EUIPO Uses Blockchain to Block Counterfeits

In 2019, The European Union Intellectual Property Office (EUIPO) launched a new anti-counterfeiting forum designed to encourage the development of cutting-edge technological solutions, including blockchain, to combat counterfeiting (see AN February 2019).

The idea for the application of blockchain technology to protect against fraud is that by creating digital twins of products, it enables wholesalers, retailers, customs authorities, and consumers to confirm that an item is authentic, with a blockchain holding the immutable record in the background.

Having formalised the project in early 2021 as the Anti-Counterfeiting Blockathon Infrastructure, EUIPO is planning a proof of concept at the end of this year and to launch by the end of 2023.

The platform aims to be technology- neutral and plans to support multiple non-fungible token (NFT) platforms, enterprise resource planning solutions and track and trace systems. It wants to create a common language – it doesn’t call it a standard – which enables interoperability. It is also planning an identity registry for brand owners, who can sign the digital twins and a repository of verified brand signatures.

Over time, EUIPO envisages the solution forming part of the broader European Blockchain Services Infrastructure (EBSI), Europe’s government services initiative.

The EBSI consists of a peer-to-peer network of interconnected nodes running a blockchain-based services infrastructure. Each member of the European Blockchain Partnership (EBP) – the 27 EU countries, Norway, Liechtenstein, and the European Commission – will run at least one node.

The infrastructure is made up of different layers including:

• A base layer containing the basic infrastructure, connectivity, the blockchain and necessary storage

• A core services layer that will enable all EBSI-based use cases and applications

• Additional layers dedicated to use cases and specific applications.

It will allow public organisations to develop applications that connect to and make use of the EBSI infrastructure.

Eventually, it will be extended to private organisations.

Anti-counterfeit has been one of the more obvious blockchain applications from the outset. That’s to ensure that drugs are originals, airplanes don’t use fake parts, and a Louis Vuitton bag is genuine. There are also major public health hazards associated with product fraud. Both Danone and Kraft Heinz use blockchain to give mothers peace of mind that their baby formula is the genuine article and has not been contaminated.

While there’s a vast array of anti- counterfeit blockchain projects in Europe and beyond, the luxury sector has been particularly active. Many big names, such as LVMH, Prada, Bulgari and Mercedes- Benz, have joined the AURA consortium. It originally started by focusing on anti- counterfeits but evolved into tracking sustainable sourcing and digital NFTs.

Another blockchain-enabled platform for brand protection and anti-counterfeiting is the open-source arianee protocol. Operating a 3-step process to tokenise, distribute and leverage, arianee is now helping to protect brands such as Cartier owner Richemont, Evrythng and Breitling watches.

For more information on Blockathon Infrastructure visit https://euipo.europa.eu/ohimportal/en/web/observatory/blockathon.