Application of blockchain technology and crowdfunding to solve structural inefficiencies in digital rights and patents : a comparative analysis

Abstract

The markets for patents and digital rights, in particular music, are both highly inefficient and feature a large number of intermediaries which capture significant shares of the value created. Therefore, the patents and digital rights systems seem to be perfectly suited for disruption by blockchain technology and crowdfunding. This study examines the structural inefficiencies of the two segments and explores how blockchain and crowdfunding could solve these. We find promising use cases for both concepts in the market of digital rights. In contrast, while crowdfunding solves certain inefficiencies in the field of patents, we believe that blockchain technology has only limited impact here. This thesis is based on academic literature and professional journals in the fields of patents, music, crowdfunding, and blockchain technology as well as self-conducted interviews with industry, legal, and technology experts..