Privacy-preserving and automated intellectual property license agreements over heterogeneous blockchain networks

Abstract

This paper considers the application scenario of Intellectual Property (IP) management, a business process yet to fully embrace digitisation and the advantages it brings. We propose to leverage Distributed Ledger Technology (DLT) to digitise license agreements management by providing automated and trustworthy royalty computation, transaction execution, and payment distribution. This can be achieved by employing smart licenses, i.e., bundles of smart contracts implementing the royalty logic of license agreements. To provide scalability, flexibility, and resilience, we propose to deploy smart licenses on a network of networks model, i.e., a set of heterogeneous networks potentially running different DLT protocols and connected by cross-chain information exchange protocols. A novel advantage of the network of networks approach is that it allows for the use of private values for royalty computation, which is impossible in the traditional model. Of course, supporting private DLT networks requires privacy-preserving cross-chain schemes, a still open problem in the literature. This is why we present two alternative privacy-preserving cross-chain schemes for our considered application scenario of license agreements management, one based on Homomorphic Encryption (HE) and the other on Zero-Knowledge (ZK) proofs. Besides discussing their theoretical advantages and drawbacks, we present an experimental evaluation of a prototype implementation of smart licenses based on both schemes. • We propose a network of networks model that enhances scalability in smart license ecosystems. • The proposed model allows smart licenses to leverage data from heterogeneous networks, including private ones. • We compare two methods for privacy-preserving cross-chain communication: homomorphic encryption and zero-knowledge proofs. • We experimentally evaluate and compare two different privacy-preserving smart license implementations.