Blockchain is not just code. It’s algorithms, architectures, tokenomics, and know-how that teams work on for months. In a world where copying solutions can take just days, the question “how do we protect all this?” becomes critical. And there is no single answer.
Why Think About Protection Early?
In startups and blockchain-based projects, the pace is enormous – from MVPs and testing to investor pitches and issuance documents. But behind every test version are concrete solutions: custom algorithms, well-thought-out architecture, and code that actually works.
And while the technology evolves at lightning speed, the approach to its protection often falters – because “no one has time” or “not yet.” The problem is that competitors don’t wait, and the right moment to start protection never comes. By then, it’s often too late to save anything.
What Can Actually Be Protected in Blockchain Projects?
If our main assets are technological solutions, attorney Wojciech Ługowski of Lawarton suggests organizing and identifying what can and should be protected:
- source code (applications and smart contracts),
- system architecture, logic, and interfaces,
- proprietary algorithms (from validation to encryption),
- network configurations and data propagation methods,
- tokenomics models and token economy mechanisms,
- unique applications of technology within a given sector,
- the project or token name itself.
Basic Forms of Protection – Copyright and Patents
The oldest forms of intellectual property protection were created long before the first computers and algorithms. For that reason, debates over how to protect programs that revolutionized the 20th and 21st centuries continued for many years. Ultimately, in 1994, the international TRIPS Agreement[1] established that computer programs would be protected as literary works.
Copyright – Automatic Protection, but with Limitations
On one hand, classifying programs as works of authorship has significantly extended and automated the scope of protection available to code creators.
Copyright status is acquired automatically once certain conditions are met.
Authors do not need to register their code to be protected – although in some jurisdictions (e.g., the United States), registration with the relevant authority grants additional rights in the event of infringement.
The exclusivity lasts significantly longer than with patents – 50 to 70 years after the death of the author or last co-author.
Copyright can effectively protect a project and prevent unauthorized copying of specific code.
However, copyright protection is not unlimited. It does not cover the idea or functionality of code, only its exact expression, such as the specific sequence of characters. This means that if competitors create a project with the same function but different algorithms, it cannot be blocked. Copyright does not protect functionality as such, and only protects architecture and system logic to the extent they are expressed in original concrete forms (code, diagrams, detailed designs).
Therefore, according to Ługowski, “Copyright should be viewed as the minimum standard. It is the simplest and most convenient tool, but insufficient if the goal is to protect a genuine technological advantage”.
Patents – The Strongest Tool, but Not for Everyone
A patent is the legal equivalent of a “do not copy” sign. It allows you to prohibit others from using your solution, even if they develop it in their own way. Sounds great? Yes, but the possibility of patenting software is very limited, and many believe it is nearly impossible.
Patents are granted for inventions that are industrially applicable, new, and inventive.
The last requirement is the hardest for blockchain and Web3 projects. Moreover, the European Patent Convention explicitly excludes computer programs as such from patent protection[2], but the exclusion does not apply to computer programs with technical character.
For this reason, only such computer programs or computer-implemented inventions can be patented. This requires the project to include some element that goes beyond the “normal” physical interactions between the program (software) and the computer (hardware) on which it is run.
Despite these obstacles, the European Patent Office has already granted patents for blockchain-related solutions (e.g., Method and system for deploying a smart contract in a blockchain network, EP3933637A1; Blockchain-based roaming, EP3579494A1)[3].
Obtaining a patent for such an invention is exceptionally difficult and requires a skilled patent attorney who can prepare precise application documentation. However, the benefits a patent provides make the effort worthwhile.
A patent protects the function and idea of the invention in the scope expressed in the patent claims. This means that a patent lets you stop others from using solutions that fall within the scope of the claims, even if they implemented them independently.
The patent grants 20 years of exclusive rights.
Ługowski, however, points out one significant drawback of the patent process – patent filings are public and accessible in the patent office register.
This means that choosing this form of protection generally rules out another key method, i.e. for the aspects disclosed in the patent, you lose the option of trade secret protection. Moreover, even after registration, a patent can be invalidated. In that case, the entire patent application remains publicly available in the register, but without any protective effect. It is therefore a high-risk strategy, albeit one that can yield high rewards when handled with particular diligence.
Trade Secrets – Less Formal, but Often More Effective
Sometimes the best protection is simply not to reveal everything. If an element of our solution is difficult to reproduce without access to the original code or documentation, you can and should protect it as a trade secret.
This is often the best way to protect blockchain projects and technologies.
Trade secrets are suitable for protecting, in particular, technologies that are difficult to reverse engineer . It does not require any registration with authorities. However, it does not work as automatically as copyright protection.
Creators must take appropriate steps. First, it is necessary to identify the “trade secret” to be protected. Next, develop security procedures that define who can access which information. Finally, the most important step is to ensure the actual non-disclosure of the relevant parts of the project. This means very carefully verifying what goes into marketing materials and documents shared with investors.
The cornerstone of this protection strategy is proper document management, specifically a single type of agreement: a confidentiality agreement (commonly known as an NDA – non-disclosure agreement). Every employee, subcontractor, director, or investor granted access to confidential information should sign such an agreement.
Restricting access to knowledge is the most popular method of protecting information. Some may worry that only the employee (or anyone else who signed an NDA) will bear the consequences of disclosing a trade secret. Attorney Ługowski reassures: “If a company actually protects its technology, the law will protect it as well.”
Competitors who steal confidential information also face consequences under European law[4]. In such cases, the individual responsible may face not only liability for breaching the NDA but also civil and criminal liability. The same applies to competitors who knowingly use unlawfully obtained information.
When using this method, one must never become complacent and disclose confidential information, even by accident. With this method, silence can very often turn out to be the proverbial gold, and every new contact with a client or investor should begin with a few deep breaths and a review of the NDAs and the scope of information that may be shared with the potential new business partners.
The Role of Trademarks in Technology Projects
Finally, it’s worth considering trademark protection for your project or technology name.
A trademark does not directly protect the technology, but it significantly boosts credibility in the eyes of investors and customers. It is the “icing on the cake” that every serious blockchain project should consider.
A trademark will not grant exclusivity over the technology, but it can block competitors from reaching your audience using the same or confusingly similar name or logo. A strong name can become as valuable as the technology itself. Ignoring this can open the door for copycats trying to exploit your brand.
Therefore, do not delay trademark registration. It may not be the most critical element of the project’s value, but it is an important one – and worth securing early.
How to Approach Technology Protection in Practice?
The protection strategy should be developed in parallel with the product roadmap. Not everything needs to be secured immediately, but it’s essential to know what can be protected and how.
Action plan: 6 steps to implement right away:
- Make a list of what is unique in your project.
- Decide what to disclose (e.g., to investors) and what to keep secret.
- Establish confidentiality rules within the team and company.
- Ensure ownership of the code is properly documented (authorship, contributions, IP assignment) .
- Even if everything in the project is digital, consult a patent attorney at the concept stage.
- Register the project name and recognizable logo as a trademark.
In blockchain, the advantages are temporary, and copying is fast. As Ługowski notes: “If your solution works, someone will want to copy it.”
Copyright, patents, trade secrets, and trademarks – each tool has its place, but only a strategy combining them all provides real protection. It’s better to think about this before your innovation becomes someone else’s inspiration.
[1] Multilateral International Agreement of 15 April 1994 on the Agreement on Trade-Related Aspects of Intellectual Property Rights. Marrakesh, 15 April 1994 (OJ L 336, 23.12.1994, p. 214, as amended).
[2] Convention on the Grant of European Patents (European Patent Convention), signed in Munich on 5 October 1973.
[3] Register of patents granted by the European Patent Office in Munich.
[4] Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure (OJ L 157, 15.6.2016, p. 1).