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Anti-Counterfeit Primer

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May be useful for the novice or C level who is wondering what all the fuss is about.

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Anti-Counterfeit Primer

  1. 1. 1 Anti-Counterfeit Primer
  2. 2. Anti-Counterfeit & illicit trade 2 Fast Facts - Global counterfeit est. $1.77 trillion by 2015 - Global counterfeit of documents est. $1 trillion - 2010 stolen goods in EU is e8.2 billion Fast Reality - The counterfeit market feeds organized crime - Counterfeit products kill and injure daily - Counterfeits are in every country, all industry sectors
  3. 3. Anti-Counterfeit & illicit Trade 3 • Counterfeit market growing at up to 22% annually • At a conservative 15% growth: • International trade in counterfeit will reach $960 Billion by 2015 • Domestically produced / consumed will reach $570 Billion by 2015 • G20 nations • Estimated 3,000 Deaths due to counterfeit products • Losing $77.5 Billion in tax revenues • Increased welfare costs with an estimated 2.5 Million lost jobs • $25 Billion in increased costs of crime • $18.1 Billion to the economic costs of deaths due to counterfeit • $125 Million due to additional health costs for injuries from counterfeit Source: BASCAP Report
  4. 4. Counterfeit definitions 4 • There are many…… • To make a copy of, usually with the intent to defraud; • To make a pretense of…. • To carry on a deception…. • To make fraudulent copies of something valuable. • Made in imitation of what is genuine with the intent to defraud:
  5. 5. An April 2012 study published by IHS iSuppli 5 Counterfeit in the Consumer Electronics Industry approx. $169 Billion. Counterfeits can now be found in every country and every industry segment “….a faulty counterfeit analogue IC can cause problems ranging from dropped calls to a serious tragedy in the aviation, medical, military, nuclear or automotive areas” Dec 31st 2011 US President signed the H.R. 1540: National Defense Authorization Act. The act mandates that participants at all tiers of it’s global defense supply chain implement processes and systems to analyze, assess and act on counterfeit and suspected counterfeit electronic parts.
  6. 6. Some Common & New(er) Terminologies • Counterfeits • Knock offs & Fakes • Fraud • Theft • Illicit Trade • Smuggling • Warrantee Fraud (end user) • Parallel Market • Gray Market • Diversion (legal / illegal) • Over-runs (production) • Trademark infringement • Copyright infringement • IPR (IP rights) • Covert, Overt and Forensic • Digital & Sensory Tools • Verification • Validation • Authentication – Item level – Party • Hybrid Authentication • Authorization (access to data) • Serialization
  7. 7. Authentication Tools Extrinsic Authentication Tools Added for the primary or secondary purpose of authentication Sensory tools (primary) - Overt features - Covert or semi-covert - Forensic (lab or field analysis which can include unique markers added to the product such as inks, paper, taggants etc.) Digital tools (secondary) - Unique Object Serialization - Object Class Identifiers (every can of soda will have the same object class code) Intrinsic Authentication Tools Functional or aesthetic elements of the product not primarily intended for authentication Could include: - Specific materials - Unique construction features - Stitching Hybrid Authentication Combination of Digital & Sensory and / or Intrinsic & Extrinsic tools for enhanced brand protection purposes Could include: - Object ID + Forensic feature - Object ID + Overt seal, label or hologram - Object ID + Intrinsic feature + Covert mark - Object ID + Covert feature A single method is NOT sufficient to authenticate an object.
  8. 8. 8 Direct Part Marking (DPM) with a data carrier such as a Data Matrix offers good potential
  9. 9. Manufacturer Product Code (GTIN or NTIN) - 14 digits Unique Serial Number (randomized) - up to 20 alpha-numeric characters Expiry Date - 6 digits (YYMMDD) Batch Number - up to 20 alpha-numeric characters + minimum requirements on quality of randomisation EFPIA - Coding Pharmaceutical Products in Europe Data Matrix – Coding proposal derived from GS1 standards Specifications provided in EFPIA’s: “European Pack Coding Guidelines” Example: GTIN: (01) 07046261398572 Batch: (10) TEST5632 Expiry: (17) 130331 S/N: (21) 19067811811 A practical need in the Healthcare supply chain, EFPIA…
  10. 10. The verification model supported by EFPIA Product- and Data-Flow End-to-End Patient Data Transfer Product Serialisation Database Pharmacist/ Hospital Product Flow Distributor Wholesaler Verification Pharma Manufacturer Unique Serialisation 2D Data matrix On carton Verification Dispensing ?
  11. 11. Building Safe & Secure Supply Chains must cover Pedigree and Authentication…. 11 Real-time visibility Is a critical success factor that can be enabled with standards such as GS1’s EPCIS
  12. 12. 12 Pictures……tell the story
  13. 13. Internet Search for Pictures: Brand knock-offs and bad fakes
  14. 14. Drug Manufacturing: GMP versus Counterfeit facilities 14
  15. 15. When criminals gets creative to evade detection Texas state road maintenance truck is “counterfeit”
  16. 16. Increasingly challenging to determine the counterfeit product
  17. 17. Why should we care ? 17
  18. 18. 18 Counterfeit consumer products kill 3,000 annually in G20 countries….credible reports claim more than 700,000 die from taking fake medicines annually
  19. 19. 19They include the vulnerable……
  20. 20. 20The unsuspecting driver with a counterfeit component or tyre on their car…..
  21. 21. 21Experts suspect counterfeit electrical goods cause many house fires
  22. 22. Comprehensive Approach Is Needed Anti Counterfeiting InteroperabilitySerialization ++
  23. 23. Don’t be a victim or supporter……BUT do tell the story and drive awareness…..doing a little will help a lot !

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