Risk allocation in blockchain-based licensing agreements for dual-use technologies at the intersection of Ukrainian and EU jurisdictions

The article explores the application of blockchain for risk allocation in cross-border licensing agreements of dual-use technologies under Ukrainian and EU legal frameworks.The first section analyses blockchain technology from both technical and legal perspectives. It outlines the operational principles of the most widely used consensus mechanisms in supply chain management and identifies key threats inherent in each of them. The analysis includes the most common types of attacks targeting blockchain infrastructure. The criteria of suitable consensual mechanisms for dual-use technology transactions are determined. The section further focuses on the theoretical concept and grounds for blockchain implementations in licensing agreements, including smart contracts, blockchain-based supply chain management, and dispute resolution. The role of smart contracts in licensing agreements is examined in terms of their implementation within the operational lifecycle of commercial entities. Considering supply chain management, possible approaches to blockchain adoptions are presented. Regarding dispute resolution, contemporary methods in the digital realm are described.The second section examines the integration of blockchain technology for risk allocation in cross-border licensing agreements in the EU market. It defines the concepts of risk and its allocation between contracting parties, from economic and legal perspectives. Two categories of risks are distinguished: those inherent in licensing agreements and those specific to the dual-use technology sector. The first category addresses risks associated with conflict-of-law issues, counterfeiting, and royalty formation. The limits of blockchain-based risk allocation are discovered in light of the exclusive-jurisdiction rule. Subsequently, the adoption of blockchain-based SCM is studied through the lens of the allocation of counterfeiting risk. A similar approach is applied to the risk of information asymmetry. The second category of risks concerns export controls and sanctions. The EU regulatory frameworks governing the relevant fields are examined. Contemporary examples of SCM implementations used to allocate export-control and sanctions risks are analysed. Both risks can be allocated between contractual parties through blockchain-based SCM.The study results in the development of a risk allocation matrix using blockchain technology.