In order to reduce intellectual property infringements, such as counterfeiting and piracy, the European Union (EU) is working on a tool based on blockchain platforms or block chains. With it, the creators of products offered in that region will be able to create “digital twins” in non-fungible token (NFT) format, which will guarantee the originality and inviolability of the item. In a document published this month by the EU Intellectual Property Office (EUIPO), they explain that the tool, designed for 2023, will allow product owners to protect themselves from counterfeiting and piracy. This, through a specialized portal where they will have to create tokens that represent, digitally, the physical goods that are going to be offered in the EU. “Rights holders could then authorize other parties, such as manufacturers, to create and manage the tokens on their behalf and record events and information for their products,” the document explains. The developers of the tool pointed out that thanks to the combination between a unique product identity (which can be registered in a blockchain or block chain) and the continuous transfer of digital identity between wallets; “proof is created that the products are genuine”. They indicated that, throughout the journey of a product offered in the EU, both customs and other law enforcement authorities can access vital information, “such as authentic shipping records, which can support risk assessment.” Such registrations, they say, are positive for the carrier of said product, because “a container can also be tokenized and connected to the goods contained, using algorithms.” “Tokenizing avoids the need to open a sealed container to verify the authenticity of the contained products each time it moves between parties in the supply chain. In addition, tokenized products with proven authenticity could quickly pass through customs controls, “they indicated.
The blockchain can alert any anomaly
Since EUIPO they will need that With blockchain technology it is possible to generate automatic alerts in the event of an anomaly being detected. in the integrity of the goods, especially when they pass between the different stations of the supply chain. For the end user, this tool would also be beneficial, according to the developers, since “it offers the possibility of improving the information contained in the block chain, adding records manually or automatically through sensors.” “For a retailer or consumer, this means leveraging such records to identify information such as the production facility, supply chain movements, and the provenance of raw materials,” they coined. And they added that these consumers could use a ‘single wallet’ at EU level, where it may be possible to store NFTs and other digital certificates of originality, all in one location. What the EU proposes has already been seen in Spain, where a company designed and created a blockchain platform precisely to facilitate the traceability of documents and information shared between supply chain agents, as reported by CriptoNoticias. .
a common problem
According to the EUIPO, Intellectual Property Infringements ‘Significantly Harm’ Eurozone Economic Growth. In figures, in 2019 alone counterfeit and pirated products accounted for 2.5% of all world trade and up to 5.8% of EU imports to third countries. “The total number and variety of counterfeit products detained at EU borders has increased alarmingly and consequently the challenge for all actors involved in the fight against counterfeiting and piracy has increased,” they say, and They clarify that the acquisition of fake products “is not always an intentional act.” “Many consumers are misled into buying counterfeit products, and even more are unsure whether a product they bought is actually genuine or not,” they said. This being the case, they insist that technologies such as the block chain “could become revolutionary tools” in the fight against trade in counterfeit goods. This, taking into account that there are “limited resources of law enforcement officials” and that although monitoring systems exist, “they are often disjointed.” One possible solution to these challenges “is to make use of decentralized and synchronized blockchain technology that can deliver and create a collectively shared and secure record of authenticity.” Such a fact should enable the tracking and tracing of an authentic product throughout the entire supply chain and empower all actors involved to tackle counterfeiting more effectively, they said.
