anti-cfr pk 2

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    Anti-counterfeit Technologiesfor Packaging

    Presentation by Mr.Rohit Mistry

    Chairman of Holotech

    Copyright 2001 Holotech

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    Holographic Security Marking

    Systems P. Ltd. - Holotech Brand Protection-Authentication Products

    Commenced January 1996

    Technology Leader Continuous R&D

    Solutions driven widest range of applications.

    Business philosophy - Confidentiality, Integrity,Ethical - builds Trust

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    Counterfeiting

    US $300-500 Billions lost to counterfeiters

    Exponential increase in counterfeiting, fastest growing crime.

    Top countries USA, China, Korea, Hong Kong, Philippines, Mexico,

    CIS countries Impact loss of tax revenue, social cost loss of employment, damages

    health, poor quality at excessive prices.

    Counterfeiting eats profits and future life of the brand.

    Demand for a lifestyle as advertised, by the leading brands of the world.

    A counterfeiter can put together an illicit duplication business for wellunder Rs. 50,000.

    Protection anti counterfeit systems, information sharing, prompt legalremedies, etc

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    Counterfeiting In India

    Up o 70% of market infested with counterfeit goods

    Auto Spares + 40%

    Audio Cassettes + 45%

    Pharmaceutical + 20-30%

    Liquor + 30%

    Lubricants + 50%

    Bottled Water + 60%

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    Effected Sectors Pharmaceutical

    Travel Passes

    Major Events

    Auto Spares

    Electrical Products

    Financial Documents

    Sport Goods

    Tobacco

    Branded Clothing

    Stationery

    Writing Products

    Seeds

    Branded Foods

    Edible Oils

    Engineering Products

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    SECURITY FEATURE MUST BE:

    Impossible to copy

    Difficult to alter or transfer

    Cost effective

    Easy to recognise

    Easy to verify

    Easy to apply and incorporate

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    Different Types of Security

    Systems available to thePackaging Industry

    Paper substrates Micro Dots/ Threads

    Security Inks

    Reactive Molecule OVID/Holograms

    RFID

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    The Base Paper FeaturesThe base paper used for product security label can have many features

    which can enhance the security impar ted by the paper.

    a) Distinctively colour micro fibres distributed throughout the sheet which

    can be visible as well as invisible. Invisible fibres which fluoresce under

    the stimulus of ultra violet light.

    b) Chemical reagents incorporated in the base paper which gives

    characteristic stains when a particular agent is applied.

    c) Micro printed planchettes which offers identification numbers or logoswhich are visible and or reactive planchettes. The reactive planchettes

    are photo chromatic or chemically reactive.

    d) Water marks based on specific design for high security.

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    This feature is used where covert authentication is necessary. Thesemicro printed authenticating devices allow manufacturers and printersto encode specific information into virtually undetectable threads anddots, which can then be implanted, woven or applied into products. Theconsumer or user of the product is never aware of their presence, but a

    verifying authority or legitimate manufacturer can confirm theirpresence, and hence the authenticity of the item. The use of microdotsand micro threads is particularly useful in areas such as:

    Textiles (where microthreads can be woven into the fabric). Textile labels.

    Spare parts (where dots can be applied to uneven surfaces). Shoes.

    In addition, microdots and microthreads can be used on standard andsecurity labels to give enhanced protection and security.

    Security Microdots and Microthreads

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    Security Inks

    a) Fluorescent Inks - are invisible in day light or artificial light and visible only under anultra violet light and does not produce any persistence of fluorescence after switching

    off ultra violet light.

    b) Thermochromic inks - lose their original shade when there is change in temperature.The original colour is restored when temperature returns to it threshold. This effect can

    also appear by rubbing the printed ink with one's fingers.

    c) Photochromic inks - can change under the influence of relatively intense ultra violetlight. The printed ink rapidly shifts from invisible to designed colour when excited.

    d) Thermal Inks - invisible when printed become irreversibly coloured when exposed to arelatively high temperature. They also appear when slightly scratched with our finger

    nail or metallic object.

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    Security Inks (continued)

    e) Sympathetic Inks - are invisible when printed and are revealed in different colourswith the help of a specific solution.

    f) Variable reflection inks - are the most recently developed and are used to fightagainst colour photocopying. The shade of these inks change according to the

    observation angle and because of this phenomena are distinguished very easily

    without using special equipment and hence an original document can be

    distinguished from a colour photocopy or a forged one.

    g) Anti Stocke Inks - are high security inks which give almost invisible prints and canbe revealed by infra red excitation in three different wave lengths.

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    Reactive Molecule

    Proprietary covert method for authenticatingproducts

    Proprietary covert agent is incorporated intoinvisible label printing ink

    Authentication by applying proprietary revealing

    agent to reveal hidden message High entry cost starting Rs17 lacs Rs Rs1cr

    plus consumables

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    Optical Technologies

    Hidden Optical Image

    Holograms/OVD

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    The World

    International Embossed HologramMarket US $ 1100 millions p.a.

    55% Security

    45% Packaging

    60% of security sales in USA

    65% of packaging sales in USA

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    Avantages of Optical Methods

    Custom designed anti-counterfeit solutions

    Instant recognition of tampering Easy authentication by lay person

    Impossible to copy by any known printing

    technique

    Easy to use and apply

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    Quick Comparison of

    TechnologiesProduct

    Verifiable atPOP

    Hidden ImageNeeds Expertto Verify

    Can beduplicted by aPtg Technique

    Base Paper No (Water Mark - Yes) Yes Yes No (Water Mark - maybe)

    Micro Dots/Threads No Yes Yes No

    Flourescent No Yes Yes No

    Thermochromic Yes Yes/No No No/ May be

    Photochromic No Yes Yes No

    Thermal No Yes/No No/Yes No

    Sympathetic No Yes Yes No

    Colour Variable Yes No No No

    Anti-Stoke No Yes Yes No

    Bio Code No Yes Yes No

    CoFirm No Yes Yes No

    Hologram Yes Yes No (Yes for highersecurity)

    No

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    Making Money Computation Product X sales Quantity 1,000,000

    @ Rs50 each Rs 50,000,000

    Possible counterfeiting 30%

    = loss of sales Rs 15,000,000

    Cost of holograms for quantity of 1,300,000

    @ Rs0.40 each = Rs 520,000

    Once off design cost Rs 175,000

    Total cost Rs 695,000

    Increase in sales after application of hologram - 10% 20%

    Rs 5,000,000 Rs 10,000,000

    Sales revenue - less cost of holograms = increase in income10% 20%

    Rs 4,305,000 Rs 9,305,000

    Cost of Holograms covered by increased income. Return on investment after 1stdelivery for10%-619% & 20%-1338% compound increase in the 2nd&subsequent deliveries 10%-827% & 20%-1789%

    Holotechs Holograms make Money!

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    Review

    Counterfeiting damages the health of people and companies

    Many techniques available to choose from

    Security is an additive process

    Holotechs is very successful in combating counterfeiters;holograms available in a variety of formats

    Over 86 currencies around the world use holograms as anti

    counterfeit devices

    Companies use Holotechs holograms because they add totheir bottom line. Using holograms helps you to make moremoney