the anticounterfeiting industry – - indicam mitchell link 9.2.14.1.pdfthe anticounterfeiting...
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1
The AntiCounterfeiting Industry –An Overview of Recent Developments
Astrid Mitchell
Reconnaissance International
April 2002
2Reconnaissance International
Established in 1992Leading global intelligence source onauthenticationSpecialists in brand protection, document securityand personal identificationPublishers of newsletters and anti-counterfeitingpublicationsOrganisers of anticounterfeiting conferencesConsultantsOffices in UK and USA
3Reconnaissance International
Publications:Authentication News®Authentication News®Holography News®Holography News®Holo-pack.Holo-print GuideBookProtecting Medicines & Pharmaceuticals: Manual ofAntiCounterfeiting Solutions™Holo-pack.Holoprint Industry Study and Market Report
Conferences:Authentication and Counterfeiting Protection (ACP)Holo-pack.Holo-printGlobal Forum on Pharmaceutical AntiCounterfeiting
Consulting:Strategic counterfeit planningAuthentication implementation
4Market and Industry Overview
Authentication Markets
Authentication Technologies/Systems
Authentication Suppliers
Catalysts for development
5Main Forms of Brand Attack
Counterfeiting
Product diversion (parallel trading)
Tampering/alteration
Piracy
Passing-off
6Counterfeiting and Diversion - the
Risk ChainDesign Manufacturing Distribution Retailing Consumer
Designcopyright
Copycat
design
Genuineproduct
Counterfeitproduct
Approvedwholesaler
DistributorImporter
Parallel trader
ParallelImporter
Black Market
AuthorisedRetailer
UnauthorisedRetailer
Street Vendor
Flea market
Satisfiedcostumer
'UnwillingVictim'
'Willing victim'
7Losses Due to Counterfeiting
spirits $11.5 billion (10%)
car parts $12.0 billion
videos $ 2.5 billion (50%)
software $17.5 billion (36%)
pharmaceuticals $15.0 billion (6%)
clothing/sports $12.0 billion (11%)
music $ 8.0 billion (33%)
8Public Willingness toPurchase Counterfeit Goods
clothing/footwear 76%
watches 43%
perfumes 38%
electrical goods 22%
car parts 14%
children's toys 12%
pharmaceuticals 5%
pesticides 4%
(source – MORI)
9Impact ofCounterfeiting/Diversion
Consumer welfare/safety (direct and indirect harm)
Company profits and reputations (reducedturnover, lower margins, less investment)
Regional/national economies (lower tax receipts,job losses)
National security (criminal and terrorist funding)
10Key Market Characteristics
widespread and increasingly sophisticated productcounterfeiting and diversioneconomic globalizationextended manufacturing and distribution chains throughoutsourcing, licensing, franchisingdifferential pricinggrowth of brands as assetsprice-sensitive, publicity-aversegovernmental involvementgrowing demand for multi-function security solutions tocombat counterfeiting and diversion
11The Solutions Approach
Problem assessment/risk analysisSystematic internal and external managementLegal and enforcement solutionsEffective investigationUse of appropriate technologiesPublic/private collaborationEducationBack-end evaluationEffectiveness measurement
12Technical Solution Criteria
Counterfeiting – authentication andverification
Diversion – track & trace
Theft – EAS/security
Tampering – anti-tamper, tamper-evidence
13Authentication TechnologiesIn product marking (taggants)On product marking:
Security graphics - microtext, anti-copy backgroundsScrambled indicia, digital watermarks
Diffractive OVDs (holograms)Security inks and pigmentsSecurity substrates and carriers
paper/boardfilms/seals/labels/adhesivesmagnetic coding
Numbering and encodingRFID
14Performance Criteria
Overt/covertLevel of verification:
PublicFieldForensic
Variable informationMethod of reading/decoding
Optical/machineContact/remote
Level of securityCostFunctionality
15Authentication Technologies
Technologies,Products,and ServicesIn Context
16Key Technology Trends
rapid growth in number of anti-counterfeitingtechnologiesOVDs remain prominent - but now layered withcovert technologiescombined/multiple functionalitysecurity features supported by systemstechnologies for encoding, reading and processinginformation will become dominant for largercompaniesenormous interest in tracking technologies eg RFID
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Key Industry Trendswide spread of industry sectors now involved in brandauthentication
market no longer driven just by technology providers, butconverters as well
consolidation through acquisitions & mergers
lower barriers to entry
new entrants with major investment capability and marketspread
traditionally dominated by providers of single technologies
industry becoming more customer-focused - switchingfrom products to systems solutions
18
Authentication Suppliers
BRANDPROTECTION
OVDsKurz/OVDK
AOTLight Impressions
Hologram IndustriesAPI
Dai Nippon
Raw MaterialsUCB
DuPontFasson
Security TechnologiesFlying Null
BiocodeFlex Products
InkSure
PrintersDe La Rue
G&DBundesdruckerei
Converters 3M
WestvacoSchreiner
Avery Dennison
Security SubstratesSICPA
LuminescenceDrewson
ModoArjo Wiggins
Technical Graphics
Systems &IntegrationSiemensPhilipsTexas
Infineon
19Industry News
New entrants eg:DuPont Authentication SystemsWestvaco Brand SecurityStardust TechnologiesJohan Enschede
Partnerships eg:Light Impressions – Flying NullOptaglio - DNA TechnologiesABNH – DigimarcBundesdruckerei - November
Acquisitions:AOT – OpSec/BridgestoneITW – Foilmark, ScharrAPI - Chromagem
20Industry Successes
Automotive (Daimler Chrysler/General Motors)Fuel (East Africa)Merchandise (Olympics)Electrical and electronic components (France,Germany)Vodka (Russia)Clothing (Italy)Software (Microsoft)PC consumables (OKI)
21Development Drivers
Increasingly sophisticated multi-functiontechnologiesOverall supply chain managementAuthentication for the InternetCross-industry collaboration/public-privateinitiativesAnti-counterfeiting legislationIPR enforcementCommunication and education
22Public and Private Cooperation
National cross-industry groups – QBPC,ACG, INDICAM, UdF, Andema...International specialist organisations -GACG, AGMA, IFSP, IFPIInternational associations – IHMA, IFPMA,BSAGovernment groups – CAP, 4IPRInternational organisations – WHO, UN
23Market Expectations
Accredited and effective technologies
Provable benefits
Low costs
Compatibility with existing productionprocesses
Guaranteed monitoring in open systems
On-going improvements/upgrades
Industry communication and cooperation
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Reconnaissance International
The End
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