The Holography Times Issue 17

8/2/2019 The Holography Times Issue 17

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The Holography Times News Bytes

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The Holography Times

Dear Readers,

Welcome to the 17th issue of The Holography Times.

Illicit liquor trade poses a serious threat to government,

socially as well economically. Excise duty which is an

important source of revenue is continually under threat

from the practice of illicit trade. Considerable amount of

money which could be used to benefit the government

services of a country are being diverted to the pockets

of criminals participating in illegal trading. In addition, the

illicit trade in liquor poses a serious threat to consumer

health.

To counteract it, some State governments have

implemented holographic excise adhesive label (HEAL)

as part of their anti-counterfeiting strategy. This has not

only minimized the hooch tragedies and duplication,

but has also substantially increased the excise revenue

collection in States.

This issue brings our cover story on Holographic Excise

Adhesive Label. Apart from this, the issue also covers

article on Step for a better usage of technologies,

along with industry updates and much more.

As always we look forward to receive your feedback/

critics. Please e-mail us at [email protected].

With Regards,

C S Jeena

In this issue

7

13

Viewpoint

News Bytes 4

Counterfeit Seizure Report 16

Global Patents 17

Upcoming Events 18

Latest Tenders 18

Holographic excise

adhesive label

(HEAL)

Protection against

counterfeitingBy Jean-Michel Loubry


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The Holography TimesNews Bytes

New Delhi: Jharkhand will bethe 18th State in the country thatwill be shortly making a mandatefor all the liquor companies to

use hologram on their bottles toprevent counterfeiting.

The step will help the JharkhandState excise in increasing revenueas well as in minimizing thetragedies due to illicit liquor,a statement from HologramManufacturers Association ofIndia (HOMAI) said.

In India more than 17 States &

UT are already using hologramon liquor bottles. Mandated

usage of hologram in these

States like Uttar Pradesh, TamilNadu, Uttrakhand, MadhyaPradesh, Puducherry, Delhi,Chhattisgarh, Kerala, etc. has not

only minimized the tragedies dueto spurious liquor but have also

substantially increased the exciserevenue collection by more than25-30 per cent.

For example the state usingholograms are earning morerevenue. In 2010-11 the revenueearned by Tamil Nadu and Uttar

Pradesh excise was`

8,115 croreand `6,725 respectively, whileStates which are similar incapacity to population and sizesuch as Maharashtra and WestBengal only able to peg `5,800crore and ` 1,770 crore only.

Source: www.homai.org

Liquor bottles in Jharkhand to carry

hologramsIt will be 18th state in the country to adopt the practice aimed at increasingrevenue and checking sale of spurious liquor

Scriba Nano tecnologie launchesmulti-functional labelsScriba Nanotecnologie, an Italy-based security technologycompany, has introduced EN-TAGmulti-functional labels to enablepharmaceutical companies to

authenticate their products whileensuring drugs are kept at correcttemperature conditions.

EN-TAG is an ultra-miniaturizeddata matrix technology applied toa standard holographic feature orrelective surface, such as metallicfoils, hologram strips. The covertfeature offers the highest levelof security combined with highinformation content (~30 kB per

cm). The information contentof a single EN-TAG is 20 to 100times higher than that offeredby a standard 2D data matrix.It equips each product with acounterfeit-proof data carrierlabel for authentication andtraceability purposes, and is

designed to enhance an existingholographic substrate.

The labels can be used to storedigital data such as company

logos, videos, or drug pedigreeinformation in any language,including drug name, dosageform and strength, expirationdate, lot number. EN-TAG canbe used as stand-alone labels orcomplemented with other overtor covert features for additionallayers of security.

EN-TAG has an integratedauthentication technology with a

thermo-sensitive, FDA-approvedpolymeric layer. Thermalmonitoring is made possibleby detecting the subtle opticalchanges that take place when thetag is exposed to temperaturesexceeding a pre-set threshold.Threshold temperatures are

fully customizable to speciictemperature requirements. Thesecure information containedis not affected if an EN-TAG isexposed to higher-than-threshold

temperatures.

Dr Claudio Rota, businessdevelopment advisor at ScribaNanotecnologie, said, One ofthe features of this technology isits ability to offer the industry atruly unique, low-cost solutionfor authenticating their drugs,as well as ensuring that theirproducts have been properlystored during transport. For

temperature-sensitive productsin particular, such as biologics,food products, and wine, thetechnology is a irst-in-classsecurity feature with a clear-cutvalue proposition.

Source: www.labelsandlabeling.com


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UAlbany Nanocollege & APDN partner on

nanochip anti-counterfeiting program

The College of NanoscaleScience and Engineering(CNSE) of the University at Albany

and Long Island-based AppliedDNA Sciences, Inc. (OTCBB:APDN)announced a partnership toenable nanotechnology-driveninnovations that would play acritical role in preventing thecounterfeiting of computerchips a collaboration inthe groundbreaking area ofnanosecurity that initiallytargets the $20 billion defenseindustry chip market and

has the potential to impactnanoelectronics and aerospacemarkets well in excess of $300billion.

Research and development willinclude the integration of newmethods for DNA depositionon nanoelectronics wafers andcomputer chips both prior to,and including, inal packaging toensure the integrity and security

of processed wafers.

The partnership between CNSEand APDN will support research,development and deploymentof authentication protocols andprocedures in established process

lows, including CMOS, MEMS,photonics, and other devicederivatives, as well as advanced

packaging technologies, suchas 3-dimensional wafer-to-wafer and die-on-wafer. Whenrealized, these advances wouldenable comprehensive supplychain protection well into theforeseeable future.The collaboration comes on theheels of the enacting of the 2012National Defense AuthorizationAct. This law will signiicantly

strengthen protections againstthe wave of counterfeit electronicparts coming into the defensesupply system by requiringthat military suppliers andgovernment agencies createand implement counterfeitdetection and avoidance systems,among many other strict anti-counterfeiting provisions.These new mandates could beenabled through a CNSE-APDN

partnership.

The APDN system markscomputer chips with uncopyableDNA codes, which can thenbe used to authenticate theoriginality of chips anywhere

along the supply chain. TheAPDN technology can not onlyenhance inspection, but also

goes much further to forensicallyverify originality, using botanicalDNA to create tags to mark theproduct in a unique way.

As part of the collaboration, CNSEand APDN intend to establish ajoint technology developmentpartnership model engagingnanoelectronics devicefabricators, leading aerospaceand defense system integration

companies, and state and federalgovernment agencies to furtheradvance the implementation ofcounterfeit protection measures.CNSE recently submitteda technology developmentproposal in partnership withAPDN and other leadingnanoelectronics companies inresponse to a Broad AgencyAnnouncement issued by theIntelligence Advanced Research

Projects Activity (IARPA), whichinvests in technology programsthat have the potential to provideour nation with an overwhelmingintelligence advantage overfuture adversaries. Source: www.cnse.albany.edu

Collaborative research will advance DNA deposition technologies targetingover $300B market for nanosecurity applications in nanoelectronics,aerospace and defense

Skanem acquire 51 per cent stake in interlabels

Skanem Group one of Europeslargest producers of self-adhesive labels partners with theIndian labeling company Interlabelsin order to take part in a growingmarket in South Asia. Skanem isbuying 51 per cent of the shares

in Interlabels. Owner and CEO ofSkanem, Ole Rugland, says,Indiais a market with a great potentialand rapid consumption growth.Through this partnership, we getaccess to this exciting market. Theintroduction into India represents

a strategically important stepforward for Skanem Group. Thisis Skanems irst establishment inIndia, but Skanem already has onefactory in Asia, which is located inBangkok, Thailand. Source: www.skanem.com


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Aureos South Asia Fund hasinvested $7 million or ` 35 crorein Sai Security Printers Pvt Ltd(SSPPL), a paper packagingcompany based in Faridabad andBangalore. The fund is managedby Aureos South Asia ManagersLtd, a subsidiary of the emergingmarkets PE fund manager Aureos

Capital, which has $1.3 billionunder management.

SSPPL will use the funds to buildon its already strong productionand technology capabilities,and will work towards movinginto new markets, adding newcustomers and providing end-to-end packaging and printingsolutions while increasinglyfocusing on high-marginbusiness, said Vijay Raghavan,managing director of SSPPL. The

company started out as a securityprinting business and evolvedinto a multi-product packagingcompany. It manufactureslabels and mono-cartons forpharmaceutical, food andbeverage and FMCG industries,and currently employs around600 people.

SSPPL has a strong customerbase, marked by high customerretention. Its strategy for futuredevelopment includes expansioninto recession-resilient andhigher-margin products for thepharmaceutical, beverages andFMCG sectors, commented BalajiSrinivas, Managing Partner ofAureos India.

Incorporated in 2001, Aureos hasextended its footprint to more

than 50 emerging markets acrossAsia, Africa and Latin America byestablishing 17 regional privateequity funds. These funds aremanaged through a network of28 ofices worldwide, by a team ofover 90 investment professionals.Aureos has recently announcedthat it plans to raise $200

million or ` 900 crore for itsnew India fund. The AureosIndia Fund II will focus oninvesting in companies acrossemerging sectors and target tierII and tier III cities, which remainbelow the radar of mainstreaminternational investors. Its lastdeal took place in July 2011 whenit invested in Chennai-basedpublishing services providerNewgen Knowledge WorksPrivate Limited.

Source: www.vccircle.com

Sai security printers secures $7m

funding from aureos capital


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Holographic excise

adhesive label (HEAL)Securing tax revenue, protecting consumer and curbing illicit liquor trade

by C S Jeena

Globally, tax revenue from exciseduties on the production and sale

of beverage alcohol contribute animportant source of Governmentrevenue. The inancial revenuesfor European governmentsarising from the productionand sale of beer, i.e., taxes paidby breweries, beer consumersand employees together, totalaround 38 billion a year,including 19 billion in VAT and 10.5 billion in excise duties.This represents more than totalannual government expenditureof countries such as Finland orPoland (estimated at around 34billion).1 In the United States, thebeverage alcohol industry paysover $ 21 billion in directly toState and local revenue during2008.2

Scenario in IndiaUnder the Indian constitution,liquor is one commodity which

the States are entitled to chargeexcise duty (Article 246)3.

Revenue from excise duty is asigniicant contributor for manyStates in India accounting formore than 10 per cent of theirown tax revenue. In fact, it is thesecond largest source of incomefor States after sales tax (igure 1and table 1).4

The only state that does notdepend on alcohol to generaterevenue is Gujarat, whichimposes prohibition in 2000-01.The major states in which liquorcontributes a major chunk oftheir revenue kitty (F.Y. 2010-11) include Andhra Pradesh (`9014 cr), Karnataka (` 8345 cr),Tamilnadu (` 8115 cr), UttarPradesh (` 6725 cr), Maharashtra( ` 5800 cr), Madhya Pradesh (`3604 cr), Punjab (` 2461 cr),Rajasthan (` 2859 cr), Haryana (`2100 cr) & Bihar (` 1542 cr).5

Figure 1: Composition of State tax revenues

for 2010-114

*Other taxes include income from

agricultural income, land revenue,

electricity duties, entertainment taxes and

other taxes duties

1. Ernst & Young, 2005

2. Distilled Spirits Council of the United States, 2008

3. Article 246 The power of the state government to levy and collect the state excise

duties is derived from Article 246 of the Constitution of India and entry 51 of list II

State list with seventh schedule thereto.

4. Reserve Bank of India, Study on State Finances Budget, 2010-11

5. Press releases, State excise department

Motor

VehicleTax

5%

Sales Tax

62%

Stamps &

Registration

11%

Other

Taxes9%

State Excise

13%

Cover Story

The liquor industry is a major source of excise revenue for all States in India. In fact, it is the second largest

revenue contributor for many States after sales tax. More than two decade ago, Tamilnadu Governmenttook the revolutionary step and introduce first holographic excise adhesive label (HEAL) in India. The step

taken by Tamilnadu was appreciated and further adopted by many other States in India. Today, more

than 17 States excise department are using HEAL. This has not only minimized the hooch tragedies

and duplication, but has also substantially increased the excise revenue collection in States. This article

highlights the role of HEAL as an effective anti-counterfeiting solution in securing tax revenue, protecting

consumer and curbing illicit liquor trade.


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The Holography TimesCover Story

Prominent Sectors

Based on beverage type theIndian alcohol industry has threeprominent sectors; a) the IMFL /Beer / Wine sector, b) the countryliquor sector, and c) the illicitliquor sector.

a) IMFL / Beer:

Among these the IMFL isorganized & centralized in Indiaand constituted 34 per centof alcohol market in India. In2010, sales volumes of the IMFLindustry were approximately1,985 million liters or 221 millioncases.

b) Country Liquor:In contrast, to the IMFL andbeer sector, the country liquorindustry is more decentralized.It is regionalised and fragmenteddue to high state entry barriersrequiring presence of a distilleryin the state and constituted 37

per centof market with volumesof 250 million cases in 2010.

c) Illicit liquor industry:Parallel to this, the illicit liquorindustry has also seen anincrease in India. A signiicantproportion of the alcoholic drink

Table 1: Budget estimates of States and Union Territories for period 2010-11 4

State a) Tax revenue b) State own c) State excise d) Percentage of

(` lakh) tax revenue revenue excise revenue in

(` lakh) (` lakh) State own taxrevenue

Andhra Pradesh 6150421 4699900 751200 16

Arunachal Pradesh 83037 14400 1700 12

Assam 1257041 497584 25946 5

Bihar 3424412 1064393 140000 13

Chhattisgarh 1231135 750548 132000 18

Goa 277506 221849 11967 5

Haryana 1866300 1646929 210000 13

Himachal Pradesh 459034 295552 54946 19

Jammu & Kashmir 641603 350528 28000 8

Jharkhand 1230700 596728 52500 9

Karnataka 4528841 3622832 742500 20

Kerala 2570999 2088423 183621 9

Madhya Pradesh 2971759 1867018 340000 18

Maharashtra 7472155 6383832 580000 9

Manipur 123281 28874 600 2

Meghalaya 131602 46181 10019 22

Mizoram 68132 11826 206 2

Nagaland 86040 20330 362 2

Orissa 2036418 1036001 95050 9

Punjab 1921563 1630800 252000 15

Rajasthan 3127307 1902086 245000 13

Sikkim 71162 21124 5550 26

Tamilnadu 5184001 4143832 750818 18

Tripura 173605 66705 7000 10

Uttrakhand 636890 402430 68693 17

Uttar Pradesh 6696669 3525489 569531 16

West Bengal 3521379 2000773 175978 9

Delhi NCR (UT) 1558250 1558250 168000 11

Puducherry (UT) 131715 131715 47500 36


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in India, is produced illicitly bythe informal sector or consists ofSecond or D Market(tax evadedbeverages) and therefore remainundocumented. It has beenspeculated that such unrecordedconsumption may be as much as45 per cent of all use, althoughthere is very little recent dataavailable.7

Reports of excise raids on illegaldistilleries and coniscation ofillicit alcohol are also regularlyfeatured in the media. Alone

in Karnataka (2010-11), thedepartment conducted 59,124illicit distillation centres inState, registered 10,924 casesand arrested 4,597 persons. Thedepartment has seized 69,984boxes of IMFL, 116,903 boxes ofbeer, 106,071 boxes of molassesand 107,058 boxes of arrack.8

In 2011, Maharashtra Stateexcise department has seized

counterfeit and illegal liquoramounted `16 crore. It was 25per centhigher than the previousrate seized amount equivalent to`12.8 crore in 2010. The trendcontinues in 2012, as `1.5 croreillicit liquor have been seizedby State excise department tillFebruary 2012. The problemis such severe that State exciseoficer in Maharashtra hasdemanded gun for protection of

their enforcement oficer.9

Challenges for State ExciseThere are various reasons due towhich illicit liquor / smugglingincreases. It can be prohibitionpolicy of the state, inter-statesmuggling of alcohol products,tax duties and lack of proper anti-counterfeiting strategy.

For example Gujarat is adoptinga complete prohibition policyin state. Irionically this stepincreases the consumption ofillicit liquor and loss of exciserevenue amounted `3000 croreper annum.10

Rajasthan State excisedepartment stopped using HEALfrom November 2010 which againresulted in increased number ofillicit liquor. Recently a factoryhas been seized in Bhanipura(Rajasthan) seizing 1050 litres

illicit spirits.11

The State Government andDepartments faces variouschallenges i.e. How to protect consumer

from ill effects of illicit liquor?

How to differentiate fakeliquor bottles from genuine?

How to combat smuggling ofIMFL & Country liquor? How

to ensure fool proof labelingand supply chain?

How to avoid reilling /reusing of genuine liquorbottle with illicit liquor?

How to increase exciserevenue?

Global practices to ight againstillicit liquor/ counterfeiting

A solution can be excise adhesivelabels (EALs) or tax stampwhich applied to bottles as self-adhesive labels. Known by avariety of names (excise stamps,excise adhesive label, tax stamps,tax seals, banderols), these arethe weapon of choice for manygovernment around the worldto secure the valuable revenue

Industry Breakup Mn cases (2010)6

Source: IWSR, Industry & Company Estimates

Beer197

29%

IMFL234

34%

IMIL

250

37%

6. IWSR, Industry & Company Estimates

7. Lal Chand Report

8. Business standard, 29/06/2011

9. Mid Day, 27/11/2011 [excise department demands guns] / CNN, IBN Live,

16/12/2011

10. Rediff.com, Dec 11, 2002[Prohibition- Gujarat worst keep secret] & The Times of

India, June 19, 2009 [Gujarat seeks Rs 3000 cr for liquor ban]

11. Rajasthan Patrika, 19/01/2012 [Fake illicit liquor factory seized]

WINE

1

0%

Segment Volume % of IMFL

(Mn cases)

Whisky 137.5 59

Brandy 43.4 19

Rum 43.8 19

Gin 2.2 1

Vodka 7.3 3

Others 0.2 0


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derived from customs and exciseduty on alcohol, acting as proofof originality and authenticationand a barrier to the distributionof counterfeited products.

Hungary & Latvia has been usingHEAL since 1994-95 and haveresulted in phenomenal increasesin tax receipts.12(See table 2) Asof 2007, 59 countries are usingHEAL for spirits. It is estimatedthan 33 billion holographicstamps were produced in 2007,

making them the highest secureproduct produced after banknotes.13 Although, all thesecountries are keep upgradingtheir tax stamp with advancedovert & covert features to beahead against counterfeiters.

Practices in India

The revolution of irst EALswas introduced by TamilnaduGovernment in early eighties.

These were on a thin glassinebased paper with a strongadhesive. Each label was serialnumbered and was given byTamilnadu Govt. to companiesthat illed IMFL against paymentof tax.14 Then in 1999-2000,Tamilnadu again take theinitiative and started using Indiairst HEAL15, which was followedby Uttar Pradesh in 2001 &Kerala in 2002. Today, more than

17 states are using approximately15 billion HEAL. 75 per cent of

these are used in form of fullPolyester holographic labels and25 per cent paper based, withholographic element.

Integration of digital and non-digital (Importance of visualauthentication)

Recently, Andhra Pradesh hasbecome first state to start usinga combination of authenticationand digital technology as it isgoing to use advanced HEALcomprising hologram for

authentication and bar code fortrack & trace. However, trackand trace technology itself havevulnerabilities. Physical andsensory authentication toolswill still be needed both duringand after the developmentof track and trace systemsaround the world. If we do notintegrate both digital and non-digital (physical and sensory)authentication methods into

our approach, then we riskwasting the major investmentsthat are about to be made intrack and trace.

Examiner may need to verifythe liquor bottle visually dueto lack of availability of reader,power failure, network failuresor simple time constraintsat crowded control sites. Anelectronic authentication is not

possible everywhere especiallyin remote areas so it generate a

12. Reconnaissance international

13. Reconnaissance international

14. PRS Permacel Ltd

15. Holostik India Limited

Country Usage of HEAL on Effect in Revenue

Ukraine Alcohol Tax revenue double in 4 years equivalent to USD

3 billion

Latvia Alcohol Increase of USD 21 million in 2 years

Serbia Alcohol & Cigarettes 10 times increase in cigarette revenue /

5 times increase in spirits revenue

Hungary Alcohol and Cigarettes NA

Table 2: HEAL used by some countries12


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The Holography TimesCase Study

requirement of an instant visualauthentication like a hologramwith advanced levels of securityfeatures for authentication.

Beneit of using HEALThe usage of HEAL by theseStates has proved the acceptanceand effectiveness of hologram

as authentication device. Ithas helped the department incombating various challengessuch as;

1. Provide visualauthentication:HEAL plays an importantrole for visual authenticationto differentiate fake liquorbottle from genuine, for bothenforcement authorities and

for individual consumer.These HEAL are customizedwith overt and covertfeatures, being overt for

a lay man consumer andcovert & forensic featurefor enforcement authoritieswhich can be proof of theauthenticity of bottle.Further, holograms are bebest overt authenticationfeature available, as anelectronic authentication

is not possible everywhereespecially in remote areas(India).

2. Increased tax revenue:According to various reportsand HoMAI,17 the mandatedusage of security HEAL inStates such as Uttar Pradesh,Tamil Nadu, Uttrakhand,Madhya Pradesh,Puducherry, Chhattisgarh

etc. have increase revenuecollection. For example TamilNadu and Uttar Pradesh,excise revenues were `8116

Table 3: State and Union Territory (UT) using HEAL with annual capacity (in 2011) 16

State/Union Territory Year of Introduction* Annual Volume (crore)

Andhra Pradesh* 2012 2,64

Chattisgarh 2005 72

Haryana* 2009 90

Himachal Pradesh** 2011 7

Jharkand (in process)**** 2012-13 54

Karnataka** 2002 240

Kerala 2002 70

Madhya Pradesh 2007 72

Meghalaya 2009 NA

Orissa 2007 48

Punjab** 2011 50

Rajasthan*** 2005 72

Sikkim 2010 NA

Tamil Nadu 1999 300

Uttrakhand NA 15

Uttar Pradesh 2001 180

Delhi (UT) 2009 36

Puducherry (UT) 2006 12

16. Approximate quantity calculated on based of State excise tender document

17. Hologram Manufacturers Association of India

* State using paper based EAL earlier, now decided to use HEAL;

** State using paper based EAL with or without holographic component;

*** State excise department stopped the usage of HEAL since November 2010;

**** Figure of Jharkhand are for year 2012.

NA Not Available


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crores and `6725 croresrespectively in 2010/11. Bycontrast, in states similarin size and population suchas Maharashtra and WestBengal, excise revenuewas much lower at `5800crores and `1769 croresrespectively (see table 4 a &b).

3. Prevent Funding ofcriminal enterprises:

The people that beneitmost from counterfeitingare criminals who then usetheir proceeds to fund other

criminal activity of to furthertheir own enterprises.

4. Further the usage of HEALenhance the State image/goodwill, as it createconsumer conidence.

ConclusionHEALs have become the main toolnow used by the government andthe enforcement to authenticate

sealed IMFL and Beer bottlessold in the State. Hence theeficacy of this excise adhesivelabels, as an advanced and truetamper evident seal, has great

value. This is true regarding otherIndian States also. Counterfeitingcan be curb to a great extentwith proper combination ofhigh security HEAL and digitalsystem with proper enforcementmethodology.

Deinitions

1. Alcohol means ethyl alcohol of anystrength and purity having the chemicalcomposition of (CHOH).

2. Help in combating smuggling as it ensureful proof labelling.

3. foreign liquor means-

a) all liquor (other than country liquor,rectiied spirit, denatured spirit andperfumed spirit), imported into India,

on which customs duty is leviable underthe Indian Tariff Act, 1934 (XXXII of1934) or the Customs Act, 1962 (52 of1962);

b) all liquor manufactured in India (otherthan rectiied spirit, denatured spirit,and perfumed spirit), on which dutyat a rate higher than levied on Countryliquor is leviable;

c) all beer (including ale, porter and stout)manufactured in India or abroad, and

d) all sacramental wine prepared from puredire grapes by a process or fermentationonly without the addition of alcohol orany other ingredient.

4. Liquor means intoxicating liquor andincludes lahan and all liquid consistingof or containing alcohol; also anysubstance which the State governmentmay by notiication declare to be liquorfor the purposes of this Act.

a) State using excise adhesive labels

State Revenue Revenue Inc in turnover Population2005-06 2010-11 over last 6 years (2011)

` Crore ` Crore in Crore19

Andhra Pradesh 2685 9014 6329 8.46

Tamilnadu 3177 8116 4939 7.21

Karnataka 3397 8345 4948 6.11

Uttar Pradesh 3089 6726 3637 19.95

Madhya Pradesh 1370 3604 2234 7.25

Rajasthan* 1276 2859 1583 6.86

*State excise department stopped the usage of HEAL since November 2010;

Table 4: Comparison of key State with population more than 6 crores18

b) State not using any type of excise adhesive labels

State Revenue Revenue Inc in turnover Population2005-06 2010-11 over last 6 years (2011)

` Crore ` Crore in Crore19

Maharashtra 2824 5800 2976 11.23

West Bengal 743 1770 1026 9.13

Bihar 319 1542 1224 10.3

18. State excise department

19. Census 2011


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Protection against counterfeiting:a new step for a better usage of technologies

By Jean-Michel Loubry

Increasing dramatically eachyear, counterfeiting is notinevitable. ISO/PC246 bringsits contribution to combatcounterfeiting of materialgoods by facilitating theselection of authenticationtechnologies.

Counterfeiting: a real risk fororganizationsCounterfeiting is a worldwideissue, impacting all markets, notonly luxury. Estimations say that

counterfeiting may reach up to10 per cent of the worldwidecommercial exchanges. Howeverno reliable igures exist toquote the size of the counterfeitbusiness, but dependingon markets and countriesestimations vary form a fewpercent to more than 80per cent.

Many of counterfeit products canbe dangerous for populations

and counterfeiting impacts theproitability of the organizationsthrough IPR infringement. Therisks are important for companiesfacing counterfeiting: loss ofturnover, hacking of knowhow,loss of jobs and risk to be sued ifthe fake products cause accidents

and if there is no way to proveit is a counterfeit. Costs, if theserisks occurred may be important,impacting the durability of acompany.

Counterfeiters are more andmore professionals and thequality of the copies (i.e. thelevel of likeness) is increasing,making the detection of fakesdificult even for trained people.Protecting the products and evenall kind of material goods is a

necessity, especially when theeconomical context demands totake care of all % of proitability.

Fake material goods may impactthe health and the security ofconsumers, patients or citizensand therefore are a risk forcompanies, are the materialgoods protected by IPR or not.To be able to differentiate fakefrom authentic is the purpose of

anticounterfeiting solutions.

Anticounterfeiting solutions:ISO 12931 helps to select

Choosing a solution using securedtechnologies may be complicatefor companies as many anti-counterfeiting solutions exist, but

Author is a specialist of traceability solutions and Chairman of ISO / Project

Committee 246 Anti-Counterfeiting Tools and a technical traceability expert

on authentication standards. He is an electronics engineer and graduate in

strategic management, and has made his career in major hi-tech companies

of the telecommunication sector, starting in research and development, then

pre-sales manager for export markets, and product marketing manager. He

managed the French national traceability center from 2006 to 2011. He can be

contacted at +33 (0)6 42 47 58 56 or by email at [email protected].

Expert Insight


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few information are available onreferences and on effectiveness.Facilitating the choice, theimplementation and the usageof anticounterfeiting solutionswith a standard was requiredeither by brand owners,suppliers and authorities. Allthese parties have been involvedin the workgroup which issuedthe NWIP presented by Francein 2008. The resulting ISOProject Committee (ISO/PC246)started its job in the earlymonths of 2009. ISO/PC246 is

composed of 17 P-Members and13 O-Members coming from allover the world. This worldwidecollaboration and the willingnessto succeed in this project is agood sign toward material goodsusers or providers.

ISO/PC246 has created a standardthat deines the Performancecriteria for authentication usedto combat counterfeiting of

material goods (ISO 12931),that is applicable for any solutionwhatever the technology. It isplanned to be published as anInternational Standard (IS)beginning of 2012.

ISO 12931 speciies performancecriteria and evaluationmethodology for authenticationsolutions used to establishmaterial good authenticity

throughout the entire materialgood lifecycle. It does not specifyhow technical solutions achievethese performance criteria.

ISO 12931 is intended tocontribute to an organizationsunderstanding of itsauthentication needs, possiblestrategies, and challenges. It isintended to give the organizationa set of criteria to analyses, specifyand implement its authenticationsolutions.

The organization will determinethe level of security assurancerequired for the selectedauthentication solution. The

authentication solution provideris expected to comply with therisk and security requirements ofthe organization.

ISO 12931 is intended for alltypes and sizes of organizationsthat require the ability tovalidate the authenticity ofmaterial goods. It is intended toguide such organizations in thedetermination of the categoriesof authentication elements theyneed to combat those risks,and the criteria for selection of

authentication elements whichprovide those categories, havingundertaken a counterfeiting riskanalysis. Such authenticationelements may be part of thematerial good itself and/or itspackaging. The criteria willapply to the material good and/or its packaging. Authenticationelements may be added orintrinsic to material good and/orits packaging.

This International Standardis not intended to constrainthe organizations choice ofauthentication technologies.

The veriication processesof authentication elementsdeployed in these solutionsrequire the ability to read,capture and sometimes performsampling using human senses or

tools. These tools will either offera local on the-spot response orwill call, in real-time, into a secureinformation system, or possiblyrechannel the data, sample, ormaterial good towards a structureoffering expert analysis for an off-line diagnosis.

Thus, in relation with thespeciication of the material goodprotection, an authenticationsolution is the result of acreation process followed by averiication process. The creationprocess consists of deining,generating and manufacturingthe authentication elementsand integrating them with the

ISO 12931 is intended

to contribute to an

organizations understanding

of its authentication needs,possible strategies, and

challenges. It is intended

to give the organization a

set of criteria to analyses,

specify and implement its

authentication solutions.

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material good or its packaging.The veriication process consistsof checking the authenticationelements along the distributionchain by trained people usinghuman senses, tools or references.There are 3 main categories ofsolutions using overt, covert orforensic authentication elementswhich require respectivelyhuman senses, tools or forensicanalysis to be checked.

Overt authentication can bedirectly performed by an

informed inspector and does notrequire any additional equipmentto allow a feature to be veriied asgenuine.

Covert authentication elementsare not instantly recognizableor interpretable by thehuman senses. They requireauthentication tools and/orspecialized knowledge to verifytheir presence and validity.

Forensic analysis involves theuse of knowledge and dedicatedscientiic methods to validatethe authentication elements orintrinsic attributes of a materialgood.

According to the organizationsprotection strategy, knowledgeabout the presence andthe method to verify the

authentication elements will bemade public or restricted.

General audience will make anyconsumer aware of authenticationelements available for him to actas an inspector. This make alsothe counterfeiter know what tofocus on to deceive the consumerwho, by deinition, is not anexpert.

Restricted audience is dedicatedto professional inspectors likecustom agents or any expertappointed by a right owner.

ISO 12931 gives a list ofperformance criteria to be

considered when choosing anauthentication solution, assuming(again) that a risk analysis has beenperformed irst. Based upon thesecriteria the authentication solutionspeciier may determine whatclass or combination of categoriesof solutions meets the needs and

requirements of the user.

These criteria are addressingthe different steps of thematerial good lifecycle. The maincategories of criteria are:

- The physical characteristicsof the authentication

elements that will determinethe capability of thoseelements to be added or usedwith the material good and/or its packaging, to resist tomanufacturing and logisticsprocesses so they remainreadable when required

- The attack resistance of theauthentication solution,either on the authentication

elements side than on thetools side, will determinethe complexity for acounterfeiter to copy and/or access to secrets to beable to imitate or reproducethe authenticationelement or circumvent theauthentication tool

- The implement ability ofthe authentication solutionconsidering all practicalcriteria that will make theauthentication processwork in the ield such asenvironmental conditionsor telecommunicationnetworks requirements

The performance of anauthentication solution dependsupon a proper risk analysis andcriteria analysis that establish aset of compliance speciications.ISO 12931 also describeeffectiveness assessment as ameans to evaluate that a solutionis complying with the establishedstandard and if the solution isproviding a measurable result. Inaddition to the overall solutioneffectiveness assessmentshould be established basedon the speciication for each

of the criteria categories.Authentication solutions are a keymeans for detecting counterfeitsand therefore supportinvestigation and enforcementagainst counterfeiting andprovide increased corroborativeevidence. Monitoring thebehavior of an authenticationsolution in the ield is the bestway to react and better to preventthe penetration of fakes.

ConclusionFighting against fake is astrategy involving legal andtechnical approaches. In bothcases, the capability to ightis a key issue. Therefore thestrategy has to be adapted tothe organizationshuman andinancial means. Are sophisticatedsolutions better than simpleones? Not sure. Pragmatism is a

good way to consider the combatagainst counterfeiting.

ISO 12931 brings a full list ofneed to be considered criteria tobe sure to go through all necessarycharacteristics or features thatan organizations authenticationsolution may require.

ISO 12931 is also a frame to beextended for market sectors facingspeciic issues or regulations.

ISO/IS 12931 is planned to bepublished soon and is perhapsalready published when you willread these lines.

Authentication solutions are

a key means for detecting

counterfeits and therefore

support investigation

and enforcement against

counterfeiting and provide

increased corroborative

evidence.

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www.homai.org16


D/M/Y News Reported Sector Reported in Media

03/01/12 6 Nigerians arrested in fake lottery scam, Mumbai (Maharashtra) Fake Document Free Press Journal

04/01/12 Fake certiicate racket busted in Navi Mumbai (Maharashtra) Certiicate Free Press Journal

06/01/12 Fake notes seized in Old Delhi, two held (Delhi) Bank Notes Times of India

06/01/12 Factory seized making spurious Ghee, Jabalpur (Madhya Pradesh) FMCG Nai Duniya

09/01/12 Man arrested for smuggling foreign liquor (Delhi) Liquor Tribune

10/01/12 70 yr old grandson held for bootlegging (Delhi) Liquor Hindustan Times

09/01/12 Liquor seized (Rajasthan) Liquor Rajasthan Patrika

12/01/12 Fake ration card in Sonia name found (Maharashtra) Identity Document Times of India

12/01/12 Cops probe sale of fake tickets worth Rs 1 crore at Auto Expo (Delhi) Entry Tickets Times of India

14/01/12 Airport employee held for smuggling (Delhi) Memory Card Hindustan Times

14/01/12 Fake 3 crore ration card seized (India) Identity Document Dainik Jagran

17/01/12 Fake certiicates probe widens (Delhi) Identity Document Times of India

17/01/12 Fake drugs seized worth Rs 30 lakh (Uttar Pradesh) Pharmaceutical Dainik Jagran

18/01/12 Fake Footwear seized (Delhi) Footwear Hindu

18/01/12 120 fake driving licenses, SIM card seized (Jammu and Kashmir) Driving Licences Daily Excelsior

18/01/12 Liquor tragedy, 6 percent died (Assam) Liquor Assam Tribune

20/01/12 Fake Indian currency seized, one arrested (Puducherry) Bank Note Hindu

24/01/12 2 held for selling illegal weapons, 200 forged DLs seized (Haryana) Driving Licences Pioneer

24/01/12 Fake homeopathic drug found (Delhi) Pharmaceutical Navbharat Times

04/02/12 Ramjas detects 12th Class fake mark sheet (Delhi) Mark-Sheet Asian Age

08/02/12 Oficials found involved in faking property paper (Delhi) Fake Document Pioneer

08/02/12 Five teachers caught with fake degrees (Maharashtra) Degree DNA

16/02/12 Fake ilters racket busted; 7 nabbed (Jammu and Kashmir) Diesel Kashmir Times

17/02/12 Illicit liquor worth Rs 1.5 crore seized (Maharashtra) Illicit Liquor DNA

18/02/12 They faked US dollars, forged passports (Delhi) Currency Times of India

19/02/12 Fake illicit liquor factory seized (Rajasthan) Illicit liquor Rajasthan Patrika

Counterfeit Seizure ReportThe HOMAI counterfeit report displays all of the counterfeiting seizures reported in Indian newspaper for periodJanuary 2012 February 2012.

For detailed, subscribe to HoMAI press monitor or e-mail at [email protected]

Industry Updates


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www.homai.org 17

The Holography TimesIndustry Updates

Publication Title Int. Application ApplicantDD.MM.YYYY Class Number

02.02.2012 WO/2012/016105Complex Holograms, G03H1/00 PCT/US2011/045824 SABIC INNOVATIVEmethod of making and using PLASTICS IP B.V /complex hologram TAKEMORI, Michael

Brief Abstract: A method of making a hologram (10) includes recording a hologram in a holographic recording medium (14)at a irst deformation ration, changing the irst deformation ratio to a second deformation ration that is different from the irstdeformation ration; and recording a second hologram in the holographic recording medium (14) at the second deformationration to form a recorded holographic medium.

26.01.2012 WO/2012/010665 Combination of a B41M3/14 PCT/EP2011/062552 SONY DADC AUSTRIAluminescence substance with AG / EBERT, Dietera hologram

Brief Abstract:The invention relates to a combination or composition for marking products, comprising a luminescencesubstance on the basis of oxides, oxide sulphides and/or oxide luorides of lanthanide ions and a holographic substrate forreceiving or reconstructing a volume hologram. The luminescence substance has a characteristic emission spectrum and, incombination with the volume hologram, can be used to authenticate and/or identify products such as substances or substancemixtures.

19.01.2012 WO/2012/007120- Security Element B42D15/00 PCT/EP/2011/003345 GIESECKE & DEVRIENTcomprising hologram structures GMBH / KELLER,

Mario

Brief Abstract: The invention relates to a security element for security papers, valuable documents and other data carriers,comprising a surface hologram structure and a volume hologram structure. In this case, the invention provides for the volumehologram structure to be swollen up in partial regions and thereby to form additional information in the form of a two- or multi-coloured motif and in the form of a microstructure.

12.01.2012 WO/2012/003592Security Document B42D 15/10 PCT/CH2010/000175 ORELL FSSLI SICHERwith holographic foil and printed HEITSDRUCK AG /machine-readable markings EICHENBERGER,

Martin

Brief Abstract:A security document has a substrate (1) with a foil element (6) applied to it. The foil element (6) comprises a

security feature, such as a diffractive structure (12), for example a hologram. To easily detect a removal of the foil element (6)using conventional detection devices, markings (4, 14, 15) intersecting with the foil element (6) are printed onto the top surface(7) of the foil element (6), the bottom surface (8) of the foil element (6), or onto the substrate (1), thus that they are removedtogether with the foil element (6).

12.01.2012 WO/2012/004016Beam Divergence G03H 1/22 PCT/EP2011/055593 SEEREAL TECHNOLOand various collimators for GIES S.A. /holographic or stereoscopic displays FTTERER, Gerald

Brief Abstract: The invention relates to a holographic display comprising a lighting device, a magnifying unit (VE) and a lightmodulator (SLM), wherein the lighting device comprises at least one light source and a collimation unit (LCU), wherein thecollimation unit (LCU) is designed such that it collimates the light of the at least one light source and generates a light wave

ield of the light of the light source with a pre-determinable plane wave spectrum, wherein the magnifying unit (VE) is arrangeddownstream of the collimation unit (LCU) in the light propagation direction, wherein the magnifying unit (VE) comprises atrans missive volume hologram (VH) that is arranged and designed such that, on the basis of a trans missive interaction of thelight wave ield with the volume hologram (VH), an anamorphic divergence of the light wave ield can be achieved, and whereinthe light modulator (SLM) is arranged in the light propagation direction either upstream or downstream of the anamorphicmagnifying unit (VE).

For more visit at www.wipo.int/patentscope/search

Global Patents


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www.homai.org18


Upcoming Events

The 9th Pan European High Security Printing ConferenceMar 27-29, 2012, St Petersburg, Russia, Web: www.cross-conferences.com

Cartes in AsiaMar 28-29, 2012, Hong Kong, Web: www.cartes-asia.com

IP Protect Expo 2012: Brand Protection in ActionMar 28-29, 2012, London, United Kingdom, Web: www.ip-protectexpo.com

1st international forensic technology fairMar 28-30, 2012, Warsaw, Poland, Web: www.crimelab.pl

Pharmaceutical Anti-CounterfeitingApril 24-25, 2012, London, United Kingdom, Web: www.appelconsulting.co.uk

3rd Annual Anti-Counterfeiting for Pharmaceutical andMedical Devices SummitApril 30-May 1, 2012, Philadelphia, PAWeb: www.anticounterfeitingpharma.com

DRUPAMay 3-16, 2012, Dusseldorf, Germany, Web: www.drupa.com

Security Document World 2012

May 21-23, 2012, London, United Kingdom, Web: www.sdw2012.com

Rosupak 2012June 18-22, 2012, Moscow, Russia, Web: www.rosupack.com

Latin American High Security Printing ConferenceJuly 2-4, 2012, Rio De Janeiro, Brazil, Web: www.cross-conferences.com

Pack Plus South 2012July 6-9, 2012, Hyderabad, India, Web: www.packplus.in

2nd International Banknote Designers ConferenceSep 2-6, 2012, Stockholm, Sweden,

Web: www.banknotedesignersconference.com

PABS Product Authentication and Brand Security Conferences 2012Sep 11-12, 2012, Chicago, IL, UA, Web: www.awa-bv.com

7th Security Document SummitSep 12-14, 2012, Beijing, China, Web: www.cids.com.cn

11th Asian, Middle East & African High Security Printing ConferenceSep 24-26, 2012, Dubai, UAE, Web: www.cross-conferences.com

Eco Print 2012Sep 26-27, 2012, Berlin, Germany, Web: www.ecoprintshow.com

Security Printers Conference & Exhibition,Oct 17-19, 2012, Bordeaux, France, Web: www.intergraf.eu

Holopack Holoprint 2012Oct 28-30, 2012, Vienna, Austria, Web: www.holopack-holoprint.com

Published by:

Hologram Manufacturer Association of India

(HoMAI)

Issue Editor:

C S Jeena

The Holography Times is a quarterly newsletter

published by HOMAI with an aim to provide

latest developments, research, articles, patents

and industry news to a wide audience related toHolography 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:

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Despite due diligence the source data may contain occasional

errors. In such instances, HoMAI would not be responsible

for such errors.

About HoMAIThe Hologram Manufacturers

Association of India (HoMAI) is theworlds 2nd and Asia only associationrepresenting hologram industry.

Latest TendersSecurity Printing & Hologram tender

that have been notiied in past monthinclude;

India - Hologram excise adhesivelabel, Uttrakhand, deadline-20/03/2012

United States - Printing of CigaretteTax Stamps, deadline- 19/03/2012.

Macedonia - Applied holographicstripe for printing excise stampsfor labeling tobacco products andalcoholic beverages, deadline 03/04/2012

Belgium - Development andpurchase of the matrix in the form ofholograms sticker to include in theaccess cards to buildings of the EUCouncil, deadline 16/03/2012

For more information or enquiry, emailus at [email protected].

Industry Updates


19/20

www.homai.org 19



20/20


Holographic Solutions for

Excise Revenue Protection

Track-Pack India Ltd.KANTAS

The Holography Times Issue 17

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