LocatorX, a secure IoT-driven asset visibility and AI-ready data provider, today announced it has been awarded a patent for Determination of Counterfeit Products via Certified Quick Response Codes and a Trusted Product Certificate Authority (U.S. Patent No. 12,731,162 B2).
Counterfeit products remain a significant challenge for complex supply chains. Traditional product identification can confirm that a serial number or product identifier exists, but that alone does not establish authenticity. QR codes can be copied, and fraudulent codes can direct users to illegitimate destinations.
“Companies need confidence that the item they are receiving, installing, maintaining, or selling is actually the item it claims to be, particularly in industries where the authenticity and provenance of a single component can affect safety and operational readiness,” said Chester Kennedy, CEO of LocatorX. “This patent expands the role of product identity from a static identifier into a trusted supply chain data point that can help organizations recognize suspicious activity earlier in the supply chain.”
How It Works: From Product Identification to Product Verification
LocatorX's patented approach adds a trust layer through a product-specific URL associated with a Trusted Product Certificate Authority. The system can then evaluate if the identity, location, timing, and observed history associated with that identifier are consistent with the expected behavior of an authentic product.
A Trusted Product Certificate Authority is the domain-verification component the system checks to confirm a product-specific URL is legitimate.
The patented method combines a Certified Quick Response Code and product-specific identifier with stored authentication product information and real-world scan data. Rather than simply determining whether an identifier exists, the system can analyze discrepancies between product data and authentic records, inconsistencies across multiple scan events, and whether the product-specific URL resolves through a recognized authority.
For example, if the same unique product identifier appears in geographically distant locations within a period of time in which the physical item could not reasonably have traveled between them, the system can recognize the conflicting activity, calculate a likelihood of counterfeiting, flag the product for further investigation, and alert authorized individuals.
The Impact of Counterfeit Products
The risk is significant in sectors where a single counterfeit or cloned component can compromise safety or mission-readiness, including aerospace, defense, semiconductors, and medical devices.
Kennedy added, “This patent extends beyond counterfeit detection. Companies may be able to identify products appearing outside authorized distribution territories, recognize duplicated identities, detect potential diversion or gray-market activity, and identify geographic concentrations of suspicious scans. Each event creates another data point that can help organizations ensure provenance by better understanding what is happening to a product throughout the supply chain.”
The scale of the problem extends across global commerce. A 2026 report from the OECD and European Union Intellectual Property Office (EUIPO) estimates that international trade in counterfeit and pirated goods is valued at up to $467 billion annually, representing approximately 2.3% of world trade. Counterfeit products increasingly extend beyond traditional consumer goods into categories where authenticity can carry significant safety and operational implications.
For supply chain operators, the patented approach provides a way to go beyond determining if product identification is valid. By analyzing trusted product information alongside real-world event data, organizations can gain additional evidence to support product authentication, provenance, and investigations into potentially counterfeit or compromised products.
Sources: OECD/EUIPO (2026), From Fakes to Forced Labour: Evidence of Correlation Between Illicit Trade in Counterfeits and Labour Exploitation, Illicit Trade, OECD Publishing, Paris, https://doi.org/10.1787/540dc43e-en.
