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IS YOUR BRAND SECURE? Protect it with multi-layered security
1. IS YOUR BRAND
SECURE?
www.Since1878.com
About Us
• Division of New York Label & Box Works, with more than a century of
innovative specialty services supporting the consumer products industry
• Member of the International AntiCounterfeiting Coalition
• Partnership with Eastman Kodak Company Brand Protection Solutions
• Certified Deming practitioners committed to continuous process
improvement for quality results
•1878•
•SINCE•
Brand Protection Division
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2. Outsmarting Diverters
A global luxury cosmetic manufacturer’s equity was
being battered and loyal customer relationships jeopar-
dized by diversion of one of its “salon only” brands. They
discovered that some of their salon customers were
distributing their products through unauthorized chan-
nels to a lower end retail market that was undercutting
legitimate sales. Serious action was needed to protect
the company’s business and rehabilitate its loyal
customer base.
Our Brand Protection Division created a multi-tiered
solution to block this activity, with print graphics that
both meet the marketing department’s “haute”
standards and actively function to disrupt illicit trade.
The label’s QR code is used by the company’s supply
chain for “track and trace” purposes and by marketing
for consumer engagement. Two kinds of security inks
are used to print unique, covert codes that
are correlated to the overt QR code. One of the two
inks fluoresces under UV blacklight, while the other can
only be discovered using a proprietary viewing device.
All of these security codes are protected under a clear
film lamination.
Because diverters do not want to leave a trail, the first
thing they normally do is strip out the visible QR code
(or UPC, if it’s unique). Then, they look for any hidden
security marks. Should they discover the UV blacklight
code, it’s difficult to deface it without damaging the
label’s graphics or trademarks (which would trigger
even more legal implications). If, however, the diverters
are able to surgically remove the blacklight code, they’ll
move on, as they won’t be able to detect the invisible
code. In this case, the blacklight code serves as a decoy.
This program has been so successful that the diverters
have avoided this brand.
Sophisticated counterfeiting is reported
to account for nearly 10% of global
commerce with Interpol reporting that
a sting operation conducted across 57
countries over just several months into
early 2016 uncovered more than 10,000
tons and 1 million liters of bogus foods
and beverages.
Whether your consumer product is in the apparel
and accessories, automotive, electronics, health
and beauty, wine and spirits, or other market,
protecting your brand from criminal activity is
more of a challenge than ever today. Increasingly
sophisticated counterfeiting is reported to account
for nearly 10% of global commerce, with Interpol
reporting that a sting operation conducted across
57 countries over just several months into early
2016 uncovered more than 10,000 tons and 1
million liters of bogus foods and beverages.
Similarly, piracy and product diversion have
escalated enormously in recent years. Also known
as the “grey market,” diversion has emerged as a
particularly sinister threat, due to the havoc
caused by products being sold through unautho-
rized distribution channels. This illicit trade costs
manufacturers and brand owners billions of
dollars each year, but the damage to brand
integrity is equally significant.
U
nited
States
(20%
)
Italy
(15%
)
France (12%)
U
nited
K
ingdom
(4%
)
Spain (2%)
Belgium
(2%)
Morocco
(.6%)
Counterfeiting: A Global Epidemic
Counterfeit electrical components,
food and beverages and toiletries and
household products are similarly
appearing in markets worldwide, with
Africa, Asia and Latin America
frequently mentioned as key regional
markets. Piracy of music, movies and
software appears to be significant in all
economies.
Source: “The Economic Impact Of Counterfeiting
and Piracy: Executive Summary”
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3. CASE
STUDIES
Putting Counterfeiters Out of Business
A prominent winemaker with global sales experi-
enced first hand the damage caused by highly
organized counterfeiters when an imitation of
one of its premium wines was being sold in
China, which is the fifth largest importer of wine
in the world. Ignoring the diminishing of its brand
in this important market was not an option, so
the company turned to our Brand Protection
Division for help.
A security label was developed that is tam-
per-proof and features a QR code. In addition, the
label contains a holographic foil and is over-coated
with a varnish containing a forensic-level tracer for
the brand’s field investigators to authenticate as
part of a “buy back” program. As an extra layer of
verification, the consumer is prompted to scan the
QR code, which points directly to the company’s
website, asking for the secure PIN. The consumer is
instructed to scratch off an area of the label to
reveal this unique identifier.
This multi-step process makes fraud virtually
impossible. Also, the enlistment of the consumer
combines security with engagement, providing
another avenue for the company’s marketing
team, who can offer additional features when the
consumer scans and registers the product.
China (63.2)
Hong Kong (21.3)
Turkey (3.3), Singapore (1.9),
Thailand (1.6), India (1.2),
Morocco (.6), UAE (.5),
Pakistan (.4), Eqypt (.4)
Data Source: “Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact”
United States
Italy
France
Switzerland
Japan
Germany
United Kingdom
Luxembourg
Finland
Spain
Belgium
China
20
15
12
12
8
8
4
3
2
2
2
1
Countries Hit Hardest
by Trade in Fake Goods
Top countries whose IP rights
are infringed, ( % total value of
seizures (2013))
Where Most Fake
Goods Originate
Top provenance economies of
fakes, ( % total value of seizures
(2013))
Countries Hit Hardest
by Trade in Fake Goods
Where Most Fake
Goods Originate
Japan
(8%
)
Luxembourg (3%)
Finland
(2%
)
China
(1%
)
G
erm
any
(8%
)
China
(63.2%)
Singapore
(1.9%)
Thailand
(1.6%)
Hong Kong
(21.3%)
Pakistan
(.4%)
India
(1.2%)
UAE
(.5%)
Eqypt
(.4%)
Turkey
(3.3%)
Switzerland (12%)
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4. Anti-Diversion
Executing a unique marking plan, the product is
tracked through the distribution process, with any
anomalies identified at various inspection points
along the supply chain. The product’s down-
stream path and data path are correlated, trigger-
ing detection of potential diversion. In the case of
a disabled overt code by would-be “grey market-
ers,” the covert code would actually provide
intelligence on where the product changed
custody. In addition, specially designed workflows
can coordinate the printing and recording of
codes in aggregation hierarchies by unit, case,
pallet, etc.
Anti-Counterfeiting
Security labeling, tamper-proof packaging and
forensic-level tracers are among the great
options in obstructing counterfeiting activity.
The use of ultra-covert taggants added to inks or
coatings and verified in the field with a proprietary
device is also especially effective. Ensuring
authenticity of high-quality contents and
trademarked goods can be accomplished by
combining various techniques available through
our Brand Protection Division.
Overt and Covert Codes
• 2D matrix barcode
• QR (quick response) matrix barcode
• Hidden, blacklight-readable serial numbers
• Random coding
• Alphanumeric serial numbers
• Signature holographic seals
• Microtext
To keep your product out of reach of counterfeit-
ers and grey market traffickers, variable data print
technology is embedded into highly aesthetic
labels and packaging solutions. Hidden and
visible codes are applied, documented and stored
in a database for verification purposes. In an
exclusive agreement with a global technology
company, handheld readers are specifically
programmed to read the product’s “DNA finger-
print.” Also, incentives may be created to enlist the
consumer’s involvement in the authentication
process. Combining overt and covert tactics helps
keep brands in the health and beauty, technolo-
gy, vitamin and other industries safe from coun-
terfeiting and diversion.
Multi-Layered, Intelligent Packaging
Ultra-Covert™
- Forensic-level taggant can
be added to primer, ink
- Coating as full coverage
or select areas of graphic
- Authenticated only with
proprietary secured reader
- Invisible to human eye
- Effective counter-measure
against sophisticated
counterfeiters
Microtext
- Disguised as underline
Clear Lamination
- Deters tampering
- Improves aesthetics
- Many variations
UV DOD (overt)
- Use for UPC, QR Codes, etc.
- Leverage for Supply Chain
and/or marketing
- Serialized, Random, or
import from database
UV-Excitable Code
- First-Level security
- Serialized, Random, or
import from database
- Can be used as a decoy
code when combined
with Traceless AD
Traceless AD™ Code
- Second-Level security
- Serialized, Random, or
import from database
Tamper-Evident Adhesive
- Second-Level security
- Serialized, Random, or
import from database
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5. Anti-Counterfeiting Strategic Options
• Forensic-level track-and-trace
• Dual serialization coding: overt, covert or
even ultra-covert, with identical or dissimilar
serial numbers (which would be linked in a
database)
• Coding and aggregation
• Late-stage laser modifications
• Verification at consumer end built into
rewards program or other incentive
Security Technologies
A multitude of sophisticated anti-counterfeiting
and anti-diversion technologies have emerged,
with numerous breakthroughs now available to
help enforce brand protection. Radio-frequency
identification (RFID) tags, DNA tracking and
taggant fingerprinting are just some of the current
advances in the science behind secure product
movement. Technologies also include traceless
inks and laser-markable coatings, as well as
optically readable bar codes and machine-read-
able data matrix codes. These “smart” labeling and
packaging options are designed to work in
conjunction with an array of high-tech software
and devices recently developed for incorporation
into supply chain processes.
Solutions
Our Brand Protection Division brings leading
anti-diversion (AD) and anti-counterfeiting tech-
nologies together to enable our clients to securely
move their products through their authorized
distribution channels and get them safely into the
hands of loyal customers. A customized approach
is designed on a case-by-case basis, according to
the specific requirements for the product and
market. We work with each client to thwart
potential counterfeiters and diverters, outmaneu-
vering copycats and hackers in a multi-layered
strategy. Combining overt, covert and forensic-lev-
el measures, we empower brand owners to take
control of a crucial segment of their product
cycle—from the factory to the consumer. Our
experts develop smart packaging and labels that
provide product authentication and traceability,
as well as enhanced consumer engagement.
Combining overt and covert tactics
helps keep brands in the health and
beauty, technology, vitamin and
other industries safe from counter-
feiting and diversion.
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6. Manufacturers and brand owners in the automo-
tive, food and beverage, apparel, pharmaceutical,
cosmetic and other consumer industries are
increasingly concerned about unauthorized,
parallel trade. To safeguard health and safety,
customer loyalty, brand integrity and financial
sustainability, it has become necessary to adopt
protective measures. However, with the wide
range of security technologies available, a selec-
tive approach is required to implement the
appropriate modalities into a cohesive process.
Our Brand Protection Division helps clients to
develop a multi-layered strategy that integrates
the technologies that work best for a particular
product. Just as every division at your organization
plays a role in the “moving parts” of your opera-
tions, key security technologies work together for
any given product’s successful distribution.
High Security Adapted to Your Product
• Creating practical solutions leveraging sophisticated
processes, research and engineering
• Latest science incorporated into high-end yet
cost-effective strategies
• Proprietary variable data systems that are fully
integrated into packaging
• Unique solutions embedded and verified all inline
• Authentication, tracking and monitoring of incidents
using the most robust technologies in security inks,
hardware and software
• Entrusted with brand protection by a leading
Japanese auto manufacturer, a global luxury cosmetic
company and one of the world’s dominant wine
producers, among others
To safeguard health and safety,
customer loyalty, brand integrity
and financial sustainability,
it has become necessary to
adopt protective measures.
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