The use of blockchain in online brand protection

 

Online brand protection is an area where invaluable human expertise and high-end tech solutions enhance each other for optimal results. This is why globaleyez is always on the lookout for new tech solutions, or innovative uses of established technologies - like blockchain.

 

 

What is blockchain

Initially developed to store and manage cryptocurrency transactions, “blockchain is a decentralized digital ledger that securely stores records across a network of computers in a way that is transparent, immutable, and resistant to tampering.”

 

Simply put, each new piece of information is recorded in a secure “block” and added to the rest, thus forming a “chain” of blocks - hence the name. Decentralisation means that the blockchain is stored across several computers, and copies must match.

 

 

AI-generated illustration of the blockchain

 

 

Different blockchains follow different verification methods, but in general, when a new block is added to one copy of the chain, some or all of the other copies must verify it before it’s accepted. Should the verification process fail (because, for example, the person adding the new information wasn’t authorised to do so), the blockchain reverts itself to the last commonly agreed version.

 

This tampering-resistant nature is what makes the blockchain very valuable to online brand protection.

 

Find out how globaleyez protects your brand on Web 3.0!

 

 

How does it work

The blockchain provides a variety of uses for brands wishing to ensure the authenticity of their products. For example, you may record all relevant information about your product, including the source of its raw materials and its journey through the supply chain on a blockchain and provide access to it to your customer.

 

| The blockchain provides a variety of uses for brands wishing to ensure the authenticity of their products

 

Such a unique, tamper-proof digital “ID card” ensures that your product’s authenticity is guaranteed, as are your claims about its origins. That’s especially important if you want to prove the sustainability of your brand. Such a tool also comes in handy if your customer wants to sell their product at some point in the future and prove its authenticity.

 

Customers have to scan the code provided with the product to read all the information about the product’s origin, carbon footprint, and any other data you may have included on the blockchain. Brands like Prada, Loro Piana, Maison Margiela and many others are at the forefront of such blockchain applications.

 

Similarly, storing your digital contracts, warranties or any other legal documents on the blockchain ensures their availability and authenticity.

 

Besides contracts and transaction data, the blockchain is also the regular “storage space” used for non-fungible tokens. NFTs are also great assets for online brand protection, as discovered by luxury brands like Louis Vuitton, Cartier, Prada & Co.

 

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The Aura Blockchain Consortium

Founded in 2021 by LVMH, Mercedes-Benz, OTB, Prada and Cartier, the Aura Blockchain Consortium is an “initiative aimed at advancing the adoption of blockchain solutions worldwide for the luxury industry … offering enhanced transparency, traceability, and utility to consumers.”

 

The collaboration started when LVMH recognised the need for an industry-wide cooperation on developing state-of-the-art blockchain applications for the greater good. Created by luxury for luxury, Aura works with over 40 brands in the industry, supplying 25 million products with blockchain-based authentication.

 

 

Screenshot of auraconsortium.com displaying Aura’s homepage

 

 

The two main types of customisable solutions Aura offers are product passes and NFTs. Product passes assist brands in three ways. The information they carry contributes to the storytelling of the brand and helps create a connection between product, customer and brand.

 

| The two main types of customisable solutions Aura offers are product passes and NFTs

 

Then, thanks to the product pass, brands can adapt to specific regulations in a classy and secure way, since storing legal information on the blockchain is very efficient and safe. Aura’s solutions also satisfy consumer protection regulations, as thanks to built-in authentication methods like Prada’s Eternal Gold collection, consumers will be able to prove the authenticity of their products and have a better case for insurance in case of loss or theft.

 

Finally, brands can access the comprehensive know-how of Aura in areas such as blockchain applications, NFTs and Web 3.0.

 

As for NFTs, these non-fungible tokens also serve multiple purposes. NFTs accompanying the products of Prada’s Eternal Gold collection, as mentioned earlier, are tangible proof about ownership and authenticity. Then, since NFTs may also represent value on their own, customers may receive one as a gift that completes their purchase.

 

 

Screenshot of prada.com displaying pieces from the Eternal Gold collection

 

 

Online brand protection as a complex system

Here’s the good news: blockchain’s many qualities make it an excellent tool for online brand protection. Solutions such as the ones provided by Aura can definitely contribute to proving the authenticity of your products and your ecological footprint.

 

And here’s the slightly less good news: while blockchain is great, it’s only a small piece in the giant, complex puzzle that is online brand protection. If you want to truly protect your brand, your IP rights and your customers, you need to do more than simply prove the authenticity of your own products.

 

| Blockchain is only a small piece in the giant, complex puzzle that is online brand protection

 

Fraudsters who copy your designs, infringe on your rights, defraud your customers and steal your revenue won’t be deterred by a single blockchain application or NFT. Infringing product listings still pop up regularly, enticing would-be customers with great deals and sensational prices.

 

This is why our marketplace monitoring service is perfect for the job. Our state-of-the-art software tool, traxster detects potentially IP-infringing listings in the blink of an eye. Thanks to versatile filters, we quickly discard authorised listings and zero in on fraudulent ones.

 

If we’re in doubt about the origins of a product or need more data about a seller, we recommend our test purchase service. Just with a single anonymous purchase, we can gather invaluable data and even provide you with court-admissible proof about the product and its seller.

 

Finally, we offer to enforce your rights and ensure the removal of the infringing listing from the marketplace. To determine the order of enforcement and thus provide you with the most efficient service, we often suggest a round of marketplace sales tracking. This service identifies the biggest sellers who cause you the most harm, allowing us to target them first and address small-time offenders with a single sale or two at a later date.

 

 

Conclusion

Online brand protection is a wide area with an array of scalable, interconnected services and solutions. We at globaleyez welcome technological developments, like blockchain applications that make global markets safer for our clients.

 

Contact us and learn more about our comprehensive services and solutions, perfectly tailored to your brand’s exact needs!