Digital Brands Group (NASDAQ:DBGI) announced a partnership with Vancouver‑based accessories brand Herschel Supply Co. to deploy SECUR3D’s AssetSafe™ platform, an AI‑driven solution that scans online marketplaces and social media for unauthorized use of brand assets. The collaboration will allow Herschel to detect counterfeit listings and protect its trademarks and product designs, while DBGI expands its portfolio beyond its core apparel brands into a technology‑enabled service offering.
The partnership marks a strategic pivot for DBGI, which has historically focused on scaling digitally native apparel brands. By adding brand‑protection services, DBGI aims to generate a new subscription‑based revenue stream and leverage its existing AI and e‑commerce expertise. The deal is the first of what CEO Hil Davis describes as “the first of many” collaborations that will position DBGI as a go‑to partner for consumer brands seeking to safeguard their digital presence.
Financially, DBGI’s Q3 2025 net revenues fell to $1.65 million, down from $2.44 million a year earlier, reflecting broader revenue challenges. The company’s market capitalization is $34.04 million, underscoring its micro‑cap status. While the partnership does not yet have disclosed financial terms, it signals DBGI’s intent to monetize its technology platform through subscription fees or revenue‑sharing models, potentially offsetting current revenue declines.
Herschel, founded in 2009 and sold in more than 90 countries, has faced a growing counterfeit threat. The AssetSafe™ platform uses machine‑learning algorithms to identify infringing listings and automatically alerts the brand, enabling rapid takedown and enforcement. This technology aligns with the expanding AI‑powered brand‑protection market, which is driven by the rise of e‑commerce and the increasing sophistication of counterfeiters.
The announcement was well received by investors, reflecting confidence in DBGI’s expansion into a high‑growth, AI‑driven market. Analysts note that the partnership could broaden DBGI’s customer base and create a scalable, recurring revenue model, although the company’s current financial performance remains a headwind. Nonetheless, the strategic shift positions DBGI to capitalize on the growing demand for digital brand protection services.
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