Blockchain-based anti-counterfeiting tools have shown promise, according to the European Union Intellectual Property Office (EUIPO). After a trial involving brands, border control and logistics operators, EUIPO has finalized a proof of concept having engaged in real-life operational tests with four brands, two logistics operators and a customs authority, which yielded promising results. The initiative, known as European Logistics Services Authentication (ELSA), is based on the European Blockchain Services Infrastructure (EBSI).
The EUIPO is hoping to develop an open-source platform this year to ensure each link in the trade supply chain can track products and check they’re authentic. This is not a new idea, but has not been successful in practice. By using open-source technology, the EUIPO project hopes to avoid the fate of unduly centralized systems like IBM’s TradeLens, which announced it was winding down last November.
According to EUIPO, counterfeits amount to 2.5% of global trade, worth around 412 billion euros ($451 billion).