Brand Protection & Security of Engineering Components

Brand Protection &Security of

EngineeringComponents

nonClonableIDTM LABEL WITH BARCODE

Bilcare Technologies is a

division of Bilcare Ltd. focused

on creating next-generation

anti-counterfeiting, security,

and brand protection solutions

for a broad range of

industry sectors.

With breakthrough research in

nanotechnology, Bilcare

has developed a unique

technology-nonClonableID™-

that enables products to be

authenticated as they move

through the supply chain to

the end consumer.

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© 2010, Bilcare Ltd. All Rights Reserved. All product names, and logos mentioned herein are the trademarks or reg-

istered trademarks of Bilcare. No part of this document should be circulated, quoted, or reproduced for distribution

without prior written approval from Bilcare Ltd.

www.bilcaretech.com [email protected]

Americas

USABilcare Inc.300 Kimberton Road Phoenixville, PA 19460+1 610 422 3305

Europe

UKBilcare Technologies Malvern Hills Science Park, Geraldine Road,Malvern, WR14 3SZ, United Kingdom+44 (0) 1684 585 257

ItalyBilcare Technologies Italia SrlPresso Veneto Nanotech, Via San Crispino 106,35129 Padua, Italy+39 (049) 7705514

Asia

IndiaBilcare Ltd.601, ICC Tower, B Wing, Pune 411 016+91 (20) 30257700

SingaporeBilcare Technologies Singapore Pte. Ltd.52 Changi South Street 1, Singapore 486161+65 63954130

Counterfeit components – a major safety concern

The extent ofthe problem

Counterfeit components have long been a problem in the engineering and automotive components industry.

According to a report by the Federal Trade Commission counterfeiting is estimated to cost the global automotive parts industry $12 billion a year in lost sales; $3 billion of that total is in the United States. (“Intellectual Property: Protecting Valuable Assets in a Global Market,” MEMA Brand Protection Council, 3rd Edition, June 2009.)

While, genuine parts undergo rigorous testing for reliability, safety and environmental compliance, fake parts do not go through this approval process. As a result, these potentially dangerous components could fail to operate correctly in an emergency or life-threatening situation.

In India alone, it is estimated that more than 37 percent of aftermarket parts are fake.

Between 5 to 10 percent of all replacement auto parts in the European Union are counterfeits. (Source: Autoweb, “Intellectual Property Theft in the Automobile Industry,” July 2006.)

PROBLEM PROBLEM

PROBLEM NEED

Problems impactingbrand reputation, revenues and safety

Need to enhancesupply chain security

Counterfeiting is a major concern in the automotive, aircraft and machinery spares industry. A significant influx of counterfeit products causes manufacturers to lose market share and affects their brand reputation, leading to loss of revenue. Furthermore, poor quality counterfeit products compromise the safety of consumers.

• Counterfeiting• Productoverruns• Inadequatesupply

chain security• Inadequatesupply

chain visibility• Inaccuratewarranty

management• Warrantyreturns

Over the years, counterfeiters have exploited vulnerabilities in the supply chain to introduce fake parts in legitimate channels, whilst authentic components are being siphoned off for grey market sales. As a result, Original Equipment Manufacturers (OEMs) and Tier 1 & 2 suppliers need to maintain a high level of control in the supply chain to prevent counterfeit parts from entering the system. This is particularly the case in the aftermarket sales / replacement parts market.

nonClonableID™ LABEL WITH BAR CODE

SOLUTIONS SOLUTIONS

The nonClonableID™advantage

Foolproof security

Security solutions currently available for engineering components use serial numbers, holograms or bar codes that can be effortlessly duplicated.

nonClonableID™ employs a unique tamper-evident, materials-based “fingerprint” for each component. This fingerprint is prohibitively difficult to copy (the fingerprint cannot be duplicated even by Bilcare).

The nonClonableID™ label is a unique, materials-based fingerprint consisting of randomly distributed particles and cannot be reproduced even by Bilcare.

Bilcare Technologies offers a comprehensive solution to combat counterfeiting through the implementation of its unique nonClonableID™ technology. nonClonableID™ enables identification, authentication and brand protection with secure track-and-trace capabilities. It enables increased visibility across the supply chain, providing insight and agility to manage risks and tackle issues of diversion and theft.

nonClonableID™ Data Matrix Labels for Engineering Components

10 mm

Top view

Side view400 micron

Authentication and verification of engineering components

Confirm authenticity

Compare nonClonableIDTM

fingerprint with database content

Securely send the nonClonableIDTM

fingerprint

Scan the product label

Authenticate label and product

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23

4

SOLUTIONS SOLUTIONS

A comprehensive approach

How it works

The solution enables real-time authentication across the supply chain through proprietary hand-held portable readers.

Through a GPRS/Internet/3G Network, the reader communicates with the back-end server which is pre-loaded with the database of the material patterns. At the back-end server the material pattern read from the field is compared with the original record and a suitable communication about the authenticity and pedigree of the item is sent back, which can be viewed on a mobile phone or PC.

Post authentication, further details such as the date of manufacturing, the destination of the products to be sold and warranty information can be retrieved. Product recall and part-fitment issues can also be managed through the real-time flow of information.

Product withnonClonableID™ label

Compare withthe original record

Databaseserver

BENEFITS BENEFITS

Integrated anti-counterfeiting solution

• Productverificationatanypoint in the distribution system, including point-of-sale and after sales repairs.

• Increasedsupplychainsecurityand secure track-and-trace prevent product diversion and entry of fake products.

• Eachcomponenthasinformation stored in a powerful database, facilitating tracking of stock supply.

• Stakeholders,includingdistributors, vendors and customers, authenticate the product in real-time to confirm the parts are genuine.

• Helpsdealershandlewarrantyclaims more efficiently.

Secure product tracking and brand protection

• Increasesupplychainsecurityto combat counterfeiting

• Ensurebrandprotectionthrough the authentication of products in real-time

• Ensurereal-timevisibilityacrossthe supply chain

• Enhanceconsumersafety• Improveoperationsandsupply

chain efficiency• Managewarrantyreturnsand

customer services• Manageservicing,parts

replacement and fleet management more effectively