Intellectual Property Rights – Brand Protection in the Cryptocurrency MarketSeptember 20, 2019
The cryptocurrency market is growing in an explosive manner. Several companies are operating in this area, and they are working on how to protect their intellectual property rights best.
Several cryptocurrencies are out, and each of them is here with different names. Brand protection is becoming increasingly necessary in the cryptocurrency market space.
The symbol, design, phrase, and everything related to the brand or trademark of a particular cryptocurrency is used to determine if the cryptocurrency is a type of product or service. If the cryptocurrency is a kind of store of value or a medium of exchange, then it cannot be considered as a product or a service.
One of the federal courts has agreed that the cryptocurrency might be capable of holding a trademark. To work as a brand, the cryptocurrency should have come from a single source. If the brand does not track back to a single source or if the source is not known, then it does not function as a trademark.
A centralized cryptocurrency which indicates its source can be a brand. The Bitcoin is a decentralized cryptocurrency, and it does not emanate from a single source and therefore cannot work as a trademark for digital currency.
The market is booming with cryptocurrency competitors, and when branded, it will protect the generic nature of the token. It is not easy to say that there is only one cryptocurrency for one purpose. Those who are offering cryptocurrency will be able to seek Federal Trademark Protection.
If the source of the cryptocurrency is identifiable to a single source, the trademark of the token will provide for the prima facie evidence for the validity of the trademark, providing for a presumption of exclusive use of the brand name.
Individual cryptocurrency owners can come up with their unique identifications for their brand. Different nations are developing their cryptocurrencies, and many of them are in their early stages of development. Eventually, tokens would want to brand themselves.
Germany has come up with a comprehensive blockchain strategy to block Libra, the digital currency from Facebook. Their strategy is to prevent stable blockchains from becoming alternative currencies to avoid the threat to state sovereignty.
Olaf Scholz, Finance Minister, stated, “We must protect consumers and state sovereignty,” Scholz further said, “A core element of state sovereignty is the issuing of a currency, we will not leave this task to private companies.”