Using digital certificates
to fight “genuine fakes”
of luxury goods
October 2008

“Genuine fakes” are fake luxury
items sold as authentic - they
are bad and rapidly multiplying
This
is not the
real problem!
2
fabio.annovazzi@gmail.com

Genuine fakes are extremely
profitable. They will “force entire
industries to rethink luxury or face
rapid deflation”
30% ≈
genuine fake
9X potential margin
“discount”
of “genuine fakes”
3
Illustrative example: luxury bags fabio.annovazzi@gmail.com

The aura of authentic luxury
items is also tied to their high
2nd hand value - but how do
you prove that your bag is real?
≠
4
fabio.annovazzi@gmail.com

A digital certificate connects
one entity with its specific data
•Me  My  My name
•Me  My  My digital signature
5
fabio.annovazzi@gmail.com

So…
...this particular
bag…
…is connected
(1 in the world)
through…
…this particular
certificate…
(1 in the world)
…to this particular
code/number
(attached to the bag)…
6
fabio.annovazzi@gmail.com

…and…
…this
particular
…has four
customer…
bags, each
with a code… …and an
account on a
website… …in which each
code/bag is
associated to its
certificate
7
fabio.annovazzi@gmail.com

Two bags might be identical, but the
one with the certificate is certainly
real and the other is certainly fake
1.For each product put on the market, a specific
certificate is activated on the website
2.When a customer buys the product she logs
in the website, (creates an account and)
associates the code on the product to her
account, either by typing it in or by reading it with her
mobile phone
3.If the website confirms that the
certificate with that code exists and it is indeed
associated with that specific kind of product, then the
product is real 8
fabio.annovazzi@gmail.com

The “remote certificate” solution links
the product/digital-certificate to the
holder of the account on the web
Advantages Issues
Unique code on the •Code easy to spot •Code can be copied
product •Code difficult to check
Holograms, •Difficult to copy by a •Difficult to spot and
watermarks, rfid,.. faker check by customer
Unique code + remote •Code easy to spot and •Code can be copied on
validation server check by customer “repeated” on fakes
Unique code + digital •Certificate impossible •Difficult to check
certificate on card to duplicate •Card easy to loose
Unique code + digital •Certificate impossible •Link between customer
certificate on server to duplicate & loose, account and certificate
easy to check /product code 9
fabio.annovazzi@gmail.com

•Service paid by luxury brands
Business
•Cost of “producing” certificates is 0
model
•Leverages on critical mass
•Secure by design & simple to use
Advantages •No hardware, smartcards, readers
•Brand & customer do all the work
•Resell on eBay (only?) benefit
Issues •Needs impulse from luxury brands
•Will customers bother? 10
fabio.annovazzi@gmail.com