Last week, CEO and founder of LOCI, Inc., John Wise appeared on the Fox Business Network’s Countdown to the Closing Bell with anchor Liz Claman to discuss LOCI’s solution to the escalating trade war between the US and China. To date, there are a number of factors that have contributed to this conflict, but central to the issue is something with which LOCI is quite familiar and well-poised to counteract – the theft of Intellectual Property (IP).
It is a well known fact, recognized both within the US and in the global community at large, that China has a history of allowing IP espionage and theft to continue under the guise of taking steps in good faith to prevent such activity. According to the US Chamber of Commerce international IP Index, China ranks 25th in the world for fostering and protecting innovation through legal rights, with the US ranking first. Though figures range due to the fact that some experts and players disagree on what constitutes as IP, one expert source puts Chinese theft of American IP between $225 billion and $600 billion annually. Despite countless efforts in the form of commissions, talks, and ultimately sanctions in the form of tariffs to curb this behavior, the issue of IP theft persists and continues to grow.
It is clear that current talks and efforts to mitigate a trade war with China have not been successful and that other avenues must be explored. At LOCI, we believe we have the solution to stop theft of IP on a global scale – and the answer lies in our technology and platform powered by blockchain.
According to John Wise, “…the best defense against the global theft of IP is a strong offense powered by governance and a system that allows for Intellectual Property and ideas to be generated, shared, and licensed in a cheap, easy, and fast way.” In other words, a system that allows for an incredible amount of volume and velocity is what will ultimately solve the issue. “Why steal something and spend the effort of reverse engineering someone else’s innovation, when you can simply buy the original idea much cheaper on an open marketplace?” affirms John Wise, “LOCI is doing exactly that, and we even have a patent protecting our concept.”
A Practical Analogy
To illustrate how the LOCI solution works, let’s consider a relevant analogy: China is like Napster in the 90’s, and LOCI is like Spotify or iTunes.
Consider the example of music streaming today, since music is an example of IP, powered by applications like iTunes and Spotify (similar to LOCI in this case). The predecessor to all of this, as most will recall, was Napster – an illegal file-sharing website that took the music industry by storm (for purposes of our analogy, China). Napster was launched in May 1999, by October of that same year it circulated 4M songs, and by March 2000 the Napster community consisted of more than 20M people – all sharing files – illegally. Though the world saw a revolution of ideas being unleashed – in seismic proportion, it was all illegal and terribly unfair to musicians and record labels across the globe who legally owned the rights to the music (IP in this case). Ultimately, Napster met its deserved fate and ceased to exist as an option for file-sharing, which gave way to an improved and legal solution – music streaming on iTunes or Spotify. Though it’s true that there are still shortcomings to the streaming industry with regard to how little royalties musicians actually end up being paid, no one can argue that this new system has drastically reduced the motivation of individuals to steal music.
The key here is that if you make it cheap, easy, and fast enough to buy the song or IP that you want, it removes the motivation to steal. In LOCI’s system, the innovators still get paid automatically using Smart Contracts on the blockchain, but by reducing the costs of innovation, we can increase the volume and velocity of US innovation while reducing the incentive to steal. An inventor is less likely to charge a fortune to license or sell their IP if it didn’t cost them a fortune to analyze and protect their idea in the first place, as it does using traditional options.
A closer look at the LOCI Solution
LOCI is the solution to helping inventors secure IP and accelerating the rate at which IP is developed and created on a global scale. At present, LOCI offers an entire suite of products that help streamline the entire process of researching and protecting IP for everyday aspiring inventors. The Platform allows inventors to search, analyze, protect, and monetize their IP through blockchain technology. Here is a closer look at the LOCI offerings and how those facilitate a faster rate of innovation and protection for inventors.
The first component of the LOCI Platform is LOCI Search, a completely free tool that allows aspiring inventors to search for their own idea or other relevant IP, which is a critical first step in the patenting/IP protection process. It provides a Venn display that is intuitive and way easier for users to use than other searches that can be conducted online. The search is also more comprehensive and quicker than other alternatives. Essentially, this tool allows inventors to conduct their own searches with confidence instead of requiring them to spend countless hours and thousands of dollars with a patent attorney (whose results may still not be as comprehensive as LOCI’s).
The second component of LOCI’s Platform is Invention Analysis, a very affordable tool that helps new inventors determine the novelty and demand (undergoing further development) for their ideas before they spend money trying to patent. This is a huge cost savings of about 95% compared to traditional patent attorney searches. LOCI Invention Analysis can also help guide inventors toward “white space” where there are relatively few existing patents, where demand is high, so the inventor has the best possible chance of being awarded a patent, and/or selling their idea. Inventors can submit multiple iterations to help refine their idea and identify alternative applications of their invention. The ultimate goal of the inventor while using Invention Analysis is to achieve an optimal “LOCI Score” which indicates that their idea is unique, and in high demand.
LOCI’s newest feature, the integrated provisional patent application (currently in development), will allow users to seamlessly move from conducting their IP search and analysis directly to completing a provisional patent application. The LOCI system will make this entire process simple and intuitive by providing guided questions that are presented in a logical manner that elicit substantive responses from the inventor about his or her work. For platform users that have just completed an Invention Analysis of an idea that they wish to patent, the LOCI system will generate an auto-filled application that inventors only need to review and approve before filing. All of this will be provided as an even more affordable option than existing options like LegalZoom. With this new capability, the LOCI Platform will become an official one-stop-shop for aspiring inventors far and wide.
Ultimately, LOCI is working toward building the framework for a Marketplace where ideas can be exchanged seamlessly through trustless, royalty-based payments.
Essentially, LOCI provides a much cheaper and effective way for aspiring inventors to research, analyze, and protect their novel and inventive ideas, allowing them to sell or license those ideas way cheaper and far faster than previously possible. In addition, LOCI provides the infrastructure and ecosystem that will help these innovations flourish into the marketplace. By systematically creating a solution that eradicates most of the financial incentive for “stealing ideas,” LOCI offers the most viable answer of how to overcome the egregious theft of America’s most valuable asset – our propensity to innovate better than any other nation in the world.
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More about LOCI
LOCI’s mission is to disrupt the global patent industry, and to change the way the world invents and values ideas. We specialize in simplifying the patent search process by utilizing unique visualizations and providing comprehensive analysis to help determine the novelty and demand of an idea. To further understand the landscape of IP and learn more about LOCI, sign up for the latest updates above.
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