U.S. Customs and Border Protection is trialing innovative blockchain solutions and specifications to improve the agency’s capability to protect American businesses from IPR (Intellectual Property Rights) theft.

A currently concluded proof of concept reveals how blockchain technology can defend IPR on American imports as well as sensitive data transmitted between multiple parties utilizing a single, streamlined platform.

“Supporting American innovation and ingenuity by upholding intellectual property rights has always been a critical part of the CBP mission,” stated Brenda Smith, Executive Assistant Commissioner of CBP’s Office of Trade.

“This pilot represents great potential for marrying new technology with our traditional trade mission; to protect the U.S. economy.”

Blockchain is a digital ledger that offers a tamperproof, secure, and permanent record of transactions. Sensitive data, like personally identifiable data and trade secrets, are kept safe through the application of encrypted keys.

The technology is crucial to battling IPR violations by enabling CBP to transfer data securely and efficiently with rights holders, manufacturers, retailers, and importers.

Utilizing a single access point in blockchain, the proof of concept provided the agency to leverage technology to combine the data accurately to the product and the license, occurring in fewer physical examinations.

This was accomplished through blockchain interoperability, which suggests that each organization engaging in a transaction can interact with others utilizing their unique blockchain, notwithstanding different software used by each party, providing companies the flexibility to select and customize technology that satisfies their individual needs.

Companies engaging in this interoperable system experience cost savings as the platform excludes the requirement to rebuild a blockchain every time a new entity with various software participates.

This proof of concept is the first of its kind test of standards and specifications to promote blockchain interoperability utilizing open, standardized approaches. This will assist in creating a framework for accelerated adoption and cost minimization. These specifications were financed by the DHS Science & Technology Directorate and tested by CBP’s Office of Trade and contributed to the global standardization process at the World Wide Web Consortium.

The tests drew broad participation from the trade community who describe the technical feasibility and business value of blockchain technology for trade facilitation.

“We are excited to be applying these innovative solutions to the protection of intellectual property rights. By leveraging state-of-the-art technologies, we continue to enhance CBP’s business intelligence capabilities for advancing trade facilitation, security, and enforcement objectives,” said James Byram, Executive Director of CBP’s Office of Trade, Trade Transformation Office.