Blocking the fake supply chain

Perkins Coie’s Michael Henson looks at how blockchain can help in the battle against illicit goods entering the US

Michael Henson, Perkins Coie

In today’s expanding global economybusinesses increasingly generate value through the exploitation of intangibleassets. Effective procurement, management and enforcement of intellectualproperty rights (IPR) can be crucial to maintaining a competitive advantage.Those that stand to benefit from a comprehensive IP strategy include the IPowners themselves, content producers, distribution partners, end consumers, andeven insurers. Such stakeholders, however, suffer when opportunistic thirdparties intentionally disrespect or disregard such rights. According to SteveShapiro, the unit chief for the FBI’s IPR unit, counterfeit goods cost the USeconomy alone an estimated $600bn a year, or 3% of the US gross domesticproduct. The flow of counterfeit and pirated goods is a global issuenecessitating collaboration between customs agencies and IPR stakeholders toensure effective border enforcement.