Decentralizing Intellectual Property: Bitcoin and the Reform of IP Registration Systems

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Abstract

In the new socioeconomic order shaped by globalization and the internet, traditional property frameworks struggle to address challenges posed by a world increasingly untethered from nation-states. As intellectual property (IP) rights diffuse globally through registration systems and international trade, these systems risk becoming instruments of hegemony—mirroring monetary hegemony in finance. Bitcoin’s rise and its "decentralized" model offer a direct response to such centralization. Extending Bitcoin’s decentralized property-establishment mechanisms to IP calls for "decentralizing" IP systems, transcending traditional registration frameworks to meet new-order challenges.

Keywords: Bitcoin; Globalization; Registration Systems; Decentralization


Introduction

Bitcoin, a cryptocurrency with a decentralized issuance mechanism, challenges conventional property-rights models reliant on centralized administrative registration. Its success underscores the potential for reimagining IP rights establishment—shifting from state-controlled registration to peer-to-peer validation.


Part 1: Monetary Credit and Property Rights

1.1 Credit Money as Property Rights

Modern fiat currencies derive value from state-backed credit, replacing traditional commodity-backed systems. Bitcoin, though not state-recognized as "currency," functions as a transactional commodity, exposing the coercive underpinnings of fiat systems.

Key Insight:

1.2 Global Dilemmas: Digital Currency & IP

Centralized monetary policies create systemic risks (e.g., inflation export via reserve currencies like the USD). Similarly, IP registration systems—dominated by powerful states—extend "IP hegemony" globally through treaties like TRIPS, marginalizing local innovation needs.

Example:


Part 2: Bitcoin’s Decentralized Rights-Establishment Model

2.1 How Bitcoin Works

2.2 Decentralization as Democratic Reform

Bitcoin’s model counters bureaucratic centralization by:

Contrast:


Part 3: IP Registration vs. New-Order Challenges

3.1 Centralized IP Systems

3.2 Registration as Hegemony


Part 4: Toward Decentralized IP

4.1 Reforming IP Legitimacy

4.2 Future Pathways


FAQs

Q1: How does Bitcoin’s model apply to IP?
A1: Bitcoin replaces central banks with P2P validation; similarly, IP could shift from state registries to decentralized, community-verified rights tracking.

Q2: Can decentralized IP prevent "tragedy of the commons"?
A2: Yes—by aligning incentives (e.g., tokenized rewards for innovation) without monopolistic control.

Q3: What’s the biggest barrier to IP decentralization?
A3: Entrenched interests (e.g., patent lobbies) and legacy legal frameworks favoring centralization.

👉 Explore how blockchain is transforming IP systems


Author: Xu Minchuan, Ph.D., Associate Professor at Southeast University Law School.

References

  1. Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System.
  2. Sell, S. K. (2003). Private Power, Public Law: The Globalization of Intellectual Property Rights.
  3. Merges, R. P. (2011). Justifying Intellectual Property.

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