High tech hologram can uproot tobacco counterfeiting

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TM
The Holography Times
An endeavour to safeguard products and people
1
The Holography Times
April 2010 | Volume 4 | Issue 10 www.homai.org
High tech
HOLOGRAMS
can uproot
tobacco
counterfeiting
The Holography Times is a quarterly newsletter published by Hologram Manufacturers Association of India (HoMAI).

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Tobacco counterfeiting and tax evasion are problems that have
existed for legitimate manufacturers, government agencies and
its users since long. Whenever a tobacco product is counterfeited, it
poses serious risks to its users. Governments suffer as counterfeit
products escape taxation. This is because such goods are either
smuggled or come with forged documents. Manufacturers suffer
due to lost revenues and hampered brand image. Workers suffer as
counterfeit products directly affect employment leading to fewer jobs
in the legitimate manufacturing sector. Consumers suffer because
they are duped into buying an inferior copy of the legitimate product,
which may present serious and unforeseen health risks. Moreover,
even societies suffer as counterfeiting, to an extent, is proven to
support organized crime.
So, the real question that arises is
1. What are tobacco manufacturers doing to protect them from
saving their products and profi ts?
2. What are governments doing to fi ght this problem?
The answer may be a hologram, which is used globally since the
past 15 years as an important authentication device for government
tax stamps. In this issue of THE HOLOGRAPHY TIMES, we
feature views on how “HIGH TECH HOLOGRAM CAN UPROOT
TOBACCO COUNTERFEITING”. Here we will give you a snapshot
on the tobacco industry, the extent of tobacco counterfeiting both
in India and globally, the challenges that governments and brands
face in an era of globalization, and the solution in a Holographic tax
stamp.
We also aim to look at various holographic developments worldwide
such as HOLOPRINTTM - the revolutionary machinery developed by
Stensborg and Bobst VISIONFOIL. Besides this, there are features
like newsbytes, company profi le and industry updates to keep you
informed.
As always, we value your comments on this issue of
The Holography Times.
Please send them to info@homai.org.
Best Wishes,
Team HoMAI!
In this issue
Editorial
News Bytes 4-6
High tech hologram
can uproot
tobacco
counterfeiting 8
Holostik security solutions
for the tobacco market
UV assisted
casting of
microstructures
for high-volume
production of
diffractive optical
elements on foil
13
Industry Updates 19
Editorial Board
Neha Gupta, Editor in Chief
C S Jeena, Editor
12
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BOBST visionfoil provides ultraprecise
hologram application
The newly launched visionfoil is dedicated to hologram industry
BOBST GROUP, the leading supplier
of equipment and services for the
folding carton, corrugated board and
fl exible materials industries has recently
launched a version of its VISIONFOIL
press, dedicated to security hologram
application.
As more and more industries look for
solutions to protect the authenticity of
their products, holographic materials
offer an ideal solution, helping its brand
owners make a clear difference between
originals and forgeries, deterring
counterfeiters. However, reproducing
holograms, and placing them accurately
on the product, require specialized
equipment. Until 2010, the reference
machine for fl at-to-fl at hologram
application on paper, labels, or board
has been the BOBST SP 76-BM foil
master. Now BOBST has introduced the
VISIONFOIL 104 H to deliver hologram
application of utmost accuracy.
The VISIONFOIL 104 H uses BOBST’s
patented, high precision registration
cameras to bring each hologram on the
sheet into perfect register, be they 2-
D, 2-D/2-D, 3-D, 2-D/3-D, or
multiplexed. The same cameras
process diffraction foils,
skipping the unusable
shim line areas. All
current sizes of
holograms
can be
processed using the VISIONFOIL 104
H. The smooth foil path created by the
specially designed internal foil unwind
module, enables high precision foil
handling and better productivity. The
cameras are auto-setting, reducing make-ready
time. Up to six independently
driven advance shafts, increase fl exibility
and cut down on foil waste. The platen
entry easily handles light materials
which make up the majority of security
print jobs.
Alongside its hologram application
capabilities, the VISIONFOIL 104 H
is highly fl exible, being able to apply
conventional as well as holographic
foil. The press shares with the rest of
the VISIONFOIL 104 range a maximum
running speed of 7,500 sheets per hour,
along with the ability to run paper and
labels down to 80 gsm, carton board to
2000 gsm, and corrugated sheets up to
4 mm in thickness. The maximum sheet
size the VISIONFOIL 104 H can handle
is 1040x740 mm.
The VISIONFOIL 104 H is ideal for
banknote printers applying holograms
and/or metal stripes; software packaging
manufacturers applying seals to CD/DVD
cases; ticket printers producing concert,
event and sporting event tickets, tobacco
industry suppliers and other industries
trying to protect their products. ■
Contact, Marco Lideo at
marco.lideo@bobstgroup.com or
visit www.bobst.com
“The VISIONFOIL 104 H is
ideal for banknote printers
applying holograms and/
or metal stripes; software
packaging manufacturers
applying seals to CD/
DVD cases; ticket printers
producing concert, event
and sporting event tickets,
tobacco industry suppliers
and other industries trying
to protect their products.”
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News Bytes

5. JERSEY’S new holographic
bank note
Another bank note joining the hologram club for security
KAMA launched hologram
stamping system
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BP acquisition
adds to
Filtrona’s label
expertise
Filtrona PLC a division of Payne
international, market leading
speciality plastic and fi bre products
supplier, has acquired BP Labels
Limited and BP Secure Solutions
Limited, representing a signifi cant
expansion in the label capability of the
Coated and Security Products (“CSP”)
division.
BP, based in Cardiff, United Kingdom, is
a manufacturer of high quality, creative
and secure self adhesive labels for the
pharmaceutical, healthcare, cosmetic
and food & drink markets, providing
it as an authentication solution. The
business will complement with Coated
and Security Products, sharing a focus
on providing consumer products
companies with value added packaging
and security solutions through
maximizing the use of technologies,
systems and production capabilities.
Tony Edwards, Divisional Managing
Director of Coated and Security
products said, “The acquisition is
consistent with our vision to be the
premier provider of creative and
secure packaging, identity and security
solutions to our customers and markets
of choice. We believe we can deliver
signifi cant benefi ts from utilising
our existing global commercial and
operational footprint to access new
markets for BP’s products as well as
from offering our existing packaging
and security products and technologies
to BP’s current customers.” ■
Source: www.payne-security.com
The Treasury of States of Jersey has
unveiled its new note series to be
issued in April 2010. Printed by De La
Rue with imprint, the 10-, 20-, and 50-
pound notes have been redesigned to
refl ect various aspects of the island’s
culture, history and architecture.
Increased security measures have
been taken by the treasury to prevent
forgeries, including a new hologram,
all denominations having windowed
security threads, map of Jersey as a
registration device, and watermark of a
Jersey cow, electrotype denomination,
Cornerstones and 100% cotton paper.
The hologram only features on notes of
higher denomination. All feature a portrait
of Queen Elizabeth II on the front. For
the fi rst time Jèrriais, the island’s native
Norman French, appears on the note in
addition to English and French. ■
Source: http://news.bbc.co.uk
KAMA- manufacturer of print
fi nishing machines and developer
and manufacturer of the ProCut 53, the
world’s fi rst A3 fl atbed die cutter, is now
introducing a hologram stamping system
designed specifi cally for this machine.
With its ability to stamp holograms
onto the product being processed,
the new design allows the machine to
be used for high quality labeling of
print products and packaging. This
application opens up an attractive market
because in addition to their decorative
effect, holograms are also in great
demand as a visible safety marker for
copy and brand protection.
The new system for the ProCut 53 works
with two separate foil feeders. In contrast
to the continuous hot foils, holograms
have to be positioned with absolute
precision when they are stamped.
Hologram foils use markers on the
carrier foil to achieve this. The hologram
stamping system of the ProCut 53 has
four individually controllable heating
zones. Holograms can be applied within
a working area of 510 mm x 360 mm.
In addition to hologram foils the KAMA
module is also capable of processing all
kinds of hot foils. The ProCut 53 has
an output of up to 3500 sheets per hour
when stamping holograms, up to 5,000
sheets per hour for hot foil stamping and
up to 6,000 sheets per hour for die cutting
and creasing.
The broad spectrum of applications
make the A3 die cutter of interest for
digital printing and digital packaging
production where heavier paper and
fi nishing is in increasing demand. Kama
chief executive Marcus Tralau said: “Two
out of three of our ProCut 74 diecutters
are now being ordered with hot foil or
hologram-stamping systems.” ■
Source: http://www.proprint.com.au/News
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News Bytes

6. Lebanon’s report on healthcare and medical
market
The new report praises hologram technology in fi nding the fakes
SCRIBA nanotecnologie’s for anticounterfeiting
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The fi ndings of the Lebanon’s report
are that patented medicines contribute
74.8% of the prescription drug market
and 67% of the total pharmaceutical
sector. Although generic drugs continue
to feature as a small proportion of
all pharmaceutical spending, their
proportion of the prescription market
will rise from 25.2% in 2009 to 30.3%
by 2014.
Pharmaceutical industry representatives
in Lebanon have announced that drug
packaging needs to be redesigned to
enable easy confi rmation of product
authenticity. The move is part of an effort
to address the counterfeit medicines
that are on the rise. The Order of
Pharmacists (OOP) in Lebanon has
stated that drug packaging can easily
be forged and that new hologram or
high-tech identifi cation tags are to be
added to medicine labels to make fakes
easier to detect. Public enlightenment
campaigns have also been underlined
as one of the strategies that will deter
further purchases and lower demand for
these drugs.
The association is also suggesting that
testing laboratories should also be
established to ensure that seizures or
closures of suspected illegal outlets can
be supported with evidence. Imports
could also be tested for bioequivalence
in this manner, alleviating the reliance
on US Food and Drug Administration
(FDA)- or European Medicines Agency
(EMEA)-derived medicines to ensure
product safety. ■
Source: www.companiesandmarkets.com
Scriba Nanotecnologie a spin off
company of the Italian National
Research Council producing new
technologies for anti-counterfeiting
have developed NU-CODE
technology- a complete system that
uses ultra-miniaturized digital tags
for: identifi cation, traceability,
anticounterfeit, security and quality
control.
Nu-CODE is based on a technology that
allows permanent recording of digital
data, on specially modifi ed holograms
(EN-TAG labels). EN-TAG is cost-effi
cient permanent data storage and
a security hologram at the same time.
Digital data recorded on the EN-TAG™
can be easily read either by commercial
digital cameras or custom designed
cameras.The anti-counterfeit features
of the hologram substrate adds to the
endless capability of encrypting digital
keys making the Nu-CODE system a
very powerful, viable and versatile anti-counterfeit
solution.
EN-TAGTM micro label which can be integrated into any security hologram.
NU-CODE can be easily integrated
in the printing process of most types
of holograms and offers security and
anti-counterfeiting capabilities at
very affordable prices. NU-CODE™
is the proper tool to implement the
RESPONSIBLE PACKAGING criteria
for all products. ■
For more information contact Serena Lanza
at slanza@scriba-nanotec.com or
visit www.scriba-nanotec.com
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News Bytes

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8. High tech hologram can uproot
tobacco counterfeiting
Illicit tobacco trade and tobacco tax evasion are problems that costs governments and
manufacturers dearly in terms of lost revenue and damage to brand reputation. Further, the high
tax policies on tobacco products make them a lucrative target for counterfeiters. In this article, we
will fi nd out how hologram, an anti-counterfeiting technology, could prove to be an important tool
in tackling this problem.
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An addictive industry
It was in 1600 when tobacco was introduced in India by the
Portuguese. It became a valuable commodity of barter trade,
being used by the Portuguese for purchasing Indian textiles.
In 1776 with the independence of American Colonies, the
British East India Company began growing tobacco in
India as a cash crop, both for domestic consumption and
foreign trade. As domestic consumption of cigarettes rose,
the Imperial Tobacco Company (ITC, now Indian Tobacco
Company) commenced production. Also, in the late nineteenth
century, the beedi1 industry began to grow in India. Even
though tobacco chewing was practiced for many centuries,
commercial production and marketing have been up scaled
recently, with the introduction of the gutkha2.
This industry remains an addictive one since it contributes
in a unique manner to several important facets of Indian
economy, covering revenue, export, employment, and
GDP growth. The Indian tobacco industry mainly covers
manufacturing of cigarette, beedi, cigar and cheroot,
hookah, snuff and other chewing tobacco like zarda , gutkha
and other pan-masala.
Tobacco market in India
Presently, India is the second largest producer of tobacco
in the world after China. Of the total amount of tobacco
produced in the country, around 48 per cent is in the form
of chewing tobacco, 38 per cent as beedis, and only 14 per
cent as cigarettes. Thus, beedis, snuff and chewing tobacco
(such as gutka, khaini and zarda) form the bulk 86 per cent of
India’s total tobacco production.
The global roadblocks- illicit tobacco
trade and tax evasion
i) Illicit tobacco trade – smuggling and
counterfeiting
Illicit trade in tobacco products is a global problem. The illicit
trade, through smuggling and counterfeiting, creates serious
health problems, robs Governments of tax revenues and
threatens public safety and security. Moreover, the damage
caused by counterfeiting to a company’s brand reputation,
loss of sales and market capitalisation can be incalculable.
A report commissioned by Framework Convention Alliance,
said this billion dollar counterfeiting business was estimated
at 10.7 per cent of worldwide sales.
Fig1: Tobacco Consumption in India
Christopher Columbus saw people
using tobacco in the Americas in
1492.
Some quick facts:
• 5.5 trillion cigarettes get smoked per year
• One out of three cigarettes is smoked in China
• The total sales from cigarettes is US $ 5570
billion
• Every year $600 bn counterfeited & smuggled
cigarettes cross national borders
• In India, smuggled cigarettes are estimated at
Rs 1700 crore in value.
• Hungary was the fi rst country to use holograms
on their tax stamps
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Table 1: The 10 biggest market for illicit trade in 20073
Ranking Country Illicit trade
(bns of cigarettes)
1 China 214
2 Russian Federation 76
3 United States 62
4 EU 58
5 Brazil 38
6 Philippines 19
7 India 18
8 Indonesia 14
9 Pakistan 13
10 Turkey 12
Table 2: Revenue generated and lives saved with
elimination of global illicit trade4
Current situation Global High Low and
income middle
countries income
countries
Total illicit cigarette 11.60% 9.80% 12.10%
market (% of consumption)
Total illicit cigarette market 657 bn 124 bn 533 bn
(cigarettes per year)
Total revenue lost to $40.5 bn $17.6 bn $22.9 bn
governments
Estimated deaths in 2030 8.3 mn 1.5 mn 6.8 mn
If this illicit trade were $31.3 bn $13 bn $18.3 bn
eliminated immediate gain
in revenue
Lives saved in 2030 and 164,000 32,000 132,000
annually thereafter
(ii) Tobacco tax evasion
Tobacco taxes are a major source of revenue and have
been a signifi cant contributor to the economies of over 150
countries. For example In countries like India and Pakistan
the unorganised beedi and gutkha industry which represent
bigger share of tobacco consumed are big sources of revenue
loss to government.
Governments lose money when cigarettes are smuggled from
lower tax to higher tax states. Most of the world’s leading
cigarette brands are duplicated because they generate big
profi ts for counterfeiters. The smugglers smuggle into
a country where they can make the highest profi t, and this
should be a country where tax is a high proportion of the
price. The losses in revenue as a result of illicit tobacco
trade are enormous, but vary widely among countries. Taxes
(excise duties and Value Added Tax), for instance, on a pack
of Marlboro vary between $US 0.85 in China to $US 8 in the
United Kingdom (see Table 3).
Table 3: Cigarette prices in selected markets5
(value in US $)
Market Average price of a pack of 20
cigarettes
Russia Federation 0.68
India 0.78
China 0.84
Brazil 1.58
USA 4.10
Canada 6.34
United Kingdom 8.24
When tax revenues are stolen, they don’t go to their intended
sources of funding tax relief programs, healthcare and
infrastructure. In some cases, these stolen revenues have been
shown to fund criminal and terrorist activities. As a result,
governments lose millions of dollars in tax revenue and the
security of their citizens is threatened.
Loss to Indian industry
In India, the demand for low cost copies of premium brands,
access to high quality reprographic technology that has made
it easy and affordable to copy brand packaging, industrial
globalisation, extended supply chains, lax regional law
enforcement and criminal penalties are the main reasons for
explosion in counterfeiting.
As per Directorate of Revenue Intelligence (DRI) –responsible
for keeping a watch on the illegal entry of foreign-made
cigarettes into the Indian market), the margin in cigarettes
is more nowadays and smugglers are now fl ooding the Indian
market with foreign-made cigarettes as well as their fake.
■ India smuggled cigarettes were estimated to account for
more than 14 percent of total cigarette consumption in
India.
■ It is estimated that nearly 4 billion fi lter cigarettes are
made annually and sold by unscrupulous manufacturers
without paying of excise duty.
■ The 2007 ERC6 report noted that non-duty paid sales
remains a major problem in India.
■ Further, the unorganized beedi and gutka industry have
become a big source of revenue loss to government in India.
■ The inferior quality and inedible betel nuts being
smuggled into the country, bypassing the excise duties,
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10. Fig.2: A Hungarian tax stamp for cigarettes. Using since, 1995 Hungary
was one of the fi rst countries to use hologram on its tax stamps.
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trade and entry taxes, from Nepal and north-eastern
states are not only taking a toll on people’s health but
also ruining the revenue targets of the government.
■ The revenue department is estimated to incur a loss of
over Rs 3,000 crore US$ every year due to this.
■ DRI had recently issued guidelines for the manufacturers
to show their monthly statements of raw material
purchase and fi gures for gutkha production but the effect
seems to be trifl ing
■ According to industry players, Rs 200,000 worth betel
nuts produce around Rs 2 crore worth of gutka. So, an
estimated 100 tonnes of betel nuts (worth Rs 40 lakh)
being traded into the city everyday produces gutka worth
over Rs 4 crore everyday while this production is never
on the record.
■ Further the increased excise duty on tobacco industry in
the Union Budget for 2010-11 may encourages evasion
and inter-state / international smuggling (See Table 4).
Table 4: Basic excise duty on tobacco in India
Commodity Excise Duty Increased Excise
F.Y. Duty F.Y.
2009-2010 2010-11
Branded 42% 50%
unmanufactured tobacco
Tobacco refuse 42% 50%
Chewing tobacco 50% 60%
Zarda, Scented tobacco and Snuff 50% 60%
Pan Masala 8% 10%
Branded Hookah or gudaku 8% 10%
Source: Union Budget 2010-2011
Solution - Hologram
Globally, steps have been taken to fi ght this problem. One
answer could be for India to adopt hologram or holograpic
tax stamps. Tax stamps serve two purposes. One is to provide
a record of payment of tax that is tracking of cigarette/
tobacco packs throughout their distribution would enable tax
authorities to ensure proper tax collection.
The other is to provide evidence that the stamp, and hence
the product to which it is affi xed, is genuine. Although it is a
15-year old application, holographic government tax stamps
prove to be an important device for authentication and revenue
collection purposes. Today, tax stamps make up a signifi cant
share of the security print market. It is part of the largest sub-sector
of the security print market, placing tax stamps ahead
of banknotes in terms of printed documents globally.
In the current global markets, to fi ght the problem of tobacco
counterfeiting, holographic tax stamps are widely used for
authentication worldwide. Holograms are security devices
that have effects which cannot be exactly replicated by
normal reprographics methods. Expensive and high-tech
hologram printers print holograms directly on cigarette
packets. As per Reconnaissance international, UK globally,
an estimated 124 billion tax stamps are issued annually for
cigarettes out of which 60 billion features a hologram. As of
2007, 68 countries were using tax stamps for cigarettes, of
these 20 used hologram on their cigarette stamps which is
29% of the total.
Kanpur alone accounts for a revenue shortfall of Rs 900
crore owing to large consumption of such betel nuts in
over 40 pan masala and gutkha production units. Accord-ing
to an offi cial of the Department of Revenue Intelligence
(DRI), the volume of trade in gutkha industry should fetch
around Rs 3,500 crore as revenue but the recovery has
failed to move beyond Rs 800 crore. The department had
recently seized large quantities of betel nuts being illegally
smuggled into the country from the Nepal border. A large
number of smaller gutkha manufacturers spread across
the city procure this smuggled supari from the network and
sell the manufactured products in the market, without con-sidering
the ill-effects of low quality inputs. Due to the illicit
nature of procurement, the fi nished products and the raw
material purchases for this processing are not shown on
the company records, thereby hitting the revenue targets
of the government
Source: www.business-standard.com
Fig 3: Latvia’s cigarette tax stamps are applied as self-adhesive
holographic labels
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For example In Asia also, a Chinese
tobacco company uses a fl exo press
printer that incorporates a hot foil
hologram unit to print holograms.
These are printed on the fl ip-tops of
boxes and on the outer boxes of the
cigarette packets, so consumers can
easily check if products are genuine.
Further, Bangladesh has started using tax stamps six
years back, and since the introduction the government’s
collection from this industry increased consistently. After the
introduction of tax stamps and band rolls six years back, the
Bangladesh government’s collected approximately Taka 45
billion (US $ 650 million) in VAT and supplementary duty
during fi scal 2007-2008.
As per Ukraine’s EADPS consortium, which is endorsed
by INTERPOL, advances in hologram technology can help
government in safe guarding loss of revenue worth $ 50
billion (US).
In India, holograms are used by tobacco manufacturers
to combat counterfi eting. It is used in various forms for
example:
i. Holographic tagger foil for tin boxes
ii. Holographic security thread for tobacco packs
iii. Holographic pouch
iv. Security Hologram
The strategy is to increase the sale of products by using
innovative packaging, giving unique look, increasing brand
identity as well as to secure the product from counterfeiters.
Recommendations
Undoubtedly, hologram have become widely accepted as an
effective authentication device. Today, they present a great
opportunity for governments to act decisively & boost excise
revenue from growing tobacco sales, and for manufacturers to
protect their brand and use the technology as an integral part
of their strategy.
The Secretary General of the World Customs Organizations
has singled out praise for the Ukrainian systems of protecting
goods with tax stamps with holographic security elements.
Also, the World Bank and the International Monetary Fund
have both declared the introduction of anti-counterfeiting
measures such as forgery-proof tax stamps as essential to
combating tobacco smuggling.
Thus, Indian Excise Department too should use security
holograms to check the theft and pilferage of Central Excise
Duty on various excisable tobacco products like Cigarette
and Pan Masala. The Hologram should have central excise
Logo, incorporating various holographic security features,
lot number and serial number etc. Mandatory application of
Holograms on tobacco products and the use of holographic
technology will substantially increase the Excise Revenue
and prove to be the best solution for protecting tax stamps
against the indelible mark of the counterfeiter. ■
References:
1 Beedi-A beedi is a thin, South Asian cigarette made of 0.2-0.3
grams of tobacco fl ake wrapped in a tendu (or temburini; Diospyros
melonoxylon) leaf and secured with colored thread at both ends.
2 Gutkha – Manufactured in India Gutkha is a preparation of crushed
betel nut, tobacco, catechu, lime and sweet or savory fl avorings.
3 Framework Convention Alliance, How big was the global illicit
trade problem in 2006? Geneva, 2007, available at www.fctc.org/.../
fca-2007-cop-illicit-trade-how-big-in-2006-en.pdf
4 A report on tobacco taxation by Bloomberg Philanthropies & Bill
and Melinda Gates Foundation
5 Euromonitor international
6 ERC group, World cigarettes/1, The 2007 Survey India, Suffolk,
2007
■ Reconnaissance International
■ British American Tobacco
■ Euromonitor International Currency market insight, India,
March 2005
■ Godfrey Phillips India.
■ ITC India
■ www.taxstamforum.com
In year 2007-2008, Imperial Tobacco
developed holographic cartons
designed to celebrate Lambert &
Butler position of 10 years as UK’s
biggest FMCG brand. The hologram
used by Imperial Tobacco received
the “Best promotion award” given by
International Hologram Manufacturers
Association (IHMA).
Lambert & Butler is a British cigarette brand.
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Holostik security solutions for the
tobacco market
Forgery and falsifi cation affect
almost every area of economic and
social life today- Tobacco counterfeiting
and trade in fake cigarettes being the
latest alert that has been in the news.
It is a huge business all over the world,
operating as an underground economy.
Both smokers and non-smokers alike
know, smoking is bad for health, but
fake cigarettes can be even more so.
Holostik India, a pioneer in providing
security solutions, views tobacco anti-counterfeiting
with signifi cant priority.
To counteract the duplication of
tobacco products and packaging, there
are many anti-counterfeit technology
products that can be introduced, the
most effective solution amongst them
being the use of holograms. These are
recognised worldwide as the premier
optical security and authentication
technology.
Since 1991, Holostik India provides
security solutions to various industries
helping them combat counterfeiting.
Today, it provides customised tailor-made
solutions to more than 5000
customers in the government, public and
private sectors including some of the
leading tobacco manufacturers in India.
Today, Holostik’s security solutions are
used to protect and authenticate varied
products and packs in the tobacco
industry.
These solutions are available at varied
levels of security- security solutions,
semi high security solutions and high
security solutions but, Holostik always
incorporates certain security features
in all of the above three categories so
that it is impossible for counterfeiters to
duplicate.
Security Solutions for the
tobacco industry:
Using holographic products is a reliable
way to integrate brand protection security
solutions onto tobacco packaging /
products. This is because they are
instantly recognizable to the naked eye,
and uniquely resistant to counterfeiting.
Holostik on the basis of demand and
requirement, offers a wide range of
products to address the challenges
faced by the tobacco industry. From
security labels to security holograms,
high security paper label to holographic
stripe, holographic pouch to holographic
tagger foil; Holostik overt security,
covert security and forensic technologies
have been applied to a wide variety of
products within the tobacco sector.
These include
■ Holographic tagger foil for tin
boxes
■ Holographic stripe
■ Holographic pouch for gutkha
industry
■ Security seal for cigarette packs
■ Re-sealable labels for loose tobacco
■ Security labels for loose tobacco
■ High security paper label with
security hologram
■ Complete holographic solutions
Holostik is a leading manufacturer with
fully integrated and modern facilities
and capabilities from master origination
to fi nished products all under one roof.
It offers services like design, origination,
manufacturing and distribution to help
steer clients from concept to product
launch. It develops security solutions
according to specifi c packaging shape
and size requirements, whilst integrating
the latest security technology.
Holostik stands for authenticity. It has
helped the government protect revenue,
manufacturers protect brand image and
has made the consumer more confi dent
about buying a genuine product. ■
For more information contact at
holostik@vsnl.com or
visit www.holostik.com
12
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Abstract
We present the first commercially available system for in-line printing of diffractive microstructures as a part of a conventional
4-colour printing machine for e.g. label printing. The purpose of these diffractive microstructures is either as decorative or
product security. This article will focus on the challenges of transferring diffractive microstructures, by means of rotation
micro-moulding and UV curable lacquers in a process known as HoloPrint™ at a speed of 60 m/min with high fidelity. The
possible use of this technology as a generalised platform in industrial roll-to-roll (R2R) fabrication of microstructures will also
be discussed.
Introduction
Diffractive optical elements can be
applied as an integral part of packaging
materials, where they are used for
decoration or as a security element
or a combination of both. This is
normally done by application of a label
containing diffractive optical elements,
that is holograms. The label is often
manufactured by an embossing method.
This requires the label to be applied to
the packaging material in a process that
is separate to the label fabrication. Often
this is a multi-step procedure, taking
place at different locations.
From a printers perspective this solution
is not very satisfactory. First of all,
the many handling steps often involve
transport of the material between multiple
locations resulting in high costs of this
type of label material. Furthermore, the
mere fact that the diffractive elements
have to be added to the printed material in
an off –line process makes it diffi cult to
integrate these structures in the graphics
design, The result is the familiar silver-like
patch with sparkling colour seen on
bank notes and tickets.
In order to change this paradigm, two
Danish companies Stensborg A/S
(hologram manufacturer) and Nilpeter
A/S (manufacturer of label printing
machines) formed a joint venture aimed
at developing a printing process that
would enable a printer to execute both
conventional 4-colour printing and
transfer of diffractive optical elements
to a web in an in-line process. An
additional feature of the printing process
should be its ability to print in register
. Implemented on a printing machine
this would allow the printer to integrate
diffractive optical elements at will in a
graphics design. Such a process would
represent a major shift in paradigm in the
printing industry.
The design of the system that we wish
present in this article is largely inspired
by conventional fl exographic printing
machines and an extension of a replication
technique known as soft lithography.
The concept of soft lithography based
on replication of UV curable polymers
using elastomer as micro moulds was
originally pioneered by Whitesides et al
and the IBM research group in Zurich
(CH).
Fabrication of diffractive
optical elements (DOEs)
The fabrication of DOEs can be divided
into three steps:
1. Master fabrication
2. Fabrication of replication tool
3. Mass production
The most common diffractive DOEs are
those based on a micro surface relief.
This type has the advantage of being
fairly easy to replicate and to mass-produce
due to its surface structure .
The generic feature of all diffractive
DOEs is a periodic microstructure like
the one shown in Figure 1. Typically,
this structure will have fringe spacing of
500-1500 nm and a relief depth of 50-
300 nm.
Fig.1. AFM scan of section of master grating
in photo resist on glass. Depth is 300 nm and
width is 1000 nm of the groove structure
The two most prevalent methods of
master fabrication are either by the use
of a high-resolution laser plotter Figure
2a, or by interference of two or more
laser beams as shown in Figure 2b.
13
UV assisted casting of microstructures for
high-volume production of diffractive optical
elements on foil
Lars R. Lindvold (lali@stensborg.dk) and Jan Stensborg, (jan@stensborg.dk)
Stensborg A/S; Frederiksborgvej 399/Niels Bohr, DK 4000 Roskilde, Denmark (www.stensborg.com)

14. www.homai.org
The Holography Times
The recording of the microstructure requires a photosensitive
material, typically photo resist. This material will record
the microstructure as a surface relief after exposure and
subsequent development as shown in fi gure 1.
The glass master is too fragile to be used in mass production
and it is necessary to make a replica of it. Fortunately, the CD
and DVD industry already has developed a method known as
electroforming whereby replicas of microstructures can made
commercially . The basics of this method, sometimes referred
to as electroforming, are outlined in Figure 3 a and b. The
Ni-replica can be used for mass fabrication either by injection
moulding or embossing in suitable polymer materials like the
mould material currently used in the HoloPrint™ process, as
will be described later in this article.
The UV replication method
The advantage of using UV curable polymers is that this
type of polymers is commercially available with a variety
of mechanical, thermal, optical and chemical properties as
shown in table 1.
Table 1. Properties of UV curable polymers in the
cured state.
Property Range
Mechanical Hardness Shore D 30-85 Modulus of
Elasticity (psi) 103-105 Tensile
strength
Thermal Degradation temp 140-400°C
Chemical Water absorption down to 0.5%
Chemical resistant good except
chlorinated solvents
Optical Refractive index 1.42-1.65
Transmission windows: 350-900 nm,
450-900 nm, 500-900 nm, 600-900 nm
The wide range of properties is facilitated by the difference
in polymer and photoinitiator composition . Typically the
commercially available UV resins are pure acrylates, or
acrylated urethanes, epoxies or silicones.
Furthermore, this type of polymers can be dyed to enhance
the contrast of the hologram without sacrifi cing its UV curing
property. In that case the UV curable polymer is referred to
as UV curable ink.
In terms of surface properties, UV curable polymers provide
the user with a plethora of possibilities. One of the most
common methods of surface modifi cation is the so-called
photografting . Using this procedure, surface properties like
hydrophilicity and friction can be altered.
Fig. 2b. Interferometrical recording.
Fig. 3a. A thin metal layer is deposited on the photo resist glass
master in vacuum to render it electrically conductive.
Fig. 3b. The glass master is placed in a Ni-sulphamate bath as a
cathode together with a Ni anode. By passing a current through the
bath, Ni is electrolytically deposited on the cathode in a layer with
a thickness of a few 100 microns. After the process this Ni-replica
is removed from the glass master.
2a. High-resolution laser plotter
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The wide range of properties is facilitated by the difference
in polymer and photoinitiator composition . It is noteworthy
that the photoinitiator not necessary has to be UV sensitive
but can have its spectral sensitivity in the visible spectrum.
Therefore, it may be more appropriate to describe the process
as photo-curing rather than just UV-curing.
The HoloPrint™ process
In order to develop this method into a fully integrated mass
production tool, we need to turn the batch process into a
reciprocating process that is compatible with a fl exographic
process. The proof-of-principle set-up that has demonstrated
this concept is shown in Figure 4. The process has been
dubbed HoloPrint™ . Although the process strictly speaking is
a micro-moulding process we decided to name it HoloPrint™
to make it more acceptable to the printing industry.
The key feature of this technology is photo-curing of a liquid
polymer in the contact point of a mould material placed around
the cylinder and the web carrying the UV-curable lacquer.
Technically speaking, this step is referred to as curing in the
nib.
The UV curable polymer is applied to the web by a
conventional fl exographic roller. The thickness of the layer
typically ranges from 1 to 10 microns. The lower limit on
the thickness is set by fl atness of the foil and the mechanical
tolerances of the roller.
The upper limit is essentially set by the UV power available
from the lamp and the viscosity of the UV resin. In the case of
paper foil it is recommended that an overcoat of UV polymer
be applied prior to the actual hologram coating.
A polymer material was developed for the HoloPrint™ mould
that could fulfi l the following requirements:
• Highly UV transparent
• Good mechanical stability
• Perfect release properties with respect to the cured
lacquer
Fig.5. Transmission curve of a HoloPrint™ mould material
recorded using a CARY 50 spectrophotometer.
As it can be seen in fi gure 5, the new HoloPrint™ mould
material turned out to possess good UV transparency.
Further refi nements in the optics and proper thermal
management of the lamp-printing cylinder unit eventually
lead to a printing speed of 60 m/min, the design target for the
HoloPrint™ process.
HoloPrint Mark IV (HP 4)
The HP 4 unit has been designed to match the functionality
of a printing machine. This version was presented at the
LabelExpo 2009 in Brussels and is shown in fi gure 7 and 8.
Fig.7. The HP4 machine as it appeared at the LabelExpo 2009
exhibition in Brussels.
Fig.4. HoloPrint™ principle. UV resin is applied to a substrate
material and brought into contact with the mould. UV resin is cured
in the line of focus and the micro surface relief is replicated onto
the substrate.
Fig.6. Details of printing roller with mounted wafers (maud)
15
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Applications
The aim of this project was originally to be
able to print microstructures in-line, and
in register, with an ordinary multicolour
fl exographic printing machine. The main
application for this application was in-line
printing of labels for product security
. It is evident that the applications for
this system extend far beyond this goal.
We have identifi ed a number of possible
application areas for the HoloPrint™
system.
Replication of digital data media
Fig.10. 5μm x 5 μm AFM images shown
in top-view pseudo 3D projection of the
DVD Ni-master (left), the polymer mould
(middle) and the UV lacquer replica
(right). The image of the polymer mould
has been inversed and mirrored in order
to ease comparison. AFM scan courtesy
of Dr. Anders Kühle Danish Institute for
Fundamental Metrology (DFM).
Throughout the past 10 years optical
data storage has increased its storage
capacity dramatically. One of the media
is the DVD. This medium is fabricated
by cementing together two 600 micron
thick DVDs made by injection moulding.
The current trend points towards even
higher storage capacities. This can only
be accomplished by stacking even thinner
layers. The fabrication of these discs
with conventional injection moulding
technology will become quite diffi cult as
thickness decreases. We have tested the
UV replication technology described in
this article for this purpose. The result can
be seen in fi gure 10.
Holographic optical elements (HOEs)
HOEs are essentially fl at elements
with optical properties determined by a
microstructure. The proliferation of mobile
phones has augmented the use of HOEs, as
they frequently are use as focussing diffusers
and colour fi lters in the LCD displays of
these phones. A present, these components
are mass-produced using the DuPont
Omnidex photopolymer . We believe that
the replication method described in this
article could be a cost-effective alternative
to DuPont photopolymer.
Fig.9. Close up of the printing.
Fig.10. 5μm x 5 μm AFM images shown in top-view pseudo 3D projection of the DVD Ni-master
(left), the polymer mould (middle) and the UV lacquer replica (right). The image of the polymer
mould has been inversed and mirrored in order to ease comparison. AFM scan courtesy of Dr.
Anders Kühle Danish Institute for Fundamental Metrology (DFM).
Fig. 8. Close up of the fl exo and HP4 units.
16
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17. www.homai.org
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Microstructures for control of cell
growth
An interesting application of micro-and
nanostructures is the control of
cell growth . This area of research is
particularly relevant when it comes to
growing artifi cial tissue. Usually this is
done on a collagen coated Petri dish. We
suggest that our method could prove to be
of value, if the microstructure had to be
transferred to a membrane.
Optoelectronics in plastics
One of the emerging technologies in display
technology is polymer-based LEDs and
fl at-screen displays . Unlike conventional
LEDs based on semiconductor processing,
these components are based on screen-printing
technology combined with
conductive polymers like Orgacon from
Afga . This format permits the display to
be formed on a fl exible substrate at very
low cost. Combining this technology
with HoloPrint™ would make it possible
integrate light control function like
polarisation control and focussing directly
into the light emitting structure. In this
way, novel designs for light emitting
devices may be devised.
Microfl uidics
One of newcomers to Life Science is the
Lab-on-a-chip. The aim of this technique
is to provide drug discovery and genetics
with a tool for high throughput screening
methods. The core technology in most
of these systems is microfl uidics.
The technology makes it possible to
microfabricate fl ow channels, mixers and
reaction chambers on a chip . Recently,
microfl uidics has merged with optics
and light emitting components into
optofl uidics . It would be interesting to
see if HoloPrint™ combined with ink-jet
and laser direct write technologies
could provide a platform for complete
chemical analysis system to be integrated
monolithically.
So far, most of the work done in this area
has used conventional chip fabrication and
microinjection moulding technology. We
believe that a novel concept for Lab-on-a-
chip would be Lab-on-a-foil. We claim
that this could be a future application for
the HoloPrint™ process.
Conclusions
It has been demonstrated that in-line
fabrication of diffractive microstructures,
in register with the printed graphics
design, is possible on a conventional fl exo
label printing machine.
We are convinced that this system can
be utilised in general for industrial scale
production a variety of micro- and even
nano structures. A number of these
applications may even fi nd their way into
smart packaging materials.
Acknowledgements
The authors wish to thank the following
individuals for contributing to the
project:
Bent Hansen, Nilpeter A/S, for his
patience, ingenuity and technical support
during the factory tests of the system.
Research Professor Dr. Niels B. Larsen,
DTU Nano, for performing the AFM
scans and his expert advice on PDMS.
Christian Elbek, Chempilots A/S, is
acknowledged for fruitful discussions
on UV curable polymers other materials
issues.
Process and technology innovation
manager Steen Vesborg, Carlsberg Group,
for his valuable suggestions pertaining
UV lacquers, polymers and process
integration. ■
References
1. Printing in register is a term used in
the printing and desktop publishing
industry. It is the method of correlating
colour separations.
2. S.Brittain, K. Paul, X-M Zhao and
G. Whitesides, “Soft lithography and
microfabrication”, Physics World, 11,
no. 5, pp 31-36, 1998.
3. B.Michel, A. Bernard, A. Bietsch, E.
Delarmarche, M. Geissler, D. Juncker,
H. Kind, J. -P. Renault, H. Rothuizen,
H. Schmid, P. Schmidt-Winkel, R.
Stutz and H. Wolf, ”Printing meets
lithography: Soft approaches to high-resolution
patterning”, IBM J. Res. &
Dev., 45, No. 5, pp 697-719, 2001.
4. M.Gale, “Replication techniques
for diffractive optical elements”,
Microelectronic Engineering, vol. 34,
pp 321-339, 1997.
5. Typically this kind of plotter has a
resolution of 25000 dpi, which should
be compared to an ordinary laser
printer with 1200 dpi.
6. Strictly speaking the electroforming
process dates back to the days of the
old vinyl records.
7. C. Roffey, “Photogeneration of reactive
species for UV curing”, Wiley 1997.
15. I.R. Bellobono and E. Selli,
“Photografting processes into
polymers”, pp 115-148, in
Photopolymerisation and photoimaging
science and technology, ed. N.S. Allen,
Elsevier Applied Science, 1989.
16. C. Roffey, “Photogeneration of reactive
species for UV curing”, Wiley 1997.
17. Patent EP1150843 “Method And Device
For Rotational Moulding Of Surface
Relief Structures”, L.R.Lindvold,
J.Stensborg and T.Rasmussen.
18. R.L. van Renesse ed., Optical
Documents Security, Artech House,
1998
19. B. Loiseaux, C. Joubert, A. Deboulbé,
J.P. Huignard, B. Morbieu, F. Delauzun,
T.J. Trout and W.J. Gambogi, “Phase
volume holographic components for
LCD applications, Proceedings of the
Sixth International Display Workshops,
pp 1025-1028, 1999.
20. C.S. Chen, M. Mrksich, S. Huang, G.M.
Whitesides and D.E. Ingber,”Geometric
control of cell life and death”, Science,
276, pp 1425-1428, 1997.
21. For an extensive update on this
area please consult the homepage of
Cambridge Display Technology at
www.cdtltd.co.uk
22. For more information please consult
http://www.agfa.com/en/sp/solutions/
orgacon_electronic_materials/index.
jsp
23. M.J. Madou and G.J. Kellogg,
“The LabCD: A centrifuge-based
microfl uidic platform for diagnosis”,
Proceedings of the SPIE, 3259, pp 80-
93, 1998.
24. An excellent review of the current state-of-
the-art can be found a special issue
of Microfl uidics and Nanofl uidics, Vol.
4, No 1 & 2, 2008.
17
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Upcoming Events
Secure Documents 2010
28-30 April 2010, Rennaissance M Street Hotel, Washington, DC, USA
An important event in the fi eld of high security printing, encompassing the latest products,
technologies, and application for the production and issue of currency, passports, e-ID, revenue
stamps and other government issued fi nancial or identifi cation documents.
For more details contact Tel: +1 202 3097296,
Email: john.buss@pira-international.com; Web: www.securedocumentsconference.com
2nd Tax Stamp Forum
14-15 June, 2010, London, UK
Theme: Effective Programmes to Maximise Revenue, Focus: Development and deployment of
technologies and system that are resulting in an increase in government revenues and a decrease
in contraband and counterfeit products.
For more details contact Tel: +44 (0) 1932 785680, Fax: +44 (0) 1932 780790
Email: info@reconnaissance-intl.com; Web: www.taxstampforum.com
Abu Dhabi International Anti-Counterfeiting Conference & Exhibition 2010
10 - 12 Oct 2010, Abu Dhabi
Abu Dhabi International Anti-Counterfeiting Conference & Exhibition 2010 focuses on the
displaying of counterfeit goods and identifying to the general public, trading companies and brand
companies the difference between genuine goods and counterfeit goods.
For more information visit http://www.zonegroupuae.ae
Holopack-Holoprint 2010
14-16 November 2010, Le Meridien Hotel, Kuala Lumpur, Malaysia
A must attend event for all holography community, the venue for the Annual General Meeting of
International Hologram Manufacturers Association and a place where the best industry work was
awarded with Annual Excellence Holography Awards.
For more details contact Tel: +44 (0) 1932 785680, Fax: +44 (0) 1932 780790
Email: info@reconnaissance-intl.com, Web: www.holopackholoprint.info
9th Asian High Security Printer Conference
17-19 November 2010, Kuala Lumpur, Malaysia
For more details contact Tel: +44 (0) 1932 785 680, Fax: +44 (0) 1932 780 790
Email: info@cross-conferences.com; Web: www.cross-conferences.com
Pack Plus 2010
3-6 December 2010, Pragati Maidan, New Delhi, India
A mega event that encompasses all the segments related to packaging, processing and
supply chain.
For more details contact Tel: +91 (11) 29812833, Fax: +91 (11) 41722130
Email: info@packplus.in; Web: www.packplus.in
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