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The Authentication Times, October 2014, Volume 8, Issue 25

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Dear Reader,

Welcome to the 25th edition of our newsletter with a new name “The Authentication Times” (formerly known as The Holography Times).

Recently, HoMAI had completed its re-branding and now will be known as Authentication Solution Providers’ Association (ASPA).

With this it is becoming inevitable for us to change the name of “The Holography Times” as “The Authentication Times” and will focus on providing information, industry trends and news on authentication solutions from across the globe.

In the last few months, one of the two biggest economies of paper banknotes has shown their interest in polymer banknotes. Our current cover story is focus on “Evolution of polymer banknotes: pros and cons”. Apart from this we are starting a series of article on authentication with name “All about authentication”. The first article of his series will give you an overview of authentication technologies. Apart from this the issue also covers the industry updates including news, counterfeit seizure report, event review, appointment and global patents.

We are thankful to our readers for their support in last 7 years and hope that they will like the changes we are going for.

Do send us your feedback/critics at info@aspaglobal.com.

With Best Regards,
C S Jeena
Editor

Published in: Economy & Finance
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The Authentication Times, October 2014, Volume 8, Issue 25

  1. 1. The Authentication Times The Authentication Times Inaugural Issue October 2014 | Volume 8 | Issue 25 Evolution of polymer banknotes - Pros and cons www.aspaglobal.com The official newsletter of Authentication Solution Providers’ Association (ASPA) www.aspaglobal.com 1
  2. 2. The Authentication Times Inaugural Issue News Bytes Come and witness the launch of the next generation of printing presses from the leading manufacturers and be among the first to see them in action. LABEL PRINTING HAS EVOLVED Learn how cutting-edge technology, innovative new materials and intelligent labels are revitalizing in-store sales; be the solution your clients need. Secure new business, while reducing your operating costs, increasing your profits and expanding your services. Competition is fierce, tame it at the largest label and package printing event in South Asia. Register for FREE entry today at: WWW.LABELEXPO-INDIA.COM ALIVE with TECHNOLOGY 2 www.aspaglobal.com
  3. 3. The Authentication Times Inaugural Issue Viewpoint Dear Reader, Welcome to the 25th edition of our newsletter with a new name “The Authentication Times” (formerly known as The Holography Times-THT). Recently, HoMAI had completed its re-branding and now will be known as Authentication Solution Providers’ Association (ASPA). With this it is becoming inevitable for us to change the name of “The Holography Times” as “The Authentication Times”. We will now focus on providing information, industry trends and news on authentication solutions from across the globe. In the last few months, one of the two biggest economies of paper banknotes has shown their interest in polymer banknotes. Our current cover story is focus on “Evolution of polymer banknotes: pros and cons”. Apart from this we are starting a series of article on authentication with name “All about authentication”. The first article of this series will give you an overview of authentication technologies. Apart from this the issue also covers the industry updates including news, counterfeit seizure report, event review, appointments and global patents. We are thankful to our readers for their support in last 7 years and hope that they will like the changes we are going for. Do send us your feedback/critics at info@ aspaglobal.com. With Best Regards, C S Jeena Editor In this issue 4 7 12 News bytes Evolution of polymer banknotes -Pros and cons Overview Authentication Technologies Industry updates Appointments 15 Event Review 16 Counterfeit Seizure Report 17 Global Patents 18 Upcoming events 19 Announcement on change of name We are pleased to announce that The Holography Times changed its name to The Authetication Times from this issue effective October 2014. www.aspaglobal.com 3
  4. 4. The Authentication Times Inaugural Issue Leading News New €10 banknote enters circulation Portrait hologram (Source: © European Central Bank) Following the new €5 note, which has been in circulation since May 2013, the second new denomination of the Europa series €10 had entered into circulation on 23 September 2014. Like the new €5, the new €10 has several enhanced security features that draw on advances in banknote security and technology. The security features of the Europa series are easy to check 1. Portrait watermark 2. Portrait Hologram 3. Emerald number 4. Raised Print 5. Security thread using the “feel, look and tilt” method and more counterfeit-proof. A special coating on the 5 euro and 10 euro banknotes shall make them more hardwearing. The Europa series, the second series of euro banknotes, is named after a figure in Greek mythology. The portrait of Europa is featured in both the watermark and the hologram stripe. This innovation has been designed by the Eurosystem to augment the familiar architectural motifs and broaden the symbolism of a single Europe, creating an easily identifiable feature for the entire new series. Its hologram and watermark include a portrait of Europa. It also has an “emerald number”. When tilted, the shiny number displays an effect of the light that moves up and down, and also changes colour from emerald green to deep blue. Source: www.ecb.europa.eu The new NIS 50 banknote— the first in the new series of banknotes (Series C of the New Shekel)—bearing the likeness of Shaul Tchernichovsky, enters circulation on September 16, 2014. The new banknotes have a standard of security, innovation and accessibility that is among the most advanced world, and they incorporate a range of leading edge anti-counterfeiting security features, created through various technologies. In addition, the new banknotes include special features to aid the blind and vision impaired. The visible security features include, the transparent portrait, perforated numerals, raised ink, glittering stripe, golden book and the security thread, in green, interlaced into the banknote surface and revealed through three “windows” on the back of the banknote. When tilting the banknote the thread changes color. Source: www.boi.org.il Bank of Israel new 50 shekel bill introduced 4 www.aspaglobal.com
  5. 5. The Authentication Times Inaugural Issue Product Launch Datacolor unveil 45IR for security printing Portable spectrophotometer tailored to meet the needs of central banks, security ink producers, and banknote printers Datacolor®, provider of color management and color communication technology had announced the availability of Datacolor 45IR, a portable spectrophotometer uniquely designed to meet the distinct quality control and ink formulation requirements of the security printing industry. According to officials, “Datacolor 45IR will help prevent counterfeiting of banknotes and confidential government or company documents, guaranteeing quality control for all market players such as central banks, banknote printers and security ink producers”. The only high-precision portable instrument with a 3-in-1 solution, Datacolor 45IR uses industry standard 0/45 geometry for colorimetric and near infrared ranges as well as densitometric functions to provide unparalleled formulation, quality control, and authentication. Datacolor 45IR’s improved Inter Instrument Agreement enables digital color communication which increases the speed, efficiency and precision throughout the secure printing process. In addition the Datacolor 45IR features significant enhancements to improve performance, including an intuitive interface and complete on-board software for stand-alone measurement with a high resolution color screen, and a lightweight ergonomic design to improve the overall ease of use. Responding to direct customer feedback, Datacolor designed the 45IR so units can be serviced at the customer site. Through this improved technology, the 45IR removes the need for sending units back to the manufacturer, therefore streamlining the color approval process. “Quality requirements in the security ink market have risen significantly,” said Walter Franz, Global Business Development, Datacolor. “With its state of the art technology, Datacolor 45IR allows the security ink supply chain to fulfill these specific requirements and to communicate color data more efficiently.” Source: www.datacolor.com/45ir THE PREMIUM RETRANSFER PRINTER Avansia is ideal for delivering: Corporate ID cards Secure access badges Student cards Payment cards Loyalty cards / gift cards National ID cards Driver’s licenses HOW DOES RETRANSFER Evolis unveil latest retransfer printer Evolis had introduced the AVANSIA, a new printer that utilizes retransfer printing technology to deliver high quality, high durability cards. With retransfer printing, the card layout is first printed on a transparent film and then the print layer is transferred to the card. This makes it possible to cover the entire surface of the card, eliminate white edges and protect the print head from damage. AVANSIA’s 600-DPI print head delivers quality images, as well as sharp texts, microprints and watermarks. The retransfer technology supports and can improve a variety of applications: employee badges, secured access cards, student IDs, payment cards, official identification cards, driver licenses, and more. AVANSIA can issue more than 140 single-sided color cards per hour. The printer supports the delivery of cards in large runs, thanks to its large-capacity feeder and output hopper — 250 cards each — as well as consumables from the Evolis High Trust range that are engineered for this type of personalization Retransfer technology makes it possible to print on any card profile — PVC, PET, polycarbonate, ABA, etc. — even on cards with an uneven surface. To support specific requirements, AVANSIA supports all types of encoding, including magnetic stripe, contact smart cards and contactless smart cards. This printer offers additional security via an RFID-based electronic key, which can be removed in order to prevent rogue use of the printer. A mechanical lock system is also available as an option. The AVANSIA comes with a three-year standard warranty, coupled with the lifetime warranty on the print head. Source: www.evolis.com www.aspaglobal.com 5 FLAWLESS Retransfer maximizes High are watermarks Over guarantee since Evolis provides MEDIA The Avansia print polycarbonate, card contactless The standard perfect MULTIPLE To meet be confi options: contactless gured combined. TECHNOLOGY WORK? The card is printed in two phases: 1 The card design is printed by dye sublimation on a transparent fi lm. 2 The printed fi lm is then fused to the card using a thermal bonding process for fl awless results. The built-in fl attener applies pressure on the card, thus ensuring a perfectly fl at surface. Heat roller Card Print head Clear fi lm Color ribbon Flattener
  6. 6. The Authentication Times Inaugural Issue Projects Awarded De La Rue wins banknote printing contract De La Rue has been named as the preferred bidder for the 10 year contract to print plastic banknotes for the Bank of England, which is due to commence in April 2015. De La Rue Chairman, Philip Rogerson, said: “We are delighted that De La Rue has been selected as the preferred bidder for this very prestigious and important contract with the Bank of England.” The company says it will cooperate with the Bank over the weeks ahead to ensure that it conforms to all of its due diligence checks, ahead of the contract being awarded. The BoE will require De La Rue to print 12 billion banknotes. Fig.: Concept design for new polymer £5 note Plastic banknotes are set to come into circulation in 2016 in the UK, starting with the new £5 note (featuring Sir Winston Churchill), followed by the £10 (featuring Barclays unveil authentication technology Barclays has revealed what it says is the future of fraud prevention in corporate banking with the Barclays Biometric Reader, a Hitachi-developed tool that uses “vein authentication technology” to ensure secure customer authentication for corporate transactions. Revealed at an event at the bank’s Canary Wharf headquarters, the biometric reader was described by Ashok Vaswani, CEO of Barclays personal and corporate banking, as a “very, very exciting development” that will be available to corporate clients from 2015. “It’s very, very simple, yet it’s very, very secure,” Vaswani said of the device, which is designed to sit on a desk and connect to a computer via USB. The biometric reader authenticates transactions by reading the blood inside the user’s finger, something Barclays and Hitachi say is almost impossible to replicate, therefore drastically reducing the potential for fraud. Vein authentication technology works by scanning the finger with near-infrared (NIR) light. “We’re using very advanced technology that doesn’t capture a fingerprint, it actually captures the photographic view of the blood in the veins of your finger,” said Vaswani, who argued the Jane Austen) note in 2017. Source: www.delarue.com technique is far more secure than fingerprint scanning. “Fingerprinting isn’t as secure as this. This has been demonstrated to be the most distinguishable feature for any person, so it provides the highest level of security.” Source: http://www.computing. co.uk/ 6 www.aspaglobal.com
  7. 7. The Authentication Times Inaugural Issue Cover Story Author is Secretary of Authentication Solution Providers’ Association (ASPA) since 2006 and also serves as Editor of The Authentication Times. Evolution of polymer banknotes Pros and cons by C S Jeena Introduction: For hundreds of years, banknotes have been made from rag-based paper (Tang Dynasty A.D. 618-907)1. The introduction of advanced technology based systems in the banking services world over resulted in great changes in terms of how financial institutions offer services to customers. Today, banknote issuers are faced with the challenge of increasingly sophisticated counterfeiting techniques and there are serious doubts that paper remains a viable material for secure banknotes. It’s seems that paper currency is going the way of other objects/things (Tape-recorder, VCR’s) that have become obsolete. Recently, one of the world two biggest users of paper banknotes India and England had announced their plans to introduce polymer currency. The Bank of England’s (BoE) inaugural polymer bill, a 5 pound note, will debut in 2016 featuring former Prime Minister Winston Churchill. On the other hand, The Reserve Bank of India (RBI) is planning to introduce plastic currency next year on a pilot basis. According to officials of BoE there were around 3 billion pieces2 in circulation, while the officials of RBI estimated approximately 76.47 billion pieces3 in circulation. So far, Great Globally, many countries are shifting or opted polymer banknotes in place of paper bank notes for their increase shelf life, cost of production and improve security features. Recently, one of the world two biggest users of paper banknotes India and England had announced their plans to introduce polymer currency. The Bank of England (BoE) had announced plans to start printing money on polymer by next year, it has been issuing for more than 300 years. On the other hand, The Reserve Bank of India (RBI) is planning to introduce plastic currency next year on a pilot basis. The article analyses the brief history, pros and cons of polymer banknotes. 1. Paper history, journal of the International Association of Paper Historians, Volume 14, Year 2010, Issue 2 2. Counterfeit Bank of England Banknotes, http://www.bankofengland.co.uk/banknotes/pages/about/counterfeits.aspx 3. Currency Management in India: Issues and Challenges, (Keynote address by Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India at the Banknote Conference 2014, Washington on April 8, 2014), http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?id=889 www.aspaglobal.com 7
  8. 8. The Authentication Times Inaugural Issue Britain is the world’s biggest economy to announce a switch to polymer notes4. What are Polymer Banknotes & how it started? Polymer banknotes are banknotes made from a polymer such as bi-axially oriented polypropylene (BOPP). The first polymer bank note was issued in 1974 in Haiti and printed on Tyvek®, a synthetic fibre material, jointly pioneered by American Banknote Co. (ABNC) and Du Pont. Only Costa Rica and Haiti issued Tyvek® banknotes; test notes were produced for Ecuador, El Salvador, Honduras and Venezuela but never placed in circulation. Ten Years later in 1984, English printers Bradbury Wilkinson produced a version on Tyvek but marketed as Bradvek for the Island of Man with Tyvek® 1 GBP notes. These first plastic notes were printed on generic, white coloured substrate without windows or any other security feature. These first issues were Cover Story Fig. 1: The first polymer bank note. Special Bicentennial issue. Courtesy Reserve Bank of Australia not successful, mainly because ink failed to adhere during circulation5. How are polymer notes made? A clear laminated polymer film (BOPP consisting of two laminated layers of 37.5 μm each) is the basis of the note. The film is made opaque (opacified) by the application of special inks, except for certain areas that result in clear windows or other features. Further, printing plates, polymer substrate, special inks and high technology printing machinery are brought together to produce the currency notes. Colourful background designs are printed simultaneously with both sides of the opacified polymer substrate using an offset printing process which results in a flat print.6 The first commercial success (See fig. 1) The first successfully introduced a modern polymer banknotes note was issued in 1988 by the Central Reserve Bank of Australia (1988, 4. Bank of England signs up supplier for plastic bank notes http://uk.reuters.com/article/2014/03/12/uk-britain-boe-banknotes-idUKBREA2B0KT20140312 5. Durable banknotes: an overview, Hans de Heij, De Nederlandsche Bank N.V. 6. http://www.rba.gov.au/Museum/Displays/1988_onwards_polymer_currency_notes/how_are_notes_made.html 8 www.aspaglobal.com
  9. 9. The Authentication Times Inaugural Issue Table: List of countries currently issuing Guardian, the denomination they issue, and the year they first used. Country First Unit of Currency Denominations Australia 1988 Australian dollar $5, $10, $20, $50, $100 Papua New Guinea 1991 Papua New Guinean kina K2, K5, K10, K20, K50, K100 Singapore 1991 Singapore dollar S$2, S$5, S$10, Commemorative S$50 (1990), S$20 (2007) Brunei 1996 Brunei dollar B$1, B$5, B$10, B$50, B$100, B$500, B$1000, B$10000, Commemorative B$20 (2007) Malaysia 1998 Malaysian ringgit RM1, RM5, Commemorative RM50 New Zealand 1999 New Zealand dollar NZ$5, NZ$10, NZ$20, NZ$50, NZ$100 Commemorative $10 (2000) Romania 1999 Romanian leu 1L, 5L, 10L, 50L, 100L, 200L, 500L, 10,000L, 50,000L, 100,000L, 500,000L, 1,000,000L Commemorative 2000L (1999) Vietnam 2001 Vietnamese dong 10,000 , 20,000 , 50,000 , 100,000 , 200,000 , 500,000, Commemorative 50 (2001) Mexico 2002 Mexican peso $20, $50, Commemorative $100 (2009) Chile 2004 Chilean peso $1000, $2000, $5000 Guatemala 2007 Guatemalan quetzal Q1, Q5 Hong Kong 2007 Hong Kong dollar HK$10 Nigeria 2007 Nigerian naira N5, N10, N20, N50, Commemorative N50 (2010) Israel 2008 Israeli new shekel NIS20 Nicaragua 2009 Nicaraguan cordoba C$10, C$20, C$200, Commemorative C$50 (2010) Paraguay 2009 Paraguayan guarani G2000 G5000 Dominican Republic 2010 Dominican peso oro RD$20 Honduras 2010 Honduran lempira L20 Vanuatu 2010 Vanuatu vatu VT200, VT1,000, VT2,000, VT10,000 Canada 2011 Canadian dollar $5, $10, $20, $50, $100 Costa Rica 2011 Costa Rica colones ₡1000 Mozambique 2011 Mozambique metical 20MT, 50MT, 100MT Mauritius 2013 Mauritian rupee Rs25, Rs50 Source: www.innoviaseurity.com as updated on March 2014 ASD 10), printed on Guardian®, made by Securency. It was printed on ‘Guardian®’, made by Securency. Subsequently, in 1996 Australia switched completely to polymer banknotes7. After Australia many other countries have introduced polymer banknotes, of which several have completely switched from paper to polymer. In 2011, Commonwealth Scientific and Industrial Research Organisation (CSIRO) estimated that there are over thirty different denominations totalling some 3 billion polymer notes in service in 22 countries worldwide. According to Reserve Bank of Australia, “As of 2013 twenty nine (29) countries have issued polymer notes printed on Australian-made polymer substrates”8. Cover Story 7. The world’s first polymer banknote, http://www.csiro.au/Organisation-Structure/Flagships/Future-Manufacturing-Flagship/Flexible- Electronics/World-first-polymer-banknote.aspx 8. Exports of Polymer Notes, Reserve Bank of Australia, http://www.rba.gov.au/Museum/Displays/1988_onwards_polymer_currency_notes/export_of_notes.html www.aspaglobal.com 9
  10. 10. The Authentication Times Inaugural Issue Why countries have opted polymer banknotes? The main reasons countries have opted for polymer currencies are security and durability. i) Security: These banknotes are tougher and more expensive to counterfeit than money printed on traditional cotton-based paper, and include new security features such as a transparent window, optical variable devices, shadow images etc. etc. A key feature is a clear window, which normally contains an ‘optical variable device’ that splits light into its component colours and is extremely hard to counterfeit. Plastic notes can also contain holograms. ii) Longer life and durability: Plastic notes last much longer than cotton fibre-based paper ones. For instance, an Australian $5 bill lasts about 40 months, against six months for a £5 note. According to Gerry Wilson of Australia-based Commonwealth Scientific and Industrial Research Organisation (CSIRO), the polymer notes have longer lifetime and can be produced at a faster rate than paper currency. They also stay spiffier longer because they’re more dirt-and moisture resistant and are at least 2.5 times more durable than paper currency. This life increase is not caused by the polymer substrate, but also by the post printed varnish used on these notes – two different types to create a better grip for e.g. the use in ATMs. Countries like India can be benefited as, according to RBI on an average, 1 out of 5 paper note in circulation (over 20 per cent) gets disposed of Cover Story every year after getting soiled and the number of such soiled currency bills stood at over 13 billion units during the financial year 2011-129. iii) Economical in the long run: Although polymer banknote cost more they can be economical in the long run. The BoE estimates that printing the £5 and £10 notes on plastic, rather than paper, will cut production costs by a quarter, or £100m, over the next ten years10. iv) Hygiene: Polymer notes are more hygienic as they absorb fewer bacteria, harder to tear or crease – making them easier for vending machines – and waterproof, even able to survive being put in the washing machine. v) Environment friendly: Most of the paper based banknotes are 75% cotton – which takes large amounts of pesticides and water to produce. On the other hand, the base material of polymer is a non-renewable resource, but due to its recyclability, it has more than one life. For example, The Reserve Bank engaged the services of The Energy and Resources Institute (TERI) to conduct a study on the carbon footprint of cotton-based banknote paper substrate vis-à- vis plastic-based substrate and to estimate their overall environmental impact, taking into account their complete lifecycles. The Life Cycle Impact Assessment results for the two types of notes indicate that replacing cotton-based notes with plastic-based notes would have significant environmental benefits. Polymer/plastic banknotes (and the waste On an average, 1 out of 5 paper note in circulation (over 20 per cent) gets disposed of every year 9. RBI gears up for plastic notes as 20% paper bills get soiled, The Economics Times, May 12, 2013. 10. Bank of England signs up supplier for plastic bank notes, Reuters, Mar 12, 2014. 10 www.aspaglobal.com
  11. 11. The Authentication Times Inaugural Issue Cover Story from production) can be granulated and recycled into useful plastic products such as compost bins, plumbing fittings and other household and industrial products11. Some apprehensions? Polymer banknotes have some disadvantages also, such as; i) Environmental conditions: The official said that the biggest concern over plastic currency was that it was never tried out in such extreme weather conditions like India. The extreme weather means that the notes have to survive temperatures over 40 degrees in some states and sub-zero temperatures in parts of the Himalayas and high level of humidity in parts of the country. In 1982 and 1983, the American Bank Note Company printed banknotes for Costa Rica and Haiti on DuPont’s Tyvek® polymers. These had fairly limited release, but did circulate in each country. Additional trial and specimen banknotes were developed for Honduras and El Salvador. Unfortunately, in tropical climates, ink did not bind well to the polymer and the notes began smearing quite badly. ii) They are harder to fold and more slippery, which makes them harder to count by hand. iii) Issue of recycling: Some less developed countries may not have the facilities to recycle them - and when they burn they pollute the air. iv) High cost: In addition, polymer notes cost more to produce in the short-term, which could be a drawback for developing countries. The payback from their extra durability only comes over time. v) Cotton banknotes stride forward: According to polymer researcher Stane Straus, the security gap between paper and plastic notes is closing. It is now possible to make “hybrid notes” - paper notes with a transparent polymer window. vi) Monopolistic situation: The supply of, and the technology for producing, plastic currency are a big business for the Reserve Bank of Australia. Plastic currency is now used by 22 countries (approximately) around the world. But it is also apparent that Australian parties have been involved in bribing high officials in Malaysia, Indonesia and Vietnam (at least) in securing contracts for plastic currency. The Australian courts are apparently cooperating in some form of cover-up. That has become apparent from the Wikileaks release of a gagging order by the Supreme Court of Victoria at Melbourne where the court forbids12. Another factor could the conservatism of central bankers. “Central banks are very conservative institutions,” Stane Straus says. “People making the decision to convert to polymer - partially or fully - are taking a personal risk.”Many central banks are simply waiting until others convert and then they will follow.” Further, not all central banks are convinced of the use of Polymer notes. The Central Bank of Bangladesh also decided to return to cotton paper after their experiences with a 10Taka polymer note. In June 2001, the Solomon Islands issued $2 polymer banknotes, However they reverted to paper notes in 2006. Last year, The Central Bank of Nigeria (CBN) returned to paper currency from plastic which were introduced in 2009. Today, approxmately 22 countries use polymer banknotes, but only few have converted all denominations into plastic. One country that doesn’t look like it’ll be abandoning paper for plastic anytime soon is America. Last year, the Federal Reserve launched a new $100 bill, the second most common bill in circulation after the $bill with security features including 3-D security ribbon and color-shifting ink. Conclusion: It’s almost 20 years since first polymer bank notes were introduced by Australia. In the future bank notes will be much used by automats like ATMs and banknote acceptors. From this prospective, polymer bank notes seems to behave better than cotton based banknotes. Feeding polymer notes into an automat is easier because such notes are less affected by tears, missing parts and clipped corners. Also from ‘green’ perspective polymer banknotes seems to have better performance when it comes to environmental and sustainability aspects. 11. RBI Annual Report 2013-14, Chapter VIII Currency Management, Plastic Banknotes carbon footprint. 12. http://wikileaks.org/aus-suppression-order1press.html. 13. Durable banknotes - De Nederlandsche Bank 14. Central Bank of Nigeria, www.canbank.org www.aspaglobal.com 11
  12. 12. The Authentication Times Inaugural Issue All about Authentication Overview Authentication Technologies With the availability of various authentication solutions, companies and Government authorities are facing problem in selection of a specific authentication solution as the adoption of any given solution is a complex question involving issues, amongst others, of cost, compatibility, feasibility and reliability, and there are divergent views on which technologies should be adopted and the timing for their adoption. While these solutions can sometimes add to the problem, the right selection, usage & implementation of authentication solutions helps companies and authorities to keep them one step ahead of counterfeiting. For the reason The Authentication Times team decided to start a series of article on Authentication Technoligies. This is the first article of this series giving an overview of authentication technologies to the reader, and this will be followed by detailed articles on anti-counterfeiting, anti-tampering and tracking and tracing. Authentication: With the increase in counterfeiting, Authentication technologies play an important role in supporting brand strategies, helping to reduce the risk of fraud by deterring criminals and enabling stakeholders to identify and track genuine product with fake one. Today, there are various number of authentication technologies available in the market, although all these technologies are applied in the three main areas of i) Anti-Counterfeiting ii) Anti-Tampering, and iii) Track and Trace Anti-Counterfeiting: The common feature of anti-counterfeiting technologies is that they are edrtremely difficult to be counterfeited. Consequently, they help in identifying a genuine product. Based on the authentication requirements, such technologies may consist of overt, covert and forensic features, or a mix thereof. Anti-Tampering: Such solutions are found more in the food and pharmaceutical industry where there is a need to protect a product from adulteration or replacement. An intact anti-tampering feature is the consumers’ assurance that the contents are genuine and not tampered or adulterated. Track and Trace: Track and trace technologies use mass serialization to provide a unique identity to each SKU. The IT technology then allows to keep a watch on each SKU through customised software that allow an authorised user to track the movement of this SKU across the entire supply chain. Depending upon the authorization level, each user may also be able to access additional information pertaining to the product such as manufacturing date and factory, expiry date, the market such SKU is meant for etc. All these technologies can be categorised as either overt, covert, forensic or digital. Overt, Covert, Forensic or Digital Overt: Overt technologies are authentication devices built into labels, documents and packaging which are visible to the user and show dynamic visual effects. Their main advantage is the fast and easy, on the spot, visual authentication where no 12 www.aspaglobal.com
  13. 13. The Authentication Times Inaugural Issue All about Authentication Authentication Technologies Anti-counterfeiting Anti-tamper Tracking EAS Tag & Systems Tamper Evident Labels Tear Tapes/ Delaminating Films/Patterned Destruct Films / Labels Optical Security Technologies Holograms / Zero diffraction Devices/Floating/ Sinking image films/color shifting films/ retroreflective Evident Closures Shrink Sleeves or Films/ Induction Security Printing Tamper Seals Security inks and coatings Substrates- Security Papers Fig: Diagram showing the primarily used authentication technologies additional devices are needed. Overt features are expected to fulfil three main criteria; - Communicate with the verifier - Be easy to identify - Be hard to copy and imitate Physical secure solutions offering overt features include fine-line design, security guilloches, holograms, optically variable devices (OVDs), watermarks, films Track & Trace Systems Chemical and molecular taggants and nanotechnologies colour-shift and thermochromic inks, threads, foils and laminates, embossable and laser markable films and security papers. Overt features can be made more secure by combining them with covert, forensic and digital features. As Overt can be used for identification and verification by consumer, Covert (Verification by a predetermined device or a tool) can be used by manufacturer Microtext/ Nanotext/ Guilloche Intaglio ink/ Fluorescent ink/ infrared ink/ thermochromic / optically variable ink /pearlescent varnishes/tagged inks www.aspaglobal.com 13
  14. 14. The Authentication Times Inaugural Issue All about Authentication Diagram: Overt feature (security hologram strip) applied on pharmaceutical product label or their channel partner for an advanced level of authentication and verification. The third level is highly sophisticated and can be used by forensic experts and can be useful to law enforcement and for evidence in case of litigation. Mainly classified as overt technologies holograms produced in high security environment provide covert as well as forensic features. Covert: Covert technologies are not instantly recognisable. They require a special reader or detector to be able to verify their presence and validity, and people using covert technologies will normally require some kind of training. Covert technologies include ultraviolet and infrared inks, micro text, unique synthetic tagging etc. Forensic: Forensic technologies, being covert, are not readily recognisable and require special tools for detection and validation. Whereas covert technologies can be detected and validated in the field, forensic technologies must often be taken to a laboratory with specialised equipment. Digital: Digital technologies may be either overt or covert, but all require an electronic means for detection and validation. Digital technologies are most associated with RFID tags or with serialised numbers that can be compared to a remote database. Conclusion In today’s world when brand are under attack in forms of counterfeiting, tampering, pilfering, Authentication technologies play an important role in protecting brand reputation, value, market share and above all trust of customers. Counterfeiters target well known brands for illegal profit, which is further used to finance terrorist organization. Therefore, a product without authentication technologies represents a significant potential risk to society at large. There is no single solution to every problem, hence, a proper brand protection strategy involve combination of technologies with proper enforcement. It is pertinent to mention here ISO:12931 titled “Performance criteria for authentication solutions used to combat counterfeiting of material goods”. This standard lays down some of the best practices to help brand owners to strategise and fight counterfeiting effectively. We believe that this tool should be adopted by all brand owners to eliminate counterfeit. The next article will focus on anti-counterfeiting technologies in more details. 14 www.aspaglobal.com
  15. 15. Inaugural Issue Industry Update The Authentication Times Appointments Bobst Promotes Brian Kentopp to Vice President, Business Unit Sheet Fed Bobst North America announced that Brian Kentopp has been promoted to vice president, business unit sheet fed for North America effective June 9. Brian will be responsible for all corrugated board and folding carton business in the U.S. and Canada. Previously, Brian had been director of sales for corrugated board, served as product manager for corrugated board, and began his career at Bobst in 2002 as regional sales manager for corrugated board in the Midwest. Nanotech appoints Troy Bullock as cfo Nanotech Security Corp. appointed Mr. Troy Bullock, CPA, CA, as its new Chief Financial Officer replacing Mr. Brian Causey, CPA, CA, who has served in this role over the last four years and who will remain a valued director of the Company. Mr. Bullock is a senior finance professional with more than 20 years of international experience who has a strong track record in both public and private companies with public accounting, restructuring and corporate finance duties at KPMG and Deloitte. OpSec Security Group plc appoints Richard S. Cremona as CEO OpSec Security Group plc, a leading supplier of anti-counterfeiting technologies and services announced that Richard S. Cremona has been appointed as Chief Executive Officer of the Company. Subject to the satisfactory completion of the necessary regulatory requirements, the Company intends to appoint Mr. Cremona to the Board of Directors in due course. Mr. Cremona has held a wide variety of executive management positions with AT&T, Lucent Technologies, Sprint and Openwave Systems. From 2008 to 2013, he was Chief Executive Officer of Kentrox Inc. In 2013, Kentrox was acquired by Westell Technologies (WSTL), at which time he joined Westell Technologies as its Chief Operating Officer. For more information visit www. opsecsecurity. Nigerian Security Printing and Minting appoint Joseph Ugbo as New MD Mr Joseph Ugbo has been appointed as new managing director of NSPMP. Mr Ugbo is a seasoned Chemical Engineer with over 29 years of engineering and managerial experience with international reputed manufacturing companies. Prior to this appointment, Ugbo had worked in various levels and countries of Unilever Plc and rose to the position of Head of manufacturing where he coordinated all General Managers in manufacturing in the entire company. www.aspaglobal.com 15
  16. 16. The Authentication Times Inaugural Issue Industry Update Event Review Tax Stamp Forum, Dubai, United Arab Emirates, 15-17 September, 2014 www.taxstampforum.com Organised by Reconnaissance International, the 5th TAX STAMP FORUM was held on 15-17 September 2014 at Dubai, United Arab Emirates. Over 230 delegates from 120 companies / organisation’s participated at this event. The conference opened with workshop on The Anatomy of a Tax Stamp followed by a discussion on feasibility of a Tax Stamp Association. At the event, The International Banknote Designers Association presented a series of papers focusing on security, functionality and durability of the banknotes and the various needs, expectations and limitations each of the stakeholders of the cash cycle is faced with. In total, 27 papers were presented by various speakers including Authentication Solutions Providers Association - ASPA (formerly HoMAI - Hologram Manufacturers Association of India), Ghana Revenue Authority, SICPA, Securikett, Tullis Russell, Shantalla, World Customs Organisations, Hueck Folien , UN Interregional Crime and Justice Research Institute (UNICRI) , Xerox , PURA and more. ASPA President, Manoj Kochar presented paper on increasing revenues and curbing illegal Liquor in India. He presented an overview of Indian Tax Stamp market and the role of ASPA in curbing illicit liquor. Tax Stamp Award The event also comprised the Tax Stamp Awards recognising excellence in the design, innovation and implementation of tax stamp programmes. 1. The Best Design Award for implementation of tax stamps on alcohol products was awarded to Mauritius Revenue Authority. 2. The Best New Innovation Award was jointly awarded to AM-PG for VeroCode and Armenia’s Tax Stamps and OpSec Security and Xerox for Digital Cigarette Stamps for the State of Michigan Picture: Armenia Tax Stamp The Tax Service of the Republic of Armenia has introduced tax stamps for over 20 types of consumer products. The system uses AM-PG’s Vero 2D Code Track & Trace system along with the company’s secure bimetal holographic labels. This utilises proprietary custom-created closed algorithms to generate unique codes for each client that are applied onto tax stamps and cannot be re-engineered, cloned or mass copied. On the other hand solution fully integrates a highly sophisticated, nano-structured, encrypted digital tax stamp known as SecureITT (manufactured by OpSec) with Xerox’s eTRACS system. Picture: digital tax stamp The award for best tax stamp programme was awarded to Kenya Revenue Authority for Excisable Goods Management System to Eliminate Illicit Trade and Enhance Tax Collection. This system for the protection of excise tax revenue comprises an enhanced excise stamp with multiple security layers for various stakeholders along the supply chain; production accounting; and track and trace modules. It also provides for online forecasting, application and processing of stamps, accounts management, stock control module, tax forecasting and business intelligence modules. This has led to reduced costs tax compliance, faster access to stamps and enhanced service delivery. As a result, Kenya Revenue Authority has seized over 300,000 illegitimate products from about 900 outlets, prosecuted more than 150 offenders and increased excise revenue on spirits by 53% between February and June 2014. Source: Reconnaissance International 16 www.aspaglobal.com
  17. 17. The Authentication Times Inaugural Issue Industry Updates Counterfeit seizure report Food & Beverage Fake foods rife in South Africa http://www.health24.com/Lifestyle/ Healthy-you/Fake-foods-flood-South- Africa-20140909 Crackdown on illicit liquor sale, 2,880 bottles seized, New Delhi http://www.asianage.com/delhi/ crackdown-illicit-liquor-sale-2880- bottles-seized-590 One arrested with 290 boxes of illicit liquor, Punjab http://www.hindustantimes.com/ punjab/ludhiana/one-arrested-with- 290-boxes-of-illicit-liquor/ article1-1269161.aspx?hts0021 10 cartons of illicit liquor seized, two held, Punjab http://www.hindustantimes.com/ punjab/ludhiana/10-cartons-of-illicit- liquor-seized-two-held/ article1-1266508.aspx Four arrested with illicit liquor worth Rs 87,000, Madhya Pradesh http://freepressjournal.in/four-arrested-with- illicit-liquor-worth-rs-87000/ Liquor, chemicals worth 6L confiscated, Maharashtra http://timesofindia.indiatimes.com/ city/nashik/Liquor-chemicals-worth-6L-confiscated/ articleshow/43690703.cms Crackdown on illicit liquor sale, Hyderabad http://www.deccanchronicle. com/140917/nation-current-affairs/ article/crackdown-illicit-liquor-sale Cosmetics and Personal Care SFDA cracks down on fake cosmetics https://en-maktoob.news.yahoo. com/sfda-cracks-down-fake-cosmetics- 050115683.html £10 million worth of fake cosmetics seized at Channel Tunnel http://www.cosmopolitan.co.uk/beauty-hair/ makeup/news/a29398/10-mill-fake- cosmetics-seize/ Two fake cosmetic factories fined in Rajshahi, Dhaka http://www.dhakatribune.com/ crime/2014/sep/16/two-fake-cosmetic-factories- fined-rajshahi Fake drugs and cosmetics worth Dh17m seized http://gulfnews.com/news/gulf/uae/ general/fake-drugs-and-cosmetics-worth- dh17m-seized-1.1381894 Handbags, Legos among more than $500K in fake goods seized at Houston-Galveston seaport http://www.click2houston. com/news/500k-in-fake-goods-including- handbags-legos-seized-at-seaport/ 28391526 Pharmaceuticals Los Angeles cracking down on sale of illegal pharmaceuticals http://abc7.com/news/la-cracking-down- on-illegal-pharmaceutical-sales/ 335517/ CEO of Vietnam drug firm held for alleged smuggling http://tuoitrenews.vn/society/22599/ ceo-of-drug-firm-vn-pharma-held-for-alleged- smuggling Clothing and Accessories Cyber cell raids counterfeit goods godown in Chandigarh http://timesofindia.indiatimes.com/city/ chandigarh/Cyber-cell-raids-counterfeit-goods- godown-in-Chandigarh/ articleshow/43474325.cms Interpol op nets RM162 million fake goods across Asia http://www.themalaysianinsider.com/ world/article/interpol-op-nets-rm162- million-fake-goods-across-asia#sthash. YPsLExU1.dpuf Counterfeit Louis Vuitton Goods Worth One Billion Yuan Are Seized in Southern China http://www.theepochtimes.com/ n3/966058-counterfeit-louis-vuitton-goods- worth-one-billion-yuan-are-seized- in-southern-china/ P500M fake goods seized from Manila warehouses http://www.philstar.com/ nation/2014/10/03/1376069/p500m-fake- goods-seized-manila-warehouses Gucci, Tiffany dealt blow in fake goods case against China banks http://www.firstpost.com/fwire/gucci-tiffany- dealt-blow-in-fake-goods-case-against- china-banks-1717605.html Security and Fiduciary Documents Police crack counterfeiting ring in Regina, http://globalnews.ca/news/1581337/ police-crack-counterfeiting-ring-in-regina/ Counterfeiting on the rise, warns Reserve Bank, Australia http://www.smh.com.au/business/ banking-and-finance/counterfeiting-on-the- rise-warns-reserve-bank-20140909- 10ee7b.html Two charged with counterfeiting bills http://www.thedailystar.com/news/ local_news/article_6a5710da-b639-58ce-a65d- 5358707cb954.html Italy makes massive seizure of counterfeit euro banknotes http://www.reuters.com/ article/2014/09/24/us-italy-counterfeit-euro- idUSKCN0HJ16Q20140924 www.aspaglobal.com 17
  18. 18. Inaugural Issue Industry Updates The Authentication Times Global patents Publication Title Int. Application Applicant / Inventor DD.MM.YYYY Class Number 25.09.2014 WO/2014/152775 - C12Q 1/68 PCT/US2014/027718 Certirx Nucleic acid-based Corporation/ authentication and Mercolino, identification codes Thomas, J. Brief Abstract: The present disclosure relates to nucleic-acid based product authentication and identification by determining authentication codes comprising target nucleic acids using oligonucleotide probes associated with samples. The presence of the authentication code is determined using detection methods, such as flow cytometric methods, capable of particle discrimination based on the light scattering or fluorescence properties of the particle. Target-correlated fluorescence signal, originating from a target nucleic acid hybridized to labeled complementary oligonucleotides is determined as an indicator of the presence of the authentication code. In some embodiments, an intercalating dye is used to determine the presence of target nucleotide/oligonucleotide heterodimers and identify an authentication code. 18.09.2014 20140267754 - Method for B42D 15/00 13833630 LUXTREME LIMITED/ applying a security marking to Rantala Juha an object and a hyper-spectral imaging reader Brief Abstract: : Provided is a method for applying a security marking to an object and a hyper-spectral imaging device to readout the embedded information in the security marking to verify the object’s authenticity. The present invention relates generally to the field of security markings and anti-counterfeiting technologies. More particularly to optical product authentication methods, which are based on photoactive nanoparticles emitting in visible and near-infrared wavelengths when excited with ultra violet or near infrared light. 11.09.2014 20140252081 - Method and G06Q 30/06 14197561 Gutierrez Robert apparatus for authenticating, tracking, and marketing products Brief Abstract: A method and system for marketing products with digital codes that may be scanned by a cell phone to establish communications with a website including information about the product. The digital codes identify the unique product as well as the general class of similar products and this allows the website to establish and record information that tracks the movement of the product over time for product authentication, mobile marketing, and the like, for use by authorized personnel. 04.09.2014 WO/2014/133384 - Process of D06P 1/00 PCT/NL2014/050113 Feyecon development marking a textile substrate & implementation B.V./ Van Der Kraan, Martijn Brief Abstract: The invention relates to the marking of textile products that have been dyed using a supercritical dyeing process. More particularly, the invention provides a process of marking a textile substrate with a tracer, said process comprising contacting the textile substrate with a supercritical or near-critical dyeing medium containing a dye and a tracer, said tracer being selected from a metal chelate and a chemiluminescent agent. The process of the present invention uses the supercritical or near-critical dyeing medium as a vehicle for depositing a tracer onto the textile substrate that is also dyed using this medium. The presence of the deposited tracer on the dyed textile can be detected using a simple and reliable authentication method. The invention also concerns a marked textile productobtained by the aforementioned process. Also provided are a dyeing composition that can be used in the aforementioned process as well as methods for authenticating textile products that have been marked using his process. 18 www.aspaglobal.com
  19. 19. The Authentication Times Inaugural Issue Industry Updates Upcoming events Date Event Name / Place / Website 29 Oct-1Nov, 2014 Label Expo India* Pragati Maidan, New Delhi, www.labelexpo-india.com 16-19Nov, 2014 African Banknote Conference Cape Town, South Africa, www.africanbanknote.com 19-20 Nov, 2014 9th Annual Brand Protection and Anti-Counterfeiting Summit Munich, Germany, www.brandprotectionevent.com 3-5 Dec, 2014 The Holography Conference* Istanbul, Turkey, www.theholographyconference.com 19-21 Jan, 2015 High Security Printing 2015, Asia, Middle East & Africa Manila, The Philippines, www.hsp-asia.com 3-5 Mar, 2015 IP Protect Expo 2015 London, UK, www.ip-protectexpo.com 23-25 Mar, 2015 High Security Printing 2015, Europe Budapest, Hungary, www.hsp-europe.com 22-24 Apr , 2015 Security Printers 2015 Copenhagen, Denmark, www.securityprinters.org 10-13 May, 2015 The currency conference Vancouver, Canada, www.currencyconference.com 13-15 May, 2015 Pharma Pro Pack Expo* Mumbai, India, www.pharmapropack.com 9-11 Jun, 2015 Security Document World London, UK, www.sdw2014.com Published by Authentication Solution Providers’ Assciation (ASPA) Editorial Team Issue Editor : C S Jeena Advisor : Mr. Pradip H Shroff Mr. Manoj Kochar Designed & : EYEDEA Advertising Printed by 1250/13, Govindpuri, Kalkaji, New Delhi-19 (India) eyedeaadvertising@gmail.com www.artworxindia.in The Authentication Times is a quarterly newsletter published by ASPA with an aim to provide latest developments, research, articles, patents and industry news to a wide audience related to Authenticatoni in India and World. The editorial team welcomes your news, contributions and comments. Please send your product updates, press releases, conference announcements or other contributions to ASPA: 21-Ground Floor, Devika Tower 6 Nehru Place, New Delhi 110019, India Telfax: +91 (11) 41617369 Email: info@aspaglobal.com Website: www.aspaglobal.com Disclaimer: The data used here are from various published and electronically available primary and secondary sources. Despite due diligence the source data may contain occasional errors. In such instances, ASPA would not be responsible for such errors. Diverse technologies, common goal. Authentication Solution Providers’ Association (ASPA) is a self-regulated, non-profit organization of authentication solution providers. Founded in 1998 as Hologram Manufacturers Association of India (HoMAI), it has now been re-launched in 2014 as ASPA to more accurately represent the transformation of products and services offered by its existing member companies. The broader scope of ASPA also covers a wide array of other technologies that have evolved over the years. As the world’s first and only industry body of its kind, ASPA aims to comprehensively covers the interests of the entire authentication solutions industry worldwide, including, but not limited to, holograms, optically variable devices (OVD’s), taggants, security inks and substrates, watermarks, nanotechnologies, RFIDs, barcode/ QR code-based digital tracking and verification solutions, security and tamper-evident labels and any other brand protection and authentication solutions. ASPA works closely with global authorities such as International Hologram Manufacturers Association (IHMA), Counterfeit Intelligence Bureau (CIB) and Interpol. ASPA members protect over 10,000 brands worldwide through the identification of genuine products and documents. * ASPA participating events. Meet us at these events to know more about us. www.aspaglobal.com 19
  20. 20. The Authentication Times Inaugural Issue 20 www.aspaglobal.com

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