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]
Legal aspects 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]
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.
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.
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]
