The advantages of blockchain technology are being recognized by various government departments all over the world and the latest one to do so is the US Department of Homeland Security, which is now running a POC using decentralized ledger technology to protect intellectual property.
According to a recent report, over 40% of products that are available on major Chinese online retail outlets are counterfeit and a considerable portion of such goods are said to be entering the US territory, in circumvention of US Trademark Laws. The list of such illegal products is long, which includes the likes of iPhone clones, toys, pesticides and even pharmaceuticals which could have detrimental effects on the health of the population due to lack of transparency and liability of the manufacturers of such products who pose as OEMs. The US Department of Homeland Security’s blockchain experiment is expected to come up with a Proof of Concept solution for this issue.
While the manufacturers of the counterfeit goods stand to gain a handsome fortune by copying some of the well-established products, undercutting the actual manufacturers by a huge margin In terms of cost, there is a huge threat not only to the health and wellness of customers buying such products over the real deal, but also to actual brands that are being copied. The lack of quality controls and assurances that follows counterfeiters results in low-quality, defective products which will, in turn, damage the reputation of the brand. Also, it exposes them to legal liabilities due to confusion causing wasted time and resources for both companies as well as consumers. In the context of the United States, 24% of IP violations across the globe are found to infringe upon the intellectual property rights of US companies.
Blockchain to the Rescue?
Blockchain technology has been widely recognized for its characteristic immutability, data integrity, transparency and ease of access. The technology which gave rise to the entire…