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Opportunities and challenges for fashion companies in the use of blockchain technology as a tool for product authentication and counterfeit prevention

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  • Anca Ciurel

Abstract

Fashion companies protect and enforce their IP rights to scale and grow their business. Yet most fashion companies still face challenges in fighting counterfeit goods. This gap stands in the way of the success and prosperity of individual fashion businesses and the global fashion industry.Mainstreaming emerging technologies as tools for fashion businesses could narrow this gap. Fashion companies can use emerging technologies such as artificial intelligence, machine learning, and blockchain for product authentication and counterfeit detection. Blockchain technology offers multiple solutions via digital twins, digital product passports, non-fungible tokens (NFTs), QR codes, and Near-Field Communication (NFC) chips to better authenticate fashion products while effectively detecting IP infringements.This article aims to showcase the opportunities and challenges in using blockchain technology as a tool for product authentication and counterfeit prevention. It focuses on the current state of the art in the use of blockchain technology in the fashion industry. It outlines initiatives that provide new blockchain solutions for fashion brands to better authenticate their products and win the fight against counterfeiting. The article concludes by comparing the use of blockchain technology by the fashion industry with other luxury sectors, such as the hard luxury sector, which includes watches and jewelry, the art and luxury furniture sectors, and the premium wine and spirits sectors.

Suggested Citation

  • Anca Ciurel, 2025. "Opportunities and challenges for fashion companies in the use of blockchain technology as a tool for product authentication and counterfeit prevention," Journal of Intellectual Property Law and Practice, Oxford University Press, vol. 20(2), pages 64-70.
    • Handle: RePEc:oup:jiplap:v:20:y:2025:i:2:p:64-70.
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    File URL: http://hdl.handle.net/10.1093/jiplp/jpae104
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