This document proposes a method to identify fake and counterfeit products using recharge coupons inserted inside product packages. When a customer opens a product and uses the recharge coupon code via SMS, a server will check if the code is valid and send a message to the customer with the product details and whether it is genuine. This allows customers to verify products and get free talk time, while also providing companies with customer data to improve products and reduce counterfeits. The method is expected to reduce counterfeit products by over 94% and allow companies to directly monitor daily sales.

1. A method to identify fake and counterfeit products
(Patent Filed)
Veeramani C
2nd Sep 2014

2. Fake/Counterfeit Products in India
• According to the FICCI CASCADE (Committee against smuggling
and counterfeiting activities destroying the economy) report, the
sale of counterfeit and smuggled products and tax evasion in seven
key sectors that include auto, fast moving consumer goods
(FMCG), alcohol and tobacco, resulted in a loss of Rs.26,190 crore
loss to the exchequer in 2012.
• The seven sectors covered under the study were - auto
components, alcohol, computer hardware, FMCG (personal goods),
FMCG (packaged foods), mobile phones and tobacco.
http://in.finance.yahoo.com/news/fake-products-cause-rs-100-140755456.html
2
Impact

3. 3
Grey Market Impact
Total Annual Sales Loss* to
Industry
(*Value in Rs Crores)
Impact
Auto Components
Alcohol
Computer Hardware
Fast Moving Consumer Goods (Personal Goods)
Fast Moving Goods (Packaged Foods)
Mobiles Phones
Tobacco
Grey Market (percentage in
each sector)
Auto
Components
Alcohol
Computer Hardware
Mobile Phones
Tobacco
29.6
10.2
26.4
25.9
23.4
20.8
15.7
9,1985,626 Auto Components Alcohol
4,725 Computer Hardware
15,035 Fast Moving Consumer
20,378
Goods (Personal Goods) Fast Moving Goods
9,042
(Packaged Foods)
Mobiles Phones 8,965 Tobacco
72,969

4. How we do it
• For each and every product we will insert a recharge coupon inside the
product package.
• Once the customer opens the product he/she will use the recharge coupons.
The manner of recharging will be described in the coupon
(*768*1*XXXXXXXXXXXXX#)
• Once the customer uses the recharge coupons the data will be checked by
separate server. If the recharge coupon is valid then the server returns an
SMS to the customer regarding recharge value. Along with that SMS the
customer will get the product details like name of the product and genuine of
the product, exp date and etc.
• So the customer will know whether the product is genuine or not.
4
Concept

5. How we do it
• As a goodwill gesture of encouraging the customer, he/she will get some free
talk time by recharging coupons
• wherein sending of a invalid number by SMS returns a message to the
buyer, that the product is not genuine, and also affording another opportunity
to send the correct code.
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wherein sending of a wrong unique number by the buyer, results in an SMS
being sent to the buyer advising that the product is not genuine, while also
indicating the steps to be taken to make a complaint.
Concept

6. How does it work?
6
Concept
Original Factory
Distributors Retailers
Fake Factory
Checks if original
Product with Recharge Coupons and Barcode
Mobile Application
Via Recharge/Call/App
Web application

7. Advantage of these Techniques:
• Compared to other anti counterfeiting techniques this technique is easily
accessible and is a compelling one.
• It is expected that more than 92% of the customer will use this recharge
coupons and thereby
• Customer will get authenticated data and free talk time
• Company will get data about the customer which will help the company
to improve their product and to improve their turn over.
7
Concept

8. Advantage of these Techniques:
• Counterfeit product will be reduced more than 94%
• Company can monitor their sales directly on daily basis.
• This is one of the best ways to eliminate the duplicates compared to
other Techniques used by others in the market.
8
Concept

9. Further Information
• The app can get the location of a particular check and help with the follow-up
of an identification of a fake product
• Manually our staff will visit to the shop and collect the particular sample
product and send to the head office for further investigation .
• We will collect the shop details like shop name, shop address, product
name, price and feed back from the customer
• An additional step of tagging the store where a product is being sold will help
prevent further fraud actions such as imitation of codes by the fake company
• Remunerations for identifying fake products can increase the usability of this
product, thereby leading to fake-free products amongst people
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Concept

10. Questions?