Spanish company Red Points Solutions S.L.’s $38 million funding round highlights a growing interest from companies looking to protect their intellectual property online.
The Series C round, announced today, was led by Summit Partners, with participation from existing investors Northzone, Mangrove, Eight Roads and Banco Sabadell.
Red Points bills itself as an “online IP infringement detection and removal” company that uses artificial intelligence software to scan the internet for illegal products and content. It says it helps companies to gain “full visibility” about the different types of infringements that could negatively impact their reputation across “black, gray and white markets.” It can also help companies to remove illegal products and content advertised on the web.
“Brands have never been more vulnerable to the issues of online counterfeiting, piracy and distribution fraud,” Laura Urquizu, chief executive officer of Red Points, said in an interview with SiliconANGLE.
Red Points’ software works by using AI agents that connect a web crawler with a rule-based rights management database in order to check hundreds of online marketplaces for IP-infringing products and content, Urquizu said. Once it finds something illegal, it then works to have that product or content removed from the website concerned. The company reckons that its database is able to learn from each account’s history, and is therefore able to improve the level of protection it offers over time.
“With the help of machine learning tools, such as keyword generation and image recognition, we are able to process the information retrieved across over 100 online marketplaces and websites to detect fakes, piracy or sellers online and allow our customers to take enforcement actions,” Urquizu explained. “Once we have detected and validated an infringing listing, our system follows the enforcement process specific to each marketplace. A separate monitoring bot then monitors listings every eight hours to ensure the product has been taken down and reports the results back to the client.”
Red Points’ proprietary software currently removes hundreds of thousands of incidents of illegal products and content from the web monthly. Red Points’ solutions are used by more than 550 brands worldwide, including Bang & Olufsen, MVMT and DOPE. As a result of its successful expansion, the company’s growth rate exceeded 100% for 2018.
That growth is not so surprising when one considers the overall global economic impact of IP infringement. The International Chamber of Commerce estimates the total value of pirated and counterfeit goods will be worth $4.2 trillion by 2022 and says that this illegal industry could put 5.4 million legitimate jobs at risk.
Red Points’ mission is to try to put a dent in that illegal market. It will use its new funds to expand its global presence in order to help more brands protect their IP.
Image: Red Points
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