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Endeavour to protect products and peopleEndeavour to protect products and peopleThe Holography Times

September 2011 | Volume 5 | Issue 15

HoMAI quarterly newsletterwww.homai.org

www.homai.org2

The Holography Times News Bytes

B O B S T G R O U P . C O M

VISIONFOIL 104 H

The real thingThe VISIONFOIL 104 Hologram from BOBST gives you and your customers the strategic advantage needed to win the war against product and brand piracy, delivering ultra precise application of every size and type of hologram currently in the market, plus many that are not yet commonplace. From banknotes to visas, and from tickets to packaging, the VISIONFOIL 104 H handles them all effortlessly.

After all, it’s the real thing.

www.homai.org 3


Dear Readers,

Welcome to the 15th issue of The Holography Times.

Counterfeiting is not a new phenomenon for Indian industry. It is increasing with an alarming rate in India threatening brand integrity in almost all industries.

But when it’s about currency and product related to life and health of consumers it is a matter of concern. The recent news published in a leading newspaper stated that “four in every 1,000 notes are fake in India”.

Curbing counterfeiting seems like a pipe dream, but, it can be diminished to a certain extent with proper approach and strategy. Our cover story along with global view will help you in revaluating your approach against counterfeiting.

Further, from this issue onwards we are starting a new section “Counterfeit seizure report” which will update the reader on quarterly counterfeit seizure happened in India.

As always we look forward to receive your feedback / critics. Please email us at [email protected].

With Regards, C S Jeena

In this issue

4-6News Bytes

8

Viewpoint

Global View 14Counterfeit Pharmaceuticals and Brand Authentication Solutions

Counterfeit Seizure Report 16

Tender Updates 17

Global Patents 18

Upcoming Events 19

Fighting Fakes

www.homai.org4


Ottawa, Canada: The Bank of Canada (BOC) unveiled its

new series of “secure” polymer banknotes on June 20, 2011.The bills have a new look and enhanced security features including more sophisticated holograms and raised ink on the Prime Ministers’ shoulders, on the biggest number and on the words “Bank of Canada.”

The Bank of Canada has been issuing Bank notes since 1935 and has issued seven different series of bank notes and two commemorative bills. The BOC periodically upgrades its notes by

releasing a new series with an aim to stay ahead of counterfeiting and to improve the security of notes in circulation.

The BOC started using holographic features in 2004 to reduce counterfeiting. Since then with the introduction of new features the rate of counterfeit

bank notes has been fallen to 35 bills per million compare to 470 per million before the 2004 redesign.

In the new series the �irst one to be available as legal tender will be the $100 note, starting in November 2011. It depicts Canadian innovations in the �ield of medicine. The bill will feature an updated portrait of former Canadian Prime Minister Robert Borden. That release will be followed by a new $50 bill in March, then versions of the $20, $10 and $5 by the end of 2013. ■Source: www.bankofcanada.ca/banknote

1. Andorra

2. Austria

3. Bahamas

4. Bahrain

5. Belgium

6. Belize

7. Bulgaria

8. Canada

9. Comoros

10. Croatia

11. Cyprus

12. Denmark

13. Egypt

14. Estonia

15. Finland

16. Former Yugoslavia

17. Republic of Macedonia

18. France

19. Germany

20. Ghana

21. Greece

22. Guatemala

23. Hong Kong

24. Hungary

25. Iraq

26. Ireland

27. Italy

28. Japan

29. Korea (Republic)

30. Luxembourg E

31. Malaysia

32. Malta

33. Mauritius

34. Monaco

35. Netherlands

36. Peru

37. Philippines

38. Portugal

39. Saudi Arabia

40. Slovakia

41. Slovenia

42. Spain

43. Sudan

44. Switzerland

45. Sweden

46. Taiwan

47. Thailand

48. Trinidad & Tobago

49. Tunisia

50. Turkey

51. Turkmenistan

52. Uganda

53. United Kingdom

54. Venezuala

55. Yemen

SN. Country SN. Country SN. Country

Do you know?Today Holographic / OVDs are used by more than 90 issuing authorities on nearly 250 bank notes denominations worldwide. The list of countries using this technology is as follows;

Canadian journey with hologram

Year Name of Series 2011 Polymer Series 2001-2006 Canadian Journey Series 1986 Birds of Canada1969-1979 Scenes of Canada1954 -1937 -1935 -

www.homai.org 5

The Holography TimesNews Bytes

4 in every 1,000 notes are fake in India

3S launched multi-layer security label

New Delhi, India: Four in every 1,000 currency notes

in circulation in India are fake, amounting to as much as ` 3,200 crore in 2010, a con�idential government report has found in a �irst-ever attempt to estimate the quantum of counterfeit notes in the country.

The white paper on the status of fake currency notes is jointly prepared by the Intelligence Bureau, Research and Analysis Wing, Directorate of Revenue Intelligence and Central Bureau

of Investigation.However, the Reserve Bank of India (RBI) does not have an estimate of fake currency notes and opines that Indian bank notes are secured. “The fake currency notes �lowed in 2010 from abroad were between ` 1,500-1,700 crore”, the white paper said.

Experts said the circulation of fake notes, in such a big number, is a cause of concern. Mr. D. K. Joshi, Principal Economist at rating agency Crisil Ltd., said, “From a monetary policy perspective, if a

growth in fake currency becomes too rampant, it will reduce the control of monetary policy over in�lation, making the monetary actions less effective.”

This number, as revealed in the report, is much higher as compared to other nations. In Australia, counterfeit notes were detected at nearly seven per million notes in circulation in 2008-09; whereas in Canada, the number was 76 per million in 2008, according to RBI’s data. ■Source: www.livemint.com

Deutschland, Germany:3S Simons Security

Systems, a manufacturer of anti-counterfeiting technologies for a variety of industries, has launched a multi-layered security label which protects products and packaging against counterfeiting.

A hologram made of Void or PET foil, optimized by 3S with regards to its anti-counterfeiting characteristics, forms the basis of the product. A Secutagmicro color-code is included in the hologram label. This code is microscopically small, consists of different color layers and is manufactured in different sizes beginning at 8 micrometers.

Each customer receives an individual color-code which unambiguously identi�ies the labels and products as originals. The Secutagmicro color-code has

been forgery-proof for over 15 years and is accepted as evidence by international courts. Secutag offers users worldwide an easy and legally binding identi�ication of their original products by use of a simple microscope. The protection is invisible to the naked eye.

Apart from hologram and micro color-code, the label can be provided with additional security features. These are, for example, tilting and kinegram effects, and serial numbering. Special security stamping further protects against unauthorized removing of the label. In the PET version, recesses

for the company logo can be integrated into the upper foil.

Furthermore, the label allows for the inclusion of variable customer data as well as a special UV or infrared marking. The traceability of products and their packaging is also taken into account: track & trace codes like data matrix can also be implemented into the label.

The permanently adhesive labels can be applied in all industries, either as closure seals, security stamps or stickers. They are suited for the application on different products, materials and packaging. The labels are delivered as neutral security labels or they are individually manufactured and equipped with the requested security features in the 3S pro duction facilities. ■Source: www.3sgmbh.com

www.homai.org6


Glaxo new sensodyne pack bubbles with tactile feel

Idvac developed yellow gold vacuum metallization process for packaging

Chesapeake Pharmaceutical and Healthcare Packaging

has helped to develop a range of striking packs for Glaxo smith Kline (GSK) global launch of its new sensodyne repair & protect oral care product. The packs, which are the result of close collaboration between Chesapeake, GSK’s internal packaging design team and API, incorporate 3D bubbles designed to be so intriguing you feel compelled to touch the carton.

The 3D feature simulates the effect of looking at a life-like model of a tooth as well as close-up images that help to describe the bene�its of using the product. The effect is achieved by the incorporation of a series of Fresnel lenses into the cartonboard. The lens area is

then overprinted. The resulting life-like perspective produces the impression of depth that provides the pack with a tactile quality that is further enhanced by the carton’s bevelled edge.

Bobby O’Connor, Chesapeake’s divisional sales and key account director, said, “GSK’s intention was to create a pack that was eye-catching but reinforced the brand’s qualities. 3D techniques have been used on packaging before but we believe this is the �irst time they have used it to support a high-volume brand.”

The new cartons have been launched in various global markets, including Europe, Middle East, and Asia.The carton, produced at Chesapeake’s

Nottingham and Leicester facilities, is printed in �ive colors plus both matte and gloss �inish to provide differentiation and brand enhancement through tactile feeling. ■

Source: www.packworld.com

See Glaxo strategy against counterfeiting on page no 11.

Manchester, UK: Idvac Ltd has developed a vacuum

metallization process to convert standard silvery coloured metallized �ilms into yellow gold colour without using any wet chemical Dyes. In this process, standard aluminium metallized �ilms, which are silvery in colour, are converted in vacuum into

yellow gold colour with different shades. Golden colour can be applied on top side, back side or both sides of standard aluminium metallized �ilms or papers. Golden colour is one of the most popular re�lected colours used for decorative packaging, being regarded as indicative of richness and wealth.

The present processes to achieve golden colour on standard metallized �ilms are to use wet chemical dyes, which turn into golden colour once it is coated with aluminium, or when aluminium is lacquered by the chemical dyes. The application of

chemical dyes onto �ilms or papers requires the use of wet coating machine and chemicals. This new process is dry, vacuum based, environmentally friendly and cut the cost of using wet chemical dyes. The vacuum colouration of standard metallised substrates is carried out inside a standard vacuum web metalliser at average line speed of 200/300m/min depending on the gold colour shade required. Metallized �ilms such as OPP, BOPP and PET as well as metallised paper can be golden coloured in this process. ■

Source: www.idvac.co.uk

www.homai.org 7

The Holography TimesNews Bytes10th Asian High SecurityPrinting Conference

New Delhi, India

7-9 December 2011

www.cross-conferences.com

Register online at www.cross-conferences.com/asia

GOLD SPONSOR SILVER SPONSORS

FROM THE INDUSTRY - FOR THE INDUSTRYThe Definitive Forum for High Security Documents

9th Pan European High Security Printing Conference27-29 March 2012

St Petersburg, Russia

1st Latin American High Security Printing Conference12-14 June 2012

Rio de Janeiro, Brazil

FUTURE CONFERENCES

WHO SHOULD ATTEND?

• Central banks and issuing authorities

• Government issuers of passport, ID and travel documents

• Law enforcement agencies

• State printing works and commercial high security printers

• Suppliers of substrates, security features, biometrics

• Suppliers and integrators of passport and ID systems

• Pre-press, printing, finishing and inspection equipment manufacturers

• Suppliers of specialist services for the security printing andID market

TOPICS TO BE COVERED

• Regional developments in document security

• Travel documentation technologies and features

• Printing and production technologies

• New developments in ID cards

• Fiscal stamps, breeder documents and licences

• Currency features and substrates

• Anti-counterfeiting, document verification and enforcement

www.homai.org8


Fighting Fakes

Brand counterfeiting has long plagued manufacturers in

many industries, and from all accounts, the problem is growing worse. In the era of globalization, outsourcing, and increasing online sales, it is not restricted to a particular sector or country. Counterfeiting is rampant in countries like China. In fact, 80 percent of the seized counterfeit products originate in China1.

Counterfeiting in IndiaIn India, the scale of counterfeiting today is unprecedented. Here too, the markets are �looded with illegal replicas of branded products, causing loss of revenue for the government and the brand owner. The question remains “why are successful brands counterfeited”.

The reasons for this are many:

• Sheer size of the domestic market and ease of availability;

• High price sensitivity;

• Improper coordination among enforcement agencies;

• Lack of knowledge among customers;

• Lack of usage of anti-counterfeiting measures/technologies or product packaging;

• Rising brand consciousness among the youth; this is contributing to the growth of counterfeited products in India;

• Cheaper than original.

How Serious is the Problem Product related crime losses, including counterfeiting and grey market diversions, amounted to nearly $700 billion in 2008, or about 7 percent of world trade, according to various organisations3. This �igure is more than the annual revenue of Wal-Mart, which, for the �inancial year 2010, had sales revenue of just under $405 billion4. In India, various industry associations have also estimated the similar cost in billions of dollars. However, the black market by its nature cannot be measured precisely.

Industry Yearly Loss

(` cr)

FMCG 7,000*

AUTO 4,500*

CURRENCY 3,200 ***

PHARMA 3,000 **

FILM 2,500*

Table 1: Counterfeiting affect on industry economy2

* Industry Estimates

** Economic Value Loss

*** Amount of fake currency in circulation

2010

Cover Story

Author is the President of Hologram Manufacturers Association of India (HOMAI), Board member of International Hologram Manufacturers Association (IHMA), and Vice-Chairman of PRS Permacel Pvt Ltd. He is a B.Tech from IIT Mumbai; M.S. from Case Western Reserve University, USA, and accredited by Coaching Foundation India Ltd as a CEO Coach. He has worked with Johnson & Johnson India for almost 25 years and has been involved in developing solutions for brand protection for over 35 years. He can be contacted at [email protected]

by Pradip Shroff

www.homai.org 9

The Holography TimesCover Story

Side bar 1: Interpol comment on Role of Organized Crime & Terrorism5 It’s no secret that organized crime is involved in the counterfeit trade. Interpol Secretary General Ronald K. Noble detailed a number of links between counterfeiting and terrorism to a U.S. congressional committee in 2003. He cited specifi c examples of intellectual property crime and terrorist fi nancing in Northern Ireland, Kosovo, North Africa, and the Middle East. Noble commented, “Law enforcement agencies have to recognize that intellectual property crime is not a victimless crime. Because of the growing evidence that terrorist groups sometimes fund their activities using the proceeds, it must be seen as a very serious crime with important implications for public safety and security.”

The problem is much serious than just a number. For example:

• Studies by Interpol con�irmed that there is a clear link between counterfeiting and terrorist �inancing. It can be through either direct or indirect involvement of terrorist groups or militants involved in counterfeiting (see side bar 1).

• Counterfeit pharmaceutical and cosmetics products raised the risk of health and safety issues.

• Fake automotive parts were responsible for 66,330 accidents even, according to a study, conducted at the time by Automotive Components Manufacturers’ Association in the past. These accidents caused 13,180 deaths and injured 65,550 people6.

Effects on the Industry As the Indian industries are expanding exponentially, so is counterfeiting, so much that it has almost become an industry in itself. Brands, in such cases, have to suffer a lot:

• Brand value declines when fakes are easy to �ind and are offered for low price;

• There is a fall in demand of branded product, as retailers and af�iliates may get discouraged due to numerous fakes in the market;

• There is pressure on the brand to lower the price of its product;

• Counterfeiting drives up the brand marketing cost.

Government LegislationThough Indian Intellectual Property Rights (IPR) laws are strong, enforcement continues to remain weak. In the recent annual report issued by the of�ice of the United States Trade Representative (USTR) on IPR violations, India was placed seventh on the Priority Watch list in 2010. The report cites that IPR protection and enforcement remain a serious concern in India. India’s criminal IPR enforcement regime remains weak, therefore, improvement is needed in terms of taking police action against counterfeiters, expeditious

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Figure 1: Approximate number of counterfeit seizure happen in India for period April 2011- July 2011

* for detail, please see the page no. 16

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judicial disposition for copyright and trademark infringement and additionally, imposition of deterrentlevel sentences for IPR infringements, and stronger border enforcement against counterfeit and pirated goods (See �igure 2: The US special 301 report).

Steps Taken by the Indian Government in 2010 - 11The government planned to revamp the existing intellectual property implementation mechanism to address the concerns of international players in the pharmaceutical, food and information technology industries. In order to create awareness, the government has associated with independent bod-ies such as World Intellectual Property Organization (WIP), chambers of commerce and universities, and initiated a number of seminars, workshops and roundtables throughout the country. The Department of Industrial Policy and Promotion (DIPP), the nodal department that handles IPR related matters under the commerce ministry is launching an ambitious `300 crore project to sensitise all stakeholders, including law enforcement agencies, scientists, companies, ministries and the general public on IPR

issues. The department is also planning to set up a National Institute of Intellectual Property Management at Nagpur.

Initiatives by Enforcement AgenciesThe custom department is collating data through its newly developed web-based tracking system known as the Automatic Recordation and Targeting for IPR protection (ARTS). Through ARTS, �irms can submit online IPR notice; upload images of genuine goods and trademarks signs, images of infringing goods etc. The department is also working towards further scrutinizing the traf�ic along the borders.

New Rules and AmendmentsIn an effort to stem the import of cheap and at times counterfeit cosmetic products �looding the local market, India is making import registration mandatory for such products. The new law, introduced through a key amendment in the country’s Drug and Cosmetics Act (Rule 129), will take effect from July 2011. This means that no cosmetics can be imported into India unless the product is registered by the licensing authority, the Central Drugs Control Organisation (CDSCO).

Figure 2 The US Special 301 Report 2010 issued by the United States Trade Representative (USTR) on IPR violations; India was placed seventh on the Priority Watch list in 2010

■ Priority Watch List■ Watch List■ Section 306 Monitoring■ Status Pending

Cover Story

www.homai.org 11


GSK’s global anti-counterfeiting strategy involves investigating suspected incidents of counterfeiting, collaborating with authorities to take legal action and seize counterfeit goods, and forensic analysis of counterfeit products to provide evidence for legal proceedings. Our Corporate Security, Legal, Packaging Design and Technology Security teams are all heavily involved in these activities.

GSK use the fi ndings of its investigations to build a picture of where counterfeiting is taking place and the distribution routes used by counterfeiters. This enables GSK to target its efforts on the most problematic regions, and GSK also provide this information to relevant authorities to support their work.

GSK country managers are required to identify products that are most likely to be counterfeited and to develop training for sales representatives.

Our sales representatives worldwide play an important role in helping to discover counterfeit products, as they have constant contact and detailed knowledge of the markets and outlets where counterfeit products are likely to be sold.

GSK add anti-counterfeiting features to product packaging. Which include holograms, security seals and complex background patterns that are diffi cult to photocopy or scan, as well as a wide variety of covert identifi ers which are added using print technologies and sophisticated markers. These help us to identify counterfeits and gather evidenceagainst offenders.

GSK works very closely with the wider pharmaceutical industry to investigate cases of counterfeiting and also raise awareness with governments internationally, pressing for stricter laws and more severe penalties.

Solutions:The following are some solutions that brand owners and the government can offer for checking counterfeiting:

By Brand OwnersAs brands are under attack, right from manufacturing plant to customers’ place of purchase in form of tamper, theft or replacement that results in bad image and loss of pro�it, there is a need for integrated approach from the owners of the brands.

A) CEO to take charge/ResponsibiltyAs a �irst step, every CEO or brand owner should take the

responsibility for brand attack and make Brand Risk Management (BRM) a part of his business planning, reviewing and reporting (see side bar 2 an excellent example by Glaxo). The team can comprise of the CEO/brand owner, members/representatives from marketing/product development, marketing research, sales, logistics, packaging, manufacturing, regulatory and/or legal, �inance or outside consultants with accountability to brand. The team can periodically review the BRM by analysing various issues and aspects such as product categories and markets, buyer pro�iles, supply chain management and SWOT analysis of duplication/counterfeiter.

Cover Story

Side bar 2: Abstract from the GlaxoSmithKline 2010 corporate responsibility reportImportance of CSR is well know to everyone. Companies do come out with their CSR reports once in a while. Quite often these CSR reports are a refl ection of “ charity” done by the companies. Rarely do companies talk about CSR that is relevant to their customers. Today when brands are under attack in form of counterfeiting, tampering, pilfering etc. The Glaxo case is an excellent example for companies to take responsibility to protect their most valuable assets which are brands.

2010 Corporate Responsibility Report

www.homai.org12


Level Nature of Security Available technologies

1. Overt Security Hologram, Color changing ink, latent images, watermarks and (visible with eyes) security thread

2. Covert Security Holographic OVDs, UV fl uorescent inks, Micro-printing, (visible with hand held readers) Bar Code, Laser Coding, substrates

3. Forensic security Holographic OVDs, Chemical taggants, (can be checked at forensic lab) Biological taggants, DNA taggants, Isotope ratios, Micro-taggants etc

B) Building an Integrated SolutionThe team should make a customised, totally integrated solution by increasing the participation of co-opting consumers, channel partners and conducting veri�ication, raids or strong law enforcement.

Use TechnologyBrand owners should use anti-counterfeiting devices comprising of overt, covert and forensic security features. Examples of such tools are security hologram seal and labels, tamper evident security �ilm, low cost transponder tags, and lightsensitive ink designs. While there are many technologies a brand manager can use, it is better if he chooses his tools at an early stage with some basic guidelines such as:

• Finding a vendor who can provide overt as well as covert technologies, as how the technology is used is more important than the technology itself;

• Getting help from trade association in selecting ethical vendor, best practices and resources for �ighting counterfeiting;

• Select the technology in terms of parameters such

as dif�iculty in copying/tampering (preferably patented), uniqueness, ease of identi�ication and simple imple-mentation, without any extra changes to the product for 1998. (see table 2);

• Availability of suppliers must also be considered;

• Combining low and high security elements to enhance protection. For example, printing a sequential number over a hologram;

• Using different types of security technologies to maximize counterfeit protection, such as use of hologram with bar code or holographic bar code label for authentication as well as for track and trace solution.

By Government

Amendment in Company Law -Brand Risk Management should be treated as part of risk management under Corporate Social responsibility‘Brand Risk Management’ should be treated as part of risk management under the direct responsibility of board of directors/brand owners. The vision and mission statement should be communicated to all

Table 2: Overt and covert authentication technologies

Brand owners should use

anti-counterfeiting devices

comprising of overt, covert

and forensic security

features.

Cover Story

www.homai.org 13

The Holography TimesCover Story

the stakeholders and customers to ensure the protection of brand and product and that the same message is received by all. This can be done by stating it on the com-pany corporate governance, annual report and intranet in text and video. For example, companies like HP / Microsoft have a section on their website that de�ines their steps towards product protection.

As an initial step, the government can make it mandatory for every company to incorporate BRM as part of their annual report in welfare of stakeholders.

Consumer education on ill effects of counterfeiting The Government should start educating consumer on ill effects of counterfeiting. Educating consumers can play off. For example the success of IACC college outreach campaign in which students at US universities were educated about the issues associated with counterfeiting (see side bar 3).

Similarly in India Govt can start such program at management institutes and Universities educating the youth, marketing students, consumers and Brand manager the ill effects of counterfeiting and importance of Brand Protection.

ConclusionFighting counterfeiting is a brand issue, which, when managed well, will result in the following:

• Consumers getting good products at value price;

• Higher market share for manufac-turers, increase in brand value and pro�its;

• Increased revenue for government which can further be used for betterment of society ;

• Drying up of one channel for terrorism funding.

The negative impact of counterfeiting can be diminished to a great extent if it becomes a part of every brand’s planning and reviewing process.

References

1. Counterfeits, Business treat, Knock-offs catch on, March 4, 2010, The Economist

2. The Economy’s Black Hole, March 22, 2010, The Times of India and Govt reports says 4 in every 1000 notes are fake, August 9, 2011, Mint

3. Vandagraf International, www.vandagraf.com

4. Walmart Annual report 2010

5. Organized Crime in the United States: Trends and Issues for Congress; www.fas.org/sgp/crs/misc/R40525.pdf

6. Live Mint, December 6, 2007, http://www.livemint.com/2007/12/06220337/Fake-auto-parts-take-toll-of-l.html

Side Bar 3: The International Anti-Counterfeiting Coalition (IACC) College Outreach ProgramIn 2006, IACC started a program targeting college students across the united states, raising awareness about the dangers of counterfeit goods by providing teachers and students with background material and case studies from brands like Rolex and American Apparel. The students were engaged to conduct their own anti-counterfeiting campaigns, using the fi ll arsenal of fi le-sharing devices and social networking services—blogs, MySpace and Facebook.

www.homai.org14


Illegal pharmaceutical sales are increasing at more

than 12 percent annually worldwide—nearly twice the pace of legitimate p h a r m a c e u t i c a l s — a n d could be on pace to become a $75 billion industry. Supply drivers include the advent of inexpensive and sophisticated imaging technologies and the growing range of distribution channels facilitated by the Internet. Undermining the pro�itability and brand integrity of major pharmaceutical �irms, these threats endanger millions of people who rely on the authenticity of prescription and over-the-counter drugs.

Government actions to slow the proliferation of fraudulent pharmaceuticals through regulation and law enforcement can only address the supply drivers; counterfeiting is also driven by powerful demand drivers and government alone cannot control substances for which there is a high domestic demand ful�illed

by enterprising criminal organizations. To adequately address the root cause of counterfeiting, the consumer needs to be part of the solution.

Indeed, consumers consciously or not are often complicit counterfeiting. Very often, if they think they are getting something close to the real thing for a substantially lower cost, they will look the other way. With pharmaceuticals, they may not understand why purchasing product through authorized channels is important or why certain products are dif�icult to obtain without a doctor’s prescription. They may also be willing to take chances with something cheaper as long as a big-name brand logo is af�ixed to the front of the item and printed on the box.

So, with all these factors working against them, how can drug companies protect their brands without alienating consumers? There are, in fact, quite powerful solutions.

Counterfeit Pharmaceuticals and Brand Authentication Solutions

Global View

“To adequately address the

root cause of counterfeiting,

the consumer needs to be

part of the solution”

Adam Scheer is the senior director, strategic marketing and business development, of JDSU’s Advanced Optical Technologies business. Prior to his current role in JDSU’s Advanced Optical Technologies business, which he assumed in May 2010, Scheer was Marketing Director for the JDSU Authentication Solutions Group, a position he took on following JDSU’s purchase of American Bank Note Holographics, Inc. (“ABNH”) in February 2008. Before joining ABNH, Scheer served as a senior executive in the technology and chemical industries. Scheer holds a B.A. in history, cum laude, from Williams College and an M.B.A. in management, earned with distinction, from New York University’s Stern School of Business where he was named a Stern Scholar.

by Adam Scheer

www.homai.org 15


Consumers often greet authentication with a groan. Authenticating identity can mean long lines at airports. Authenticating a credit card can mean pulling out a driver’s license as backup. Proving that “you’re you” online means remembering any number of usernames and passwords. Consumers are willing to do it, but there’s rarely any joy in it.

The key for drug manufacturers trying to engage consumers in effective authentication is to create a positive experience: entertain the user in some fashion and show that they’re getting value. The simplest way to entertain is to offer visually pleasing graphics. For example, holograms can be constructed that show elaborate motion. Labels can integrate these holograms with pigments that shift colors as viewing angles change.

These visually pleasing, overt features work because the expertise and materials needed to create and manufacture sophisticated, pigmented holograms and labels are hard to obtain. Counterfeiters can’t create holograms with �lip images and microtext in a garage, nor can they buy sophisticated pigments on the open market. Consumers can immediately tell the difference between a highly designed, expensive-looking label and a cheap knockoff. And it’s a pleasing experience: the consumer sees the quality and relishes the value.

Digital tools can complement overt visual effects to both enhance the robustness of an authentication program and to engage the consumer in a different way. One example is

where a product’s ID is tracked throughout the distribution cycle and the customer purchase. With this technique, the customer’s involvement in the process generates a stronger brand and greater customer loyalty. Here’s how it can work:

• The manufacturer generates an ID code for a particular product.

• A specialized printer integrates the code onto a sophisticated, overt-authentication label.

• The manufacturer af�ixes the label to the product and/or its packaging.

• Tracking data for the code is managed by a data center: when and where it was shipped, customs information, when it was sold and by whom, etc.

• The end-consumer can go online and register the code in exchange for a warranty, special offer, or other incentive.

The customer experience reinforces the exclusivity of the brand and opens a line of communication between the customer and the manufacturer. This increases brand loyalty and offers greater sales opportunities for the manufacturer. It is a win-win solution that can reduce losses to counterfeiting signi�icantly.

The counterfeiting of pharmaceuticals is a serious, expensive problem. The technologies and techniques are in place to stop a large proportion of it. Fortunately for manufacturers, stopping this kind of fraud can improve the customer experience, increase margins, and generate even stronger brand loyalty.

Engaging Consumers in Brand Authentication

Global View

“The key for drug

manufacturers trying to

engage consumers in

effective authentication is to

create a positive experience”

www.homai.org16


D/M/Y News Reported Category

2-Apr-11 One more arrested in fake pilot licence case ID Documents

2-Apr-11 Fake ticket holders to be arrested Tickets & Passes

2-Apr-11 Fake permanent residents certifi cates ID Documents

5-Apr-11 6 held with fake travel papers ID Documents

5-Apr-11 LeT forged IDs, passes for Wankhede Entry ID Documents & Tickets

18-Apr-11 Fake mineral water in Rajdhani FMCG

18-Apr-11 Mumbai ambulances carry fake number Vehicle Registration Plate

21-Apr-11 Scrap dealer held with fake notes Currency

21-Apr-11 1 more pilot held in fake licence racket ID Documents

22-Apr-11 Octogenarian held for making fake bottle caps Liquor

23-Apr-11 Two held with fake visas ID Documents

25-Apr-11 5 held with Rs 9.5 lakh fake currency notes Currency

2-May-11 4 held for trying to get VISA on fake documents ID Documents

6-May-11 Fake stamp paper used in Bihar Revenue Stamp/Paper

12-May-11 Printing press found in Noida making fake DTC bus tickets Tickets & Passes

31-May-11 Six arrested, fake currency notes and equipments seized Currency

31-May-11 Crime branch bust fake liquor scam, 6 held Liquor

7-Jun-11 DRI seizes fake Indian currency notes of over Rs 1.5 crore Currency

8-Jun-11 Factory seized making adulterated diesel Oil

11-Jun-11 Fake permits seized from bus operator Permits

11-Jun-11 MP cops recover fake UID card from SIMI activist ID Documents

13-Jun-11 Counterfeit currency found at Bank currency Chest Currency

13-Jun-11 Mantra in Patna, you make it we fake it FMCG

14-Jun-11 Fake fans in name of branded one Electronics

15-Jun-11 Drug racket busted Pharmaceuticals

15-Jun-11 Man arrested for issuing bogus board certifi cates Certifi cate/Degree

23-Jun-11 Fake visa racket found ID Documents

25-Jun-11 Racket in fake degree busted Certifi cates/Degree

28-Jun-11 Nearly 40 students identifi ed in fake caste certifi cate case Certifi cate/Degre

28-Jun-11 3 arrested with counterfeit currency worth Rs 60,000 Currency

28-Jun-11 2 held for selling fake stamp papers Revenue Stamp/Paper

29-Jun-11 Factory seized making duplicate paint Paint

1-Jul-11 Factory seized making duplicate ghee FMCG

8-Jul-11 3 arrested in fake passport case ID Documents

8-Jul-11 Fake currency seized, one arrested Currency

15-Jul-11 Two men arrested with fake visa ID Documents

15-Jul-11 Factory seized making counterfeit medicines Zentel, Pantocid (worth Rs 1 crore ) Pharmaceuticals

22-Jul-11 Five arrested for issuing fake UIDs ID Documents

25-Jul-11 Fake mark sheet racket busted Degree/Certifi cates

27-Jul-11 Another fake certifi cate scam unearthed in Delhi Degree/Certifi cate

29-Jul-11 Fake perfumes unit busted, 4 nabbed FMCG

30-Jul-11 Fake currency found worth Rs 55000 Currency

31-Jul-11 Bihar becoming the new hub of counterfeit medicine Pharmaceuticals

Counterfeit Seizure ReportThe report displays the counterfeiting seizures reported in Indian newspaper for period April 2011- July 2011.

For detailed, subscribe to HoMAI press monitor or e-mail at [email protected]

Industry Updates

www.homai.org 17


Tender updates

Domestic

International

Organisation M/Year State Details

Directorate of Electronic Delivery of May 2011 Karnataka Security HologramCitizen Services

Punjab State E-governance Society May 2011 Punjab Security Hologram

Andhra Bank May 2011 Hyderabad Security Hologram

National Highway Authority of India May 2011 New Delhi Security Hologram

Department of Printing Stationery and May 2011 Orissa Security HologramPublication

DakshinanchalVidyutVitran June 2011 Uttar Pradesh 2D / 3D Hologram SealsNigam Limited

Central Railway June 2011 Maharashtra Hologram

Government of Karnataka, July 2011 Karnataka Security HologramRevenue Department

Organisation Date State Details

Ministerio De RelacionesExteriores May 2011 Peru Security Hologram

Inst. Nacional De Semillas May 2011 Argentina Hologram stickers

Asamblea Nacional De Rectores June 2011 Peru Security Hologram

National Library Board July 2011 Singapore Hologram Stickers

Of�ice of the Director of July 2011 USA Synthetic Holographic ObservationNational Intelligence

KulturVeTurizmBakanligiTelifHaklarive July 2011 Turkey Holographic BanderolSinemaGenelMÜDÜRLÜGÜ

Ministerio Da Educacao July 2011 Brazil Identity Card with Hologram

To get the latest tender, subscription and information email at [email protected]

Industry Updates

www.homai.org18

The Holography Times Industry Updates

Publication Title Int. Application ApplicantDD.MM.YYYY Class Number

28.07.2011 (WO 2011/090030) G03H 1/18 PCT/JP2011/050765 Dai Nippon Printing Volume hologram sheet to be Co., Ltd embedded, forgery prevention paper, and card

28.07.2011 (WO 2011/089820) G03H 1/04 PCT/JP2010/073185 Hyogo Prefectural Generation method for complex Government amplitude in-linehologram and image recording device using said method

21.07.2011 (WO 2011/086275) G07D 7/00 PCT/FR2010/052822 Hologram Industries Method for securing an object and corresponding object

14.07.2011 (WO 2011/085233) G11B 7/00 PCT/US2011/020559 Holotouch, Inc compact holographic human-machine interface

14.07.2011 (WO 2011/083364) G03H 1/00 PCT/IB2010/003398 BAUTISTA, Rafael, Process for obtaining a variable high Artasanchez securityhologram and its applications

23.06.2011 (WO 2011/074030) G03H 1/02 PCT/JP2009/006904 Kabushiki Kaisha Hologram recodring medium Toshiba

23.06.2011 (WO 2011/073885) B42D 15/00 PCT/IB2010/055779 Arjowiggins Security Security element including an optical structure

03.06.2011 (WO 2011/064162) C09D 5/29 PCT/EP2010/067898 BASF SE Coating compositions for security elements and holograms

26.05.2011 (WO 2011/062036) G02B 5/32 PCT/JP2010/069067 NEC Corporation Optical element, light source device, and projection display device

26.05.2011 (WO 2011/061442) G07D 7/20 PCT/FR2010/052439 Hologram Industries Method and system for automatically checking the authenticity of an identity document

Global Patents

For more information, visit www.wipo.int - Gateway to Patent Scope – Database Search – PCT Applications

International Applications (PCT)This search tool allows you to search around published International Patent Applications and to view the latest information and documents available to the International Bureau. This facility features: full-text search in Descriptions and Claims; search using unlimited keywords; bibliographic search; Boolean operators; and graphical results

www.homai.org 19


Upcoming Events

Label Expo Europe 2011Sep 28 - Oct 01, 2011, Brussels, BelgiumWeb: www.labelexpo-europe.com

IMI’s 8th Annual Security Printing ConferenceNov 16-18, 2011, Florida, USA Web: www.imiconf.com

The 3rd Tax Stamp Forum Sep 12-14, 2011, Washington DC, USA For more details contact: Tel: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790Email: [email protected]; Web: www.taxstampforum.com

Holo-pack. Holo-print 2011Nov 9-11, 2011, Las Vegas, USAFor more details contact: Tel.: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790 E-mail: [email protected] , Web: www.holopack-holoprint.com

Label Expo Asia 2011Nov 29 - Dec 02, 2011, Shanghai / PRC For more details contact: Web: www.labelexpo-asia.com

10th Asian High Security Printing ConferenceDec 07-09, 2011, New Delhi, India For complete detail, please see the advertising at page no 8.

IQPC’s Brand Protection and Anti-Counterfeiting Summit 2011Nov 29 - Dec 1, 2011, Amsterdam, Netherlands Web: www.brandprotectionevent.com

India Packaging Show 2011Dec 7-10, 2011, New Delhi, India Web: www.packplus.in

Published by:Hologram Manufacturer Association of India

(HoMAI)

Issue Editor:C S Jeena

The Holography Times is a quarterly newsletter published by HOMAI with an aim to provide

latest developments, research, articles, patents and industry news to a wide audience related to

Holography in Indian and World.

The editorial team welcomes your news, contributions and comments. Please send your product updates, press releases, conference

announcements or other contributions to HoMAI:

21-Ground Floor, Devika Tower 6Nehru Place, New Delhi 110019, India

Telfax: +91 (11) 41617369Email: [email protected], Website: www.homai.org

Designed and Printed byEYEDEA Advertising

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E-mail: [email protected] behalf of HoMAI

Disclaimer: The data used here are from various published and electronically available primary and secondary sources.

Despite due diligence the source data may contain occasional errors. In such instances, HoMAI would not be responsible

for such errors.

About HoMAIThe Hologram Manufacturers Association of India (HOMAI) is a non-pro�it organization established in 1998 to represents and promotes the interest of hologram industry in India as well as to �ight against counterfeiting.

Industry Updates

www.homai.org20


ht issue 15 201109

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