Anti-counterfeit Technologies

for Packaging

Presentation by Mr.Rohit Mistry

Chairman of Holotech

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Copyright 2001 © Holotech
Holographic Security Marking
Systems P. Ltd. - Holotech
• Brand Protection-Authentication Products
• Commenced January 1996
• Technology Leader – Continuous R&D
• Solutions driven – widest range of applications.
• Business philosophy - Confidentiality, Integrity,
Ethical - builds Trust

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Counterfeiting
• US $300-500 Billions lost to counterfeiters
• Exponential increase in counterfeiting, fastest growing crime.
• Top countries – USA, China, Korea, Hong Kong, Philippines, Mexico,
CIS countries
• Impact – loss of tax revenue, social cost – loss of employment, damages
health, poor quality at excessive prices.
• Counterfeiting eats profits and future life of the brand.
• Demand for a lifestyle as advertised, by the leading brands of the world.
• A counterfeiter can put together an illicit duplication business for well
under Rs. 50,000.
• Protection – anti counterfeit systems, information sharing, prompt legal
remedies, etc
Counterfeiting In India

• Up o 70% of market infested with counterfeit goods

• Auto Spares + 40%
• Audio Cassettes + 45%
• Pharmaceutical + 20-30%
• Liquor + 30%
• Lubricants + 50%
• Bottled Water + 60%

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Effected Sectors
• Pharmaceutical • Branded Clothing
• Travel Passes • Stationery
• Major Events • Writing Products
• Auto Spares • Seeds
• Electrical Products • Branded Foods
• Financial Documents • Edible Oils
• Sport Goods • Engineering Products
• Tobacco
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SECURITY FEATURE MUST BE:

• Impossible to copy
• Difficult to alter or transfer
• Cost effective
• Easy to recognise
• Easy to verify
• Easy to apply and incorporate
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Different Types of Security
Systems available to the
Packaging Industry
• Paper substrates • Reactive Molecule
• Micro Dots/ Threads • OVID/Holograms
• Security Inks • RFID

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The Base Paper Features
The base paper used for product security label can have many features
which can enhance the security imparted by the paper.

a) Distinctively colour micro fibres distributed throughout the sheet which

can be visible as well as invisible. Invisible fibres which fluoresce under
the stimulus of ultra violet light.

b) Chemical reagents incorporated in the base paper which gives

characteristic stains when a particular agent is applied.

c) Micro printed planchettes which offers identification numbers or logos

which are visible and or reactive planchettes. The reactive planchettes
are photo chromatic or chemically reactive.

d) Water marks based on specific design for high security. 8

Security Microdots and Microthreads
This feature is used where covert authentication is necessary. These
micro printed authenticating devices allow manufacturers and printers
to encode specific information into virtually undetectable threads and
dots, which can then be implanted, woven or applied into products. The
consumer or user of the product is never aware of their presence, but a
verifying authority or legitimate manufacturer can confirm their
presence, and hence the authenticity of the item. The use of microdots
and micro threads is particularly useful in areas such as:
 Textiles (where microthreads can be woven into the fabric).
 Textile labels.
 Spare parts (where dots can be applied to uneven surfaces).
 Shoes.
In addition, microdots and microthreads can be used on standard and
security labels to give enhanced protection and security.
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Security Inks

a) Fluorescent Inks - are invisible in day light or artificial light and visible only under an
ultra violet light and does not produce any persistence of fluorescence after switching
off ultra violet light.

b) Thermochromic inks - lose their original shade when there is change in temperature.
The original colour is restored when temperature returns to it threshold. This effect can
also appear by rubbing the printed ink with one's fingers.

c) Photochromic inks - can change under the influence of relatively intense ultra violet
light. The printed ink rapidly shifts from invisible to designed colour when excited.

d) Thermal Inks - invisible when printed become irreversibly coloured when exposed to a
relatively high temperature. They also appear when slightly scratched with our finger
nail or metallic object.

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Security Inks (continued)

e) Sympathetic Inks - are invisible when printed and are revealed in different colours
with the help of a specific solution.

f) Variable reflection inks - are the most recently developed and are used to fight
against colour photocopying. The shade of these inks change according to the
observation angle and because of this phenomena are distinguished very easily
without using special equipment and hence an original document can be
distinguished from a colour photocopy or a forged one.

g) Anti Stocke Inks - are high security inks which give almost invisible prints and can
be revealed by infra red excitation in three different wave lengths.

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Reactive Molecule

• Proprietary covert method for authenticating

products
• Proprietary covert agent is incorporated into
invisible label printing ink
• Authentication by applying proprietary revealing
agent to reveal hidden message
• High entry cost – starting Rs17 lacs – Rs Rs1cr
plus consumables

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Optical Technologies

• Hidden Optical Image

• Holograms/OVD

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The World

• International Embossed Hologram

Market – US $ 1100 millions p.a.
• 55% Security
• 45% Packaging
• 60% of security sales in USA
• 65% of packaging sales in USA
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 Avantages of Optical Methods

• Custom designed anti-counterfeit solutions

• Instant recognition of tampering
• Easy authentication by lay person
• Impossible to copy by any known printing
technique
• Easy to use and apply

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 Quick Comparison of
Technologies
Can be
Verifiable at Needs Expert
Product Hidden Image duplicted by a
POP to Verify
Ptg Technique
Base Paper No (Water Mark - Yes) Yes Yes No (Water Mark - may
be)

Micro Dots/Threads No Yes Yes No

Flourescent No Yes Yes No

Thermochromic Yes Yes/No No No/ May be

Photochromic No Yes Yes No

Thermal No Yes/No No/Yes No

Sympathetic No Yes Yes No

Colour Variable Yes No No No

Anti-Stoke No Yes Yes No

Bio Code No Yes Yes No

CoFirm No Yes Yes No

Hologram Yes Yes No (Yes for higher No

security)

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Making Money Computation
• Product “X” sales Quantity 1,000,000
• @ Rs50 each Rs 50,000,000
• Possible counterfeiting 30%
• = loss of sales Rs 15,000,000
• Cost of holograms for quantity of 1,300,000
@ Rs0.40 each = Rs 520,000
• Once off design cost Rs 175,000
• Total cost Rs 695,000
• Increase in sales after application of hologram - 10% 20%
Rs 5,000,000 Rs 10,000,000
• Sales revenue - less cost of holograms = increase in income
10% 20%
Rs 4,305,000 Rs 9,305,000
• Cost of Holograms covered by increased income. Return on investment after 1st
delivery for10%-619% & 20%-1338% compound increase in the 2nd&
subsequent deliveries 10%-827% & 20%-1789%

• Holotechs Holograms make Money! 17

Review

• Counterfeiting damages the health of people and companies

• Many techniques available to choose from
• Security is an additive process
• Holotechs is very successful in combating counterfeiters;
holograms available in a variety of formats
• Over 86 currencies around the world use holograms as anti
counterfeit devices
• Companies use Holotechs holograms because they add to
their bottom line. Using holograms helps you to make more
money

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