal proceeding.

4.Smart Contract

A hot issue in the modern Internet age is how to issue and receive license fees quickly. It is possible to enable customers to download content upon completion of payment using a smart contract built on the blockchain. For example, “VOISE” is an Ethereum-powered music platform where musicians may upload their music and decide how much to charge. The customer pays for the music instantly using digital money and can download it immediately. Smart contracts built on blockchain technology have the potential to address various drawbacks due to the immutability of the platform:

  1. They decrease transaction costs and increase transaction efficiency because they do not depend on third parties like banks.
  2. The data is traceable because it cannot be removed but only added.
  3. Blockchain guarantees that all connected devices can access the most current version because it is a distributed ledger.

Thus, in principle, the data will never be erased. In addition, SMEs lose out on potential income because digital publications are typically straightforward to copy, distribute, and pirate on a big scale. To get around this issue, smart contract monitoring on the blockchain can let the author save their work on the blockchain and provide it with a timestamp. This smart contract can detect when content has been pirated and then activate copyright protection systems.


Generative AI is driving new levels of innovation, but many complex concerns about who is responsible for what prevents its widespread use in the real world. Nevertheless, blockchain technology presents a crucial answer to this new problem. Blockchain, with its immutable records of intellectual property rights, asset transfers, and usage terms associated with AI outputs, has the potential to remove legal ambiguities, encourage cooperation, and unlock attribution.

Web3 is poised to transform intellectual property (IP) for autonomous innovation, and the necessary components are already starting to come into place. Towards more just and lawful AI ecosystems, developers are incorporating NFT licensing frameworks, contribution ledgers, and verifiable proof trails into machine learning. Despite ongoing resistance to use, generative models incorporating blockchain’s data integrity safeguards promote responsibility.

Blockchain allows AI innovation by immutably recording registered assets and resolving conflicts downstream. Society requires solutions that protect ownership interests as software continues to excel in traditionally human fields such as art, music, and writing. Blockchain is a system that enables fair human-AI collaboration and trade by precisely monitoring data sourcing and intellectual property licensing. Unleashing AI’s full potential, the end product claims to be ethically mindful and legally compliant.

Finally, by protecting rights and striking a balance between control and open innovation, blockchain technology stabilizes the chaos caused by thinking machines. Blockchain is putting safeguards around once legally unstable developing capabilities, so human-machine collaboration has a promising future. With the proper limitations in place, generative AI has the potential to catapult economies, creativity, and innovation to unprecedented levels. Blockchain solutions, fortunately, provide just that.


1. How does blockchain help AI?

Blockchain provides a decentralized infrastructure for recording transactions and establishing asset ownership rights. This allows AI systems to manage data rights and intellectual property transparently, ensuring proper compensation flows to parties contributing data or algorithms.

2. Can blockchain stop AI?

Blockchain’s decentralized, immutable ledgers can trace the origins and ownership of AI-generated content. By establishing provenance over data and algorithms, blockchain provides a check against fake content by making it possible to verify authenticity and origin.

3. Why blockchain is better than AI?

Blockchain’s decentralized structure ensures transparency over AI’s data sources and training methods. By tracing data origins through distributed ledgers, blockchain enables reliable validation of inputs and models, circumventing AI’s “black box” limitations.

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