2. VISIONFOIL 104 H
The Holography Times News Bytes
The real thing
The VISIONFOIL 104 Hologram from BOBST gives you and your customers
the strategic advantage needed to win the war against product and
brand piracy, delivering ultra precise application of every size and
type of hologram currently in the market, plus many that are not yet
commonplace. From banknotes to visas, and from tickets to packaging,
the VISIONFOIL 104 H handles them all effortlessly.
After all, it’s the real thing.
2 www.homai.org
B O B S T G R O U P . C O M
3. The Holography Times
Viewpoint
Dear Readers,
Welcome to the 15th issue of The Holography Times.
Counterfeiting is not a new phenomenon for Indian
industry. It is increasing with an alarming rate in India
threatening brand integrity in almost all industries.
But when it’s about currency and product related to life
and health of consumers it is a matter of concern. The
recent news published in a leading newspaper stated
that “four in every 1,000 notes are fake in India”.
Curbing counterfeiting seems like a pipe dream, but,
it can be diminished to a certain extent with proper
approach and strategy. Our cover story along with
global view will help you in revaluating your approach
against counterfeiting.
Further, from this issue onwards we are starting a new
section “Counterfeit seizure report” which will update
the reader on quarterly counterfeit seizure happened
in India.
As always we look forward to receive your feedback /
critics. Please email us at info@homai.org.
With Regards,
C S Jeena
In this issue
4-6
News Bytes
8
Fighting Fakes
Global View 14
Counterfeit Pharmaceuticals and Brand
Authentication Solutions
Counterfeit Seizure Report 16
Tender Updates 17
Global Patents 18
Upcoming Events 19
www.homai.org 3
4. The Holography Times News Bytes
Canadian journey with hologram
Ottawa, Canada: The Bank of
Canada (BOC) unveiled its
new series of “secure” polymer
banknotes on June 20, 2011.
The bills have a new look and
enhanced security features
including more sophisticated
holograms and raised ink on the
Prime Ministers’ shoulders, on
the biggest number and on the
words “Bank of Canada.”
The Bank of Canada has been
issuing Bank notes since 1935
and has issued seven different
series of bank notes and two
commemorative bills. The BOC
periodically upgrades its notes by
releasing a new series with an aim
to stay ahead of counterfeiting
and to improve the security of
notes in circulation.
Year Name of Series
2011 Polymer Series
2001-2006 Canadian Journey Series
1986 Birds of Canada
1969-1979 Scenes of Canada
1954 -
1937 -
1935 -
The BOC started using
holographic features in 2004
to reduce counterfeiting. Since
then with the introduction of new
features the rate of counterfeit
bank notes has been fallen to
35 bills per million compare to
470 per million before the 2004
redesign.
In the new series the irst one
to be available as legal tender
will be the $100 note, starting
in November 2011. It depicts
Canadian innovations in the
ield of medicine. The bill will
feature an updated portrait of
former Canadian Prime Minister
Robert Borden. That release will
be followed by a new $50 bill in
March, then versions of the $20,
$10 and $5 by the end of 2013. ■
Source: www.bankofcanada.ca/banknote
Do you know?
Today Holographic / OVDs are used by more than 90 issuing authorities on nearly 250 bank notes denominations
worldwide. The list of countries using this technology is as follows;
SN. Country SN. Country SN. Country
1. Andorra
2. Austria
3. Bahamas
4. Bahrain
5. Belgium
6. Belize
7. Bulgaria
8. Canada
9. Comoros
10. Croatia
11. Cyprus
12. Denmark
13. Egypt
14. Estonia
15. Finland
16. Former Yugoslavia
17. Republic of Macedonia
18. France
19. Germany
20. Ghana
21. Greece
22. Guatemala
23. Hong Kong
24. Hungary
25. Iraq
26. Ireland
27. Italy
28. Japan
29. Korea (Republic)
30. Luxembourg E
31. Malaysia
32. Malta
33. Mauritius
34. Monaco
35. Netherlands
36. Peru
37. Philippines
38. Portugal
39. Saudi Arabia
40. Slovakia
41. Slovenia
42. Spain
43. Sudan
44. Switzerland
45. Sweden
46. Taiwan
47. Thailand
48. Trinidad Tobago
49. Tunisia
50. Turkey
51. Turkmenistan
52. Uganda
53. United Kingdom
54. Venezuala
55. Yemen
4 www.homai.org
5. The Holography Times News Bytes
4 in every 1,000 notes are
fake in India
New Delhi, India: Four in
every 1,000 currency notes
in circulation in India are fake,
amounting to as much as ` 3,200
crore in 2010, a conidential
government report has found in a
irst-ever attempt to estimate the
quantum of counterfeit notes in
the country.
The white paper on the status
of fake currency notes is jointly
prepared by the Intelligence
Bureau, Research and Analysis
Wing, Directorate of Revenue
Intelligence and Central Bureau
of Investigation.However, the
Reserve Bank of India (RBI)
does not have an estimate of fake
currency notes and opines that
Indian bank notes are secured.
“The fake currency notes lowed
in 2010 from abroad were
between ` 1,500-1,700 crore”, the
white paper said.
Experts said the circulation of
fake notes, in such a big number, is
a cause of concern. Mr. D. K. Joshi,
Principal Economist at rating
agency Crisil Ltd., said, “From a
monetary policy perspective, if a
growth in fake currency becomes
too rampant, it will reduce the
control of monetary policy over
inlation, making the monetary
actions less effective.”
This number, as revealed in
the report, is much higher as
compared to other nations. In
Australia, counterfeit notes were
detected at nearly seven per
million notes in circulation in
2008-09; whereas in Canada, the
number was 76 per million in
2008, according to RBI’s data. ■
Source: www.livemint.com
3S launched multi-layer security label
Deutschland, Germany:
3S Simons Security
Systems, a manufacturer of anti-counterfeiting
technologies
for a variety of industries, has
launched a multi-layered security
label which protects products and
packaging against counterfeiting.
A hologram made of Void or
PET foil, optimized by 3S with
regards to its anti-counterfeiting
characteristics, forms the basis
of the product. A Secutagmicro
color-code is included in the
hologram label. This code is
microscopically small, consists
of different color layers and is
manufactured in different sizes
beginning at 8 micrometers.
Each customer receives an
individual color-code which
unambiguously identiies the
labels and products as originals.
The Secutagmicro color-code has
been forgery-proof for over 15
years and is accepted as evidence
by international courts. Secutag
offers users worldwide an easy
and legally binding identiication
of their original products by
use of a simple microscope. The
protection is invisible to the
naked eye.
Apart from hologram and micro
color-code, the label can be
provided with additional security
features. These are, for example,
tilting and kinegram effects, and
serial numbering. Special security
stamping further protects against
unauthorized removing of the
label. In the PET version, recesses
for the company logo can be
integrated into the upper foil.
Furthermore, the label allows for
the inclusion of variable customer
data as well as a special UV or
infrared marking. The traceability
of products and their packaging
is also taken into account: track
trace codes like data matrix
can also be implemented into the
label.
The permanently adhesive labels
can be applied in all industries,
either as closure seals, security
stamps or stickers. They are
suited for the application on
different products, materials
and packaging. The labels are
delivered as neutral security
labels or they are individually
manufactured and equipped with
the requested security features in
the 3S pro duction facilities. ■
Source: www.3sgmbh.com
www.homai.org 5
6. The Holography Times News Bytes
Glaxo new sensodyne pack bubbles
with tactile feel
Chesapeake Pharmaceutical
and Healthcare Packaging
has helped to develop a range of
striking packs for Glaxo smith
Kline (GSK) global launch of
its new sensodyne repair
protect oral care product. The
packs, which are the result of
close collaboration between
Chesapeake, GSK’s internal
packaging design team and API,
incorporate 3D bubbles designed
to be so intriguing you feel
compelled to touch the carton.
The 3D feature simulates the effect
of looking at a life-like model of a
tooth as well as close-up images
that help to describe the beneits
of using the product. The effect
is achieved by the incorporation
of a series of Fresnel lenses into
the cartonboard. The lens area is
then overprinted. The resulting
life-like perspective produces
the impression of depth that
provides the pack with a tactile
quality that is further enhanced
by the carton’s bevelled edge.
Bobby O’Connor, Chesapeake’s
divisional sales and key account
director, said, “GSK’s intention
was to create a pack that was
eye-catching but reinforced the
brand’s qualities. 3D techniques
have been used on packaging
before but we believe this is the
irst time they have used it to
support a high-volume brand.”
The new cartons have been
launched in various global
markets, including Europe,
Middle East, and Asia.The carton,
produced at Chesapeake’s
Nottingham and Leicester
facilities, is printed in ive colors
plus both matte and gloss inish
to provide differentiation and
brand enhancement through
tactile feeling. ■
Source: www.packworld.com
See Glaxo strategy against
counterfeiting on page no 11.
Idvac developed yellow gold vacuum
metallization process for packaging
Manchester, UK: Idvac Ltd
has developed a vacuum
metallization process to convert
standard silvery coloured
metallized ilms into yellow gold
colour without using any wet
chemical Dyes. In this process,
standard aluminium metallized
ilms, which are silvery in colour,
are converted in vacuum into
yellow gold colour with different
shades. Golden colour can be
applied on top side, back side or
both sides of standard aluminium
metallized ilms or papers.
Golden colour is one of the most
popular relected colours used
for decorative packaging, being
regarded as indicative of richness
and wealth.
The present processes to achieve
golden colour on standard
metallized ilms are to use wet
chemical dyes, which turn into
golden colour once it is coated
with aluminium, or when
aluminium is lacquered by the
chemical dyes. The application of
chemical dyes onto ilms or papers
requires the use of wet coating
machine and chemicals. This new
process is dry, vacuum based,
environmentally friendly and cut
the cost of using wet chemical
dyes. The vacuum colouration of
standard metallised substrates
is carried out inside a standard
vacuum web metalliser at
average line speed of 200/300m/
min depending on the gold colour
shade required. Metallized ilms
such as OPP, BOPP and PET as
well as metallised paper can be
golden coloured in this process.
■
Source: www.idvac.co.uk
6 www.homai.org
7. The Holography Times News Bytes10th Asian High Security
Printing Conference
7-9 December 2011
New Delhi, India
FROM THE INDUSTRY - FOR THE INDUSTRY
The Definitive Forum for High Security Documents
Register online at www.cross-conferences.com/asia
GOLD SPONSOR SILVER SPONSORS
WHO SHOULD ATTEND?
• Central banks and issuing authorities
• Government issuers of passport, ID and travel documents
• Law enforcement agencies
• State printing works and commercial high security printers
• Suppliers of substrates, security features, biometrics
• Suppliers and integrators of passport and ID systems
• Pre-press, printing, finishing and inspection equipment
manufacturers
• Suppliers of specialist services for the security printing and
FUTURE CONFERENCES
9th Pan European High Security Printing Conference
27-29 March 2012
St Petersburg, Russia
1st Latin American High Security Printing Conference
12-14 June 2012
Rio de Janeiro, Brazil
www.homai.org 7
www.cross-conferences.com
ID market
TOPICS TO BE COVERED
• Regional developments in document security
• Travel documentation technologies and features
• Printing and production technologies
• New developments in ID cards
• Fiscal stamps, breeder documents and licences
• Currency features and substrates
• Anti-counterfeiting, document verification and enforcement
8. The Holography Times
Cover Story
Fighting Fakes
by Pradip Shroff
Author is the President of Hologram Manufacturers Association
of India (HOMAI), Board member of International Hologram
Manufacturers Association (IHMA), and Vice-Chairman of PRS
Permacel Pvt Ltd. He is a B.Tech from IIT Mumbai;
M.S. from Case Western Reserve University, USA,
and accredited by Coaching Foundation India Ltd
as a CEO Coach. He has worked with Johnson
Johnson India for almost 25 years and has
been involved in developing solutions for brand
protection for over 35 years. He can be contacted
at pshroff@prs-permacel.com
Brand counterfeiting has long
plagued manufacturers in
many industries, and from all
accounts, the problem is growing
worse. In the era of globalization,
outsourcing, and increasing
online sales, it is not restricted
to a particular sector or country.
Counterfeiting is rampant in
countries like China. In fact, 80
percent of the seized counterfeit
products originate in China1.
Counterfeiting in India
In India, the scale of counterfeiting
today is unprecedented. Here
too, the markets are looded
with illegal replicas of branded
products, causing loss of revenue
for the government and the brand
owner. The question remains
“why are successful brands
counterfeited”.
The reasons for this are many:
• Sheer size of the domestic
market and ease of
availability;
• High price sensitivity;
• Improper coordination
among enforcement
agencies;
• Lack of knowledge among
customers;
• Lack of usage of anti-counterfeiting
measures/
technologies or product
packaging;
• Rising brand consciousness
among the youth; this is
contributing to the growth
of counterfeited products in
India;
• Cheaper than original.
How Serious is the Problem
Product related crime losses,
including counterfeiting
and grey market diversions,
amounted to nearly $700 billion
in 2008, or about 7 percent
of world trade, according to
various organisations3. This
igure is more than the annual
revenue of Wal-Mart, which,
for the inancial year 2010,
had sales revenue of just under
$405 billion4. In India, various
industry associations have also
estimated the similar cost in
billions of dollars. However,
the black market by its nature
cannot be measured precisely.
Industry Yearly Loss
(` cr)
FMCG 7,000*
AUTO 4,500*
CURRENCY 3,200 ***
PHARMA 3,000 **
FILM 2,500*
Table 1: Counterfeiting affect on
industry economy2
* Industry Estimates
** Economic Value Loss
*** Amount of fake currency in circulation
2010
8 www.homai.org
9. Cover Story The Holography Times
Side bar 1:
Interpol comment on Role of Organized Crime Terrorism5
It’s no secret that organized crime is involved in the counterfeit trade. Interpol Secretary General Ronald
K. Noble detailed a number of links between counterfeiting and terrorism to a U.S. congressional
committee in 2003. He cited specifi c examples of intellectual property crime and terrorist fi nancing in
Northern Ireland, Kosovo, North Africa, and the Middle East. Noble commented, “Law enforcement
agencies have to recognize that intellectual property crime is not a victimless crime. Because of the
growing evidence that terrorist groups sometimes fund their activities using the proceeds, it must be
seen as a very serious crime with important implications for public safety and security.”
The problem is much serious
than just a number.
For example:
• Studies by Interpol
conirmed that there is a clear
link between counterfeiting
and terrorist inancing. It
can be through either direct
or indirect involvement of
terrorist groups or militants
involved in counterfeiting
(see side bar 1).
• Counterfeit pharmaceutical
and cosmetics products
raised the risk of health and
safety issues.
• Fake automotive parts were
responsible for 66,330
accidents even, according to
a study, conducted at the time
by Automotive Components
Manufacturers’ Association
in the past. These accidents
caused 13,180 deaths and
injured 65,550 people6.
Effects on the Industry
As the Indian industries are
expanding exponentially, so is
counterfeiting, so much that it
has almost become an industry in
itself. Brands, in such cases, have
to suffer a lot:
• Brand value declines when
fakes are easy to ind and are
offered for low price;
• There is a fall in demand
of branded product, as
retailers and afiliates
may get discouraged due
to numerous fakes in the
market;
• There is pressure on the
brand to lower the price of
its product;
• Counterfeiting drives up the
brand marketing cost.
Government Legislation
Though Indian Intellectual
Property Rights (IPR) laws are
strong, enforcement continues
to remain weak. In the recent
annual report issued by the
ofice of the United States Trade
Representative (USTR) on IPR
violations, India was placed
seventh on the Priority Watch
list in 2010. The report cites that
IPR protection and enforcement
remain a serious concern in India.
India’s criminal IPR enforcement
regime remains weak, therefore,
improvement is needed in terms
of taking police action against
counterfeiters, expeditious
Figure 1: Approximate number of
counterfeit seizure happen in India
for period April 2011- July 2011
1
3
1 1
2
1
2
3
23
4
2
25
20
15
10
5
0
Bangalore
Bihar
Gujarat
Haryana
Jammu Kashmir
Kerala
Madhya Pradesh
Mumbai
New Delhi
Uttar Pradesh
West Bengal
* for detail, please see the page no. 16
www.homai.org 9
10. The Holography Times
judicial disposition for copyright
and trademark infringement
and additionally, imposition of
deterrentlevel sentences for
IPR infringements, and stronger
border enforcement against
counterfeit and pirated goods (See
igure 2: The US special 301 report).
Steps Taken by the Indian
Government in 2010 - 11
The government planned to
revamp the existing intellectual
property implementation
mechanism to address the
concerns of international players
in the pharmaceutical, food
and information technology
industries. In order to create
awareness, the government has
associated with independent
bod-ies such as World Intellectual
Property Organization (WIP),
chambers of commerce and
universities, and initiated a
number of seminars, workshops
and roundtables throughout
the country. The Department of
Industrial Policy and Promotion
(DIPP), the nodal department
that handles IPR related matters
under the commerce ministry
is launching an ambitious
`300 crore project to sensitise
all stakeholders, including
law enforcement agencies,
scientists, companies, ministries
and the general public on IPR
Cover Story
issues. The department is also
planning to set up a National
Institute of Intellectual Property
Management at Nagpur.
Initiatives by Enforcement
Agencies
The custom department is
collating data through its newly
developed web-based tracking
system known as the Automatic
Recordation and Targeting for
IPR protection (ARTS). Through
ARTS, irms can submit online IPR
notice; upload images of genuine
goods and trademarks signs,
images of infringing goods etc.
The department is also working
towards further scrutinizing the
trafic along the borders.
New Rules and Amendments
In an effort to stem the import of
cheap and at times counterfeit
cosmetic products looding the
local market, India is making
import registration mandatory
for such products. The new
law, introduced through a key
amendment in the country’s Drug
and Cosmetics Act (Rule 129),
will take effect from July 2011.
This means that no cosmetics
can be imported into India unless
the product is registered by the
licensing authority, the Central
Drugs Control Organisation
(CDSCO).
Figure 2
The US Special 301 Report
2010 issued by the United
States Trade Representative
(USTR) on IPR violations; India
was placed seventh on the
Priority Watch list in 2010
■ Priority Watch List
■ Watch List
■ Section 306 Monitoring
■ Status Pending
10 www.homai.org
11. The Holography Times
Cover Story
Side bar 2:
Abstract from the GlaxoSmithKline 2010 corporate responsibility report
Importance of CSR is well know to everyone. Companies do come out with their CSR reports once in
a while. Quite often these CSR reports are a refl ection of “ charity” done by the companies. Rarely do
companies talk about CSR that is relevant to their customers. Today when brands are under attack in form
of counterfeiting, tampering, pilfering etc. The Glaxo case is an excellent example for companies to take
responsibility to protect their most valuable assets which are brands.
2010 Corporate Responsibility Report
GSK’s global anti-counterfeiting strategy
involves investigating suspected incidents of
counterfeiting, collaborating with authorities to
take legal action and seize counterfeit goods,
and forensic analysis of counterfeit products
to provide evidence for legal proceedings. Our
Corporate Security, Legal, Packaging Design
and Technology Security teams are all heavily
involved in these activities.
GSK use the fi ndings of its investigations to build
a picture of where counterfeiting is taking place
and the distribution routes used by counterfeiters.
This enables GSK to target its efforts on the most
problematic regions, and GSK also provide this
information to relevant authorities to support their
work.
GSK country managers are required to identify
products that are most likely to be counterfeited
and to develop training for sales representatives.
Our sales representatives worldwide play an
important role in helping to discover counterfeit
products, as they have constant contact and
detailed knowledge of the markets and outlets
where counterfeit products are likely to be sold.
GSK add anti-counterfeiting features to product
packaging. Which include holograms, security
seals and complex background patterns that are
diffi cult to photocopy or scan, as well as a wide
variety of covert identifi ers which are added using
print technologies and sophisticated markers.
These help us to identify counterfeits and gather
evidenceagainst offenders.
GSK works very closely with the wider
pharmaceutical industry to investigate cases
of counterfeiting and also raise awareness with
governments internationally, pressing for stricter
laws and more severe penalties.
Solutions:
The following are some solutions
that brand owners and the
government can offer for checking
counterfeiting:
By Brand Owners
As brands are under attack,
right from manufacturing plant
to customers’ place of purchase
in form of tamper, theft or
replacement that results in bad
image and loss of proit, there is a
need for integrated approach from
the owners of the brands.
A) CEO to take charge/
Responsibilty
As a irst step, every CEO or
brand owner should take the
responsibility for brand attack and
make Brand Risk Management
(BRM) a part of his business
planning, reviewing and reporting
(see side bar 2 an excellent example by
Glaxo). The team can comprise of
the CEO/brand owner, members/
representatives from marketing/
product development, marketing
research, sales, logistics, packaging,
manufacturing, regulatory and/or
legal, inance or outside consultants
with accountability to brand. The
team can periodically review the
BRM by analysing various issues
and aspects such as product
categories and markets, buyer
proiles, supply chain management
and SWOT analysis of duplication/
counterfeiter.
www.homai.org 11
12. The Holography Times
Cover Story
Level Nature of Security Available technologies
1. Overt Security Hologram, Color changing ink, latent images, watermarks and
(visible with eyes) security thread
2. Covert Security Holographic OVDs, UV fl uorescent inks, Micro-printing,
(visible with hand held readers) Bar Code, Laser Coding, substrates
3. Forensic security Holographic OVDs, Chemical taggants,
(can be checked at forensic lab) Biological taggants, DNA taggants, Isotope ratios,
Micro-taggants etc
Table 2: Overt and covert authentication technologies
B) Building an Integrated
Solution
The team should make a
customised, totally integrated
solution by increasing the
participation of co-opting
consumers, channel partners and
conducting veriication, raids or
strong law enforcement.
Use Technology
Brand owners should use
anti-counterfeiting devices
comprising of overt, covert
and forensic security features.
Examples of such tools are
security hologram seal and labels,
tamper evident security ilm,
low cost transponder tags, and
lightsensitive ink designs. While
there are many technologies
a brand manager can use, it is
better if he chooses his tools at
an early stage with some basic
guidelines such as:
• Finding a vendor who can
provide overt as well as
covert technologies, as how
the technology is used is
more important than the
technology itself;
• Getting help from trade
association in selecting
ethical vendor, best practices
and resources for ighting
counterfeiting;
• Select the technology in
terms of parameters such
as dificulty in copying/
tampering (preferably
patented), uniqueness, ease
of identiication and simple
imple-mentation, without any
extra changes to the product
for 1998. (see table 2);
• Availability of suppliers must
also be considered;
• Combining low and high
security elements to enhance
protection. For example,
printing a sequential number
over a hologram;
• Using different types of
security technologies to
maximize counterfeit
protection, such as use of
hologram with bar code or
holographic bar code label
for authentication as well as
for track and trace solution.
By Government
Amendment in Company Law -
Brand Risk Management
should be treated as part
of risk management under
Corporate Social responsibility
‘Brand Risk Management’
should be treated as part of
risk management under the
direct responsibility of board
of directors/brand owners. The
vision and mission statement
should be communicated to all
Brand owners should use
anti-counterfeiting devices
comprising of overt, covert
and forensic security
features.
12 www.homai.org
13. The Holography Times Cover Story
Side Bar 3:
The International Anti-Counterfeiting Coalition (IACC) College Outreach Program
In 2006, IACC started a program targeting college students across the united states, raising
awareness about the dangers of counterfeit goods by providing teachers and students with
background material and case studies from brands like Rolex and American Apparel. The students
were engaged to conduct their own anti-counterfeiting campaigns, using the fi ll arsenal of fi le-sharing
devices and social networking services—blogs, MySpace and Facebook.
the stakeholders and customers
to ensure the protection of brand
and product and that the same
message is received by all. This
can be done by stating it on the
com-pany corporate governance,
annual report and intranet in
text and video. For example,
companies like HP / Microsoft
have a section on their website
that deines their steps towards
product protection.
As an initial step, the government
can make it mandatory for every
company to incorporate BRM
as part of their annual report in
welfare of stakeholders.
Consumer education on ill
effects of counterfeiting
The Government should start
educating consumer on ill effects
of counterfeiting. Educating
consumers can play off. For
example the success of IACC
college outreach campaign in
which students at US universities
were educated about the issues
associated with counterfeiting
(see side bar 3).
Similarly in India Govt can start
such program at management
institutes and Universities
educating the youth, marketing
students, consumers and
Brand manager the ill effects of
counterfeiting and importance of
Brand Protection.
Conclusion
Fighting counterfeiting is a brand
issue, which, when managed well,
will result in the following:
• Consumers getting good
products at value price;
• Higher market share for
manufac-turers, increase in
brand value and proits;
• Increased revenue for
government which can
further be used for
betterment of society ;
• Drying up of one channel for
terrorism funding.
The negative impact of
counterfeiting can be diminished
to a great extent if it becomes a
part of every brand’s planning
and reviewing process.
References
1. Counterfeits, Business treat, Knock-offs
catch on, March 4, 2010, The
Economist
2. The Economy’s Black Hole, March 22,
2010, The Times of India and Govt
reports says 4 in every 1000 notes are
fake, August 9, 2011, Mint
3. Vandagraf International,
www.vandagraf.com
4. Walmart Annual report 2010
5. Organized Crime in the United States:
Trends and Issues for Congress; www.
fas.org/sgp/crs/misc/R40525.pdf
6. Live Mint, December 6,
2007, http://www.livemint.
com/2007/12/06220337/Fake-auto-parts-
take-toll-of-l.html
www.homai.org 13
14. The Holography Times
Global View
Counterfeit Pharmaceuticals and
Brand Authentication Solutions
Adam Scheer is the senior director, strategic marketing and
business development, of JDSU’s Advanced Optical Technologies
business. Prior to his current role in JDSU’s Advanced Optical
Technologies business, which he assumed in May 2010, Scheer
was Marketing Director for the JDSU Authentication Solutions
Group, a position he took on following JDSU’s purchase of
American Bank Note Holographics, Inc.
(“ABNH”) in February 2008. Before joining
ABNH, Scheer served as a senior executive
in the technology and chemical industries.
Scheer holds a B.A. in history, cum laude,
from Williams College and an M.B.A. in
management, earned with distinction, from
New York University’s Stern School of Business
where he was named a Stern Scholar.
Illegal pharmaceutical sales
are increasing at more
than 12 percent annually
worldwide—nearly twice
the pace of legitimate
pharmaceuticals—and
could be on pace to become
a $75 billion industry.
Supply drivers include
the advent of inexpensive
and sophisticated imaging
technologies and the growing
range of distribution channels
facilitated by the Internet.
Undermining the proitability
and brand integrity of major
pharmaceutical irms, these
threats endanger millions
of people who rely on the
authenticity of prescription
and over-the-counter drugs.
Government actions to
slow the proliferation of
fraudulent pharmaceuticals
through regulation and
law enforcement can only
address the supply drivers;
counterfeiting is also driven
by powerful demand drivers
and government alone
cannot control substances
for which there is a high
domestic demand fulilled
by enterprising criminal
organizations. To adequately
address the root cause of
counterfeiting, the consumer
needs to be part of the solution.
Indeed, consumers consciously
or not are often complicit
counterfeiting. Very often, if
they think they are getting
something close to the real
thing for a substantially lower
cost, they will look the other
way. With pharmaceuticals,
they may not understand
why purchasing product
through authorized channels
is important or why certain
products are dificult to
obtain without a doctor’s
prescription. They may also
be willing to take chances
with something cheaper as
long as a big-name brand logo
is afixed to the front of the
item and printed on the box.
So, with all these factors
working against them,
how can drug companies
protect their brands without
alienating consumers? There
are, in fact, quite powerful
solutions.
by Adam Scheer
“To adequately address the
root cause of counterfeiting,
the consumer needs to be
part of the solution”
14 www.homai.org
15. The Holography Times
Engaging Consumers in
Brand Authentication
Consumers often greet
authentication with a groan.
Authenticating identity can
mean long lines at airports.
Authenticating a credit card can
mean pulling out a driver’s license
as backup. Proving that “you’re
you” online means remembering
any number of usernames and
passwords. Consumers are
willing to do it, but there’s rarely
any joy in it.
The key for drug manufacturers
trying to engage consumers in
effective authentication is to create
a positive experience: entertain
the user in some fashion and
show that they’re getting value.
The simplest way to entertain is
to offer visually pleasing graphics.
For example, holograms can be
constructed that show elaborate
motion. Labels can integrate
these holograms with pigments
that shift colors as viewing angles
change.
These visually pleasing, overt
features work because the
expertise and materials needed
to create and manufacture
sophisticated, pigmented
holograms and labels are hard to
obtain. Counterfeiters can’t create
holograms with lip images and
microtext in a garage, nor can they
buy sophisticated pigments on
the open market. Consumers can
immediately tell the difference
between a highly designed,
expensive-looking label and a
cheap knockoff. And it’s a pleasing
experience: the consumer sees
the quality and relishes the value.
Digital tools can complement
overt visual effects to both
enhance the robustness of an
authentication program and
to engage the consumer in a
different way. One example is
where a product’s ID is tracked
throughout the distribution cycle
and the customer purchase. With
this technique, the customer’s
involvement in the process
generates a stronger brand and
greater customer loyalty. Here’s
how it can work:
• The manufacturer generates
an ID code for a particular
product.
• A specialized printer integrates
the code onto a sophisticated,
overt-authentication label.
• The manufacturer afixes the
label to the product and/or its
packaging.
• Tracking data for the code is
managed by a data center:
when and where it was
shipped, customs information,
when it was sold and by whom,
etc.
• The end-consumer can go
online and register the code
in exchange for a warranty,
special offer, or other incentive.
The customer experience
reinforces the exclusivity of
the brand and opens a line of
communication between the
customer and the manufacturer.
This increases brand loyalty and
offers greater sales opportunities
for the manufacturer. It is a
win-win solution that can
reduce losses to counterfeiting
signiicantly.
The counterfeiting of
pharmaceuticals is a serious,
expensive problem. The
technologies and techniques are in
place to stop a large proportion of
it. Fortunately for manufacturers,
stopping this kind of fraud can
improve the customer experience,
increase margins, and generate
even stronger brand loyalty.
Global View
“The key for drug
manufacturers trying to
engage consumers in
effective authentication is to
create a positive experience”
www.homai.org 15
16. The Holography Times
Industry Updates
Counterfeit Seizure Report
The report displays the counterfeiting seizures reported in Indian newspaper for period April 2011- July 2011.
D/M/Y News Reported Category
2-Apr-11 One more arrested in fake pilot licence case ID Documents
2-Apr-11 Fake ticket holders to be arrested Tickets Passes
2-Apr-11 Fake permanent residents certifi cates ID Documents
5-Apr-11 6 held with fake travel papers ID Documents
5-Apr-11 LeT forged IDs, passes for Wankhede Entry ID Documents Tickets
18-Apr-11 Fake mineral water in Rajdhani FMCG
18-Apr-11 Mumbai ambulances carry fake number Vehicle Registration Plate
21-Apr-11 Scrap dealer held with fake notes Currency
21-Apr-11 1 more pilot held in fake licence racket ID Documents
22-Apr-11 Octogenarian held for making fake bottle caps Liquor
23-Apr-11 Two held with fake visas ID Documents
25-Apr-11 5 held with Rs 9.5 lakh fake currency notes Currency
2-May-11 4 held for trying to get VISA on fake documents ID Documents
6-May-11 Fake stamp paper used in Bihar Revenue Stamp/Paper
12-May-11 Printing press found in Noida making fake DTC bus tickets Tickets Passes
31-May-11 Six arrested, fake currency notes and equipments seized Currency
31-May-11 Crime branch bust fake liquor scam, 6 held Liquor
7-Jun-11 DRI seizes fake Indian currency notes of over Rs 1.5 crore Currency
8-Jun-11 Factory seized making adulterated diesel Oil
11-Jun-11 Fake permits seized from bus operator Permits
11-Jun-11 MP cops recover fake UID card from SIMI activist ID Documents
13-Jun-11 Counterfeit currency found at Bank currency Chest Currency
13-Jun-11 Mantra in Patna, you make it we fake it FMCG
14-Jun-11 Fake fans in name of branded one Electronics
15-Jun-11 Drug racket busted Pharmaceuticals
15-Jun-11 Man arrested for issuing bogus board certifi cates Certifi cate/Degree
23-Jun-11 Fake visa racket found ID Documents
25-Jun-11 Racket in fake degree busted Certifi cates/Degree
28-Jun-11 Nearly 40 students identifi ed in fake caste certifi cate case Certifi cate/Degre
28-Jun-11 3 arrested with counterfeit currency worth Rs 60,000 Currency
28-Jun-11 2 held for selling fake stamp papers Revenue Stamp/Paper
29-Jun-11 Factory seized making duplicate paint Paint
1-Jul-11 Factory seized making duplicate ghee FMCG
8-Jul-11 3 arrested in fake passport case ID Documents
8-Jul-11 Fake currency seized, one arrested Currency
15-Jul-11 Two men arrested with fake visa ID Documents
15-Jul-11 Factory seized making counterfeit medicines Zentel, Pantocid (worth Rs 1 crore ) Pharmaceuticals
22-Jul-11 Five arrested for issuing fake UIDs ID Documents
25-Jul-11 Fake mark sheet racket busted Degree/Certifi cates
27-Jul-11 Another fake certifi cate scam unearthed in Delhi Degree/Certifi cate
29-Jul-11 Fake perfumes unit busted, 4 nabbed FMCG
30-Jul-11 Fake currency found worth Rs 55000 Currency
31-Jul-11 Bihar becoming the new hub of counterfeit medicine Pharmaceuticals
For detailed, subscribe to HoMAI press monitor or e-mail at info@homai.org
16 www.homai.org
17. The Holography Times
Industry Updates
Tender updates
Domestic
Organisation M/Year State Details
Directorate of Electronic Delivery of May 2011 Karnataka Security Hologram
Citizen Services
Punjab State E-governance Society May 2011 Punjab Security Hologram
Andhra Bank May 2011 Hyderabad Security Hologram
National Highway Authority of India May 2011 New Delhi Security Hologram
Department of Printing Stationery and May 2011 Orissa Security Hologram
Publication
DakshinanchalVidyutVitran June 2011 Uttar Pradesh 2D / 3D Hologram Seals
Nigam Limited
Central Railway June 2011 Maharashtra Hologram
Government of Karnataka, July 2011 Karnataka Security Hologram
Revenue Department
International
Organisation Date State Details
Ministerio De RelacionesExteriores May 2011 Peru Security Hologram
Inst. Nacional De Semillas May 2011 Argentina Hologram stickers
Asamblea Nacional De Rectores June 2011 Peru Security Hologram
National Library Board July 2011 Singapore Hologram Stickers
Ofice of the Director of July 2011 USA Synthetic Holographic Observation
National Intelligence
KulturVeTurizmBakanligiTelifHaklarive July 2011 Turkey Holographic Banderol
SinemaGenelMÜDÜRLÜGÜ
Ministerio Da Educacao July 2011 Brazil Identity Card with Hologram
To get the latest tender, subscription and information email at info@homai.org
www.homai.org 17
18. The Holography Times Industry Updates
Global Patents
Publication Title Int. Application Applicant
DD.MM.YYYY Class Number
28.07.2011 (WO 2011/090030) G03H 1/18 PCT/JP2011/050765 Dai Nippon Printing
Volume hologram sheet to be Co., Ltd
embedded, forgery prevention
paper, and card
28.07.2011 (WO 2011/089820) G03H 1/04 PCT/JP2010/073185 Hyogo Prefectural
Generation method for complex Government
amplitude in-linehologram and image
recording device using said method
21.07.2011 (WO 2011/086275) G07D 7/00 PCT/FR2010/052822 Hologram Industries
Method for securing an object and
corresponding object
14.07.2011 (WO 2011/085233) G11B 7/00 PCT/US2011/020559 Holotouch, Inc
compact holographic human-machine
interface
14.07.2011 (WO 2011/083364) G03H 1/00 PCT/IB2010/003398 BAUTISTA, Rafael,
Process for obtaining a variable high Artasanchez
securityhologram and its applications
23.06.2011 (WO 2011/074030) G03H 1/02 PCT/JP2009/006904 Kabushiki Kaisha
Hologram recodring medium Toshiba
23.06.2011 (WO 2011/073885) B42D 15/00 PCT/IB2010/055779 Arjowiggins Security
Security element including an
optical structure
03.06.2011 (WO 2011/064162) C09D 5/29 PCT/EP2010/067898 BASF SE
Coating compositions for security
elements and holograms
26.05.2011 (WO 2011/062036) G02B 5/32 PCT/JP2010/069067 NEC Corporation
Optical element, light source device, and
projection display device
26.05.2011 (WO 2011/061442) G07D 7/20 PCT/FR2010/052439 Hologram Industries
Method and system for automatically
checking the authenticity of
an identity document
For more information, visit www.wipo.int - Gateway to Patent Scope – Database Search – PCT Applications
International Applications (PCT)
This search tool allows you to search around published International Patent Applications and to view the latest information
and documents available to the International Bureau. This facility features: full-text search in Descriptions and Claims;
search using unlimited keywords; bibliographic search; Boolean operators; and graphical results
18 www.homai.org
19. The Holography Times
Industry Updates
Upcoming Events
The 3rd Tax Stamp Forum
Sep 12-14, 2011, Washington DC, USA
For more details contact: Tel: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790
Email: info@reconnaissance-intl.com; Web: www.taxstampforum.com
Label Expo Europe 2011
Sep 28 - Oct 01, 2011, Brussels, Belgium
Web: www.labelexpo-europe.com
Holo-pack. Holo-print 2011
Nov 9-11, 2011, Las Vegas, USA
For more details contact: Tel.: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790
E-mail: info@reconnaissance-intl.com , Web: www.holopack-holoprint.com
IMI’s 8th Annual Security Printing Conference
Nov 16-18, 2011, Florida, USA
Web: www.imiconf.com
Label Expo Asia 2011
Nov 29 - Dec 02, 2011, Shanghai / PRC
For more details contact: Web: www.labelexpo-asia.com
IQPC’s Brand Protection and Anti-Counterfeiting Summit 2011
Nov 29 - Dec 1, 2011, Amsterdam, Netherlands
Web: www.brandprotectionevent.com
10th Asian High Security Printing Conference
Dec 07-09, 2011, New Delhi, India
For complete detail, please see the advertising at page no 8.
India Packaging Show 2011
Dec 7-10, 2011, New Delhi, India
Web: www.packplus.in
About HoMAI
The Hologram Manufacturers
Association of India (HOMAI) is a
non-proit organization established in
1998 to represents and promotes the
interest of hologram industry in India
as well as to ight against counterfeiting.
Published by:
Hologram Manufacturer Association of India
(HoMAI)
Issue Editor:
C S Jeena
The Holography Times is a quarterly newsletter
published by HOMAI with an aim to provide
latest developments, research, articles, patents
and industry news to a wide audience related to
Holography in Indian and World.
The editorial team welcomes your news,
contributions and comments. Please send your
product updates, press releases, conference
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www.homai.org 19
