EU set to fight Counterfeiting and Forgery with NFTs
The European Union has begun its exploration into how the blockchain sector can help fight against goods counterfeiting and forgery.
The Advisory Committee on Enforcement of World Intellectual Property Organization (WIPO) has disclosed in a document released that the European Union (EU) is exploring new technologies in IP enforcement which could help fight against counterfeiting and forgery of physical goods.
According to a joint study conducted in 2019 by the Organization for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO), 2.5% of world trade and up to 5.8% of EU imports from third countries are counterfeit and pirated. The European Union has proposed the use of blockchain technology as a solution to IP infringement which can deliver and create a secure and collectively shared record of authenticity, allowing the product to be tracked and traced through the entire supply chain.
Use Cases of the Blockchain Technology
In the past four years, the EUIPO has conducted a series of workshops to investigate the benefits of blockchain technology for IP rights enforcement. One of the use cases of blockchain technology includes permitting IP rights holders to create digital tokens representing digital goods. The right holders can authorise manufacturers to develop and handle the token on their behalf and record events and information for their goods. Another use case involves combining unique product identity and the continuous transfer of the digital identity between wallets which proves that the goods are genuine. This information will be accessible to customs and other enforcement authorities. Containers can also be tokenized and connected to goods contained, preventing the need to open the sealed container to check for authenticity.
EUIPO has selected a high-level design architecture to develop the blockchain solution, allowing brand owners to choose their own NFT platforms, manufacturers to leverage their existing physical identification technology and logistics operators to use their track-and-trace system. LVMH, a luxury goods company collaborated with Prada and Cartier in April, to develop Aura Blockchain Consortium, a platform where consumers can access product history and proof of authenticity.