As the European Union focuses on the adoption of the draft MiCA Regulation (Markets in Crypto-Assets) for several months, it has also been offering a brand new text on the use of non-fungible tokens (NFTs). He plans to use Blockchain technology and NFTs to fight against falsification and counterfeiting of physical goods. In other words, it is a question, by these means, of protect intellectual property. If the project sees the light of day, it would be the first time that such an experiment has been implemented on the scale of the European Union.
The project is unveiled by the European Union, which publishes a official document on this subject. She explains that she has been working on it for a while (five years). And that the text was developed in collaboration with players in the ecosystem. The latter having met them at the events ” blockchain hackathons » of the EU’s public agency, the Intellectual Property Office.
EU and NFTs – Or how to authenticate the ownership of a physical good
According to terms of the project, Blockchain technology and NFTs will be used to authenticate – in a tamper-proof manner – the ownership of physical goods. In other words, this is the most classic use case of NFTs. And it is not very surprising that supranational institutions are realizing the potential of this technology, given the security it brings. Indeed, NFTs are a means par excellence to certify the authenticity (and uniqueness) of a property. Whether physical or digital.
The European institution proposes the following system. As a first step, intellectual property rights holders will create digital tokens (“twin NFTs”). These tokens will prove that a group of physical goods is genuine. Beforehand, these holders will have to register as proven signers so that tokens representing these products can be integrated into the tracking blockchain. Secondly, this solution will make it possible to follow the supply chain. When the products will be transported through different checkpoints, these different steps will be accessible from the decentralized protocol on which the said tokens will be registered. In this way, rights holders will have the certainty that the physical products delivered that reach the stores are indeed authentic.
EU and NFTs – An ambitious implementation deadline
Supposedly in the works for more than five years, the European Union Intellectual Property Office hopes to have a system fully operational before the end of 2023. Until then, the institution will have to create a registry system to bring together, at the same time, the holders of intellectual property rights, the logistics operations as well as the retailers. Without specifying this point further, the report stresses that the projected system should be interoperable with existing solutions.
However, it can be pointed out thatsuch an appif it were to be fully effective and operational, would be one of the first applications of DLT technology on this scale and for such purpose.
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European Union – NFTs to remedy counterfeiting?
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