Industrial Secret Transfer via Smart Contracts: Addressing Arrow's Information Paradox

Abstract

In the current state of the art, systems exist for the transfer of intangibleassets protected by Intellectual Property, consolidated through legal monopolies, either by attributive systems (such as patents and industrial designs) or automatically protected (such as copyrights andrelated rights). Some of these systems, or their respective methods, are described in scientific literature. Among these, some methods use blockchain technology, and a smaller subset (entirely contained within the former) also uses smart contract technology, though these areindependent tools. Although industrial secrets also constitute monopolies, the computerized or cryptographic solutions applied to other types of assets protected by different forms of intellectual property cannot be applied to these assets due to their sui generis nature, lackinga monopoly that exists independently of their non-disclosure. The need to maintain secrecy arises from Arrow’s Information Paradox, a phenomenon in which revealing the secret implies its transfer. This phenomenon hinders the potential transfer of industrial secrets and makes it impossible to adopt existing systems applicable to other types of intangible assets.