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Block Verify 1 Blockchain holds the technology needed to combat counterfeit goods on an universal scale. There is a potential for blockchain solution to allow monitoring of the whole supply chain including trading partners and product sourcing.

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Block Verify 2 Counterfeiting is an Universal Problem Counterfeit items effect nearly every sector of the world Hundreds of Billions of dollars of revenue lost Estimates of the level of counterfeiting vary but all estimates agree that counterfeiting represents a multi-billion dollar underground economy with hundreds of billions of dollars of counterfeit product being produced every year. Based on 2008 numbers, the International Chamber of Commerce (ICC) tentatively estimated the total global economic value of counterfeit and pirated products to be as much as $650 billion per year. Projecting to 2015, these estimates imply global value of counterfeit and pirated goods to reach $1.77 trillion. Poor Quality Products Destroy Reputation Poor quality products destroy the reputation of the copied brand, and pose many other dangers. Apparel and fashion accessories still make up the largest share of counterfeit goods worldwide, but detection of fake consumer electronics, chemicals, and pharmaceuticals is also increasing. "The whole counterfeit business has just exploded," said Jeffrey Hardy, head of the anti-counterfeiting program at ICC. "And it goes way beyond music and Gucci bags." Affects Felt Across Industries Counterfeiting and piracy can have broad economy-wide effects on trade, foreign investment, employment, innovation, criminality and the environment. Concerning the microeconomic effects, the sales volume, prices and costs of rights holders are impacted, as are investment, royalties and brand value. For certain types of infringing goods, the health and safety of consumers may be put at significant risk. With respect to governments, counterfeiting and piracy have effects on tax revenues, government expenditures, and, when corruption takes place, the effectiveness of public institutions (The Organisation for Economic Co-operation and Development OECD, 2008). Counterfeiting and piracy has increased substantially over the last two decades. Today, counterfeit and pirated products can be found in almost every country in the world and in virtually all sectors of the global economy. As policymakers grapple with allocating resources across multiple public policy challenges, better information on the full scope, scale, costs and impacts of counterfeiting and piracy is necessary to ensure that the appropriate resources and prioritization are given to combating counterfeiting and piracy. Counterfeit Products

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Block Verify 3 Counterfeit Pharmaceutical Drugs The problem with counterfeit drugs is only increasing yearly despite the global efforts to combat them AA Over $320 billion in counterfeit drugs are sold every year AA Millions are taking counterfeit drugs which are either poisonous or in-effective. AA In Africa millions of deaths could be prevented from the use of authentic drugs. In the developing world an average of 30% of all pharmaceutical drugs are fake. AA

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Block Verify 4 Humanitarian Problem Counterfeit problems are much larger than luxury goods Slavery Some estimates show that as many as 30 million slaves exist today. Making this the most in human history. A large percentage can be traced to the counterfeit industry. Preventable Death More than 1/3 of all malaria medicine is counterfeit. This leads to the death of over 500,000 people yearly from diseases that are curable. Organised Crime Many organised crime gangs have moved into counterfeit goods as it is becoming more profitable than drugs. 2 Million Lost Jobs It is estimated that over 2 millions jobs have been lost directly because of counterfeit goods.

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Block Verify 5 Europe The counterfeit problem in not only in the developing world. In 2011, 27 million fake medicines were detained by European authorities Counterfeits in Europe Counterfeit goods are flooding into EU. The goods are not just in street markets but have found their way into our retail establishments. In UK over hundreds of thousands of counterfeit drugs are suspected to be on shelves. In 2011 alone, 115 million fake goods were detained at the EU borders, with an overall value of over 1.2 billion 41 % Clothes 10 % Medicine 9%9% Electronics $200 billion Estimated Value of Counterfeit Goods in EU..

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Block Verify 6 Why The Blockchain? The blockchain offers immutable records Blockchain Solution In todays global economy trust is in rare supply. This lack of trust requires the devotion of a tremendous amount of resources to audit and verify records. The blockchain removes the need for blind trust by providing the world with the very first precise, verifiable, and immutable audit trail. In the past, records have been difficult to protect, challenging to synchronize, and impossible to truly verify because of the manual effort involved. Computers automated some of these tasks, but they are even harder to protect, synchronize, and verify because computer records are so easy to change. Authority is fragmented across innumerable independent systems. Blockchains provide a distributed mechanism to lock in data, making data verifiable and independently auditable. Bitcoins blockchain is the most trusted immutable data store in existence

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Block Verify 7 C DSF Counterfeit Products A product that is already in possession and is determined to be counterfeit. Diverted Goods The system is able to identify if a product was diverted from its original destination. Stolen Merchandise The system can easily trace and locate stolen merchandise. Fraudulent Transactions Block Verify can track fraudulent transactions of any type throughout the system.

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Block Verify 8 Choice of a system with a central authority in control of the network or distributed authority (in case even brands themselves can't counterfeit their own products!) One product can be owned by one agent at any one time (producer, distributor, and owner). Full history of which good belonged to whom at any previous time. 100% verification that the product is genuine.

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Block Verify 9 STBWPA System Wide Our goal is to create a system-wide blockchain-based implementation (across a large portfolio of products) that is financially feasible. Blockchain technology can offer possibilities for cost reduction and eliminate risk of control of ownership in the supply chain. Accomodate Interests Unlike conventional databases, blockchain technology can accommodate interests of diverse stakeholders: manufacturers concerned about brand and liability protection, donors concerned about protecting investments against diversion risk, and governments concerned about public health impact. Building We will continue to build in accordance of our plan to find the best way to implement our blockchain based solution. Strategical Moves Focused on consumer-level authentication, confirming if it is fake at a point of sale/or at home by customer, then developing to track and trace (TnT) solution that enables tracing via confirmation of product delivery at each point in the supply chain. Plan We plan to integrate our blockchain-based anti-counterfeit technology with TnT technology with existing supply chains. Blockchain technology will help to solve problem of high cost of system support, introducing a global standard with management of multiple stakeholders with ownership. Trust They dont have to have an ultimate trust with us as a company as blockchain technology eliminates trust problem for all stakeholders. We are creating a transparency in a supply chain.

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Block Verify 10 The blockchain offers an incorruptible solution for businesses I Identify Counterfeits Professionals have many problems identifying counterfeit goods. Block Verify will provide a solution to easily identify all goods as authentic or not. With a simple and user friendly application. D Non Duplicatable The blockchain offers a solution that cannot be duplicated. A fundamental feature of the blockchain is solving double spending. Criminals will not be able to duplicate a record of an item. A unique key will be assigned to each unique item. G Global Solution Block Verify will be an application where the entire world is connected to the same global network. Complete transparency and audible at any moment. Currently 1 in 5 owns a smart phone and the numbers are increasing quickly as with the availability of affordable internet. V Companies Verify Companies will register each product with a unique key. Once each item is created it will be tracked throughout the supply chain. Giving complete confidence along the supply chain the product is authentic from the factory all the way to the consumer.

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Block Verify 11 Potential Markets With our BlockChain based solution we have potential in many industries Luxury Items We will work directly with luxury manufacturers to build a system of verifying luxury goods. This will provide quality assurance for all parties. Pharmaceutical We are creating a solution to track pharmaceuticals throughout the supply chain and to ensure the consumers receive an authentic product.

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Block Verify Fight Slavery A large percentage of slavery is for creating counterfeit merchandise. We can help eradicate counterfeit factories and the slavery used to run them. 12 Fighting counterfeit goods is one of the most challenging problems facing the world Protecting Jobs When companies can have a universal and simple verification solution that individuals can verify their goods companies can be sure they will not lost their good name to poor counterfeiting. Fighting Criminals Organised crime has negative effects in our entire society. With Block Verify we can help to legitimise goods globally. Save Lives Block Verify can help to save lives from around the world. The blockchain can help counterfeit goods and have them removed from the market.