Blockchain Shows Potential in Battling Counterfeit Goods
The European Union Intellectual Property Office (EUIPO) is optimistic about the potential of blockchain technology in combating counterfeit goods. The agency shared that it has completed a proof of concept trial, labeled European Logistics Services Authentication (ELSA), that used blockchain-based tools for anti-counterfeiting purposes.
This initiative is part of a broader project known as the European Blockchain Services Infrastructure (EBSI).
The EUIPO trial involved real-world operational testing in collaboration with four brands, two logistics operators, and a customs authority. The results of this trial were considered promising by the agency, which is keen on advancing this initiative further.
EUIPO, situated in Alicante, Spain, is an EU agency that plans to build an open-source platform throughout this year. The platform will leverage distributed ledger technology (DLT), which is a type of blockchain, to enable various entities in the trade supply chain to track the movement of products and verify their authenticity. Such a system could be crucial in ensuring that products are genuine and in compliance with intellectual property laws.
While using blockchain technology to counter fake products is not a novel idea, it has struggled to gain traction in practical applications. EUIPO believes that employing an open-source approach could be the key to overcoming the issues that led to the downfall of more centralized systems, such as IBM’s TradeLens. TradeLens was an ambitious project but announced in November that it was ceasing operations.
Counterfeit goods are a major concern globally, accounting for approximately 2.5% of worldwide trade. This translates to a staggering 412 billion euros (about $451 billion) in value. By employing blockchain technology, EUIPO hopes to significantly reduce the prevalence and impact of counterfeit products on the global economy.
Blockchain technology, with its immutable record-keeping and transparent nature, could provide a reliable and efficient solution for monitoring and verifying the authenticity of goods in transit. Additionally, being open-source means that the technology can be more adaptable and inclusive, potentially leading to wider adoption and collaboration among various stakeholders in the trade supply chain.
The EUIPO trial involved real-world operational testing in collaboration with four brands, two logistics operators, and a customs authority. The results of this trial were considered promising by the agency, which is keen on advancing this initiative further.
EUIPO, situated in Alicante, Spain, is an EU agency that plans to build an open-source platform throughout this year. The platform will leverage distributed ledger technology (DLT), which is a type of blockchain, to enable various entities in the trade supply chain to track the movement of products and verify their authenticity. Such a system could be crucial in ensuring that products are genuine and in compliance with intellectual property laws.
While using blockchain technology to counter fake products is not a novel idea, it has struggled to gain traction in practical applications. EUIPO believes that employing an open-source approach could be the key to overcoming the issues that led to the downfall of more centralized systems, such as IBM’s TradeLens. TradeLens was an ambitious project but announced in November that it was ceasing operations.
Counterfeit goods are a major concern globally, accounting for approximately 2.5% of worldwide trade. This translates to a staggering 412 billion euros (about $451 billion) in value. By employing blockchain technology, EUIPO hopes to significantly reduce the prevalence and impact of counterfeit products on the global economy.
Blockchain technology, with its immutable record-keeping and transparent nature, could provide a reliable and efficient solution for monitoring and verifying the authenticity of goods in transit. Additionally, being open-source means that the technology can be more adaptable and inclusive, potentially leading to wider adoption and collaboration among various stakeholders in the trade supply chain.
