Anti-counterfeiting and the rise of NFTs

Anti-counterfeiting and the rise of NFTs

The global counterfeit goods industry is estimated to be worth over US$500 billion a year and rising, accounting for 3% of international trade.

On World Anti-Counterfeiting Day 2022, brands are looking to new technologies to disrupt counterfeit activity. The increased focus on issues relating to the Metaverse, Blockchain, and non-fungible tokens (NFTs) stands to help brand owners combatting secondary market counterfeits.

The blockchain code which underwrites NFTs cannot be duplicated, and theoretically rights holders can use NFTs to track ownership of genuine goods to confirm their authenticity. Whether these NFTs, tied to genuine products, should be issued and controlled by the rights holder is currently being tested in the US courts, in Nike, Inc. v. StockX LLC. This strategy of tying NFTs to physical goods could be a valuable addition to a brand’s anti-counterfeiting arsenal.

For traditional measures to protect your brand online, see our previous article below. If you need any further advice, please contact Rachel HarrisonBen Scarfield or your usual Kilburn & Strode advisor.

Let us keep you up to date. If you’d like to receive communications from us, ranging from breaking news to technical updates, thought leadership to event invitations, please let us know.

Connect with us

Cookies improve the way our website works. By using this website you are agreeing to our use of cookies. For more information see our cookie policy I accept