The European Union Intellectual Property Office (EUIPO) has revealed that its currently putting the finishing touches on its blockchain & NFTs-based anti-product counterfeiting system. If all goes as planned, the solution will go live in 2023, according to reports on September 6, 2022.
EU Tackling Product Counterfeiting With DLT
The European Union Intellectual Property Office (EUIPO), the agency whose primary objective is to see to the registration of the European Union trademark and more, has revealed that its anti-counterfeit system, which will leverage non-fungible tokens (NFTs) and blockchain technology will go live before the end of 2023.
Per sources close to the matter, the blockchain-based anti-counterfeiting solution will make it possible for manufacturers to create unique NFTs for their products as proof of authenticity and an accurate record of each product will be recorded on a distributed ledger. This information (NFT) can be transferred to a buyer or other authorized entity once the product is sold.
“The record on the blockchain is a unique and immutable token. As goods pass from one party to another, the token is exchanged between digital wallets. The combination of unique product identity and the continuous transfer of the digital identity between wallets creates proof that the goods are genuine,”Declared Claire Castel, Head of Service at EUIPO’s.
A Long Time Coming
It’s worth noting that the European Commission has been exploring the potential of blockchain technology over the years, especially as it concerns tackling the menace of piracy and product counterfeiting.
According to Europol, counterfeit products account for as much as 2.5 percent of world trade (roughly $ $461 billion) and the situation is even more serious in the EU, as fake or pirated products represent about five percent of total imports to the region.
In a bid to nip the problem of product counterfeiting in the bud, In 2019, EUIPO launched the Anti-Counterfeiting Blockathon Forum, an initiative dedicated to tackling piracy and product counterfeiting with blockchain technology.
At the time, Christain Archambeau, Executive Director of EUIPO buttressed the need for the creation of anti-piracy solutions that will be based on innovative technologies and must be capable of keeping reliable records of products through international supply chains.
Fast forward to 2022, and the EUIPO says it’s now putting the finishing touches on the EU’s first blockchain-based anti-counterfeiting system and a working version of the solution will go live by the end of 2023.
Importantly, the agency has made it clear that its blockchain-powered anti-counterfeiting solution will be open and compatible with existing NFT technologies, making it possible for brand owners to host their digital collectibles on an NFT marketplace of their choosing.
However, the agency has hinted that it will also
“create an identity management system, which will also act as the knowledge repository system to store interested stakeholders’ identities and product location, thus positioning the EUIPO at the center of the ecosystem.”
As reported by crypto.news on August 12, 2022, authorities in the EU have hinted that NFTs will be regulated just like bitcoin (BTC) and other cryptocurrencies under the region’s Markets in Crypto Assets (MiCA) law slated to go live in 2024.