Digimarc Unveils Digitized Security Labels to Help Brands Prevent Product Counterfeiting and Restore Consumer Trust

Move from analog foils to interactive, machine-verifiable authenticity checks that reduce fraud, protect revenue, and keep consumers safe

BEAVERTON, Ore.--(BUSINESS WIRE)--Digimarc Corporation (NASDAQ: DMRC), a global leader in digital identification and authentication solutions, has launched digitally watermarked security labels for 100% verifiable product authentication. These labels bring together the latest in Digimarc’s encrypted, covert, and highly copy-resistant watermarks and optimize them for different label material substrates. They can also be combined with QR codes for low-friction, two-step consumer interaction. The result is an affordable, consumer-friendly, interactive method of authentication that supports single and two-factor authentication options.

“Labels have always been an easy and affordable security option, but traditional foils and holograms can no longer be trusted as any evidence that a product is real or hasn’t been tampered with,” explained Riley McCormack, CEO of Digimarc. “Bad actors can easily replicate them using widely available technologies and tapes sold on online marketplaces. That’s why we’ve innovated a new, digitally watermarked security label that restores consumer trust—one that is impossible to re-originate, ultra-resistant to replication, and scannable with a mobile device, with or without an app.”

To facilitate two-factor authentication, visible QR codes are added to covertly watermarked labels, or the label can pair with an existing QR code on the product packaging. Consumers simply scan the QR code, which leads them to scan the watermarked security label, providing the dual verification step. The result is simple, affordable, and scalable authentication, security, and traceability for a wide range of consumer products. “We see huge potential for use with over-the-counter pharmaceuticals, spirits, health and beauty products, and automotive products, to start,” said Tony Rodriguez, CTO of Digimarc.

Watermarked labels can be serialized as well, which provides further protection by limiting the risk of copying even further to a single instance. Serialization also enables products to be tracked after scanning using Digimarc’s Illuminate cloud analytics platform, which provides actionable visibility into counterfeiting hot spots so companies can initiate data-driven, targeted investigations.

“Digitally watermarked labels offer a standardized, highly copy-resistant authentication and security solution that’s low cost and easier to adopt,” Rodriguez added. “They’re a great way to get started with digital watermarking that empowers everyday consumers to determine what’s real and what’s fake with confidence.”

About Digimarc

Digimarc (NASDAQ: DMRC) is building the trust layer for the modern world. As AI accelerates how we produce, share, and interact with the world, the risks of fraud, counterfeiting, and misinformation are growing exponentially. Our innovative, highly scalable, and ultra-secure solutions make it possible for consumers, businesses, and intelligent systems to instantly verify what’s real, protect what matters, and transact with confidence. Recognized in Gartner’s 2025 Hype Cycle as a key vendor in the emerging TrustOps category, Digimarc’s solutions for loss prevention, authentication, and digital are built to counter the speed and sophistication of today’s AI-enabled threats. Trusted by the world’s central banks to deter the counterfeiting of global currency, we exist to protect truth in every interaction, spanning both the physical and digital worlds. Learn more at Digimarc.com.