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Risk & Reward: Protecting IP and Growing Revenue with Product Authentication Systems
- 1. Risk & Reward : Protecting IP and Growing Revenue and Brand Value Forget copy proof - Be irreproducible
- 2. © Authentic Vision Agenda • Impact of Counterfeiting • Solution Challenges • A Perspective from Authentic Vision • Recommendations
- 3. © Authentic Vision Impact of Counterfeiting • Lost Revenue for Brands • Risk to Lives • Cost to the Economy • Undermining of IP • Erosion of Brand Value Despite efforts, this is a growing problem
- 4. © Authentic Vision Supply Chain Complexity Counterfeits 3rd Shift Products Volume Under-reporting Gray Market and Diversion Training Costs Audit Costs Brand Damage False Warranty Claims MANUFACTURER LICENSEE PRODUCT DISTRIBUTOR IMPORTER CUSTOMERCUSTOMS RETAIL PARTNER $ $ $ $$ Operational, Preventative and Enforcement Groups are not being supported effectively
- 5. © Authentic Vision Solution Challenges • Not enough investments in technology • Industry not demanding leading edge solutions • Cost effectiveness • Industry attempting to come together e.g. A2C2; but approaches remain fragmented
- 6. © Authentic Vision Current Solutions Are Failing Serial No & QR Codes Easy to copy ü Every copy is fully functional ü Can be generated by everyone Holographic Feature Cosmetic only ü Mainly cosmetic & passive ü Leaves visual verification to user ü Presents unverifiable authenticity ü Look-a-likes available on Alibaba NFC & RFID Expensive ü Expensive, $0.3-$1 per tag ü Metals and liquids block signal ü Most solutions are cloneable ü For trained experts only ü Cumbersome for consumers ü Need dedicated Equipment ü Post-mortem examination Covert / Proprietary Complicated
- 7. © Authentic Vision Great opportunity for relevant, meaningful and disruptive technology
- 8. © Authentic Vision Two Potential Areas of Disruption • Data Services Applications • Bad News : Too many point solutions • Good News : Easier to deploy • Opportunities for consolidation, predictive analytics, AI/Deep Learning, Blockchain • Smart Authentication technologies • Strong preventive tool when combined with broad education • Supports Brand Protection and IP enforcement professionals • Builds consumer confidence and loyalty
- 9. © Authentic Vision Authentic Vision – Who We Are ? • Recognized as technology leader in mobile authentication • Board with Top Executives from Dolby, Sony and Adobe • 20 employees and 25 external experts • Supported by Dolby Family Ventures, Gronova Vision, TAKKT AG • Supported by AWS and FFG WORLD CUSTOMS ORGANIZATION GRONOVA VISION
- 10. © Authentic Vision Authentic Vision – What We Do ? Use real-time scanning insights to geo-locate fake attempts and actively control your channels. SMART DATA Secure your products with our irreproducible tag, so unique even we can‘t replicate it. IRREPRODUCIBLE TAGGING Use any smartphone to authenticate products without dedicated training or hardware! SIMPLE SCAN
- 11. © Authentic Vision Mobile Product Authentication & Value Added Services Everyone becomes an authentication expert without dedicated training or hardware! Read Secure Irreproducible Tag Instant Authentication Result Enables Secured Value Added Services • Customer Communications • Product Registration • Content Redemption • Loyalty Campaigns • Product Sales • Warranty Compliance • Direct to Customer Sales • Service Uplink and Spare Parts • Annual Security Check • Digital Services and Entitlements
- 12. © Authentic Vision Customers Levensohn Vineyards Wine Tellurium Q Audio Cables HDMI Licensing Compliance Guala Closures Group Spirits PowerCigs E-Cigarettes FERAGEN Medical Melasan Sports Nutrition Women’s Best Sports Nutrition Orthera Medical Lamina Technologies Industry Tooling Vulli Toys Elsewedy Electric Building Materials ReSensive Cosmetics Adlight Building Materials
- 13. © Authentic Vision Recommendations Needs a multifaceted approach
- 14. © Authentic Vision Potential Strategic Approaches • Definition and adoption of Technology Standards • Manufacturer investments in technology that would prevent counterfeiting • Encourage collaboration of solution providers • Concerted investments in market education • Resources in enforcement
- 15. © Authentic Vision Technology Standardization • Create a standardization process • Include all stakeholders - industry players, technology providers, law enforcement • Mandated or Optional Standards • Minimum levels of specifications for technology • Cover product authentication and data services • Specific timeframes for implementation • Require building of consumer awareness • Place FRAND obligations for price protection
- 16. © Authentic Vision Market Education • Promotion of products is required to grow businesses • We don’t think twice about it if we are marketers • We need to think about this while promoting authenticity • Education of the market is a social responsibility • Companies need to staff, resource and fund the effort for success
- 17. © Authentic Vision Resources in Enforcement • Important to support law enforcement with tools • Key to staff and fund this important functional area • Bad actors need to be penalized and made an example of
- 18. © Authentic Vision Headquarters Authentic Vision GmbH Josef-Mayburger-Kai 114 5020 Salzburg, Austria Tel: +43 720 98 44 60 info@authenticvision.com www.authenticvision.com North America Authentic Vision Inc 1005 Market St, Suite 210 San Francisco, CA 94103 Phone: 310 600 8907 jm@authenticvision.com www.authenticvision.com