Will the European Union soon use anti-counterfeiting NFT technology?

The European path to combating IP counterfeiting is long and rocky. Now, according to the documentation, the World Intellectual Property Organization (WIPO) based on NFT technology tracking solution and so on Besides physical products. Thus intellectual owners can provide evidence of their ownership at any time.

NFT as a means against counterfeiting

Already in 2017 The European Commission puts sensors in the blockchain and NFT space. The goal: to find a solution to product piracy. What followed was the first EU-initiated “Blockathon” which aimed to produce concrete projects to achieve this goal. Apparently, the event paid off, as officials are able to offer a solution based on NFT after 4 years.

Manufacturers plan to create unique NFT codes as digital copies of each of their products in the future. Ultimately, the digital assets will be transferable on the blockchain and will have all the functionality of a standard NFT. This way, manufacturers who hold assets in the wallet can send back the digital duplicates when the physical product is sold, thereby transferring ownership.

It is stated in the mentioned document:

“Proof is based on a unique and immutable blockchain token. When products are transferred from one owner to another, the token is sent between digital wallets. (…)”

The European Union is developing its own blockchain technology infrastructure for this measure – NFTs should be tradable there, too. In the end, however, it remains a free choice of which NFT platform to use with the manufacturers.

Better traceability guaranteed? Blockchain in use

Claire Castell of the European Union Intellectual Property Office (EUIPO), the European Union’s Intellectual Property Office, said:

“While a product is in transit, customs and other law enforcement agencies can access information. One example is transportation documents, which can improve risk management.”

In general, certification of products should be made easier for consumers and executive authorities. NFTs are used to handle product recalls or direct contact between manufacturers and consumers. “Because intellectual property determines what information is included in the NFT, it may also serve as a loyalty program of some sort,” Castle says.

The planned start date of the EU technology is the end of 2023. These findings can be drawn from the recent actions of Castell, which sent an update of the technology to WIPO on behalf of the European Union for Intellectual Property.

In order for everything to proceed as planned by the end of 2023, the European Union has yet to establish a registration system for owners, logistics and merchants.

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