Certificate of authenticity

A certificate of authenticity with a coin set.

A certificate of authenticity (COA) is a seal or small sticker on a proprietary computer program, t-shirt, jersey, or any other memorabilia or art work, especially in the world of computers and sports. It is commonly a seal on paper authenticating a specific art work which and is made to demonstrate that the item is authentic.

What's included on a COA?

Depending on the item that's being authenticated, some information that may be included on a certificate of authenticity includes:

• The name of the product/item
• The date of creation
• A serial number
• The name or signature of the creator

The document is usually supplied by the manufacturer, artist or other approved entity. ^[1]

COAs for software

Computer COAs have a license number on them, which verifies that the program is a genuine, legal copy. Artwork or posters come with a certificate of authenticity signed and sealed by a reputable appraiser or auction house. ^[2]

COAs for art

COAs are mostly common in the art world. Generally speaking, a valid COA for an artwork will include specific details about the artwork like when and how it was produced, the names of people or companies involved in the artwork's production, the work's exact title, the dimensions of the art, and the names of reference books, magazines, or similar resources that contain either specific or related information about either that work of art or the artist. The COA should also state the qualifications and full contact information of the individual or entity that authored the certificate with his or her complete and current contact information. COAs have been a target of much controversy due to online auction sites where sellers are providing fake Certificates of Authenticity to market or sell their art works.

COAs in auctions

COA's are commonly used on internet auction sites in order to provide "proof" that the signature on a signed item is genuine. However, it is widely acknowledged that most of these COA's have simply been produced by fraudulent sellers in order to encourage the buyer to buy fake items. In almost all cases these COA's are worthless and have no traceability. It has been shown that around 90% of the COA's issued by these sellers do not even have the contact details of the person selling the item, or if they do they are often incorrect or have an address of a company that has long since disappeared.

Why are certificates of authenticity important?

COAs prove the legitimacy of an item, therefore informing consumers about its origin. These certificates can be used as marketing tools and are often used in auctions or private sales to prove authenticity. COAs prove an item is genuine, untampered and prove its value.

Items such as artwork, rare coins, collectibles and luxury goods can fetch much higher prices when accompanied by an official certificate of authentication. ^[1]

Legals aspect of COAs

United Kingdom

Any COA is of no value at all unless it has the full contact details of the issuer. In the United Kingdom, ^[3] it is an offense under the Fraud Act 2006 (section 7) to create or use a COA in the sale of an autograph or similar item: A person is guilty of an offense if he makes, adapts, supplies or offers to supply any article—

a) knowing that it is designed or adapted for use in the course of or in connection with fraud, or

b) intending it to be used to commit, or assist in the commission of, fraud.

In other words, if the seller is offering fakes with a COA, then he/she is committing more than one offense, and the offense of issuing a COA alone is a possible 12-month prison sentence.

NFTs as digital certificates of authenticity

Non-Fungible Tokens (NFTs) have emerged as a digital analogue to traditional certificates of authenticity, particularly in the realm of digital art and collectibles. An NFT is a unique digital token, typically on a blockchain like Ethereum, which certifies ownership and authenticity of a digital asset. This technology has gained prominence as a means of asserting the originality and ownership of digital artworks and other unique digital items. ^[4]

Characteristics and Application

NFTs differ from traditional COAs in several ways: ^[5]

1. Digital Verification: Unlike physical COAs, NFTs provide a digital means of verification, making them well-suited for digital assets. Each NFT contains metadata that can include the creator's identity, the asset's creation date, and other relevant details similar to a physical COA.
2. Blockchain Technology: NFTs are built on blockchain technology, which offers a decentralized and tamper-resistant ledger, ensuring the integrity and immutability of the asset's history.
3. Transfer and Ownership: NFTs facilitate the easy transfer and proof of ownership. Since they exist on a blockchain, ownership and transfer of NFTs can be publicly verified, offering a clear provenance trail.

Implications in the Art World

In the art world, NFTs have been both lauded and criticized:

• Provenance and Legitimacy: They provide a new way to establish and track the provenance of digital artworks, which has traditionally been challenging in the digital realm. ^[6]
• Market Impact: NFTs have created new markets and opportunities for digital artists, allowing them to monetize digital works more effectively. One such NFT artwork was sold for $69 million in 2021 by artist Beeple. ^[7]
• Controversies: However, concerns have been raised about the environmental impact of blockchain technology, the potential for copyright infringement, and the speculative nature of some NFT markets. ^[8]

Legal Considerations

As with traditional COAs, the legal implications of NFTs are still being explored. Issues such as copyright ownership, transfer of rights, and the legal status of NFTs in various jurisdictions are areas of ongoing debate and development. ^[9]

See also

• Digital certificates
• NFT

References

1. "What are certificates of authenticity?". Orion Print.
2. "Certificate of Authenticity". Microsoft . Retrieved 3 November 2015.
3. "Fraud Act 2006, The | The Crown Prosecution Service". www.cps.gov.uk. Retrieved 2021-09-02.
4. • Karadag, Bulut; Akbulut, Akhan; Zaim, Abdul Halim (2022). A Review on Blockchain Applications in Fintech Ecosystem. pp. 1–5. doi:10.1109/ICACNIS57039.2022.10054910. ISBN   979-8-3503-3444-9 . Retrieved 2023-11-20.{{cite book}}: |website= ignored (help)
   • Bamakan, Seyed Mojtaba Hosseini; Nezhadsistani, Nasim; Bodaghi, Omid; Qu, Qiang (2022-02-09). "Patents and intellectual property assets as non-fungible tokens; key technologies and challenges". Scientific Reports. 12 (1): 2178. doi: 10.1038/s41598-022-05920-6 . ISSN   2045-2322 . Retrieved 2023-11-20.
   • Chandra, Yanto (2022-11-01). "Non-fungible token-enabled entrepreneurship: A conceptual framework". Journal of Business Venturing Insights. 18: e00323. doi: 10.1016/j.jbvi.2022.e00323 . ISSN   2352-6734 . Retrieved 2023-11-20.
   • Arcenegui, Javier; Arjona, Rosario; Baturone, Iluminada (2023-08-11). "Non-Fungible Tokens Based on ERC-4519 for the Rental of Smart Homes". Sensors. 23 (16): 7101. doi: 10.3390/s23167101 . ISSN   1424-8220.
   • Panagou, Eleni; Vavalis, Manolis (2020-10-02). "Towards an open and decentralized case law curation ecosystem". PLOS ONE. 15 (10): e0240041. doi: 10.1371/journal.pone.0240041 . ISSN   1932-6203. PMC   7531852 . PMID   33007028.
   • Solouki, Mohammadsadegh; Bamakan, Seyed Mojtaba Hosseini (2022-01-01). "An In-depth Insight at Digital Ownership Through Dynamic NFTs". Procedia Computer Science. 214: 875–882. doi: 10.1016/j.procs.2022.11.254 . ISSN   1877-0509 . Retrieved 2023-11-20.
   • Ali, Omar; Momin, Mujtaba; Shrestha, Anup; Das, Ronnie; Alhajj, Fadia; Dwivedi, Yogesh K. (2023-02-01). "A review of the key challenges of non-fungible tokens". Technological Forecasting and Social Change. 187: 122248. doi: 10.1016/j.techfore.2022.122248 . ISSN   0040-1625 . Retrieved 2023-11-20.
5. "ERC-721: Non-Fungible Token Standard". Ethereum Improvement Proposals. Retrieved 2023-11-27.
6. • Metaverse, Sotheby's (2021-04-06). "NFTs: Redefining Digital Ownership and Scarcity". Sothebys.
   • Khomami, Nadia; Arts, Nadia Khomami; correspondent, culture (2021-12-01). "Non-fungible tokens take No 1 spot in influential art world power list". The Guardian. ISSN   0261-3077 . Retrieved 2023-11-27.
7. • Haysom, Sam (2021-11-11). "Beeple explains how he went from selling art for $100 to his $69 million NFT". Mashable. Retrieved 2023-11-27.
   • Khomami, Nadia; Arts, Nadia Khomami; correspondent, culture (2021-12-01). "Non-fungible tokens take No 1 spot in influential art world power list". The Guardian. ISSN   0261-3077 . Retrieved 2023-11-27.
8. • Reeve, Elle (2023-04-25). "Bored Ape NFT creators win case against copycat artist". CNN. Retrieved 2023-11-27.
   • Calma, Justine (2021-03-15). "The climate controversy swirling around NFTs". The Verge. Retrieved 2023-11-27.
   • Lee, Juhohn (2021-11-29). "'You can gain everything and you can lose everything' — here's why experts remain skeptical about the NFT market". CNBC. Retrieved 2023-11-27.
   • Clark, Mitchell (2021-03-03). "People are spending millions on NFTs. What? Why?". The Verge. Retrieved 2023-11-27.
9. Bamakan, Seyed Mojtaba Hosseini; Nezhadsistani, Nasim; Bodaghi, Omid; Qu, Qiang (2022-02-09). "Patents and intellectual property assets as non-fungible tokens; key technologies and challenges". Scientific Reports. 12 (1): 2178. doi: 10.1038/s41598-022-05920-6 . ISSN   2045-2322.

External links

• Certificates of Authenticity, Explained, by Brooke Oliver, Esq.