Integrated Track and Trace IT Concept
to Combat Product Counterfeiting, Pirating, and Diversion
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TTG Security Printing White Paper

Background

Inkjet technology is a growing force in the commercial printing world today. Higher quality reproduction, short run flexibility and customization are making inkjet technology attractive to all forms of business, including industrial printing and packaging providers.

With the integration of advanced security features, inkjet has a new market in which to compete anti-counterfeiting and brand protection. Many industries that employ variable data printing (pharmaceuticals, medical supplies, food, industrial manufacturers, packagers and labeling) are now able to integrate advanced security features into existing processes.

Opportunity

As the market for variable data printing expands, there is an opportunity to gain 'first mover advantage' with a unique and robust product authentication solution, by combining the secure covert features of PhotoSecure SmartDye and DNA Matrix™ taggants with variable data printing to produce customized codes, serial numbers, barcodes, or integrated graphics.

PhotoSecure DNA Technologies provides licenses and taggants tested in inks and in on substrates for the support for integration into a system for product authentication labeling, including 2 D Matrix barcode/security mark integration.

Market Facts

Counterfeiting and Brand Identity theft is accelerating with digital copying and printing techniques and with the outsourced remote manufacturing of highly Brand sensitive products. Global products depend on trust and recognition as the trade name and logo become just as important as the quality of the goods. There are larger incentives to cheat, and easy access to sophisticated technologies is encouraging criminals to produce increasingly successful fakes.

Consider these facts:
  • PIRA International estimates that product counterfeiting represents 5 - 8% of world trade
  • The World Health Organization estimates that 5 - 7% of the world's medicines are fakes
  • Losses to US businesses from the counterfeiting of trademarked consumer products is estimated at $200 billion a year (Dept of Commerce)
Most industries are at risk. The new breed of forgers is attracted by technological advances that make them more difficult to catch than the old. Generally, the counterfeiters have no previous criminal record, and the equipment they use is inexpensive and totally legitimate. HP estimates that they have over 200 million inkjet printers installed worldwide. How do you determine a legitimate print job from a fake with that kind of access to technology?

Think about something as ubiquitous as a barcode label. How difficult is it to reproduce?



Original or counterfeit?


Barcode label with covert alphanumeric code

The advancement of technology and its use by counterfeiters has allowed better copies to be made of both the actual product and the packaging. Modern computers, scanners and color printers have not only made it easier to mimic packaging and documentation, but have also reduced the skill level required to produce passable copies. Technology has also meant that better copies can be made, that are harder to detect and which are easier to slip into the ordinary trade channels used by legitimate commerce. Sometimes counterfeits are mixed with genuine goods, making it difficult to detect the fakes.

Solving Brand Owners Problems

Companies that find themselves competing with counterfeiters suffer a direct loss in sales. Some markets are even dominated by counterfeiters, creating barriers of entry for the producers of the genuine product. Trade names and Product quality reputations are damaged. Products are diverted to the wrong market and sold at uncontrolled or sometimes illegal prices.

But there is a growing change in attitude towards supply chain integrity - counterfeiting is no longer an accepted cost of doing business. Companies aren't out to just limit gray market diversion or counterfeiting, they're out to recover revenues.

Consumers, who are deceived into believing that they bought a genuine article when it was in fact a fake, blame the manufacturer of the genuine product when it fails, creating a loss of goodwill.

By integrating product authentication features into existing inkjet technology, and developing electronic bar code readers sensitive to forensic covert taggants, we provide your customers with protection against counterfeiting and product diversion - a level of security that will allow Brand Owners to recover revenues and market share, track distribution on an ongoing basis to control product piracy, preserve the integrity of their products in the marketplace and increase consumer confidence in their brands.

KEY FEATURES
  • High security extraction and matching of DNA sequence code provides irrefutable proof/ positive identification
  • Simple, yet complex product authentication solution easy to use, but with inherent complexity to prevent duplication
  • Wide variety of applications can be applied to virtually any tangible surface
  • Multi level encryption provides moving target for counterfeiters
  • Cost-effective solution low cost per mark, with no major re-tooling or process re-design
Partnerships

PhotoSecure DNA Technologies works with a number of partners to bring about an integrated Secure Track and Trace System.

Inks and Substrates - first and foremost from a technology point of view, the unique taggants must be fully integrated into the ink print technology and the substrate required for the job. DNA Matrix™ and SmartDyes® have been integrated into all types of inks offset, gravure, flexo, screen, and all types of ink jet inks aqueous, solvent, CIJ, TIJ, and Piezo. In addition, hundreds of substrates have been used and tested and the chances are very high that these important enabling technologies can be applied by conventional printing technologies on any product. And, therefore can be made to happen as part of the normal business practices of the organization, inexpensively and reliably and made a part of the layered security solution. The paper, plastic, hologram, rfid, or any number of security features will become forensic, machine readable elements of the overall Brand Security Program. Ink partners include Gans ink, HP, Videojet.

Ink Jet Printers- Another key element to the overall integrated system is the digital printer. In the past, (and in many installations today) security printing systems were based on analog printing systems and like all offset and other printing could only provide a "patch" or shape for authentication. Now digital printing gives us the most important Unique Identifier at the unit level as a print step at high speed on the production line at the critical point of final production or final QC. Our Partners include Nutec (www.nutecsystems.com), inc.jet (www.incjet.com), Videojet (www.videojet.com) , and HP SPS Printer Group (http://www.hp.com/oeminkjet).

Authenticators and Code Readers

One set of key partners is on the Authenticator Reader product field. Our unique taggant sets require very closely tuned electronic devices for Authentication and especially important for track and trace, bar code reading. These devices must discover our SmartDye laced DNA taggants and reduce them to data to automatically input information to the tack and trace software. Two of our partners in this field include Cognex (www.cognex.com) and InData (www.indatastore.com).

Track and Trace

Another set of partners are suppliers of Track and Trace Systems. A most important element in track and trace is the generation of secure unique code identifiers. Many times, millions or even billions of "numbers" are needed and they must feed directly to the on line digital printers at high speed. Then too they must be retained securely along with the information of taggant materials. Then updated from warehouse to store to buyer, AND made available to internet enquiries. Some of our partners include; GenuOne (now part of Opsec www.opsecsecurity.com), Videojet (www.videojet.com) has recently acquired a full Track and Trace system and offer a fully integrated Brand Protection system. Another partner is TUV Rheinland, a global compliance and supply chain consultant and now Brand Protection system supplier (https://www.brm.tuv.com ). Also, Keezler Codes (www.kezzler.com) specializing in the very high volume code field.

About PhotoSecure DNA Technologies llc.

Recently formed by Technology Transfer Group (www.polestarltd.com) to acquire the technologies of PhotoSecure Inc. and, building on contracts with DNA Technologies, developing and selling the covert forensic taggants for the best possible security printing systems in the world.

Wendell Smith
wms@polestarltd.com
+1 203 550 7278 cell
www.photosec.com




© Copyright Polestar Ltd. 2008