Using digital certificatesto fight “genuine fakes”
of luxury goods
October 2008
“Genuine fakes” are fake luxuryitems sold as authentic - theyare bad and rapidly multiplying
Thisis not thereal problem!
Genuine fakes are extremelyprofitable. They will “force entireindustries to rethink luxury or facerapid deflation”
9X ≈ potential marginof “genuine fakes”
30% ≈genuine fake“discount”
Illustrative example: luxury bags
The aura of authentic luxuryitems is also tied to their high2nd hand value - but how doyou prove that your bag is real?
≠
A digital certificate connectsone entity with its specific data
•Me My My name
•Me My My digital signature
...this particularbag…
(1 in the world)
…this particularcertificate…
(1 in the world) …to this particularcode/number
(attached to the bag)…
…is connectedthrough…
So…
…and…
…thisparticularcustomer…
…in which eachcode/bag is
associated to itscertificate
…and anaccount on a
website…
…has fourbags, each
with a code…
1.For each product put on the market, a specificcertificate is activated on the website
2.When a customer buys the product she logsin the website, (creates an account and)associates the code on the product to heraccount, either by typing it in or by reading it with hermobile phone
3.If the website confirms that thecertificate with that code exists and it is indeedassociated with that specific kind of product, then theproduct is real
Two bags might be identical, but theone with the certificate is certainlyreal and the other is certainly fake
The “remote certificate” solution linksthe product/digital-certificate to theholder of the account on the web
Advantages IssuesUnique code on theproduct
•Code can be copied•Code difficult to check
H o l o g r a m s ,watermarks, rfid,..
•Difficult to spot andcheck by customer
Unique code + remotevalidation server
•Code can be copied on“repeated” on fakes
Unique code + digitalcertificate on card
•Difficult to check•Card easy to loose
Unique code + digitalcertificate on server
•Code easy to spot
•Difficult to copy by afaker
•Code easy to spot andcheck by customer
•Certificate impossibleto duplicate
•Certificate impossibleto duplicate & loose,easy to check
•Link between customeraccount and certificate/product code
Businessmodel
Advantages
Issues
•Service paid by luxury brands•Cost of “producing” certificates is 0•Leverages on critical mass
•Secure by design & simple to use•No hardware, smartcards, readers•Brand & customer do all the work
•Resell on eBay (only?) benefit•Needs impulse from luxury brands•Will customers bother?
