In the past 100 years, there has been an integration of global markets from the dissolution of the Soviet Union, China's admission to the World Trade Organization, and the industrial revolution led by United State's technological advances. Technology has connected the world, reduced borders, and increased globalization creating a complex interdependent system for trade. However, there is no standardized system that links everything together leading to potential exploits by bad actors. Counterfeiting is one of the largest criminal enterprises in the world, with over $3 trillion worth of products in the supply chain each year (https://www.europol.europa.eu/crime-areas-and-statistics/crime-areas/intellectual-property-crime/counterfeiting-and-product-piracy).
Counterfeiting leads to economic loss of market shares due to unfair competition practices. Counterfeiting occurs when IP brands are reproducible with solutions like barcodes, authentication technology and packaging along with sparse incident data, difficulty chasing bad actors, and lack of collaboration between merchants. Bad actors can still spoof, manipulate, or abuse these methods. Bad actors lead to increased monitoring of the supply chain, consumer risks from lower quality goods, regulatory compliance costs, liability stemming from health and safety of consumers, organized crime networks, reputational risks, insurance and security costs.
Hypercube's policy proposal is substantiated by comprehensive research on how despite counterfeiting being illegal, it is a business that generates over $509 billion of revenue annually. From 2000 to 2018, United States Customs seizures of infringing goods at United States borders has increased 10X, from 3,244 to 33,810. Around 80% of these goods are produced in China, and 60% to 80% of those products are purchased by Americans. Unlike the rigorous anti-counterfeiting laws in the European Union (https://www.worldtrademarkreview.com/global-guide/anti-counterfeiting-and-online-brand-enforcement/2019/article/border-seizure-measures-in-the-european-union), the lenient United States laws do not punish an American citizen for buying counterfeits. Bad actors from hot spot producers like China are stealing from United States home grown research, development, and innovation. IP brand protection is an issue for long-term national security as innovation does not happen overnight. Counterfeiting reduces capital going into research, and developments for U.S. economy, businesses, and innovations.
To address these challenges, Hypercube proposes policy recommendations that addresses the lack of evidence in detecting counterfeit products along the supply chain, educate the public around data sovereignty with a decentralized DAO governance, and reactive measure to recover revenue and safely dispose of counterfeit products. Reactively, there is a need for coordinated action among counterfeit stakeholders and law policymakers. Hypercube's AI-powered blockchain proposal for legal, regulatory, and administrative market segmentations to reduce data silos between public and private entities in the fight against counterfeiting. Hypercube is a disruptive AI Blockchain evidence-based solution which creates federal benchmarks for a national counterfeiting index by sharing information on the identification of new and emerging schemes. They are responsible for connecting information about counterfeiters and related networks among federal, state, and local law enforcement in the United States and globally to support investigations and successful prosecutions. With a network of human professional authenticators overseeing the Hypercube software should be implemented. These are subject matter experts who have experience in investigating and bringing legal action against bad actors. By automating the supply chain, we replace manual paperwork normally done for contracts with digital contracts on the blockchain. They work with law enforcement and brand partners to investigate, litigate, and prosecute criminal and civil suits.
- Evidence-based policy recommendations from computer vision pictures, IP addresses, and NFT tokens from brand IP rights holders.
- Deter bad actors of counterfeiting activities with takedown notices, injunctions, IP blacklists, legal, reparations due to unlawful conduct.
- Rehabilitation of bad actors so they do not harm the community anymore with a Federal IP database, and human intervention.
Hypercube leverages AI blockchain anti-counterfeiting technology with features like 24/7 web crawlers, artificial intelligence computer vision, infringements, smart contract incident reports, revenue recovery, blockchain, and policy recommendations. Trillions of economic loss has occurred with the supply chain disruptions from the Covid pandemic, Russia-Ukraine war, rising inflation rates United States (8.2%), and the climate change crisis (https://carnegieendowment.org/2021/09/16/u.s.-china-trade-war-has-become-cold-war-pub-85352). Despite the COVID-19 pandemic, patent applications grew by 4% in 2020 with China has overtaken the total number of international patent applications above the United States filing 68,720 patents in 1 year. Hypercube can be effective in influencing the actions of stakeholders along the supply chain to reduce counterfeiting activities. If not through voluntary compliance, through incentive systems and social pressure. There has never been a better time to build a solution for evidence-based supply chain policy recommendations.
What it does
Think outside-the-box, and inside the Hypercube. The proposed solution is a software as a service platform called Hypercube which uses AI-powered blockchain technology. Motivated by LVMH's 2022 Innovation Award winners (https://www.lvmh.com/news-documents/news/lvmh-announces-2022-innovation-award-prize-list-and-its-grand-winner-toshi-during-viva-technology/). Hypercube uses a blockchain consensus to secure physical assets automating the supply chain and leveraging technology innovations to stay ahead of bad actors. It uses computer vision and pattern recognition to remove counterfeit goods online. (Ex: https://datadiscovery.nlm.nih.gov/NLM-Products-and-Services/Computational-Photography-Project-for-Pill-Identif/5jdf-gdqh/data). Let AI-powered web crawler bots search and advanced image recognition discover potential infringements for you automatically 24/7. URL scanning service to look for phishing attempts linked to the Brand IP with redirects that go to tech support, gift card, streaming sites, porn, or gambling scams (CheckPhish.AI) for IP Brand phishing and non-authentic domain websites. Leverage automation rules to scrape the web and review thousands of infringements faster or do manual checks on the brand protection solution dashboard with a bot-powered search using Selenium and Beautiful Soup. This automates the process of taking photos of the item and document any potential damage - instead of a human inspector over reporting or under reporting damages. This is useful for public and private entities to recover economic losses with IP infringement detection and removal making the counterfeiting business model unprofitable and risky. Our software empowers consumers to easily authenticate and protect themselves and it provides retailers ways to establish long term consumer loyalty and brand recognition using computer vision and pattern recognition to sift through data points across the supply chain to spot anomalies, identify potential risks, create revenue recovery programs, and bad actors and suggest policy recommendations. By automating this process, Hypercube can increase the efficiency of legal offices, enforcement, and productivity of processing intellectual property reports with a Decentralized Automated Organizations (DAO) consortium for policy agreement standards (https://ethereum.org/en/dao/ creating a framework around enhancing data sovereignty and governance:
Hypercube proposes a six-phased policy proposal to bring down counterfeiting using a multilateral approach from a technological perspective:
- WEB CRAWLER: Proactively crawl the web 24/7 looking at marketplace postings with URL scanning building an ontology knowledge graph for global supply chains.
- COMPUTER VISION: Automated pattern recognition to physically identify counterfeits trained on data from Kaggle, IMF, and the FBI(https://www.kaggle.com/datasets/mkechinov/ecommerce-behavior-data-from-multi-category-store).
- BLOCKCHAIN: Multi-tier value supply chain traceability with DIDs NFTs sharing information on a blockchain ledger and sharing information and crowdsourced DAO governance for policy recommendations for global benchmarking
- GEOLOCATION VISUALIZATION: Mapbox data-driven dashboard with actionable intelligence to alert law enforcement, legal and private sector entities based on geographic legal jurisdictions.
- REVENUE RECOVERY: Reactively calculate lost revenue from counterfeit post-sales with blockchain-based payment system for notice and takedown procedures, powerful notice letters, and blocking injunctions with the click of a button
- COUNTERFEIT DISPOSAL: Sustainably dispose of counterfeit products by recycling or upcycling with carbon credit ESG reporting of GHGs for environmental protection (Ex: Rio Declaration) agreements ( Ex:Paris Agreement)
Feature Engineering: AI-powered detection looking for anomalies
- Know your Customers - How many customers visit the site?
- Sort by Brand and Intellectual Property ex: Nike.Hypercube or Amazon.Hypercube
- Vistors Daily Trend, IP Geolocation traffic flunctuate by date?
- View event data like view, purchase, cart
U.S. prides itself on constitutional protections, to protect the freedom of speech, religion, press, assembly, and the right to petition the government. By leveraging blockchain governance, stakeholders will be prioritized based on influence and interest with respect to policy recommendations. Stakeholders along the track and trace supply chain include the IP holder of the brand, logistic transporters moving the products, to the consumer who purchases it. This is scalable as Hypercube is automating everything on a DAO blockchain system (going from primary, secondary, to tertiary to quaternary stakeholders), this decreases the need for a intermediary middlemen thus reducing fees. The future of digital ownership and collectibles is placing assets on the blockchain for supply chain traceability. Let bot-powered search and advanced image recognition discover potential infringements for you. Leverage automation rules to review thousands of infringements faster or do manual checks on the brand protection solution dashboard with a bot-powered search.
Hypercube recommends the adoption of computer vision inspections for searches of packages through customs and logistic transporters. This would be done with an enforceable camera and lens on the conveyer belt with on-chain invoices have unique identification numbers, with immutability of blockchain on Hypercube's QR Scanner reducing non-authentic clones and replicas. Automated authentication software that is scaled to take down infringements automatically with the request of enforcement of counterfeits and blackmarket listings. Blockchain traceability of financial transactions on a secure ledger with deterministic contracts. Transparent, traceable, and verifiable transactions as smart contracts are publicly visible and tamper proof. Brands print and adhere time-stamped label to trace assets, scan barcodes as items go through the supply chain with blockchain QR code tags are read as they arrive to their destination. (https://medium.com/arren-alexander/computer-vision-case-study-amazon-go-db2c9450ad18) This allows for industry-wide compliance along the supply chain for private sectors or federal authorities. This is a scalable solution because anyone from IP rights holders to retails consumers can use a phone camera QR reader for zero-day detection:
- Picture analysis: Blurring pictures of the logo on the online marketplace or totally removing a logo, alterations on the colour, sizes, or fragmentation of the copyrighted imagery and self improving AI with brand logo detection.
- IP Tracking Geolocation Tracking: Takedowns without human intervention to recovers digital revenue and reduces economic losses by blocking access from a triangulated IP for global blocklists based on geographic jurisdiction decreasing the number of visitors from the blocked regions, and helpful for policy recommendations
Mapbox and ArcGIS
- Keyword Manipulation: Counterfeiters will often use techniques like misspelling or omission of the brand's name. This could be done by swapping it for made-up names easily recognizable by the end consumer.
The implementation of our proposal will be achieved by collecting consumer data to build an ontology knowledge graph (https://en.wikipedia.org/wiki/Legal_technology) to improve creditability and public trust of data shared by lowering revenue losses from counterfeit black market trading strengthening corporate reputation through providing transparency of materials used in products for product tracking, item identification, time tracking and anti-counterfeit management. Knowledge base that uses a graph-structured data model or topology to integrate product data. Semantic network with hypercube data a network of real-world entities objects, events, situations, or concepts. Brands that are seen to be socially conscious of these problems (ESG waste from counterfeits being burned instead of recycled) can acquire better public support and confidence. Ex: Hypercube could trace the supply chain upstream multiple levels with blockchain technology for child labor (!!) or Uyghur forced labor.
Contributing transaction data with upstream and downstream and improve visibility and compliance over outsourced contract manufacturing with ownership blockchain technology . Reduce paperwork and administrative costs with fast entry, process efficiency and interaction to uncover and prioritize top infringing sellers, and platforms repeat infringers’s identity and reveal the source. Decentralized Identifiers (DIDs) with federated learning, and a knowledge graph to perserve the online privacy of consumers with different access controls for stakeholders (https://www.w3.org/2022/07/pressrelease-did-rec.html.en). Decentralized computation with NFTs single seal with capability to compute across millions of devices and consolidate those results to provide better predictions brand counterfeit products. For example, on cargo ships moving through customs, restricted entity and shipment screening, ULD transfer management would create a digital twin NFT for every shipment allowing for accountability. (Ex. https://bpp.msu.edu/magazine/nft-ecomomies-and-counterfeiting-risks-june2022/) The smart contracts allow for DAO governance and the ability to sign off the receipts. Decentralized federated learning means that Hypercube can track changes as the cargo with counterfeit products moves between different airlines along the cargo shipment lifecycle. This is particularly important for counterfeited sensitive cargo assets like perishables, pharmaceuticals, or weapons which pose a higher-risk national security threat.
SMEs can achieve accelerated, almost immediate financing. On-chain data can be accessed by the financing institutions in an open way without any third-party auditing agency. Increase traceability material supply chain to reduce counterfeiting and data silos between public private entities. Leverage private (ex. Amazon) and federal law (ex. National Crime Prevention Council) knowledge base for known good/bad list to block users looking at customer risk activity, attribution, and terrorism or illegal activity for risk assessments. Since enforcement resources are limited, ranking high-risk counterfeiters can help allocate the burden on law enforcement.
How we built it
Step1: Proactive Hypercube Hypercube leverages AI and blockchain to create a scalable solution that could be deployed anywhere by anyone. An automated web crawler that scrapes the internet, searching for brand abuse, and non-authentic products, monitoring online marketplaces. It is impossible to use paper and pen to manually monitor everything on the internet for IP infringements, let alone enforcing the infringements. By parsing URLs for resellers and distribution channels, the software proactively identifies counterfeiters using a blockchain track and trace program called Proof-of-Ownership (Ex. https://www.lexology.com/library/detail.aspx?g=a1559142-01a7-400e-97f9-31ef6a853640&utm_source=sfmc&utm_medium=email&utm_campaign=&utm_term=GIPC+Daily+Press+Clips+9.14.22+-&utm_content=9/14/2022). Apply math proofs, federated learning, and decentralized computing. In layman terms, "You can't counterfeit a product on the blockchain, like how you can't counterfeit a bitcoin." IP Brand token holders can monitor their brand, products, and content online so they can analyze the data, connect with interdisciplinary stakeholders, and make informed business decisions with user roles and permissions for evidence-based policy recommendations for different stakeholders across the supply chain with a Decentralized Automated Organizations (DAO) to vote for new policies. This provide a democratic system of policy recommendations where every user in the supply chain from the IP rights holder to the retail consumer can view the product and verify its authenticity:
DAO connecting stakeholders like buyers, sellers, marketplaces, suppliers, and logistic transporters with policymakers:
- National Crime Prevention Council
- World Trade Organization
- Department of Justice
- EU-China Comprehensive Agreement on Investment
- United States Patent and Trademark Office
- American Bar Association
- Homeland Security Investigations (HSI)
- National Intellectual Property Rights Coordination Center
- Computer Crime and Intellectual Property Section
- American Intellectual Property Law Association
- Amazon Counterfeit Crimes Unit
- American Chamber of Commerce in China
- World Intellectual Property Organization
Furthermore, through policy enhancements, stakeholders will be able to break down silos with an end-to-end platform-wide incident management to facilitate team collaboration, and visibility across entire organization reducing staff time requirements, and time to respond on cloud-based identity and access management service. Blockchain allows for file integrity monitoring refers to an IT security process and technology that tests and checks whether or not they have been tampered with or corrupted. The supply chain traceability can help pinpoint security breaches and enable organizations to investigate alerts with attack simulations to evaluate readiness. Developing a new proof-of-ownership consensus algorithm, it would cost around $90,000. A private blockchain cost around $1,500 each month to cost with $0.01 / transaction-based for electricity costs. For more complicated features, it can cost up to $200,000. In order to connect different suppliers, Hypercube would need collaboration from federal and private entities. This is ideal despite the fact that software does not require significant financial resources or government intervention.
Each physical asset will have a tokenized quick response QR code affiliated to each token allowing for real time end to end supply chain tracking. By using blockchain metadata and the act of linking from physical anti-counterfeited objects is termed hard linking or object hyperlinking. This allows for a validation of the QR code with a decentralized blockchain providing creators open infrastructure to break free from extractive middlemen and platforms. Blockchain wallet funded with enough Hypercube to meet the account reserve and scan QR codes representing data in a scalable visual machine-readable form allowing small business owners to implement financing with no middlemen. Together, we must act faster together, to design, use and scale truly transformational solutions to accelerate ecommerce adoption around the world. Ex: The World Trade Organization could use Hypercube for evidence-based policy making (https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.htm).
Automated software that is scaled to take down infringements automatically with the request of enforcement of counterfeits and blackmarket listings blockchain traceability of financial transactions on a secure ledger with Deterministic Contracts. Transparent, traceable, and verifiable transactions as smart contracts are publicly visible and tamper proof. Print and adhere time-stamped label to trace assets, Scan barcodes as items go through the supply chain with blockchain QR code tags are read as they arrive to their destination. Hypercube allows for industry-wide compliance along the supply chain with a reference number tracker. Consumers scan the QR code of the secure label using their mobile phone camera Hypercube's blockchain scanner verify the Proof-of-Ownership IP DID:
- Anti-counterfeiting print solutions with microscopes and imaging scanners with magnetic stripes, smart cards, and RFID proximity.
- Physical anti-counterfeiting methods like: tamper evident die-cuts (tape) with pressure sensitive adhesive material stickers with temperature controlled cold-chain transport carriers with IOT tracker and blockchain triggered web hooks like perishables, pharmaceuticals, pets, human remains, or covid vaccines posing as health concerns.
- Additional physical solutions like holograms, invisible ink, digital watermark, copy detection pattern, or physically raised printed QR codes.
- QR code track and trace for carbon credit or loyalty programs (Ex: Airmile points).
QR codes to measure conversion rate KPIs, store bank account information, or credit card information relayed to a data-drive dashboard with multi-user access with federated learning.
Multi-colored QR codes with high capacity colored 2-dimensional (HCC2D) like color shifting inks instead of just binary black/white (Ex. counterfeited money).
Covert methods like quantum nanotechnology invisible QR code made from nanoparticles invisible to the naked eye printed at high resolution (ex: LVMH high-value assets).
Evidence-based policy recommendations can be made using "GeoDa: An introduction to spatial data analysis" (https://github.com/GeoDaCenter/geoda) with ipgeolocation.io API offer up-to-date databases of malicious IP addresses reported to be involved in fraudulent activity and allow you to filter them out with traffic filtering by state, federal, or global levels. Due to geographic jurisdiction, United States IP patent are isolated to specific locations with five venues accounted for 62% of all patent litigation cases filed focusing on Western District of Texas (PTAB, DED, TXD, CACD, TXED) with considerations made for "secrecy jurisdictions". By tracking these products with NFTs, authorities can intervene at the most appropriate point in supply chain. Geographic visualizations in a unified interface for continuous monitoring with tracking real-time data, event highlights, and threat lookups configured by user logins and longitude, latitude IP address locations of financial transactions. Blockchain data from chainlink oracles can estimate the risk of misinvoicing for the declared values and investigate suspicious transactions from world market price databases likeGFTradeTM from customs. Hypercube global IP register benchmark sort by regional geographic jurisdiction for IP laws with automatic submissions to global IP (Internet Protocol) address blocklists like China and multi-lingual ability to translate the GeoDa UI to different languages for customs (Ex.https://www.google.com/url?q=https://gfintegrity.org/press-release/transnational-crime-is-a-1-6-trillion-to-2-2-trillion-annual-business-finds-new-gfi-report/&sa=D&source=editors&ust=1667078065891865&usg=AOvVaw1EGgJ0QkSQCH97x6feNdDu).
Globalization magnifies national security threats such as global IP theft and trade laws that could be taken advantage of by bad actors. Due to the increase in global trade, counterfeit products can be transported easily by sea, air, rail, road and inland waterways. Hypercube is making the world a safer place, one destination at a time. This is a global effort with law enforcement involvement needed from multiple countries, and civil aviation authorities (customs) monitoring transshipment for clearance so that counterfeited materials can be stopped before they enter the country allowing for evidence-based policy recommendations. Hypercube allows stakeholders to intervene at the most appropriate point in product supply chain. Policy recommendations related to IP theft, trade laws, and geopolitics need to be considered:
- Illicit procurement networks brings security and customs challenges to trace the supply chain upstream multiple levels with blockchain technology for child labor or Uyghur forced labor.
- Hostile nations illegally obtaining U.S. military products across borders covertly like Iran's Ted Kennedy letter (https://web.archive.org/web/20121014021706/http://www.secretservice.gov/usss_strategic_plan_2008_2013.pdf)
- Monitor sensitive dual-use military technology: weapons of mass destruction like missiles, nuclear technology or drones.
- Digital currency crimes and online black markets for economic espionage.
- Explosives in air cargo, narcotics, pharmaceuticals, human remains electronics, contaminated foods, and weapons
- Conducting raids with geolocation based criminal profiles within data privacy laws (https://www.americanbar.org/groups/business_law/publications/blt/2019/04/geolocation/).
- Addressing national security threats, illicit trades and preventing terror attacks (ex: 9 11).
- TimeMaps for visualization geo spatial anomaly detection location flagging.
- TimeGates Track location of movement of goods in supply chain selects suspect cargo for inspection.
- Proactively deter retailers to conduct business with shady distributors based on risk assessment (ex: 2010 weapons EU).
Historical evidence for a complete threat story with advanced profiling with contextual log data like vulnerability scans, behavior analytics, identity information, user peer analytics, and user access analytics. Example, a counterfeit product is monitored as a NFT assets geographically from sea freight shipment container to the warehouse. Organizations can stop suspicious IP addresses (fraudulent activity, high risk geographies, or unauthorized access) from repeatedly attacking by adding them to their blacklists and report them to the United States trade representative allowing for IP-level blacklisting. This allows federal and private entities to take control back for their brand, products, third-party relationships, and distribution channels and focus on their business objectives and consumer protection.
Step2: Reactive Hypercube
While the Hypercube DAO has no enforcement powers itself, it can escalate legal disputes to legistlative/policy resolution bodies with geographic jurisdiction. Once bad actors are caught, Hypercube reactively uses the revenue recovery program to calculate the economic loss and return it back to the rightful owner. By taking action against online infringements and issues, sellers and distribution channel. Hypercube ROI calculator estimates the economic impact of your brand protection actions. If you decide to pursue legal action, you can quantify the monetary value of enforced listings and total number of fraudulent ecommerce transactions. Bad actors could be enforced to pay cost of litigation, profits made on illegal sales, potential brand damages, and unsold products be placed into our anti-counterfeitting recycling program. The DAO inter-chain communication connecting stakeholders, making it easier for changing core rules, adding new functionalities, and repairing chain states with voting measures for policy recommendations. Every member has their own domain for on-chain identity ex: lucy.Hypercube, or bob.Hypercube to reward loyal shoppers. The portion of the whole cryptocurrency not spent in a transaction is used as an accounting measure. Like double-entry accounting, each transaction has an input and output.
If given the opportunity to implement Hypercube's six policy recommendations, there will need to be support from every stakeholder. For a manufacturing company or United States trade office to purchase a computer machine vision system (hardware) to track NFT assets digital twins, it can cost from $5000 to $20,000 USD for hardware costs, software costs, computation costs, and storage costs. The software itself can cost from $50,000 to $200,000 USD. For example, Microsoft Azure’s Computer Vision API for BRAND detection using S2 Web Container. Computer Vision API used to have a $1.50 per 1,000 images as the only cost.
Hypercube helps save time, money, and resources with Artificial Intelligence that detects and remove intellectual property infringements online 24/7. It allows for brand monitoring, actionable intelligence, and investigation management tools to protect digital assets and intellectual property against brand infringements. Features include advanced keyword monitoring, geo location tracking, and image recognition to identify clients IP assets online. By automating the process, the software reduces the time it takes from detection of infringing content to takedown. Federated learning sharing an interconnection network distributed memory machine for multi-tier brands. User control access based on a Hypercube system interconnection network with n-vertex cycle where a map of the supply chain network data to graph to account for high risk geography alerts (ex. China) with centrality like highly influential nodes. The global structure can provide valuable customer insights for federal law enforcement. Federated learning software with both private and law enforcement data across shared Hypercube's client network that cannot be directly pooled increasing protection of citizens against global security and safety threats with the n-dimensional Hypercube influencing individual behaviour awareness agreements and connecting stakeholders through a DAO consortium that benchmarks policy recommendation agreement standards. Blockchain is useful for carbon credits to create an environmentally friendly carbon footprint system with offsets with supply chain track and trace from raw materials and disposal of counterfeit goods with unsold goods and textiles (recycling or upcycling) by removing the false brand name or painting over the products instead of incineration and landfills for waste control.
Hypercube offers a single-view user access controlled dashboard to plan, manage, monitor, and report incident response with endpoint detection to build risk resilience. This allows for evidence-based policies to be recommended based on risk assessments, event correlation with human intervention based on security event management, SOC training, and logic rules. Statistical correlation graph data analysis to identify relationships like mule accounts, multiple fraudulent transactions, or terrorist organizations with automated response bots logically programmed. Notifications and alerts after analyzing the data for anomalies and deviations and updates watchlists, and threat database with new information connecting to law enforcement. Compliance to meet the privacy and security requirements of certain governments, markets, and customers to meet federal security laws and regulations. Human crime task teams for compliance inspections with subject matter experts to testify during criminal trials. Education anti-counterfeiting outreach programs for childern in school (the next-generation of consumers) with a public grassroots campaign. Childern need to be empowered to make informed decisions with what they are purchasing. Addressing consumer demands for counterfeited goods with public education and awareness campaigns with a goal to increase protection of citizens against global security and safety threats with education programs.
Through a crowdsourced blockchain DAO consortium for anti-counterfeiting, Hypercube can connect stakeholders for legislative and regulatory policy making with governance tokens. By automating the policymaking process, we are supporting a democratic process where if the majority of members support a policy, the policy would be recommended to federal legislation. The adoption of Hypercube's evidence-base policies is in the interest of policymakers, national security for establishing counterfeiting laws and policies.
Refer to Hypercube Policy Recommendation Memo for:
1.0 EXECUTIVE SUMMARY
2.0 POLICY LANDSCAPE : INDUSTRY ANALYSIS
3.0 PROPOSED SOLUTION: HYPERCUBE IMPLEMENTATION
3.1 PROACTIVE HYPERCUBE: IMPLEMENTATION OF ANTI-COUNTERFEITING TECHNOLOGY
3.2 REACTIVE HYPERCUBE: DAO COMMUNITY-BASED INTERVENTION WITH STAKEHOLDERS
4.0 THE BOTTOM LINE: COST EVALUATION & SCALABILITY
4.1 PROACTIVE COST RISK ANALYSIS
4.2 REACTIVE COST RISK ANALYSIS 5.0 REFERENCES 6.0 ANTI-COUNTERFEITING 5 CASE STUDIES 7.0 16 FIGURES
Challenges we ran into
- Research on federated learning since consumer data being used by governments or private entities for anti-counterfeiting surveillance without consent could be a violations of digital rights (ex. Cambridge Analytica)
Time constraint policy making where IP infringements may be higher during specific times when new content is released by brands. (ex: NYC Fashion week for LVMH Brands).
Realistically, IP civil and criminal litigation take one to three years to get to trial. (Ex: United States Supreme Court's cause of Unicolors vs H&M on an IP infringement for a geometric pattern toke 4 years from 2016-2020).
Proactively addressing consumer demands for counterfeited goods and reactively thinking of ways to remove the possibility of counterfeited goods from re-entering the market once they were removed.
95% - 97% of IP infringement lawsuits are settled out of court ideally with a revenue recovery program that could go about calculating the exact economic loss of counterfeited products.
Couldn't fit everything into the 3 minute limitation for the video demo https://www.youtube.com/watch?v=ZwEquW_Yij0&ab_channel=TimFerriss
In terms of geolocation tracking, the Fourth Amendment protects “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures.”... If the anti-counterfeiting material is confiscated illegally by law enforcement, can it still be used in court?
Figuring out how to collaboratively share data between IP rights holder, manufactures, logistic transporters, law enforcement, retails, and consumers (crowdsourced DAO blockchain governance with federated learning).
Finding ways to use computer vision to find anti-counterfeiting patterns along the supply chain including placement of cameras on the conveyer belt at customs.
Difficulty with integration/interoperability of computer vision with current QR printing technologies like flexography, offset, digital, or rotogravure for anti-counterfeiting
Having men in your slack messages sending you paragraphs of unsolicited technical advice on reasons on why your hack won't work in Chinese
I learned that despite how much time and effort you put into a project, live-demos of open-source code, or answering technical questions to a panel of judges at Homeland Security… people won’t believe you built this yourself and, try to discredit you.
Accomplishments that we're proud
- Neither confirm nor deny that hack was inspired by the government horror movie "Cube 2: Hypercube" or childhood Hollywood dreams of being a FBI agent.
- Adoption of a blockchain standardized benchmark for anti-counterfeiting
- AI-blockchain track and trace, proof of ownership idea 24x7 computer vision based anomaly detection to help identify the movement of counterfeit goods or counterfeit parts of goods.
- Automated software that is scaled to take down infringements automatically with the request of enforcement of counterfeits and blackmarket listings.
- Creative time spent towards the Hypercube maze logo, "Think outside-the-box and inside the Hypercube" slogan, and the aesthetics of the demo video (Figma and Canva)
- Blockchain is the best solution or reducing data silos, increasing transparency across supply chains, and identifying new and emerging schemes to stay ahead of criminals involved in the trade of counterfeits.
- IP-level blacklisting maps for law enforcement authorities: Track and trace among federal, state, and local law enforcement in the USUnited Statesand globally to support investigations and successful evidence-base prosecutions.
- Carbon credits to create an environmentally friendly carbon footprint system with offsets with supply chain track and trace from raw materials.
- Disposal of counterfeit goods with unsold goods and textiles (recycling or upcycling) by removing the false brand name or painting over the products instead of incineration and landfills.
What we learned
- Largest criminal organization with trillion dollar market (TAM) where the average cost for IP patent litigation is between $2.3 million to $4 million.
- The importance of data sovereignty and data commercialization policies
- Blockchain technology can increase transparency and reduce patent trolls or Patent Assertion Entities or PAEs which have been growing 500% in the last decade (Ex: Silicon Valley TV: The Patent Troll https://www.imdb.com/title/tt5915160/).
- Interested in how globalization and world trade has impacted global powers and geopolitics, like the cold economic competition between the United States and China.
- Policy recommendation models on how counterfeiting can be used for drug trafficking, medical masks, military certificates, covid vaccines, and weapons smuggling (Ex. https://www.law.cornell.edu/uscode/text/18/part-I/chapter-25).
- Complex policy problem involving stakeholders from law, science, criminal justice, public health, forensics, and public policy from expert webinar on "Key Issues in the Anti-Counterfeiting Fight: United States Government and Private Sector Perspectives".
- Creative Hypercube design of cube logo, slide designs, and video animations.
- Legal use of blockchain smart contracts for IP compliance and brief disclosure with proof-of-ownership with DIDs for evidence-based supply chain policy recommendations (ex: world trade laws).
- Hackathon references research from webminars, subject-matter experts, and policy recommendations: https://docs.google.com/spreadsheets/d/1pCEq5VvMn6t4K5pJkbe5unf1cF120K2MH8EeQ6CEs64/edit#gid=0
What's next for Hypercube
- Build a NFT marketplace for global patent IP in a blockchain database where people can search, buy, sell, and trade IPs. Data-as-a-service model to monitor IP brand patent portfolios to see which patients are being renewed or infringed upon (https://techcrunch.com/2021/03/16/patsnap-300-million-fundraise/).
- NLP for multiple languages search across geographic jurisdictions (mainly for customs)
- In addition to anti-counterfeiting, the AI Blockchain system could also be used for frauduent claims like lost packages, product came broken, random questions about the order status/ tracking information.
- Add to the computer vision model could also be used to block NSFW images, hate speech, terrorist group names, and non-authentic customer reviews from online marketplaces.
- Create content monitoring campaign for brands to measure how much $ they make from ads with a reputation management program (scan online marketplaces for customer sentiment from reviews) automated with a data driven dashboard for sales and marketing, brand building, and ad intelligence.
- Non-technical user interface experience with a no-code decision-tree to eliminate false positives or negatives with human intervention.
- If a picture is worth a thousand words, then a video is worth a million? Expand to multimodal media to look for IP infringements on video streams like movies, Netflix, or television since the internet is 80% video content (ex: music infringements from Youtube from sheet music copyright scores).
- DAO stakeholders votes should not all be equal - instead they will be prioritized based on influence and interest with respect to counterrfeiting going from primary, secondary, to tertiary to quaternary stakeholders. (https://medium.com/the-value-maximizers/stakeholder-management-for-agile-product-owners-33-different-types-of-stakeholders-167cc8db32e5)
- Add smart contract triggered custom clearance forms with a revenue stamp, tax stamp, duty stamp or fiscal stamp for customs packages moving through airport cargo.
- More research needs to be done on the be short, medium, and long term benefits to these policy recommendations (ex: Will the A.I. start replacing manufacturing jobs?)
- More research needs to be done on the existing anti-counterfeiting policy landscape, benchmarking/standardization methods, and socio-economic impacts of counterfeiting to stakeholders. Ex: non-profits (COVID-19 pandemic charity scams).