Digital Product Passports: A New Era in Combating Counterfeiting and Theft

Authors:
Khodjaev Zafar
Business Research & Analysis
‍
Counterfeiting and theft are pervasive threats to global industries, leading to billions in lost revenue and eroding consumer trust. As counterfeiters become more sophisticated, businesses need robust, technology-driven solutions to safeguard their products. Enter Digital Product Passports (DPPs), a revolutionary tool that enhances transparency, traceability, and security across supply chains.

The Role of Digital Product Passports in Product Security

A Digital Product Passport is a verified digital record attached to a product, containing information on its origin, materials, manufacturing process, and ownership history. Using unique identifiers such as QR codes, NFC tags, or blockchain records, DPPs enable real-time authentication, making it significantly harder for counterfeit goods to infiltrate legitimate markets.

How DPPs Prevent Counterfeiting

• End-to-End Traceability: Every product registered with a DPP has a transparent and tamper-proof history, allowing manufacturers, retailers, and customers to verify its authenticity instantly.
• Supply Chain Integrity: DPPs track each step in the supply chain, ensuring that products are sourced, transported, and sold through legitimate channels.
• Anti-Greenwashing & Compliance: Regulatory bodies can use DPPs to verify claims of sustainability, preventing counterfeiters from falsely labeling products as eco-friendly or ethically sourced.
• Consumer Confidence: Buyers can scan a product’s DPP to confirm its legitimacy, reinforcing trust in the brand and reducing demand for counterfeit goods.

Counterfeit goods account for approximately 5% of imports into the EU, equating to around €85 billion annually. Euractiv

DPPs as a Theft Deterrent

Beyond counterfeiting, DPPs also serve as an effective measure against theft and resale fraud:

• Ownership Verification: Digital ownership records prevent the resale of stolen goods, as buyers can verify if a product is legally owned and trace its previous transactions.
• Product Blacklisting: Stolen goods can be marked as lost or flagged in the system, making it impossible to resell them through legitimate channels.
• Smart Asset Recovery: Law enforcement and insurers can use DPPs to track stolen assets and return them to rightful owners, reducing product loss for businesses and consumers alike.

The Regional Impact: Eliminating Counterfeits at Scale

Adopting DPPs at a regional and industry-wide level strengthens the fight against counterfeiting and theft:

• Harmonized Standards: A unified system for product registration ensures consistent verification across different markets and regulatory bodies.
• Cross-Border Transparency: As global trade grows, DPPs create a universal verification framework, reducing counterfeit infiltration across international supply chains.
• Consumer Protection: Standardized DPP implementation empowers customers with accurate product data, allowing them to make informed purchases and avoid counterfeit scams.

85% of Swedish furniture companies have experienced or suspected piracy of their products. However, only 15% of these companies pursued legal action, often due to the time-consuming and costly nature of such processes. InteriorDaily

Lingon: Securing the Future with Blockchain & Digital Twins

At Lingon, we provide a full-scale DPP solution that combines blockchain security, digital twins, and real-time authentication to protect businesses and consumers.

• Blockchain-Powered Security: Our decentralized and tamper-proof ledger guarantees the authenticity of every product, ensuring that data cannot be altered by counterfeiters.
• Digital Twins for Verification: Lingon creates unique digital identities for physical products, providing an extra layer of protection against theft and forgery.
• Smart Digital Ownership: Our system allows real-time tracking of ownership changes, making stolen or counterfeit products impossible to resell legally.
• Point-of-Sale Authentication: Customers can scan a Lingon-powered DPP to verify a product’s authenticity before purchase, reinforcing brand trust and product value.

Conclusion: A Future Without Counterfeits and Fraud

The fight against counterfeiting and theft requires more than just reactive measures, it demands proactive innovation. Digital Product Passports transform product security, ensuring every item has a verified and immutable history. With Lingon’s advanced DPP solutions, businesses can protect their products, consumers can buy with confidence, and industries can eliminate counterfeit threats at scale.

Learn more about DPPs security features from the renown sources below:

The Application of Anti-Counterfeiting Technologies in Supply Chains, Supply Chain Connect, 2024

How Blockchain Can Help Reduce Supply Chain Fraud and Counterfeiting, Rapid Innovation

Securing Supply Chains Against Counterfeits in a Post-COVID World, SupplyChainBrain, 2023