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The Holography Times The Holography Times 
Vol. 8, Issue 24 Endeavour to protect people and products 
May 2014 | Volume 8 | Issue 24 
Counterfeit threat for 
Industry on RISE electronic 
plug it 
HoMAI quarterly newsletter www.homai.org 
www.homai.org 1
The Holography Times 
Vol. 8, Issue 24 News Bytes 
2 www.homai.org
The Holography Times 
Vol. 8, Issue 24 
Viewpoint 
Dear Reader, 
Welcome to the 24th edition of The Holography Times. 
As you know our previous edition focused on Auto 
Counterfeiting and we received overwhelming response 
from majority of you. We would like to thanks you all for 
your valuable inputs and time. 
Our current edition will focus on “The making of 
counterfeit electronic parts” which has become a very big 
business across the globe. In fact, counterfeit electrical 
and electronic products now occupy second place after 
pharmaceuticals. Worldwide counterfeiting of electrical 
products is estimated to range anywhere between US $ 
11 billion to US $20 billion annually. In North America 
alone, the electrical product counterfeiting is estimated 
to be in the US $300 million to US $ 400 million range and 
rapidly growing. Research from the Mobile Manufacturers 
Forum (MMF) says around 148 million counterfeit or 
substandard mobile phones were sold worldwide in 2013, 
mostly in developing countries. 
Although not much has been done in India to assess 
the impact of counterfeit electrical components, there 
is a study by FICCI CASCADE that focused on computer 
hardware and mobile phones. According to this study 
counterfeit computer hardware constitute 26.4 percent, or 
` 47 billion by value, of the total market size estimated at 
` 179 billion for 2012. Similarly, the Grey market for Mobile 
Phone constitute 20.8 percent, or ` 90 billion by value, out 
of total market size estimated at ` 434 billion in 2012. 
Our current issue highlights the “Issue of Electrical and 
Electronic products Counterfeiting” and needs of an 
effective anti-counterfeiting strategy to combat this 
problem. Apart from this the issue also covers industry 
updates including news, patents and events. 
Do send us your feedback/critics at info@homai.org. 
C S Jeena 
Editor 
In this issue 
4 
9 
15 
News bytes 
Counterfeit threat for 
electronic industry 
on rise: plug it 
Coded holograms: 
keeping the supply 
chain secure 
Industry updates 
Counterfeiting News Update 17 
Global patents 18 
Upcoming events 19 
The Holography Times The Holography Times 
Vol. 7, Issue 23 Endeavour to protect people and products 
Dec 2013-Jan 2014 | Volume 8 | Issue 23 
CROSSED 
USD 2 BILLION MARK 
Grey market 
29.60% 
COUNTERFEITING 
Direct tax loss to 
Government 
93 Million ($) 
Sales loss to industry 
2 Billion ($) 
Indirect tax Loss to 
Government 
512 Million ($) 
Tax loss to the 
Exchequer 
605 Million ($) 
HoMAI quarterly newsletter www.homai.org 
www.homai.org 1 
Feedback 
Very interesting issue, especially the part regarding 
automotive industry problems. It seems that big step 
in protecting vehicles and major vehicle parts are 
METAL micro-holograms - all with a unique code. 
Jiri (George) Perkous 
Owner of Segment Security, LLC and Holoptica, LLC 
Thank you for The Holography Times. I look forward 
to staying in touch and reading your articles. 
Paul Westwood OAM 
Director of Forensic Document Services Pty Ltd, 
Sydney Area, Australia 
A really interesting and complete article. 
Congratulations! 
Beatriz Cerrolaza 
Chief Financial Officer & Chief Marketing Officer, 
ALISE DEVICES, S.L., Madrid Area, Spain 
www.homai.org 3
The Holography Times 
Vol. 8, Issue 24 
Leading News 
Fake labels taking a toll on liquor firms: 
NEED HEALTM 
Bangalore, India: Counterfeit 
label has become increasingly 
lucrative in some States because 
of a sharp rise in taxes, according 
to news published by Mint. 
United Spirits Ltd (USL), Pernod 
Ricard and Allied Blenders and 
Distillers Pvt. Ltd (ABD) and 
other top liquor companies 
are losing out on liquor sales 
in fast-growing eastern states 
such as West Bengal, Assam and 
Bihar because of a significant 
increase in sales of fake labels— 
poor quality blends that are 
packaged as popular alcohol 
brands. Over the years, apart 
from the states in eastern India, 
bottles of counterfeit alcohol 
have been sold in some other 
states including Andhra Pradesh, 
Rajasthan and Haryana, where 
regulation is relatively weaker. 
States in eastern India account 
for roughly 10-12 percent of 
liquor sales in the country and 
are among the fastest growing 
regions in India at a time when 
overall growth in India’s liquor 
industry has dropped to its 
lowest in a decade. Last week, 
India’s fourth largest distiller 
Tilaknagar Industries Ltd bought 
the branded alcohol business 
of Kolkata-based IFB Agro to 
increase its presence in states 
such as West Bengal and Assam. 
Incidentally, all these States 
(West Bengal, Bihar and 
Assam) are not using any 
kind of authentication/ anti-counterfeiting 
solutions to 
curb this menace. According 
to Hologram Manufacturers’ 
Association of India (HOMAI), 
“the problem can be curbed to 
a large extent with the usage 
of HEALTM (Holographic Excise 
Adhesive Label). In India more 
than 18 States & UT are already 
using security hologram as 
excise adhesive label on liquor 
bottles. This provides them an 
effective anti-counterfeiting 
tool in identification of spurious 
liquor and curbing the problem 
of illicit liquor and consequently 
helping in increasing state 
excise revenue. A state that uses 
hologram tax stamps on liquor 
bottles collects higher revenue 
per person as compared to those 
states who do not use a hologram 
tax label” (See table below). 
Source: www.livemint.com/ 
www.homai.org 
Table: Comparison of State using HEAL vs not using any anti-counterfeiting solutions 
State excise department using anti-counterfeiting solution 
Name of Department 2001-02 2011-12 Increase in Population of Revenue Per 
(`Crore#) (`Crore) last 10 State in Crore Person in 
Years Census 2011 `* 
Delhi 606.41 2533.72 1927.31 1.67 1517.19 
Tamilnadu 2058.21 9975.21 7917.00 7.21 1383.52 
Uttarakhand 232.04 755.98 523.94 1.01 754.97 
Madhya Pradesh 704.68 4316.49 3611.81 7.25 595.37 
State excise department not using any anti-counterfeiting solution 
Name of Department 2001-02 2011-12 Increase in Population of Revenue Per 
(`Crore#) (`Crore) last 10 State in Crore Person in 
Years Census 2011 `* 
West Bengal 512.43 2117.04 1604.61 9.13 231.87 
Bihar 238.90 1980.98 1742.08 10.38 192.32 
Jharkhand 100.21 457.10 356.89 3.29 138.93 
Assam 150.91 503.35 352.44 3.11 161.84 
*Revenue per person = Revenue in 2011-12/Population of State 
# 1 Crore = 10 million 
4 www.homai.org
The Holography Times 
Vol. 8, Issue 24 
Uses and applications 
Amarnath Shrine Board enhanced 
security features of Yatra form 
Jammu and Kashmir, India: To 
curb duplication of registration 
forms of Amarnath yatra, the Shri 
Amarnathji Shrine Board (SASB) 
will issue new forms this year 
onwards, with security features 
of currency notes. The forms will 
be printed by Security Printing 
and Minting Corporation of India 
Limited (SPMCIL) and will cost 
nearly ` 7.5 million. 
The revised form will have many 
security features, including the 
Ashoka pillar watermark and text 
‘Shri Amarnathji Shrine Board’ 
and the board’s logo printed in 
the background, which can be 
seen only through a powerful 
magnifying glass. The logo, which 
will be printed in fluorescent 
blue ink, can be viewed under 
ultraviolet light, and the printing 
would be done with chemically-sensitive 
security ink. 
Source: :www.hindustantimes.com 
KENYA eyeing more revenue from bottled 
water with new tamper proof stamps 
Nairobi, Kenya: The Kenya 
Revenue Authority (KRA) 
will use the modern stamp duty 
on bottled water to seal loopholes 
of possible tax evasion. The new 
stamps are tamper proof, having 
enhanced security features. 
However, the move is likely to 
put a halt to the fast growing 
bottled water industry estimated 
to rake in more than Sh16 billion 
annually. This follows a successive 
application of the modern stamp 
duty technology on tobacco, 
wines and spirits. Commissioner- 
General John Njiraini said the 
achievements made in the two 
sectors will encourage them to 
roll out the same system for the 
beer and soft drinks to improve 
tax efficiency on excisable goods. 
Bottled water sector is our next 
emerging selling tax compliance 
area and we have to put our feet 
on it,” he said. Njiraini noted that 
the new security features will 
improve the tax administration 
in the country. He noted that the 
new features make it difficult to 
counterfeit the stamp duty to 
be used in excisable goods. The 
old stamp duty could easily be 
counterfeited, denying it some 
significant revenue. “The system 
provides us with the capability 
to authenticate genuine excise 
stamps on a real time basis 
during field visits,” he said. 
Previously, the authentication 
was done manually, creating a 
loophole on possible tax evasion. 
Since its roll out in December last 
year, the taxman has impounded 
over 10,000 pieces of wines and 
spirit products from over 400 
outlets. “The culprits have paid 
various fines with some running 
as high as Sh1.5 million. We shall 
also have the goods in question 
forfeited,” Njiraini warned. The 
new system is able to monitor 
the entire chain process of an 
excisable good earmarked for the 
market. 
Source: :www.standardmedia.co.ke 
www.homai.org 5
The Holography Times 
Vol. 8, Issue 24 
Policy 
Canadian Government introduces 
extensive amendments to Trade-marks 
Act in Economic Action Plan, 2014 
On March 28, 2014, the 
Canadian government 
introduced the Economic Action 
Plan 2014 Act, No. 1 as part of an 
omnibus budget implementation 
bill. The bill includes significant 
amendments to the Trade-marks 
Act that are designed to put 
Canada in a position to adhere to 
major international trade-mark 
treaties, including the Madrid 
Protocol, the Nice Agreement and 
the Singapore Treaty. Continuing 
the trend set by Bill C-8, the 
pending Combating Counterfeit 
Products Act, the new bill repeats 
some amendments included in 
the previous bill and includes 
additional provisions, repealing 
or replacing some of the unusual 
or even unique aspects of the 
Canadian Act. For example, a 
“trade-mark” will become a 
“trademark”, “wares” will become 
“goods” and both associations 
of similar trade-marks and 
the “distinguishing guise” will 
disappear from Canadian practice. 
With significant changes the 
definition of a trade-mark will 
be greatly expanded to cover a 
“sign or a combination of signs” 
including a word, a personal 
name, a design, a letter, a numeral, 
a colour, a figurative element, 
a three-dimensional shape, a 
hologram, a moving image, a 
mode of packaging goods, a sound, 
a scent, a taste, a texture and the 
positioning of a sign. 
Source: www.lexology.com 
French Customs signs 
agreement with IACC 
Kazakhstan to host anti-counterfeiting 
global forum 
PARIS: French Customs (DNRED) and 
the IACC, a Washington, D.C.-based non-profit 
organization committed to combating 
trademark counterfeiting and piracy, signed 
a Memorandum of Understanding (MOU) 
that enhances cooperation between the two 
organizations regarding the enforcement 
of trademarks and copyrights. This 
unprecedented agreement will improve 
the ability of French authorities and the 
IACC to communicate, cooperate, and share 
information and resources, as well as further 
efforts in combating online counterfeit 
merchants via the IACC’s RogueBlock program. 
With retail e-commerce sales rising steadily 
over the past decade, the Internet provides an 
enticing platform for criminal merchants to 
sell counterfeit goods. The IACC’s RogueBlock 
program uses a “follow-the-money” approach 
and provides a system for brand owners 
to report online sales of illegal counterfeit 
goods. By collaborating with the world’s 
largest international payment brands, the 
RogueBlock program works to choke off 
funding to counterfeit merchants. 
Source: www.internet.itbusinessnet.com 
Kazakhstan’s Ministry of Justice will be organising an 
anti-counterfeiting international forum on May 21 at the 
Palace of Independence in national capital Astana. 
According to a Ministry of Justice the following issues will 
be discussed: 
(1) Problems of counteraction against counterfeiting, 
falsified and defected products 
(2) Food and pharmaceutical safety 
(3) Dissemination of pirated music. audio and video 
products on the Internet and 
(4) Issues on harmonization of legislation in the sphere of 
intellectual property within the Customs Union. 
The ministry is expecting speakers and participants 
from Governments of Kazakhstan, Russia and Belarus; 
representatives of World Intellectual Property Organization 
(WIPO), Eurasian Economic Commission for Europe, World 
Customs Organization (WCO), World Health Organization, 
Interpol, International Trademark Association (INTA); 
International Federation of the Phonographic Industry (IFPI); 
African Intellectual Property Organization, Governments of 
the countries of the Commonwealth of Independent States 
and far abroad, NGOs, rights holders, universities and other 
interested parties. 
Source: www.business-standard.com 
6 www.homai.org
The Holography Times 
Vol. 8, Issue 24 
Project awarded 
GHANA approve tax stamp contract worth 
US $ 50 million to Authentix 
Ghana: The Parliament of 
GHANA has approved a 
contract between the government 
of Ghana and Authentix, USA for 
the procurement of tax stamp 
systems. The purpose of the 
agreement is to actualise the 
implementation of the provisions 
in the Excise Tax Stamp Act 2013 
which was passed by the House in 
December 2013. It seeks to engage 
the services of and expertise 
of Authentix International in 
the implementation of the tax 
stamp system in the country. 
Under the agreement, Authentix 
would be responsible for the 
installation of a system Web 
Based Portal, an appropriate 
stamp affixing machinery where 
necessary on production lines of 
manufacturers, an operational 
and production testing, a testing 
validation and acceptance of 
machinery and systems and the 
training of officers in the use of 
monitoring and detection devices. 
The Government of Ghana will 
pay the supplier the sum of US$ 
11,790,000 per year for a period 
of five years for its services as 
well as a monthly installation of 
US$982,500 for four years after 
an initial payment on delivery, 
installation and final acceptance. 
Source: www.parliament.gh 
De La Rue is 
awarded latest 
Bahrain passport 
contract, securing 
a partnership of 
almost 50 years 
IRSIS awarded 
Philippines tax 
stamp project 
Manama, Bahrain; De La Rue has been awarded a 5 year supply 
contract by the Kingdom of Bahrain for the nation’s machine 
readable passport and high security film laminate bio-data page 
protection solution. This award secures a partnership that first started 
in 1971 and includes a book redesign within the contract terms. 
Bahrain’s Passport contract award, made earlier this year, covers the 
supply of 100 thousand machine readable passports per year for the 
next five years. De La Rue has also been commissioned to design a 
new book for the government, which will include the latest security 
features and technologies, countering specific threats and ensuring 
the document’s integrity against potential attack and counterfeit. In 
addition to the book, De La Rue will be supplying half a million specially 
designed MLIS™ patches, a proprietary high security thin film laminate, 
to protect the holders details on the book’s bio-data page. 
Source: www.delarue.com 
Philippines: IRSIS Corp.., a 
joint venture of four IT Firms 
including (CAI-STA Philippines, 
Inc., Philcox Philippines, Inc., 
Latent Image Technology Ltd., 
and Comclark Network and 
Technology Corp) has been 
awarded the Bureau of Internal 
Revenue’s (BIR) security tax 
stamp project worth P521.64 
million., which is expected to 
be rolled out by the middle of 
this year. BIR Commissioner 
Kim S. Jacinto-Henares said the 
contract for the Internal Revenue 
Stamps Integrated System 
(IRSIS) project, which will aid in 
monitoring the supply and sale 
of tobacco products, was signed 
last November. 
Source: www.bworldonline.com 
www.homai.org 7
The Holography Times 
Vol. 8, Issue 24 
Standard and development 
MIT develops smartphone-readable 
particles to prevent counterfeiting 
Chemical engineers from 
Massachusetts Institute of 
Technology (MIT) have invented 
a new type of tiny, smartphone-readable 
particle that is invisible 
to the naked eye, containing 
coloured stripes of nanocrystals 
that glow brightly when lit 
up with near-infrared light. 
“These particles can easily be 
manufactured and integrated into 
a variety of materials and can 
withstand extreme temperatures, 
sun exposure and heavy wear,” 
explained Patrick Doyle, a chemical 
engineering professor at MIT. 
They could also be equipped with 
sensors that can “record” their 
environments. To manufacture 
the particles, the researchers 
used stop-flow lithography, a 
technique developed previously 
by Doyle. Many strategies have 
been developed to try to label 
legitimate products and prevent 
illegal trade - but these tags 
are often too easy to fake, the 
researchers found. Using this 
procedure, the researchers 
can generate vast quantities of 
unique tags. With particles that 
contain six stripes, there are one 
million different possible colour 
combinations. 
This capacity can be exponentially 
enhanced by tagging products 
with more than one particle. For 
example, if researchers create a 
set of 1,000 unique particles and 
then tag products with any 10 of 
those particles, there would be 
1,030 possible combinations - far 
more than enough to tag every 
grain of sand on earth. 
Source: www. gadgets.ndtv.com 
NASPO SA 2013 security audit now 
combines ISO 14298 requirements 
(Washington, DC): The North 
American Security Products 
Organization (NASPO)announced 
today a new audit that combines 
two highly recognized security 
standards for producers of 
documents of value employing 
added security features designed 
to protect against counterfeiting. 
The new NASPO audit now covers 
security requirements from 
ISO (International Organization 
of Standardization) and from 
NASPO (North American 
Security Products Organization), 
providing both convenience 
and cost savings to those firms 
seeking security assurance 
certification on a national and/or 
international level. 
Producers of security 
documents, cards and foils can 
now achieve both the NASPO 
Security Assurance standard 
(NASPO SA 2013) and the 
ISO 14298 standard (Graphic 
Technology -Management of 
Security Printing Processes) 
through a single NASPO audit. 
This allows organizations to 
meet the requirements of a key 
international security standard 
from ISO as well as national 
security standards of ANSI/ 
NASPO (American National 
Standards Institute). NASPO will 
also offer individual audits to 
ANSI/NASPO SA 2013 and ISO 
14298 to those organization not 
requiring combined audits. 
NASPO SA 2013 is an accepted 
security standard by ANSI 
used today by private industry 
as well as state and federal 
agencies. It was developed for 
security printers, security foil 
producers, technology suppliers 
or any organization seeking to 
implement or enhance their 
security practices. The conformity 
assessment process of NASPO SA 
2013 has been proven to meet 
the security requirements of a 
broad base of users. 
The ISO 14298 standard is 
similar to NASPO SA 2013, 
but does not include security 
technology suppliers or other 
security organizations. Thanks 
to NASPO’s participated in the 
development of ISO 14298, 
the NASPO and ISO standards 
share common auditing 
and conformity assessment 
procedures, making it easier 
now to meet the requirements of 
both standards through a single 
auditing process. 
“NASPO has developed our audit 
processes over the last 10 years 
to meet the high requirements of 
security contractors and users,” 
said Richard Ward, Chairman of 
NASPO. “A NASPO Certification 
represents trust and credibility 
in the audit process and a level 
of assurance that the standards 
requirements are being met and 
implemented as intended.” 
Source: :www.naspo.info 
8 www.homai.org
Vol. 8, Issue 24 Cover Story 
The Holography Times 
Counterfeit threat for 
electronic industry on 
rise: plug it 
Author: Author is Secretary of Hologram Manufacturers 
Association of India (HoMAI) since 2006 and also serves as 
Editor of The Holography Times. 
C S Jeena 
Introduction: 
Imagine incidents such as 
an aircraft crashing due to 
malfunctioning counterfeit 
parts, a medical equipment 
blurs off in the middle of the 
surgery, a missile misses the 
target and hits the own camp 
and a heavily invested satellite 
fails reaching its destiny or a 
fake mobile battery exploding 
even as one is using the phone. 
The counterfeit electronic parts 
are available everywhere from 
sophisticated semi-conductors 
and chips used in commercial 
and military electronics as well 
as the normal day to day used 
electronics items, and they 
represent a serious hazard if 
used in critical systems such as 
aircraft navigation, life support, 
military equipment, or space 
vehicles. 
After the crash of the C-130J 
Super Hercules near Gwalior 
there were controversial news 
reported in the media about 
counterfeit electronics being 
the reason for this unfortunate 
incident. Actually, certain 
avionics displays fitted in this 
aircraft as original equipment 
were manufactured by L3 
Display Systems Corporation, a 
US Company1. In November 2010, 
the company become aware 
that its in house failure rate 
for a chip installed on display 
units used in C-130J and C-27J 
had more than tripled from 8.5 
percent to 27 percent. When 
sent for testing, the parts were 
found as suspected counterfeit. 
Although, the company did not 
give any recall notice, But when 
this matter became known to 
the public, the US Senate Armed 
Services Committee decided 
to investigate the matter and 
released its report on May 21, 
2012. The report admitted that 
counterfeit electronics parts 
were breaking into the defense 
supply chain and could endanger 
the lives of troops and allies. 
While the report focuses on the 
risks posed to military systems, 
there is no reason to believe that 
the risks are any different for 
non-military systems2. 
Brief Abstract: 
Counterfeiting is not a new term for 
electronic industry as counterfeit 
electrical and electronic products 
now occupy second place after 
pharmaceuticals estimated to 
range anywhere between US$11 
billion to $20 billion worldwide 
every year. However, counterfeit 
electronic parts have been much 
in the public eye in recent weeks. 
On March 28, 2014 one of Indian 
Air Force Aircraft (C-130J Super 
Hercules) crashed near Gwalior city 
killing five crew members. There 
were controversial news reported 
in media about the counterfeit 
electronics being the reason for 
C-130J air crash. Over the past 
several years the electronics industry 
has seen a marked increase in the 
availability of counterfeit electronic 
components. Counterfeiters 
have attacked every commodity 
of electronics, from simple 
components such as capacitors, 
to complex integrated circuits such 
as microprocessors. In expensive 
commercial devices, as well as high 
cost military components, have seen 
counterfeiting on the rise. This article 
highlights the serious risk, its impact 
and the possible proactive steps that 
can be taken to curb this menace. 
1. “Did IAF’s ‘US-made’ C-130J Super Hercules that crashed have fake Chinese parts?,” Chidanand Rajghatta,TNN | Mar 30, 2014 available at 
http://timesofindia.indiatimes.com/india/Did-IAFs-US-made-C-130J-Super-Hercules-that-crashed-have-fake-Chinese-parts/articleshow/ 
32977838.cms 
2. “Inquiry into Countefeit Electronic Parts in the Department of Defense Supply Chain: Report of the Committee on Armed Services United 
States Senate” hereinafter the “SAAC report,” available at http:// www.armed-services. senate.gov/Publications/ Counterfeitpercent20 
Electronic20percent20Parts.pdf. 
www.homai.org 9
The Holography Times 
Vol. 8, Issue 24 
Cover Story 
Table 1: Counterfeit Computer Hardware and Mobile Phone in India 
Particulars Computer Hardware Mobile Phones 
Estimated sales to Industry Grey Market (percentage) 26.4 20.8 
Sales loss INR 47.25 billion INR 90.42 billion 
Estimated tax loss to the Government Direct tax loss 470 million 4.96 billion 
Indirect tax loss 11.87 billion 26.78 billion 
Tax loss to the exchequer 12.34 billion 31.74 billion 
*The loss has been calculated for the year 2012 
Size of counterfeit 
electronic components 
problem: 
The making of counterfeit 
electronic parts has become 
a very big business. In fact, 
counterfeit electrical and 
electronic products now 
occupy second place after 
pharmaceuticals. Worldwide 
counterfeiting of electrical 
products is estimated to range 
anywhere between US$11 
billion to $20 billion annually. 
In North America alone, the 
electrical product counterfeiting 
is estimated to be in the $300 
million to $400 million range 
and rapidly growing3. Research 
from the Mobile Manufacturers 
Forum (MMF) says around 
148 million counterfeit or 
substandard mobile phones 
were sold worldwide in 2013, 
mostly in developing countries4. 
Although not much has been 
done in India to assess the 
impact of counterfeit electrical 
components, there is a study 
by FICCI CASCADE that focused 
on computer hardware and 
mobile phones. According to 
this study counterfeit computer 
hardware constitutes 26.4%, 
or ` 47.25 billion by value, of 
the total market size estimated 
at ` 179.01 billion for 2012. 
Similarly, the Grey market for 
Mobile Phone constitute 20.8%, 
or ` 90.42 billion by value, out 
of total market size estimated 
at ` 434.09 billion in 20125. (See 
Table 1). 
Most commonly 
counterfeited 
electronics items 
From components such as fuses, 
cables and circuit breakers 
to household equipment, 
professional work tools and 
automotive and aviation spare 
parts, nothing is safe from 
counterfeiting. While the 
appearance and packaging can 
be very convincing, the products 
themselves are often sub-standard 
and may represent a 
severe safety hazard, causing 
accidents and costing lives. (See 
table 2 and Table 3) 
Reason / factor 
for increase in 
electronic components 
counterfeiting: 
The problem is, increasing 
because of various factors, 
including global as well as local 
such as; 
3. “Sharks in the Water,” By John Estey, National Electrical Manufacturers Association, T&D World Magazine (May 2007) available at http:// 
tdworld.com/business/sharks-water 
4. “Counterfeit/Substandard Mobile Phones, A resource guide for Government,” White paper published by Mobile manufactures Forum available 
at http://www.mmfai.org/public/docs/eng/MMF_CounterfeitPhones_EN.pdf 
5. “Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sector,” published by FICCI Committee 
Against Smuggling and Counterfeiting Destroying Economy (CASCADE) available at http://www.ficci.com/spdocument/20190/Executive- 
Summary-invisible-enemy-aug-8-2013.pdf 
10 www.homai.org
Vol. 8, Issue 24 Cover Story 
The Holography Times 
Table 2: Percentage of Market Revenue for Most Commonly Counterfeited Product Types by Application Market in 2011 
(Percentage Share of Revenue in Millions of U.S. Dollars) 
Part Type Industrial Automotive Consumer Wireless Wired Computer Other 
Analog IC 14% 17% 21% 29% 6% 14% 0% 
Microprocessor IC 4% 1% 4% 2% 3% 85% 0% 
Memory IC 3% 2% 13% 26% 2% 53% 1% 
Programmable Logic IC 30% 3% 14% 18% 25% 11% 0% 
Transistor 22% 12% 25% 8% 10% 22% 0% 
Source: IHS iSuppli March 2012 
1. Global number of illegal 
manufacturing due to 
shortcoming of existing 
legislation: According 
to Electronic Industries 
Association of India ELCINA, 
the component industry 
has suffered because duty-free 
imports of about 217 
categories of electronic 
components like capacitors, 
resistors and transformers 
were allowed from 2005 
under an information 
technology agreement with 
the World Trade Organization 
(WTO-ITA1). Many of India’s 
more than 1,000 small 
companies manufacturing 
electronic components 
have shut operations6. In 
an investigation spanning 
six months, the Directorate 
of Revenue Intelligence 
has found that for over 
3,673 items brought from 
China, the importers usually 
declared 1-9 percent of the 
actual value of the goods7. 
2. Easy availability of 
material due to global 
E-Waste handling: China 
may be a principal source 
of counterfeit parts, but 
the United States and other 
countries in the developed 
world generate the 
electronic waste (“e-waste”) 
from which semi-conductors 
and other micro-electronic 
parts are extracted by 
counterfeiters. The parts 
recovered from the 
salvaged electronics waste 
which are non-functional 
are processed by the 
counterfeiters to give a look 
of an original component8. 
3. Inadequate surveillance 
efforts by brand owner 
to identify counterfeit 
products; 
4. Tampering/Repackaging: 
Counterfeit electronic 
component enter the 
supply chain through local 
manufacturing, importing 
from China in the form of 
fake packaging or in original 
packaging sourced from 
mechanics or service stations; 
5. Higher margins: In 
comparison to genuine 
electronic component 
makers, a counterfeiter earns 
anywhere from 35 percent 
to 75 percent on selling 
counterfeit electronic parts. 
6. Consumer Education: Lack 
of consumer education to 
identify authentic electronic 
Table 3. Top 5 Most Counterfeited 
Semiconductors in 2011 
(Percentage of Counterfeit 
Part Reports) 
Rank Commodity % of reported 
Type Incidents 
1 Analog IC 25.20% 
2 Microprocessor 13.40% 
IC 
3 Memory IC 13.10% 
4 Programmable 8.30% 
Logic IC 
5 Transistor 7.60% 
Source: IHS Parts Management 2012 
6. “Dragon on the Rampage: A flood of cheaper Chinese goods, sometimes better than their Indian counterparts, is forcing small manufacturers 
to shut shop and turn into traders,” by Taslima Khan, Edition: Mar 2, 2014 published by Business Today available at http://businesstoday. 
intoday.in/story/chinese-imports-hitting-india-msme-sector/1/203041.html 
7. MP3 player for Rs 2, LED torch for Rs 8: Undervalue Chinese imports, make a killing, C Unnikrishnan, TNN. 
8. “U.S. e-waste drives counterfeit components problem,” by Victoria Fraza Kickham, published by Global Purchasing available at http:// 
globalpurchasing.com/latest-news/us-e-waste-drives-counterfeit-components-problem 
www.homai.org 11
The Holography Times 
Vol. 8, Issue 24 
Cover Story 
Table 4: Impact of counterfeit component components 
Consumers Legitimate Manufacturers Government / Social 
Loss of Life Loss of revenue Loss of revenue 
Loss of Job Increases warranty costs and so the maintenance cost Funding of criminal enterprises 
Financial Liability due to law suites 
Loss of brand integrity and goodwill 
Expected life of the product decreases 
parts and about the ill effects 
of counterfeit parts. 
Impact of counterfeit 
electronic component = 
huge social and financial 
liability: 
When counterfeit electrical 
devices, components and spare 
parts enter manufacturing supply 
chains, they can add fire, shock 
and explosion risks that may cost 
workers their lives, cause serious 
property damage and involve 
unpredictable financial liability. 
One fake component can void 
guarantees for entire systems and 
installations, resulting in severe 
financial losses and liabilities. 
Manufacturers, installers, 
specifiers and employers can be 
held responsible for incidents and 
accidents linked to counterfeit 
components. Counterfeit 
electrical products do not comply 
with performance and safety 
specifications; they are not tested 
or approved. Counterfeit aviation 
parts, for example pose a serious 
risk to the safety of military, 
civil and commercial aviation 
industry. 
Steps in combating 
electronic counterfeiting9 
Several studies have been done 
to measure the impact of the 
problem, but suggested solution 
has invariably focused primarily 
on enhanced effectiveness of law 
enforcement. It is important that 
a holistic solution is developed 
in this fight. The solution to this 
ever-growing menace lies at the 
very core of the product, i.e. a 
dire need to create an end-to-end 
holistic brand protection 
strategy10; 
As a first step, every CEO or 
Brand owner should take head 
on the threat of brand attack 
and prepare a Brand Risk 
Management (BRM) plan as 
an intrinsic part of the overall 
business plan, review and report. 
The team may comprise the CEO/ 
Brand owner, Brand Managers, 
Head of Marketing, Product 
Development, Sales, Logistic, 
Packaging, Manufacturing or an 
outside consultant accountable 
for the brand. The idea is to curb 
the penetration of counterfeits, 
across levels. 
The anti-counterfeiting strategy 
can be broken into various stages 
such as: 
i. Anti-counterfeiting 
policy and brand 
protection program 
By establishing and pursuing 
an anti - counterfeiting 
policy and brand protection 
program a company is able to 
provide proof that all due care 
was taken to limit or reduce 
counterfeiting and protect 
trademarks and brands. 
Together they provide a 
shield for liability, and also 
a protection against loss of 
reputation and adverse public 
opinion. The brand protection 
program and a n t i - 
counterfeiting policy should 
list pro-active measures that 
are put in place toidentify and 
report fake products. They 
help limit the negative effects 
of counterfeiting and reduce 
reaction time should such an 
event occur. 
Elements to consider include: 
• supply chain processes, 
inspection, audits and 
quality control 
• Identification and evaluation 
of risks and threats 
• Detection and reporting 
processes, including handling 
of counterfeit products 
• Overall risk-management 
and adequate response 
procedures 
The policy also needs to address 
product labelling (including anti-counterfeiting 
technologies) 
and training of staff on how to 
recognize counterfeit products. 
Furthermore, it should provide 
assistance and training 
programs to officials tasked with 
enforcing seizures of counterfeit 
products. The latter because 
only the manufacturer of the 
genuine product knows whether 
an item is fake or genuine. Part 
of this may include the setting 
up of a product database, online 
reporting mechanisms, and 
simple protocols that provide 
investigators with tips on how to 
spot fakes. 
9. Brand Protection: Challenges and Solutions, Pradip Shroff, Published at The Holography Times, Volume 4, issue 13 available at http://www. 
homai.org/AdminPanel/PDF/Issue13.pdf 
10. ISO Standards 12931 “Performance criteria for authentication solutions used to combat counterfeiting of material goods”, http://www.iso. 
org/iso/catalogue_detail?csnumber=52210 
12 www.homai.org
The Holography Times 
Vol. 8, Issue 24 
Cover Story 
ii. Register trademarks and 
copyrights 
Register trademarks in 
all countries you sell, 
manufacture, and license 
or distribute products in. 
This is essential to protect 
trademarks and brands. 
Also, apply for 
patents and register designs. 
For details and registration 
procedures, consult a 
trademark attorney. 
iii. Adopt ISO standards and 
Join trade associations 
ISO has developed 
new Standards 1293 
“Performance criteria 
for authentication tools 
used in anti-counterfeiting 
or material goods”: The 
new ISO 12931 is already 
published and would be 
a very useful document 
for any-one who wants to 
follow globally accepted 
standards and approach to 
fighting against the 
counterfeit. The ISO document 
can be seen on http://www. 
iso.org/iso/catalogue_ 
detail?csnumber=5221010. 
It is strongly recommended 
that all brands who want to 
have a safety net of a global 
standard, should plan to 
comply with this standard. 
Similarly, SAE International, 
a global association of more 
than 138,000 engineers and 
related technical experts in 
the aerospace, automotive, 
and commercial-vehicle 
industries has come up 
with the first revision 
to its c o u n t e r f e i t 
parts avoidance technical 
standard “AS5553 
Fraudulent/Counterfeit 
Electronic Parts;Avoidance, 
Detection, Mitigation, and 
Disposition.11” This new 
revision in particular provides 
terminology references and 
reporting mechanisms to 
facilitate the flow-down of 
the standard globally. Further, 
try to join anti-counterfeiting 
association or your local 
chamber of commerce, such 
as FICCI CASCADE, as these 
national and international 
trade bodies can guide and 
provide best practices against 
combating counterfeiting. 
For example, The National 
Electrical Manufacturers 
Association is so concerned 
about this influx of counterfeit 
products that its board of 
governors has made it one 
of its top-three priorities 
to focus the attention of 
government, the supply 
channel and the public on the 
harm caused by counterfeit 
electrical products12. In India, 
FICCI CASCADE13 is doing 
similar work. 
iv. When fake products are 
found 
After contacting the relevant 
law enforcement authorities, 
consider reaching out to a 
member of the IEC Conformity 
Assessment System14 (For 
India it is BIS). They can direct 
you to one of the national 
certification agencies and 
laboratories who might be 
able to help you set up a testing 
and inspection program to 
avoid future problems, as 
well as product training for 
manufacturing staff and law 
enforcement agencies. 
v. Anti-counterfeiting 
technologies15 
There are a number of anti-counterfeiting 
technologies 
that can help better 
protect and authenticate 
products. And while they 
can’t completely eliminate 
counterfeiting, they can 
make it less attractive 
and less profitable, 
increasing the level of risk 
for the counterfeiters. Use a 
secure, anti-counterfeiting 
device comprising overt, 
covert & forensic security 
features like security 
hologram seals and labels, 
tamper evident security 
films and light-sensitive 
ink designs. While there 
a number of technologies 
available in the market, it is 
advisable to choose smart 
and at the right time while 
keeping track of some basic 
guidelines like: 
• Instead of focusing on 
features, find a vendor who 
can provide you overt as well 
as covert technologies as it is 
important to select a solution 
using multiple technologies. 
• Seek help from an 
established trade association 
to select ethical vendor, best 
practices and resources to 
fight counterfeiting. 
• Select the technology in terms 
of the difficulty in replicating 
and tamper evidence 
offered, uniqueness, 
availability of suppliers, ease 
of identification and user 
friendliness. 
• Solutions should also have 
feasibility of being integrated 
with the automated 
production/ packaging 
line if required, especially 
wherever the volumes are 
very large 
Try to combine low and 
high security elements 
to enhance protections, 
for example, by integrating 
sequential or unique 
numbers in the solution. 
vi. Market surveillance, 
quality control, inspection 
• Establish classical market 
surveillance, including at 
customs barriers and ports 
• Obtain and test samples from 
open markets, websites and 
auction sites. Make it known 
that you run such tests 
• Keep a database of companies 
and manufacturers that 
www.homai.org 13
The Holography Times 
Vol. 8, Issue 24 
have been suspected to 
counterfeit your products 
• Send “Cease and 
desist” letters for every 
infringement to establish 
brand and trademark 
protection measures 
• Tighten supply chain, 
production and delivery 
path of genuine products 
• Establish factory, pre-shipping 
and port of entry 
inspections (as counterfeit 
products sometimes hide in 
genuine shipments) consider 
involving an IEC Conformity 
Assessment System member 
for inspection and testing 
pre-shipping and at market 
entry point. 
vii. Interception and 
cooperation with law 
enforcement 
Registered for customs watch 
programs. Organizations 
including Interpol, World 
Trade Organisation, World 
Customs Organization, 
World Intellectual 
Property Organization and 
International Chamber of 
Commerce are working 
closely together to improve 
international cooperation 
and border enforcement 
through increased customs 
co-ordination and exchange 
of information and best 
practices. The IEC and its 
Conformity Assessment 
System members concretely 
support these efforts on the 
ground through inspection 
and testing. 
Conclusion: 
While the trade of counterfeit 
electronic parts has dramatically 
increased, tackling counterfeits 
is not impossible. Counterfeiting 
is a problem that needs to be 
addressed quickly and decisively. 
Ideally, as a first move, more 
effective partnerships should be 
built between law enforcement 
agencies and the private sector 
with focus on intelligence 
sharing, awareness and product 
identification training. 
• Manufacturers should create 
a team that focuses on anti-counterfeiting 
strategy 
• Selection of right anti-counterfeiting 
strategy 
should be employedUse 
first level of authentication 
features to empower your 
customers to identify your 
genuine products 
• Track supply chain at 
distributor end 
• Information to customer 
In our view a company that 
implements the suggestions 
outlined in this article will 
definitely see a marked 
improvement in their fight 
against counterfeiting. In case 
you need more information, 
please e-mail to us at info@ 
homai.org and we will be happy 
to work with you to eliminate the 
menace of counterfeiting. 
Resources 
1. “Counterfeit Electronic Parts: What 
to do Before The Regulations 
(and Regulators) Come?,” 
Federal Contracts Report, 97 
FCR???,6/21/2012, The Bureau 
Cover Story 
of National Affairs, Inc. (800-372- 
1033) http://www.bna.com 
2. “Counterfeit Chips on the Rise,” 
IEEE Spectrum (June 2012), 
available at http://spectrum. 
ieee.org/computing/hardware/ 
counterfeit-chips-on-the-rise. 
3. KPMG Study: Managing the Risks 
of Counterfeits in the IT Industry 
(on file with the authors) available 
at:http://www.agmaglobal. 
org/press_events/press_docs/ 
Counterfeit_WhitePaper_Final.pdf 
(“No anticounterfeiting effort is 
entirely foolproof, but the better ones 
can make a significant differences.” 
4. ChinaWTO.com, “Trade 
Regulations, Customs and 
Standards,” at http:// 
chinawto.com/wto/index- e . 
asp?sel=info&info=regulation. 
5. “Counterfeit threats for electronic 
parts,” by Nicole Faubert 
(December 30, 2013) available at 
http://thecounterfeitreport.com/ 
article/253/Counterfeit-threats-for- 
electronic-parts.html 
6. “The Counterfeit Repair Parts 
Tsunami,” by Robert M. 
Williamson available at http:// 
www.swspitcrew.com/articles/ 
Counterfeit%20Parts%200911. 
pdf 
7. “Counterfeit components: Methods 
to protect against fake parts,” 
avilable at http://www.eeherald. 
com/section/sourcing-database/ 
component_sourcing_guide2.html 
8. HOMAI – Hologram Manufacturers 
Association of India, www.homai. 
org 
9. How to Select a Security Feature 
- a Structured Guide for the 
Selection of a Security Technology 
for Documents and Items of Value, 
Published in June 2009 by the 
Document Security Alliance (DSA) 
and North American Security 
Products Organization (NASPO) 
10. The Serious Risks From Counterfeit 
Electronic Parts, Forbes 
11. “SAE International’s counterfeit electronic parts risk mitigation standards,” at www.sae.org 
12. NEMA, Public Policy, Anti-Counterfeiting, https://www.nema.org/Policy/Anti-Counterfeiting/pages/default.aspx 
13. FICCI Committee Against Smuggling and Counterfeiting Destroying Economy (CASCADE), http://www.ficci-cascade.com/ 
14. “Piracy in Electrical and electronic products: Anti-counterfeiting best practice and strategies,” International Electrotechnical Commission 
available at http://www.iec.ch/about/brochures/pdf/conformity_assessment/IEC_Counterfeiting_brochure_LR.pdf 
15. “Steps to Identify Authentication Solutions to Curb Counterfeiting,” C S Jeena, published at The Holography Times, Volume 7, Issue 20 available 
at http://www.slideshare.net/cjhomai/steps-to-identifyauthenticationsolutionstocurbcounterfeiting 
14 www.homai.org
Vol. 8, Issue 24 Guest Column 
The Holography Times 
Coded holograms: 
keeping the supply chain secure 
Companies have to contend with 
challenges stemming from supply 
chain security lapses (which can 
result in theft, diversions and 
product recalls), counterfeiting 
and regulations. In addition these 
factors can impair the health 
and reputation of companies by 
adversely impacting on profits, 
brand credibility and research 
initiatives. With industry, 
regulatory authorities, security 
agencies and governments 
around the world realising the 
significance of implementing 
product tracking and tracing 
systems which build on product 
serialisation, it becomes 
mandatory for those in the 
supply chain to comply with 
legislation pertaining to the 
locations in which they operate. 
Even where this is not mandated 
by law, tracking and tracing 
systems improve defences 
against counterfeiting and 
other infringements as well 
as improving distribution and 
inventory control. 
Typically, distribution systems 
run the gamut of manufacturers, 
wholesalers, distributors, stockists 
and retail outlets before products 
reach the end user or customer. 
Ensuring product protection, 
including authentication 
capabilities, across various touch 
points throughout the supply 
chain through track and trace 
implementation, is important to 
address the challenges industry 
faces. Apart from providing 
visibility and full traceability 
from manufacturer to consumer, 
successful serialisation programs 
can prove to be a key differentiator 
and a clear competitive advantage 
for companies. 
Today, Quick Response (QR) codes, 
which use four standardised 
encoding modes (numeric, 
alphanumeric, byte/binary and 
kanji) to efficiently store data, are 
being linked with holograms to 
provide integrated track & trace 
and authentication solutions 
which, among other benefits, can 
help governments improve excise 
duty collection and minimize 
product counterfeit, contraband 
and illegal parallel trading by 
enabling tracking of each saleable 
item from its point of origin to the 
point of sale. Incorporating these 
codes in to a hologram delivers 
authentication of the product and 
the code in one feature, making 
this an efficient and effective 
method of product protection. 
Systems like Andrews & 
Wykeham’s THESEUS™ can also 
be applied as an anti-counterfeit 
solution not related to taxation 
for such market segments as 
pharmaceutical. Not only do 
systems like this one assist in 
maximising tax collection and 
reducing counterfeits, they are 
also tools the government can 
use to leverage public confidence. 
THESEUS™ for example includes 
an open Internet interface, which 
enables any member of the public 
Ian Lancaster 
IHMA 
Everyone involved in the goods 
supply chain - manufacturers, 
distributors, consumers, taxation and 
government authorities- has learnt 
the value of security holograms and 
will be reassured by their presence 
on products and/or the packaging, 
recognising the benefits they 
provide. However, as coding and 
serialisation becomes mandated in 
various countries for products such 
as medicines and tobacco products, 
the ability to incorporate QR, data 
matrix and other types of code in to 
holograms further enhances the role 
they can play in supply chain control. 
Ian Lancaster, general secretary 
of the International Hologram 
Manufacturers Association, highlights 
the latest developments. 
www.homai.org 15
The Holography Times 
Vol. 8, Issue 24 
to verify products are genuine 
and duty-paid, and uses high-security 
labels with holographic 
and security print features, 
carrying two-dimensional QR-format 
barcodes with item-specific 
information. These codes 
are protected from unauthorised 
access and reproduction by 
state-of-the-art electronic digital 
signature (EDS) technology. 
Another technology finding its 
way to increased integration 
with holography is coding 
foil, which is used to stamp 
various markings onto product 
packaging by means of a coding 
device. These markings provide 
the consumer with important 
information such as a product’s 
expiration date, production date, 
the weight, or the price, and 
are especially beneficial when 
it comes to the need to mark a 
product’s quality or add high 
performance labelling. And in 
today’s health and eco-conscious 
world, manufacturers ensure 
that these foils comply with all 
necessary regulations, including 
the strict limits in EN 71/Part 
3, the EU packaging guidelines 
94/62/EC, and the American 
CONEG specification for heavy 
metals and lead chromate. The 
Kurz Group, for example, is a 
market leader whose eco-friendly 
coding foils are enabling product 
manufacturers and others in the 
supply chain to choose from a 
diverse product line that includes 
a wide range of grades and 
colours to meet the demanding 
requirements of modern product 
packaging, labelling and retailing. 
Coding foils are just one product 
that can be integrated with 
holograms to boost the role played 
in supply chain control. Kurz’s 
TRUSTSEAL® range of difficult to 
copy holographic authenticity 
features visually enhance the 
brand, build consumer confidence, 
and provide a high level of 
counterfeit protection. These 
optical security features can be 
combined with the web-based 
TRUSTCODE® identification 
system. The TRUSTCODE® system 
connects the real world to the 
virtual one: detailed product 
information can be accessed by 
buyers, retailers, customs officials 
and brand owners using different 
smart phone scanning processes. 
The company has also developed 
diffractive 2 D barcodes with an 
appealing aesthetic that enhances 
the value of the product. Rather 
than being printed, the barcode is 
applied as a silver colored stamping 
foil into which the actual code has 
been incorporated as a diffractive, 
holographic-like structure. 
Elsewhere, companies like MTM 
Technologies Inc are pioneering 
other coded holography solutions 
such as the HoloTag to protect 
against brand piracy and product 
theft in the supply chain within 
the framework of its integrated 
security concept. Integrated with 
other technologies the MTM 
hologram linked with a taggant 
combines visible proof of any 
tampering with an individual 
security code for authentication. 
The HoloTag 2D barcode system 
has applications in many areas: 
from government revenue 
collection to publishers and 
manufacturers of products. 
Checks can be carried out within 
the supply chain with a HoloTag 
track and trace mobile application 
that can be downloaded onto 
most smart phones, or accessed 
Guest Column 
from a browser, allowing the 
user to gather a lot of information 
in the field and track this in real 
time. The technology plays an 
important part in combating 
counterfeiting and piracy of 
taxable items, helping brand 
owners control their inventories 
and prevent them from producing 
excess items which can be targets 
for smuggling. 
Unquestionably, one of the keys 
to the success of holograms since 
being adopted for authentication 
purposes in the early 1980s has 
been the ability to adapt and 
constantly find new roles. We 
will undoubtedly see more and 
more interesting developments 
for the technology that will offer 
far reaching benefits that develop 
and expand further the role of 
track and trace. So, with the 
seemingly remorseless march 
of technology and the resolve of 
governments, anti-counterfeiting 
agencies and companies around 
the world to stand firm in the face 
of international organised crime, 
as well as the casual opportunist, 
there’s no reason why the 
hologram will not continue 
to evolve, becoming further 
enmeshed in global supply chains 
and continuing to add real value. 
The International Hologram 
Manufacturers Association 
(IHMA) - www.ihma.org - is made 
up of nearly 90 of the world’s 
leading hologram companies. 
IHMA members are the leading 
producers and converters 
of holograms for banknote 
security, anti-counterfeiting, 
brand protection, packaging, 
graphics and other commercial 
applications around the world. 
IHMA member companies 
actively cooperate to maintain 
the highest professional, security 
and quality standards. 
Issued on behalf of the IHMA by 
Mitchell Halton Watson Ltd. 
For further details contact 
Andy Bruce on +44 (0) 191 233 1300 
or email andy@mhwpr.co.uk 
16 www.homai.org
The Holography Times 
Vol. 8, Issue 24 
Industry Updates 
Counterfeiting news update 
Food & Beverage 
Fake Oranges seizures becomes Hong Kong’s 
first counterfeit fruit scandal 
http://www.scmp.com/news/hong-kong/ 
article/1496013/fake-fruit-gives-buyer-sour-taste 
Illicit liquor seized worth ` 1.6 million, Mumbai, 
Maharashtra, India 
http://timesofindia.indiatimes.com/City/ 
Thane/Over-75000-litres-of-illicit-liquor-seized/ 
articleshow/33031649.cms 
Police seize illicit liquor worth ` 2.14 cr 
http://freepressjournal.in/city-police-seize-cache-of- 
illicit-liquor-worth-rs-2-14-crore/ 
Delhi Police seized 5000 bottles of illicit liquor 
http://www.dnaindia.com/india/report-delhi-police- 
seizes-5000-quarter-bottles-of-illicit-liquor- 
1969810 
Fake VODKA worth £ 1 million found 
http://www.mirror.co.uk/news/uk-news/fake-vodka- 
worth-1m-found-3151850 
Fake pesticides a threat to Kashmir apples 
http://indianexpress.com/article/india/india-others/ 
fake-pesticides-a-threat-to-kashmir-apples/ 
Cosmetics and Personal Care 
Dubai smells a fake: Dh2 million counterfeit 
perfumes seized, UAE 
http://www.emirates247.com/news/emirates/ 
dubai-smells-a-fake-dh2-million-counterfeit-perfumes- 
seized-2014-03-24-1.542731 
Dh 4.1 million fake cosmetics seized in Dubai 
http://www.khaleejtimes.com/kt-article-display-1. 
asp?xfile=data/crime/2014/April/crime_April31. 
xml&section=crime 
Pharmaceuticals 
A $ 2million health counterfeiting ring 
http://www.newsday.com/long-island/nassau/ 
health-product-counterfeiting-ring-busted-in-nassau- 
officials-say-1.7322609 
Haryana drug wholesalers booked for 
smuggling cough syrup 
http://timesofindia.indiatimes.com/city/ 
chandigarh/2-Haryana-drug-wholesalers-booked- 
for-smuggling-cough-syrup/ 
articleshow/31310436.cms 
Security and Fiduciary Documents 
Men caught with $4.1 trillion worth of fake 
bonds at Vatican Bank, Italy 
http://rt.com/business/vatican-bank-fake-bonds- 
285/ 
ISI fake notes may flood Indian polls, India 
http://www.deccanchronicle.com/140401/nation-current- 
affairs/article/isi%E2%80%99s-fake-notes- 
may-flood-indian-polls 
Automotive Components 
Mumbai Police seized fake high security 
number plates 
http://timesofindia.indiatimes.com/city/mumbai/ 
Mumbai-Police-raid-on-fake-high-security-number-plates/ 
articleshow/30864818.cms 
www.homai.org 17
Vol. 8, Issue 24 Industry Updates 
The Holography Times 
Global patents 
Publication Title Int. Application Applicant / Inventor 
DD.MM.YYYY Class Number 
06.03.2014 Wo/2014/032238 -Optically D21h 21/42 Pct/Cn2012/080718 Sicpa Holding Sa / 
Variable Security Threads and Ritter, Gebhard 
Stripes 
Brief Abstract: A more sophisticated optically variable security thread or stripe was provided. It could be used 
in the field of anti-counterfeiting, and comprised: a substrate and i ) a first optically variable layer (1) imparting 
a first different color impression at different viewing angles, ii )a second optically variable layer (2) imparting 
a second different color impression at different viewing angles, iii)a first color constant layer (4) having a color 
matching the color impression of the first or second optically variable layer at a first viewing angle, iv) a second 
color constant layer (5) having a color matching the color impression of the first or second optically variable layer 
at a second viewing angle, and v ) one or more material-free regions (0), wherein the first optically variable layer 
(l), the second optically variable layer (2), the first color constant layer (4), the second color constant layer (5) and 
the one or more material-free regions (0) are jointly visible from one side of the security thread or stripe. A process 
for making said security thread or stripe was also disclosed. 
19.02.2014 2698404 -Microparticles, C09c 1/00 12771357 Dainippon Printing 
Anti-Counterfeiting Ink, Co Ltd / Yamauchi 
Particle Sets, Tsuyoshi 
Anti-Counterfeiting Toner, 
Anti-Counterfeiting Sheet and 
Anti-Counterfeiting Medium 
Brief Abstract: A main object of the present invention is to provide fine particles, a particle group, an anti-counterfeiting 
ink, an anti-counterfeiting toner, an anti-counterfeiting sheet, and an anti-counterfeiting medium 
enabling to achieve a high level of authentication. The object of the present invention is achieved by providing the 
fine particle comprising an identification information group including multiple types of identification information 
identifiable by magnification, characterized in that the identification information group includes first identification 
information and second identification information which cannot be identified at any magnifying power capable of 
identifying the first identification information. 
13.02.2014 WO/2014/023523 - G06K 19/06 PCT/EP2013/064927 3S Simons Security 
Microparticle, In Particular Systems Gmbh/ 
Microparticle For The Simons, Rolf 
Anti-Counterfeiting Marking 
Of Products 
Brief Abstract: The invention relates to a microparticle (10), in particular a microparticle (10) for the anti-counterfeiting 
marking of products. The microparticle (10) has at least one first layer (20) and at least one second 
layer (30). The first layer (20) forms an outer face (22) of the microparticle (10), and at least the outer face (22) is 
equipped with at least one mark (15), which is pre-applied onto the outer face (22). None of the dimensions of the 
microparticle (10) exceed approximately 100 μm. The invention further relates to a method for producing at least 
one microparticle (10), to a label, to a spread, and to a corresponding use. 
18 www.homai.org
The Holography Times 
Vol. 8, Issue 24 
Industry Updates 
Upcoming events 
Date Event Name / Place / Website 
21-23 May, 2014 Pharma Pro Pack Expo 2014 
Mumbai, India, www.pharmapropack.com 
16-18 June, 2014 Security Document World 
London, United Kingdom, www.sdw2014.com 
23-25 June, 2014 High Security printing 2014, Latin America 
Hotel Sheraton, Santiago, Chile, www.hsp-latinamerica.com 
23-25 June, 2014 Anti-counterfeiting for Pharmaceuticals and Medical Devices 
Philadelphia, Pennsylvania, www.anticounterfeitingpharma.com 
8-11 Sep, 2014 The 3rd International banknote Designer Conference 
Montreal, Canada, www.banknotedesignersconference.com 
15-17 Sep, 2014 Tax Stamp Forum 
Dubai, UAE, www.taxstampforum.com 
29 Oct – 1 Nov, Label Expo India 
2014* PragatiMaidan, New Delhi, www.labelexpo-india.com 
3-6 Nov, 2014 Automotive Aftermarket Products Expo 
Sands Expo, Las Vegas, USA, www.aapexshow.com 
19-20 Nov, 2014 Brand Protection and Anti-Counterfeiting 
Munich, Germany, www.brandprotectionevent.com 
3-5 Dec, 2014* The Holography Conference 
Istanbul, Turkey, www.theholographyconference.com 
19-21 Jan, 2015 High Security Printing 2015, Asia, Middle East & Africa 
Hotel Makati-Shangrila, Manila, The Philippines, www.hsp-europe.com 
3-4 March, 2015 IP Protect Expo 2015 
Business Design Centre, London, www.ip-protectexpo.com 
23-25 March, 2015 High Security Printing 2015, Europe 
Hotel Corinthia, Budapest, Hungary, www.hsp-europe.com 
22-24 April, 2015 Security Printers 2015 
Copenhagen, Denmark, www.securityprinters.org 
10-13 May, 2015 The currency conference 
Vancouver, Canada, www.currencyconference.com 
Published by 
Hologram Manufacturer Association of India 
(HoMAI) 
Editorial Team 
Issue Editor : C S Jeena 
Advisor : Mr. Pradip H Shroff 
Mr. Manoj Kochar 
Designed & : EYEDEA Advertising 
Printed by 1250/13, Govindpuri, 
Kalkaji, New Delhi-19 
(India) 
eyedeaadvertising@gmail.com 
www.artworxindia.in 
The 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 announcements or other 
contributions to HoMAI: 
21-Ground Floor, Devika Tower 6 
Nehru Place, New Delhi 110019, India 
Telfax: +91 (11) 41617369 
Email: info@homai.org, 
Website: www.homai.org 
Disclaimer: 
The data used here are from various 
published and electronically available 
primary and secondary sources. Despite 
due diligence the source data may contain 
occasional errors. In such instances, HoMAI 
would not be responsible for such errors. 
About HoMAI 
The Hologram Manufacturers 
Association of India (HoMAI) 
is the world’s 2nd and Asia 
only association representing 
hologram industry. 
* HoMAI participatin events. Meet us at these events to know more about us. 
Counterfeit cartoon 
www.homai.org 19
The Holography Times 
Vol. 8, Issue 24 
20 www.homai.org

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The Holography Times, May 2014, Volume 8, Issue no 24

  • 1. The Holography Times The Holography Times Vol. 8, Issue 24 Endeavour to protect people and products May 2014 | Volume 8 | Issue 24 Counterfeit threat for Industry on RISE electronic plug it HoMAI quarterly newsletter www.homai.org www.homai.org 1
  • 2. The Holography Times Vol. 8, Issue 24 News Bytes 2 www.homai.org
  • 3. The Holography Times Vol. 8, Issue 24 Viewpoint Dear Reader, Welcome to the 24th edition of The Holography Times. As you know our previous edition focused on Auto Counterfeiting and we received overwhelming response from majority of you. We would like to thanks you all for your valuable inputs and time. Our current edition will focus on “The making of counterfeit electronic parts” which has become a very big business across the globe. In fact, counterfeit electrical and electronic products now occupy second place after pharmaceuticals. Worldwide counterfeiting of electrical products is estimated to range anywhere between US $ 11 billion to US $20 billion annually. In North America alone, the electrical product counterfeiting is estimated to be in the US $300 million to US $ 400 million range and rapidly growing. Research from the Mobile Manufacturers Forum (MMF) says around 148 million counterfeit or substandard mobile phones were sold worldwide in 2013, mostly in developing countries. Although not much has been done in India to assess the impact of counterfeit electrical components, there is a study by FICCI CASCADE that focused on computer hardware and mobile phones. According to this study counterfeit computer hardware constitute 26.4 percent, or ` 47 billion by value, of the total market size estimated at ` 179 billion for 2012. Similarly, the Grey market for Mobile Phone constitute 20.8 percent, or ` 90 billion by value, out of total market size estimated at ` 434 billion in 2012. Our current issue highlights the “Issue of Electrical and Electronic products Counterfeiting” and needs of an effective anti-counterfeiting strategy to combat this problem. Apart from this the issue also covers industry updates including news, patents and events. Do send us your feedback/critics at info@homai.org. C S Jeena Editor In this issue 4 9 15 News bytes Counterfeit threat for electronic industry on rise: plug it Coded holograms: keeping the supply chain secure Industry updates Counterfeiting News Update 17 Global patents 18 Upcoming events 19 The Holography Times The Holography Times Vol. 7, Issue 23 Endeavour to protect people and products Dec 2013-Jan 2014 | Volume 8 | Issue 23 CROSSED USD 2 BILLION MARK Grey market 29.60% COUNTERFEITING Direct tax loss to Government 93 Million ($) Sales loss to industry 2 Billion ($) Indirect tax Loss to Government 512 Million ($) Tax loss to the Exchequer 605 Million ($) HoMAI quarterly newsletter www.homai.org www.homai.org 1 Feedback Very interesting issue, especially the part regarding automotive industry problems. It seems that big step in protecting vehicles and major vehicle parts are METAL micro-holograms - all with a unique code. Jiri (George) Perkous Owner of Segment Security, LLC and Holoptica, LLC Thank you for The Holography Times. I look forward to staying in touch and reading your articles. Paul Westwood OAM Director of Forensic Document Services Pty Ltd, Sydney Area, Australia A really interesting and complete article. Congratulations! Beatriz Cerrolaza Chief Financial Officer & Chief Marketing Officer, ALISE DEVICES, S.L., Madrid Area, Spain www.homai.org 3
  • 4. The Holography Times Vol. 8, Issue 24 Leading News Fake labels taking a toll on liquor firms: NEED HEALTM Bangalore, India: Counterfeit label has become increasingly lucrative in some States because of a sharp rise in taxes, according to news published by Mint. United Spirits Ltd (USL), Pernod Ricard and Allied Blenders and Distillers Pvt. Ltd (ABD) and other top liquor companies are losing out on liquor sales in fast-growing eastern states such as West Bengal, Assam and Bihar because of a significant increase in sales of fake labels— poor quality blends that are packaged as popular alcohol brands. Over the years, apart from the states in eastern India, bottles of counterfeit alcohol have been sold in some other states including Andhra Pradesh, Rajasthan and Haryana, where regulation is relatively weaker. States in eastern India account for roughly 10-12 percent of liquor sales in the country and are among the fastest growing regions in India at a time when overall growth in India’s liquor industry has dropped to its lowest in a decade. Last week, India’s fourth largest distiller Tilaknagar Industries Ltd bought the branded alcohol business of Kolkata-based IFB Agro to increase its presence in states such as West Bengal and Assam. Incidentally, all these States (West Bengal, Bihar and Assam) are not using any kind of authentication/ anti-counterfeiting solutions to curb this menace. According to Hologram Manufacturers’ Association of India (HOMAI), “the problem can be curbed to a large extent with the usage of HEALTM (Holographic Excise Adhesive Label). In India more than 18 States & UT are already using security hologram as excise adhesive label on liquor bottles. This provides them an effective anti-counterfeiting tool in identification of spurious liquor and curbing the problem of illicit liquor and consequently helping in increasing state excise revenue. A state that uses hologram tax stamps on liquor bottles collects higher revenue per person as compared to those states who do not use a hologram tax label” (See table below). Source: www.livemint.com/ www.homai.org Table: Comparison of State using HEAL vs not using any anti-counterfeiting solutions State excise department using anti-counterfeiting solution Name of Department 2001-02 2011-12 Increase in Population of Revenue Per (`Crore#) (`Crore) last 10 State in Crore Person in Years Census 2011 `* Delhi 606.41 2533.72 1927.31 1.67 1517.19 Tamilnadu 2058.21 9975.21 7917.00 7.21 1383.52 Uttarakhand 232.04 755.98 523.94 1.01 754.97 Madhya Pradesh 704.68 4316.49 3611.81 7.25 595.37 State excise department not using any anti-counterfeiting solution Name of Department 2001-02 2011-12 Increase in Population of Revenue Per (`Crore#) (`Crore) last 10 State in Crore Person in Years Census 2011 `* West Bengal 512.43 2117.04 1604.61 9.13 231.87 Bihar 238.90 1980.98 1742.08 10.38 192.32 Jharkhand 100.21 457.10 356.89 3.29 138.93 Assam 150.91 503.35 352.44 3.11 161.84 *Revenue per person = Revenue in 2011-12/Population of State # 1 Crore = 10 million 4 www.homai.org
  • 5. The Holography Times Vol. 8, Issue 24 Uses and applications Amarnath Shrine Board enhanced security features of Yatra form Jammu and Kashmir, India: To curb duplication of registration forms of Amarnath yatra, the Shri Amarnathji Shrine Board (SASB) will issue new forms this year onwards, with security features of currency notes. The forms will be printed by Security Printing and Minting Corporation of India Limited (SPMCIL) and will cost nearly ` 7.5 million. The revised form will have many security features, including the Ashoka pillar watermark and text ‘Shri Amarnathji Shrine Board’ and the board’s logo printed in the background, which can be seen only through a powerful magnifying glass. The logo, which will be printed in fluorescent blue ink, can be viewed under ultraviolet light, and the printing would be done with chemically-sensitive security ink. Source: :www.hindustantimes.com KENYA eyeing more revenue from bottled water with new tamper proof stamps Nairobi, Kenya: The Kenya Revenue Authority (KRA) will use the modern stamp duty on bottled water to seal loopholes of possible tax evasion. The new stamps are tamper proof, having enhanced security features. However, the move is likely to put a halt to the fast growing bottled water industry estimated to rake in more than Sh16 billion annually. This follows a successive application of the modern stamp duty technology on tobacco, wines and spirits. Commissioner- General John Njiraini said the achievements made in the two sectors will encourage them to roll out the same system for the beer and soft drinks to improve tax efficiency on excisable goods. Bottled water sector is our next emerging selling tax compliance area and we have to put our feet on it,” he said. Njiraini noted that the new security features will improve the tax administration in the country. He noted that the new features make it difficult to counterfeit the stamp duty to be used in excisable goods. The old stamp duty could easily be counterfeited, denying it some significant revenue. “The system provides us with the capability to authenticate genuine excise stamps on a real time basis during field visits,” he said. Previously, the authentication was done manually, creating a loophole on possible tax evasion. Since its roll out in December last year, the taxman has impounded over 10,000 pieces of wines and spirit products from over 400 outlets. “The culprits have paid various fines with some running as high as Sh1.5 million. We shall also have the goods in question forfeited,” Njiraini warned. The new system is able to monitor the entire chain process of an excisable good earmarked for the market. Source: :www.standardmedia.co.ke www.homai.org 5
  • 6. The Holography Times Vol. 8, Issue 24 Policy Canadian Government introduces extensive amendments to Trade-marks Act in Economic Action Plan, 2014 On March 28, 2014, the Canadian government introduced the Economic Action Plan 2014 Act, No. 1 as part of an omnibus budget implementation bill. The bill includes significant amendments to the Trade-marks Act that are designed to put Canada in a position to adhere to major international trade-mark treaties, including the Madrid Protocol, the Nice Agreement and the Singapore Treaty. Continuing the trend set by Bill C-8, the pending Combating Counterfeit Products Act, the new bill repeats some amendments included in the previous bill and includes additional provisions, repealing or replacing some of the unusual or even unique aspects of the Canadian Act. For example, a “trade-mark” will become a “trademark”, “wares” will become “goods” and both associations of similar trade-marks and the “distinguishing guise” will disappear from Canadian practice. With significant changes the definition of a trade-mark will be greatly expanded to cover a “sign or a combination of signs” including a word, a personal name, a design, a letter, a numeral, a colour, a figurative element, a three-dimensional shape, a hologram, a moving image, a mode of packaging goods, a sound, a scent, a taste, a texture and the positioning of a sign. Source: www.lexology.com French Customs signs agreement with IACC Kazakhstan to host anti-counterfeiting global forum PARIS: French Customs (DNRED) and the IACC, a Washington, D.C.-based non-profit organization committed to combating trademark counterfeiting and piracy, signed a Memorandum of Understanding (MOU) that enhances cooperation between the two organizations regarding the enforcement of trademarks and copyrights. This unprecedented agreement will improve the ability of French authorities and the IACC to communicate, cooperate, and share information and resources, as well as further efforts in combating online counterfeit merchants via the IACC’s RogueBlock program. With retail e-commerce sales rising steadily over the past decade, the Internet provides an enticing platform for criminal merchants to sell counterfeit goods. The IACC’s RogueBlock program uses a “follow-the-money” approach and provides a system for brand owners to report online sales of illegal counterfeit goods. By collaborating with the world’s largest international payment brands, the RogueBlock program works to choke off funding to counterfeit merchants. Source: www.internet.itbusinessnet.com Kazakhstan’s Ministry of Justice will be organising an anti-counterfeiting international forum on May 21 at the Palace of Independence in national capital Astana. According to a Ministry of Justice the following issues will be discussed: (1) Problems of counteraction against counterfeiting, falsified and defected products (2) Food and pharmaceutical safety (3) Dissemination of pirated music. audio and video products on the Internet and (4) Issues on harmonization of legislation in the sphere of intellectual property within the Customs Union. The ministry is expecting speakers and participants from Governments of Kazakhstan, Russia and Belarus; representatives of World Intellectual Property Organization (WIPO), Eurasian Economic Commission for Europe, World Customs Organization (WCO), World Health Organization, Interpol, International Trademark Association (INTA); International Federation of the Phonographic Industry (IFPI); African Intellectual Property Organization, Governments of the countries of the Commonwealth of Independent States and far abroad, NGOs, rights holders, universities and other interested parties. Source: www.business-standard.com 6 www.homai.org
  • 7. The Holography Times Vol. 8, Issue 24 Project awarded GHANA approve tax stamp contract worth US $ 50 million to Authentix Ghana: The Parliament of GHANA has approved a contract between the government of Ghana and Authentix, USA for the procurement of tax stamp systems. The purpose of the agreement is to actualise the implementation of the provisions in the Excise Tax Stamp Act 2013 which was passed by the House in December 2013. It seeks to engage the services of and expertise of Authentix International in the implementation of the tax stamp system in the country. Under the agreement, Authentix would be responsible for the installation of a system Web Based Portal, an appropriate stamp affixing machinery where necessary on production lines of manufacturers, an operational and production testing, a testing validation and acceptance of machinery and systems and the training of officers in the use of monitoring and detection devices. The Government of Ghana will pay the supplier the sum of US$ 11,790,000 per year for a period of five years for its services as well as a monthly installation of US$982,500 for four years after an initial payment on delivery, installation and final acceptance. Source: www.parliament.gh De La Rue is awarded latest Bahrain passport contract, securing a partnership of almost 50 years IRSIS awarded Philippines tax stamp project Manama, Bahrain; De La Rue has been awarded a 5 year supply contract by the Kingdom of Bahrain for the nation’s machine readable passport and high security film laminate bio-data page protection solution. This award secures a partnership that first started in 1971 and includes a book redesign within the contract terms. Bahrain’s Passport contract award, made earlier this year, covers the supply of 100 thousand machine readable passports per year for the next five years. De La Rue has also been commissioned to design a new book for the government, which will include the latest security features and technologies, countering specific threats and ensuring the document’s integrity against potential attack and counterfeit. In addition to the book, De La Rue will be supplying half a million specially designed MLIS™ patches, a proprietary high security thin film laminate, to protect the holders details on the book’s bio-data page. Source: www.delarue.com Philippines: IRSIS Corp.., a joint venture of four IT Firms including (CAI-STA Philippines, Inc., Philcox Philippines, Inc., Latent Image Technology Ltd., and Comclark Network and Technology Corp) has been awarded the Bureau of Internal Revenue’s (BIR) security tax stamp project worth P521.64 million., which is expected to be rolled out by the middle of this year. BIR Commissioner Kim S. Jacinto-Henares said the contract for the Internal Revenue Stamps Integrated System (IRSIS) project, which will aid in monitoring the supply and sale of tobacco products, was signed last November. Source: www.bworldonline.com www.homai.org 7
  • 8. The Holography Times Vol. 8, Issue 24 Standard and development MIT develops smartphone-readable particles to prevent counterfeiting Chemical engineers from Massachusetts Institute of Technology (MIT) have invented a new type of tiny, smartphone-readable particle that is invisible to the naked eye, containing coloured stripes of nanocrystals that glow brightly when lit up with near-infrared light. “These particles can easily be manufactured and integrated into a variety of materials and can withstand extreme temperatures, sun exposure and heavy wear,” explained Patrick Doyle, a chemical engineering professor at MIT. They could also be equipped with sensors that can “record” their environments. To manufacture the particles, the researchers used stop-flow lithography, a technique developed previously by Doyle. Many strategies have been developed to try to label legitimate products and prevent illegal trade - but these tags are often too easy to fake, the researchers found. Using this procedure, the researchers can generate vast quantities of unique tags. With particles that contain six stripes, there are one million different possible colour combinations. This capacity can be exponentially enhanced by tagging products with more than one particle. For example, if researchers create a set of 1,000 unique particles and then tag products with any 10 of those particles, there would be 1,030 possible combinations - far more than enough to tag every grain of sand on earth. Source: www. gadgets.ndtv.com NASPO SA 2013 security audit now combines ISO 14298 requirements (Washington, DC): The North American Security Products Organization (NASPO)announced today a new audit that combines two highly recognized security standards for producers of documents of value employing added security features designed to protect against counterfeiting. The new NASPO audit now covers security requirements from ISO (International Organization of Standardization) and from NASPO (North American Security Products Organization), providing both convenience and cost savings to those firms seeking security assurance certification on a national and/or international level. Producers of security documents, cards and foils can now achieve both the NASPO Security Assurance standard (NASPO SA 2013) and the ISO 14298 standard (Graphic Technology -Management of Security Printing Processes) through a single NASPO audit. This allows organizations to meet the requirements of a key international security standard from ISO as well as national security standards of ANSI/ NASPO (American National Standards Institute). NASPO will also offer individual audits to ANSI/NASPO SA 2013 and ISO 14298 to those organization not requiring combined audits. NASPO SA 2013 is an accepted security standard by ANSI used today by private industry as well as state and federal agencies. It was developed for security printers, security foil producers, technology suppliers or any organization seeking to implement or enhance their security practices. The conformity assessment process of NASPO SA 2013 has been proven to meet the security requirements of a broad base of users. The ISO 14298 standard is similar to NASPO SA 2013, but does not include security technology suppliers or other security organizations. Thanks to NASPO’s participated in the development of ISO 14298, the NASPO and ISO standards share common auditing and conformity assessment procedures, making it easier now to meet the requirements of both standards through a single auditing process. “NASPO has developed our audit processes over the last 10 years to meet the high requirements of security contractors and users,” said Richard Ward, Chairman of NASPO. “A NASPO Certification represents trust and credibility in the audit process and a level of assurance that the standards requirements are being met and implemented as intended.” Source: :www.naspo.info 8 www.homai.org
  • 9. Vol. 8, Issue 24 Cover Story The Holography Times Counterfeit threat for electronic industry on rise: plug it Author: Author is Secretary of Hologram Manufacturers Association of India (HoMAI) since 2006 and also serves as Editor of The Holography Times. C S Jeena Introduction: Imagine incidents such as an aircraft crashing due to malfunctioning counterfeit parts, a medical equipment blurs off in the middle of the surgery, a missile misses the target and hits the own camp and a heavily invested satellite fails reaching its destiny or a fake mobile battery exploding even as one is using the phone. The counterfeit electronic parts are available everywhere from sophisticated semi-conductors and chips used in commercial and military electronics as well as the normal day to day used electronics items, and they represent a serious hazard if used in critical systems such as aircraft navigation, life support, military equipment, or space vehicles. After the crash of the C-130J Super Hercules near Gwalior there were controversial news reported in the media about counterfeit electronics being the reason for this unfortunate incident. Actually, certain avionics displays fitted in this aircraft as original equipment were manufactured by L3 Display Systems Corporation, a US Company1. In November 2010, the company become aware that its in house failure rate for a chip installed on display units used in C-130J and C-27J had more than tripled from 8.5 percent to 27 percent. When sent for testing, the parts were found as suspected counterfeit. Although, the company did not give any recall notice, But when this matter became known to the public, the US Senate Armed Services Committee decided to investigate the matter and released its report on May 21, 2012. The report admitted that counterfeit electronics parts were breaking into the defense supply chain and could endanger the lives of troops and allies. While the report focuses on the risks posed to military systems, there is no reason to believe that the risks are any different for non-military systems2. Brief Abstract: Counterfeiting is not a new term for electronic industry as counterfeit electrical and electronic products now occupy second place after pharmaceuticals estimated to range anywhere between US$11 billion to $20 billion worldwide every year. However, counterfeit electronic parts have been much in the public eye in recent weeks. On March 28, 2014 one of Indian Air Force Aircraft (C-130J Super Hercules) crashed near Gwalior city killing five crew members. There were controversial news reported in media about the counterfeit electronics being the reason for C-130J air crash. Over the past several years the electronics industry has seen a marked increase in the availability of counterfeit electronic components. Counterfeiters have attacked every commodity of electronics, from simple components such as capacitors, to complex integrated circuits such as microprocessors. In expensive commercial devices, as well as high cost military components, have seen counterfeiting on the rise. This article highlights the serious risk, its impact and the possible proactive steps that can be taken to curb this menace. 1. “Did IAF’s ‘US-made’ C-130J Super Hercules that crashed have fake Chinese parts?,” Chidanand Rajghatta,TNN | Mar 30, 2014 available at http://timesofindia.indiatimes.com/india/Did-IAFs-US-made-C-130J-Super-Hercules-that-crashed-have-fake-Chinese-parts/articleshow/ 32977838.cms 2. “Inquiry into Countefeit Electronic Parts in the Department of Defense Supply Chain: Report of the Committee on Armed Services United States Senate” hereinafter the “SAAC report,” available at http:// www.armed-services. senate.gov/Publications/ Counterfeitpercent20 Electronic20percent20Parts.pdf. www.homai.org 9
  • 10. The Holography Times Vol. 8, Issue 24 Cover Story Table 1: Counterfeit Computer Hardware and Mobile Phone in India Particulars Computer Hardware Mobile Phones Estimated sales to Industry Grey Market (percentage) 26.4 20.8 Sales loss INR 47.25 billion INR 90.42 billion Estimated tax loss to the Government Direct tax loss 470 million 4.96 billion Indirect tax loss 11.87 billion 26.78 billion Tax loss to the exchequer 12.34 billion 31.74 billion *The loss has been calculated for the year 2012 Size of counterfeit electronic components problem: The making of counterfeit electronic parts has become a very big business. In fact, counterfeit electrical and electronic products now occupy second place after pharmaceuticals. Worldwide counterfeiting of electrical products is estimated to range anywhere between US$11 billion to $20 billion annually. In North America alone, the electrical product counterfeiting is estimated to be in the $300 million to $400 million range and rapidly growing3. Research from the Mobile Manufacturers Forum (MMF) says around 148 million counterfeit or substandard mobile phones were sold worldwide in 2013, mostly in developing countries4. Although not much has been done in India to assess the impact of counterfeit electrical components, there is a study by FICCI CASCADE that focused on computer hardware and mobile phones. According to this study counterfeit computer hardware constitutes 26.4%, or ` 47.25 billion by value, of the total market size estimated at ` 179.01 billion for 2012. Similarly, the Grey market for Mobile Phone constitute 20.8%, or ` 90.42 billion by value, out of total market size estimated at ` 434.09 billion in 20125. (See Table 1). Most commonly counterfeited electronics items From components such as fuses, cables and circuit breakers to household equipment, professional work tools and automotive and aviation spare parts, nothing is safe from counterfeiting. While the appearance and packaging can be very convincing, the products themselves are often sub-standard and may represent a severe safety hazard, causing accidents and costing lives. (See table 2 and Table 3) Reason / factor for increase in electronic components counterfeiting: The problem is, increasing because of various factors, including global as well as local such as; 3. “Sharks in the Water,” By John Estey, National Electrical Manufacturers Association, T&D World Magazine (May 2007) available at http:// tdworld.com/business/sharks-water 4. “Counterfeit/Substandard Mobile Phones, A resource guide for Government,” White paper published by Mobile manufactures Forum available at http://www.mmfai.org/public/docs/eng/MMF_CounterfeitPhones_EN.pdf 5. “Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sector,” published by FICCI Committee Against Smuggling and Counterfeiting Destroying Economy (CASCADE) available at http://www.ficci.com/spdocument/20190/Executive- Summary-invisible-enemy-aug-8-2013.pdf 10 www.homai.org
  • 11. Vol. 8, Issue 24 Cover Story The Holography Times Table 2: Percentage of Market Revenue for Most Commonly Counterfeited Product Types by Application Market in 2011 (Percentage Share of Revenue in Millions of U.S. Dollars) Part Type Industrial Automotive Consumer Wireless Wired Computer Other Analog IC 14% 17% 21% 29% 6% 14% 0% Microprocessor IC 4% 1% 4% 2% 3% 85% 0% Memory IC 3% 2% 13% 26% 2% 53% 1% Programmable Logic IC 30% 3% 14% 18% 25% 11% 0% Transistor 22% 12% 25% 8% 10% 22% 0% Source: IHS iSuppli March 2012 1. Global number of illegal manufacturing due to shortcoming of existing legislation: According to Electronic Industries Association of India ELCINA, the component industry has suffered because duty-free imports of about 217 categories of electronic components like capacitors, resistors and transformers were allowed from 2005 under an information technology agreement with the World Trade Organization (WTO-ITA1). Many of India’s more than 1,000 small companies manufacturing electronic components have shut operations6. In an investigation spanning six months, the Directorate of Revenue Intelligence has found that for over 3,673 items brought from China, the importers usually declared 1-9 percent of the actual value of the goods7. 2. Easy availability of material due to global E-Waste handling: China may be a principal source of counterfeit parts, but the United States and other countries in the developed world generate the electronic waste (“e-waste”) from which semi-conductors and other micro-electronic parts are extracted by counterfeiters. The parts recovered from the salvaged electronics waste which are non-functional are processed by the counterfeiters to give a look of an original component8. 3. Inadequate surveillance efforts by brand owner to identify counterfeit products; 4. Tampering/Repackaging: Counterfeit electronic component enter the supply chain through local manufacturing, importing from China in the form of fake packaging or in original packaging sourced from mechanics or service stations; 5. Higher margins: In comparison to genuine electronic component makers, a counterfeiter earns anywhere from 35 percent to 75 percent on selling counterfeit electronic parts. 6. Consumer Education: Lack of consumer education to identify authentic electronic Table 3. Top 5 Most Counterfeited Semiconductors in 2011 (Percentage of Counterfeit Part Reports) Rank Commodity % of reported Type Incidents 1 Analog IC 25.20% 2 Microprocessor 13.40% IC 3 Memory IC 13.10% 4 Programmable 8.30% Logic IC 5 Transistor 7.60% Source: IHS Parts Management 2012 6. “Dragon on the Rampage: A flood of cheaper Chinese goods, sometimes better than their Indian counterparts, is forcing small manufacturers to shut shop and turn into traders,” by Taslima Khan, Edition: Mar 2, 2014 published by Business Today available at http://businesstoday. intoday.in/story/chinese-imports-hitting-india-msme-sector/1/203041.html 7. MP3 player for Rs 2, LED torch for Rs 8: Undervalue Chinese imports, make a killing, C Unnikrishnan, TNN. 8. “U.S. e-waste drives counterfeit components problem,” by Victoria Fraza Kickham, published by Global Purchasing available at http:// globalpurchasing.com/latest-news/us-e-waste-drives-counterfeit-components-problem www.homai.org 11
  • 12. The Holography Times Vol. 8, Issue 24 Cover Story Table 4: Impact of counterfeit component components Consumers Legitimate Manufacturers Government / Social Loss of Life Loss of revenue Loss of revenue Loss of Job Increases warranty costs and so the maintenance cost Funding of criminal enterprises Financial Liability due to law suites Loss of brand integrity and goodwill Expected life of the product decreases parts and about the ill effects of counterfeit parts. Impact of counterfeit electronic component = huge social and financial liability: When counterfeit electrical devices, components and spare parts enter manufacturing supply chains, they can add fire, shock and explosion risks that may cost workers their lives, cause serious property damage and involve unpredictable financial liability. One fake component can void guarantees for entire systems and installations, resulting in severe financial losses and liabilities. Manufacturers, installers, specifiers and employers can be held responsible for incidents and accidents linked to counterfeit components. Counterfeit electrical products do not comply with performance and safety specifications; they are not tested or approved. Counterfeit aviation parts, for example pose a serious risk to the safety of military, civil and commercial aviation industry. Steps in combating electronic counterfeiting9 Several studies have been done to measure the impact of the problem, but suggested solution has invariably focused primarily on enhanced effectiveness of law enforcement. It is important that a holistic solution is developed in this fight. The solution to this ever-growing menace lies at the very core of the product, i.e. a dire need to create an end-to-end holistic brand protection strategy10; As a first step, every CEO or Brand owner should take head on the threat of brand attack and prepare a Brand Risk Management (BRM) plan as an intrinsic part of the overall business plan, review and report. The team may comprise the CEO/ Brand owner, Brand Managers, Head of Marketing, Product Development, Sales, Logistic, Packaging, Manufacturing or an outside consultant accountable for the brand. The idea is to curb the penetration of counterfeits, across levels. The anti-counterfeiting strategy can be broken into various stages such as: i. Anti-counterfeiting policy and brand protection program By establishing and pursuing an anti - counterfeiting policy and brand protection program a company is able to provide proof that all due care was taken to limit or reduce counterfeiting and protect trademarks and brands. Together they provide a shield for liability, and also a protection against loss of reputation and adverse public opinion. The brand protection program and a n t i - counterfeiting policy should list pro-active measures that are put in place toidentify and report fake products. They help limit the negative effects of counterfeiting and reduce reaction time should such an event occur. Elements to consider include: • supply chain processes, inspection, audits and quality control • Identification and evaluation of risks and threats • Detection and reporting processes, including handling of counterfeit products • Overall risk-management and adequate response procedures The policy also needs to address product labelling (including anti-counterfeiting technologies) and training of staff on how to recognize counterfeit products. Furthermore, it should provide assistance and training programs to officials tasked with enforcing seizures of counterfeit products. The latter because only the manufacturer of the genuine product knows whether an item is fake or genuine. Part of this may include the setting up of a product database, online reporting mechanisms, and simple protocols that provide investigators with tips on how to spot fakes. 9. Brand Protection: Challenges and Solutions, Pradip Shroff, Published at The Holography Times, Volume 4, issue 13 available at http://www. homai.org/AdminPanel/PDF/Issue13.pdf 10. ISO Standards 12931 “Performance criteria for authentication solutions used to combat counterfeiting of material goods”, http://www.iso. org/iso/catalogue_detail?csnumber=52210 12 www.homai.org
  • 13. The Holography Times Vol. 8, Issue 24 Cover Story ii. Register trademarks and copyrights Register trademarks in all countries you sell, manufacture, and license or distribute products in. This is essential to protect trademarks and brands. Also, apply for patents and register designs. For details and registration procedures, consult a trademark attorney. iii. Adopt ISO standards and Join trade associations ISO has developed new Standards 1293 “Performance criteria for authentication tools used in anti-counterfeiting or material goods”: The new ISO 12931 is already published and would be a very useful document for any-one who wants to follow globally accepted standards and approach to fighting against the counterfeit. The ISO document can be seen on http://www. iso.org/iso/catalogue_ detail?csnumber=5221010. It is strongly recommended that all brands who want to have a safety net of a global standard, should plan to comply with this standard. Similarly, SAE International, a global association of more than 138,000 engineers and related technical experts in the aerospace, automotive, and commercial-vehicle industries has come up with the first revision to its c o u n t e r f e i t parts avoidance technical standard “AS5553 Fraudulent/Counterfeit Electronic Parts;Avoidance, Detection, Mitigation, and Disposition.11” This new revision in particular provides terminology references and reporting mechanisms to facilitate the flow-down of the standard globally. Further, try to join anti-counterfeiting association or your local chamber of commerce, such as FICCI CASCADE, as these national and international trade bodies can guide and provide best practices against combating counterfeiting. For example, The National Electrical Manufacturers Association is so concerned about this influx of counterfeit products that its board of governors has made it one of its top-three priorities to focus the attention of government, the supply channel and the public on the harm caused by counterfeit electrical products12. In India, FICCI CASCADE13 is doing similar work. iv. When fake products are found After contacting the relevant law enforcement authorities, consider reaching out to a member of the IEC Conformity Assessment System14 (For India it is BIS). They can direct you to one of the national certification agencies and laboratories who might be able to help you set up a testing and inspection program to avoid future problems, as well as product training for manufacturing staff and law enforcement agencies. v. Anti-counterfeiting technologies15 There are a number of anti-counterfeiting technologies that can help better protect and authenticate products. And while they can’t completely eliminate counterfeiting, they can make it less attractive and less profitable, increasing the level of risk for the counterfeiters. Use a secure, anti-counterfeiting device comprising overt, covert & forensic security features like security hologram seals and labels, tamper evident security films and light-sensitive ink designs. While there a number of technologies available in the market, it is advisable to choose smart and at the right time while keeping track of some basic guidelines like: • Instead of focusing on features, find a vendor who can provide you overt as well as covert technologies as it is important to select a solution using multiple technologies. • Seek help from an established trade association to select ethical vendor, best practices and resources to fight counterfeiting. • Select the technology in terms of the difficulty in replicating and tamper evidence offered, uniqueness, availability of suppliers, ease of identification and user friendliness. • Solutions should also have feasibility of being integrated with the automated production/ packaging line if required, especially wherever the volumes are very large Try to combine low and high security elements to enhance protections, for example, by integrating sequential or unique numbers in the solution. vi. Market surveillance, quality control, inspection • Establish classical market surveillance, including at customs barriers and ports • Obtain and test samples from open markets, websites and auction sites. Make it known that you run such tests • Keep a database of companies and manufacturers that www.homai.org 13
  • 14. The Holography Times Vol. 8, Issue 24 have been suspected to counterfeit your products • Send “Cease and desist” letters for every infringement to establish brand and trademark protection measures • Tighten supply chain, production and delivery path of genuine products • Establish factory, pre-shipping and port of entry inspections (as counterfeit products sometimes hide in genuine shipments) consider involving an IEC Conformity Assessment System member for inspection and testing pre-shipping and at market entry point. vii. Interception and cooperation with law enforcement Registered for customs watch programs. Organizations including Interpol, World Trade Organisation, World Customs Organization, World Intellectual Property Organization and International Chamber of Commerce are working closely together to improve international cooperation and border enforcement through increased customs co-ordination and exchange of information and best practices. The IEC and its Conformity Assessment System members concretely support these efforts on the ground through inspection and testing. Conclusion: While the trade of counterfeit electronic parts has dramatically increased, tackling counterfeits is not impossible. Counterfeiting is a problem that needs to be addressed quickly and decisively. Ideally, as a first move, more effective partnerships should be built between law enforcement agencies and the private sector with focus on intelligence sharing, awareness and product identification training. • Manufacturers should create a team that focuses on anti-counterfeiting strategy • Selection of right anti-counterfeiting strategy should be employedUse first level of authentication features to empower your customers to identify your genuine products • Track supply chain at distributor end • Information to customer In our view a company that implements the suggestions outlined in this article will definitely see a marked improvement in their fight against counterfeiting. In case you need more information, please e-mail to us at info@ homai.org and we will be happy to work with you to eliminate the menace of counterfeiting. Resources 1. “Counterfeit Electronic Parts: What to do Before The Regulations (and Regulators) Come?,” Federal Contracts Report, 97 FCR???,6/21/2012, The Bureau Cover Story of National Affairs, Inc. (800-372- 1033) http://www.bna.com 2. “Counterfeit Chips on the Rise,” IEEE Spectrum (June 2012), available at http://spectrum. ieee.org/computing/hardware/ counterfeit-chips-on-the-rise. 3. KPMG Study: Managing the Risks of Counterfeits in the IT Industry (on file with the authors) available at:http://www.agmaglobal. org/press_events/press_docs/ Counterfeit_WhitePaper_Final.pdf (“No anticounterfeiting effort is entirely foolproof, but the better ones can make a significant differences.” 4. ChinaWTO.com, “Trade Regulations, Customs and Standards,” at http:// chinawto.com/wto/index- e . asp?sel=info&info=regulation. 5. “Counterfeit threats for electronic parts,” by Nicole Faubert (December 30, 2013) available at http://thecounterfeitreport.com/ article/253/Counterfeit-threats-for- electronic-parts.html 6. “The Counterfeit Repair Parts Tsunami,” by Robert M. Williamson available at http:// www.swspitcrew.com/articles/ Counterfeit%20Parts%200911. pdf 7. “Counterfeit components: Methods to protect against fake parts,” avilable at http://www.eeherald. com/section/sourcing-database/ component_sourcing_guide2.html 8. HOMAI – Hologram Manufacturers Association of India, www.homai. org 9. How to Select a Security Feature - a Structured Guide for the Selection of a Security Technology for Documents and Items of Value, Published in June 2009 by the Document Security Alliance (DSA) and North American Security Products Organization (NASPO) 10. The Serious Risks From Counterfeit Electronic Parts, Forbes 11. “SAE International’s counterfeit electronic parts risk mitigation standards,” at www.sae.org 12. NEMA, Public Policy, Anti-Counterfeiting, https://www.nema.org/Policy/Anti-Counterfeiting/pages/default.aspx 13. FICCI Committee Against Smuggling and Counterfeiting Destroying Economy (CASCADE), http://www.ficci-cascade.com/ 14. “Piracy in Electrical and electronic products: Anti-counterfeiting best practice and strategies,” International Electrotechnical Commission available at http://www.iec.ch/about/brochures/pdf/conformity_assessment/IEC_Counterfeiting_brochure_LR.pdf 15. “Steps to Identify Authentication Solutions to Curb Counterfeiting,” C S Jeena, published at The Holography Times, Volume 7, Issue 20 available at http://www.slideshare.net/cjhomai/steps-to-identifyauthenticationsolutionstocurbcounterfeiting 14 www.homai.org
  • 15. Vol. 8, Issue 24 Guest Column The Holography Times Coded holograms: keeping the supply chain secure Companies have to contend with challenges stemming from supply chain security lapses (which can result in theft, diversions and product recalls), counterfeiting and regulations. In addition these factors can impair the health and reputation of companies by adversely impacting on profits, brand credibility and research initiatives. With industry, regulatory authorities, security agencies and governments around the world realising the significance of implementing product tracking and tracing systems which build on product serialisation, it becomes mandatory for those in the supply chain to comply with legislation pertaining to the locations in which they operate. Even where this is not mandated by law, tracking and tracing systems improve defences against counterfeiting and other infringements as well as improving distribution and inventory control. Typically, distribution systems run the gamut of manufacturers, wholesalers, distributors, stockists and retail outlets before products reach the end user or customer. Ensuring product protection, including authentication capabilities, across various touch points throughout the supply chain through track and trace implementation, is important to address the challenges industry faces. Apart from providing visibility and full traceability from manufacturer to consumer, successful serialisation programs can prove to be a key differentiator and a clear competitive advantage for companies. Today, Quick Response (QR) codes, which use four standardised encoding modes (numeric, alphanumeric, byte/binary and kanji) to efficiently store data, are being linked with holograms to provide integrated track & trace and authentication solutions which, among other benefits, can help governments improve excise duty collection and minimize product counterfeit, contraband and illegal parallel trading by enabling tracking of each saleable item from its point of origin to the point of sale. Incorporating these codes in to a hologram delivers authentication of the product and the code in one feature, making this an efficient and effective method of product protection. Systems like Andrews & Wykeham’s THESEUS™ can also be applied as an anti-counterfeit solution not related to taxation for such market segments as pharmaceutical. Not only do systems like this one assist in maximising tax collection and reducing counterfeits, they are also tools the government can use to leverage public confidence. THESEUS™ for example includes an open Internet interface, which enables any member of the public Ian Lancaster IHMA Everyone involved in the goods supply chain - manufacturers, distributors, consumers, taxation and government authorities- has learnt the value of security holograms and will be reassured by their presence on products and/or the packaging, recognising the benefits they provide. However, as coding and serialisation becomes mandated in various countries for products such as medicines and tobacco products, the ability to incorporate QR, data matrix and other types of code in to holograms further enhances the role they can play in supply chain control. Ian Lancaster, general secretary of the International Hologram Manufacturers Association, highlights the latest developments. www.homai.org 15
  • 16. The Holography Times Vol. 8, Issue 24 to verify products are genuine and duty-paid, and uses high-security labels with holographic and security print features, carrying two-dimensional QR-format barcodes with item-specific information. These codes are protected from unauthorised access and reproduction by state-of-the-art electronic digital signature (EDS) technology. Another technology finding its way to increased integration with holography is coding foil, which is used to stamp various markings onto product packaging by means of a coding device. These markings provide the consumer with important information such as a product’s expiration date, production date, the weight, or the price, and are especially beneficial when it comes to the need to mark a product’s quality or add high performance labelling. And in today’s health and eco-conscious world, manufacturers ensure that these foils comply with all necessary regulations, including the strict limits in EN 71/Part 3, the EU packaging guidelines 94/62/EC, and the American CONEG specification for heavy metals and lead chromate. The Kurz Group, for example, is a market leader whose eco-friendly coding foils are enabling product manufacturers and others in the supply chain to choose from a diverse product line that includes a wide range of grades and colours to meet the demanding requirements of modern product packaging, labelling and retailing. Coding foils are just one product that can be integrated with holograms to boost the role played in supply chain control. Kurz’s TRUSTSEAL® range of difficult to copy holographic authenticity features visually enhance the brand, build consumer confidence, and provide a high level of counterfeit protection. These optical security features can be combined with the web-based TRUSTCODE® identification system. The TRUSTCODE® system connects the real world to the virtual one: detailed product information can be accessed by buyers, retailers, customs officials and brand owners using different smart phone scanning processes. The company has also developed diffractive 2 D barcodes with an appealing aesthetic that enhances the value of the product. Rather than being printed, the barcode is applied as a silver colored stamping foil into which the actual code has been incorporated as a diffractive, holographic-like structure. Elsewhere, companies like MTM Technologies Inc are pioneering other coded holography solutions such as the HoloTag to protect against brand piracy and product theft in the supply chain within the framework of its integrated security concept. Integrated with other technologies the MTM hologram linked with a taggant combines visible proof of any tampering with an individual security code for authentication. The HoloTag 2D barcode system has applications in many areas: from government revenue collection to publishers and manufacturers of products. Checks can be carried out within the supply chain with a HoloTag track and trace mobile application that can be downloaded onto most smart phones, or accessed Guest Column from a browser, allowing the user to gather a lot of information in the field and track this in real time. The technology plays an important part in combating counterfeiting and piracy of taxable items, helping brand owners control their inventories and prevent them from producing excess items which can be targets for smuggling. Unquestionably, one of the keys to the success of holograms since being adopted for authentication purposes in the early 1980s has been the ability to adapt and constantly find new roles. We will undoubtedly see more and more interesting developments for the technology that will offer far reaching benefits that develop and expand further the role of track and trace. So, with the seemingly remorseless march of technology and the resolve of governments, anti-counterfeiting agencies and companies around the world to stand firm in the face of international organised crime, as well as the casual opportunist, there’s no reason why the hologram will not continue to evolve, becoming further enmeshed in global supply chains and continuing to add real value. The International Hologram Manufacturers Association (IHMA) - www.ihma.org - is made up of nearly 90 of the world’s leading hologram companies. IHMA members are the leading producers and converters of holograms for banknote security, anti-counterfeiting, brand protection, packaging, graphics and other commercial applications around the world. IHMA member companies actively cooperate to maintain the highest professional, security and quality standards. Issued on behalf of the IHMA by Mitchell Halton Watson Ltd. For further details contact Andy Bruce on +44 (0) 191 233 1300 or email andy@mhwpr.co.uk 16 www.homai.org
  • 17. The Holography Times Vol. 8, Issue 24 Industry Updates Counterfeiting news update Food & Beverage Fake Oranges seizures becomes Hong Kong’s first counterfeit fruit scandal http://www.scmp.com/news/hong-kong/ article/1496013/fake-fruit-gives-buyer-sour-taste Illicit liquor seized worth ` 1.6 million, Mumbai, Maharashtra, India http://timesofindia.indiatimes.com/City/ Thane/Over-75000-litres-of-illicit-liquor-seized/ articleshow/33031649.cms Police seize illicit liquor worth ` 2.14 cr http://freepressjournal.in/city-police-seize-cache-of- illicit-liquor-worth-rs-2-14-crore/ Delhi Police seized 5000 bottles of illicit liquor http://www.dnaindia.com/india/report-delhi-police- seizes-5000-quarter-bottles-of-illicit-liquor- 1969810 Fake VODKA worth £ 1 million found http://www.mirror.co.uk/news/uk-news/fake-vodka- worth-1m-found-3151850 Fake pesticides a threat to Kashmir apples http://indianexpress.com/article/india/india-others/ fake-pesticides-a-threat-to-kashmir-apples/ Cosmetics and Personal Care Dubai smells a fake: Dh2 million counterfeit perfumes seized, UAE http://www.emirates247.com/news/emirates/ dubai-smells-a-fake-dh2-million-counterfeit-perfumes- seized-2014-03-24-1.542731 Dh 4.1 million fake cosmetics seized in Dubai http://www.khaleejtimes.com/kt-article-display-1. asp?xfile=data/crime/2014/April/crime_April31. xml&section=crime Pharmaceuticals A $ 2million health counterfeiting ring http://www.newsday.com/long-island/nassau/ health-product-counterfeiting-ring-busted-in-nassau- officials-say-1.7322609 Haryana drug wholesalers booked for smuggling cough syrup http://timesofindia.indiatimes.com/city/ chandigarh/2-Haryana-drug-wholesalers-booked- for-smuggling-cough-syrup/ articleshow/31310436.cms Security and Fiduciary Documents Men caught with $4.1 trillion worth of fake bonds at Vatican Bank, Italy http://rt.com/business/vatican-bank-fake-bonds- 285/ ISI fake notes may flood Indian polls, India http://www.deccanchronicle.com/140401/nation-current- affairs/article/isi%E2%80%99s-fake-notes- may-flood-indian-polls Automotive Components Mumbai Police seized fake high security number plates http://timesofindia.indiatimes.com/city/mumbai/ Mumbai-Police-raid-on-fake-high-security-number-plates/ articleshow/30864818.cms www.homai.org 17
  • 18. Vol. 8, Issue 24 Industry Updates The Holography Times Global patents Publication Title Int. Application Applicant / Inventor DD.MM.YYYY Class Number 06.03.2014 Wo/2014/032238 -Optically D21h 21/42 Pct/Cn2012/080718 Sicpa Holding Sa / Variable Security Threads and Ritter, Gebhard Stripes Brief Abstract: A more sophisticated optically variable security thread or stripe was provided. It could be used in the field of anti-counterfeiting, and comprised: a substrate and i ) a first optically variable layer (1) imparting a first different color impression at different viewing angles, ii )a second optically variable layer (2) imparting a second different color impression at different viewing angles, iii)a first color constant layer (4) having a color matching the color impression of the first or second optically variable layer at a first viewing angle, iv) a second color constant layer (5) having a color matching the color impression of the first or second optically variable layer at a second viewing angle, and v ) one or more material-free regions (0), wherein the first optically variable layer (l), the second optically variable layer (2), the first color constant layer (4), the second color constant layer (5) and the one or more material-free regions (0) are jointly visible from one side of the security thread or stripe. A process for making said security thread or stripe was also disclosed. 19.02.2014 2698404 -Microparticles, C09c 1/00 12771357 Dainippon Printing Anti-Counterfeiting Ink, Co Ltd / Yamauchi Particle Sets, Tsuyoshi Anti-Counterfeiting Toner, Anti-Counterfeiting Sheet and Anti-Counterfeiting Medium Brief Abstract: A main object of the present invention is to provide fine particles, a particle group, an anti-counterfeiting ink, an anti-counterfeiting toner, an anti-counterfeiting sheet, and an anti-counterfeiting medium enabling to achieve a high level of authentication. The object of the present invention is achieved by providing the fine particle comprising an identification information group including multiple types of identification information identifiable by magnification, characterized in that the identification information group includes first identification information and second identification information which cannot be identified at any magnifying power capable of identifying the first identification information. 13.02.2014 WO/2014/023523 - G06K 19/06 PCT/EP2013/064927 3S Simons Security Microparticle, In Particular Systems Gmbh/ Microparticle For The Simons, Rolf Anti-Counterfeiting Marking Of Products Brief Abstract: The invention relates to a microparticle (10), in particular a microparticle (10) for the anti-counterfeiting marking of products. The microparticle (10) has at least one first layer (20) and at least one second layer (30). The first layer (20) forms an outer face (22) of the microparticle (10), and at least the outer face (22) is equipped with at least one mark (15), which is pre-applied onto the outer face (22). None of the dimensions of the microparticle (10) exceed approximately 100 μm. The invention further relates to a method for producing at least one microparticle (10), to a label, to a spread, and to a corresponding use. 18 www.homai.org
  • 19. The Holography Times Vol. 8, Issue 24 Industry Updates Upcoming events Date Event Name / Place / Website 21-23 May, 2014 Pharma Pro Pack Expo 2014 Mumbai, India, www.pharmapropack.com 16-18 June, 2014 Security Document World London, United Kingdom, www.sdw2014.com 23-25 June, 2014 High Security printing 2014, Latin America Hotel Sheraton, Santiago, Chile, www.hsp-latinamerica.com 23-25 June, 2014 Anti-counterfeiting for Pharmaceuticals and Medical Devices Philadelphia, Pennsylvania, www.anticounterfeitingpharma.com 8-11 Sep, 2014 The 3rd International banknote Designer Conference Montreal, Canada, www.banknotedesignersconference.com 15-17 Sep, 2014 Tax Stamp Forum Dubai, UAE, www.taxstampforum.com 29 Oct – 1 Nov, Label Expo India 2014* PragatiMaidan, New Delhi, www.labelexpo-india.com 3-6 Nov, 2014 Automotive Aftermarket Products Expo Sands Expo, Las Vegas, USA, www.aapexshow.com 19-20 Nov, 2014 Brand Protection and Anti-Counterfeiting Munich, Germany, www.brandprotectionevent.com 3-5 Dec, 2014* The Holography Conference Istanbul, Turkey, www.theholographyconference.com 19-21 Jan, 2015 High Security Printing 2015, Asia, Middle East & Africa Hotel Makati-Shangrila, Manila, The Philippines, www.hsp-europe.com 3-4 March, 2015 IP Protect Expo 2015 Business Design Centre, London, www.ip-protectexpo.com 23-25 March, 2015 High Security Printing 2015, Europe Hotel Corinthia, Budapest, Hungary, www.hsp-europe.com 22-24 April, 2015 Security Printers 2015 Copenhagen, Denmark, www.securityprinters.org 10-13 May, 2015 The currency conference Vancouver, Canada, www.currencyconference.com Published by Hologram Manufacturer Association of India (HoMAI) Editorial Team Issue Editor : C S Jeena Advisor : Mr. Pradip H Shroff Mr. Manoj Kochar Designed & : EYEDEA Advertising Printed by 1250/13, Govindpuri, Kalkaji, New Delhi-19 (India) eyedeaadvertising@gmail.com www.artworxindia.in The 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 announcements or other contributions to HoMAI: 21-Ground Floor, Devika Tower 6 Nehru Place, New Delhi 110019, India Telfax: +91 (11) 41617369 Email: info@homai.org, Website: www.homai.org Disclaimer: The data used here are from various published and electronically available primary and secondary sources. Despite due diligence the source data may contain occasional errors. In such instances, HoMAI would not be responsible for such errors. About HoMAI The Hologram Manufacturers Association of India (HoMAI) is the world’s 2nd and Asia only association representing hologram industry. * HoMAI participatin events. Meet us at these events to know more about us. Counterfeit cartoon www.homai.org 19
  • 20. The Holography Times Vol. 8, Issue 24 20 www.homai.org