WISeAuthentic Product Overview Brochure

Anti-Counterfeiting Technology for Fine Jewellery, Timepieces and

Luxury Products

TABLE OF CONTENTS WISEAUTHENTIC: THE DIGITAL CERTIFICATE OF AUTHENTICITY ...................................................... 2

Introduction ....................................................................................................................................... 2

GLOBAL ANTI-COUNTERFEITING SOLUTION .................................................................................... 3

The Marriage of Fine Craftsmanship and Technology ....................................................................... 3 The Principle Behind Digital certificates ............................................................................................ 4

Traditional Paper-based certificates ............................................................................................... 4 Digital Certificates of Authenticity .................................................................................................. 4

A SUITE OF ADDED VALUE .............................................................................................................. 5

Form Factor Allows Easy Authentication ........................................................................................... 5 Real-time Sales Data .......................................................................................................................... 5 Product Tracking ................................................................................................................................ 6 Marketing Capabilities ....................................................................................................................... 6 Proven Technology ............................................................................................................................. 7

100% AUTHENTIC ONLINE AUCTIONS OR RETAIL SHOP .................................................................. 7

Be Genuine Online ............................................................................................................................. 7

SUCCESS STORY ............................................................................................................................. 8

Hublot Genve ................................................................................................................................... 8

PROTECTING BRANDS WORLDWIDE ............................................................................................... 9

WISeAuthentic Markets ..................................................................................................................... 9 WISeKey on Illicit Trade ................................................................................................................... 10

ABOUT WISEKEY ........................................................................................................................... 11

The Anti Counterfeiting Solution

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WISEAUTHENTIC: THE DIGITAL CERTIFICATE OF AUTHENTICITY

INTRODUCTION WISeKeys core business is securing both peoples identity on and data transferring through the Internet. WISeAuthentic, the premier product in WISeKeys Digital Brand Management vertical, expands this mission to products, offering a bespoke anti-counterfeiting solution used to authenticate the product as genuine, thus securing its identity against theft.

The WISeAuthentic digital anti-counterfeiting solution protects goods generally series of items, such as luxury timepiece or jewellery collections against counterfeiting. WISeAuthentic allows manufacturers and resellers to prove the authenticity of items to their customers, and in turn, for the customers to prove it to authorities and other third parties, such as future buyers or even customs agents.

At its foundation, the WISeAuthentic system is based on the concept of a certificate of authenticity, typically a printed paper document packaged and delivered with the product. Ultimately, a paper document is quite easily forged, thus offering no real guarantee that the product is genuine. Newer incarnations of the paper certificate which include secure paper, watermarking and RFID have all proven vulnerable to forgeries.

WISeAuthentic replaces the paper-based certificate with a digital certificate stored on a cryptographic smart chip. The non-duplicability of secret cryptographic keys generated and stored on smart chips is proven. It is based on a combination of mathematical functions, data flows and electronics. To date and for the foreseeable future, its security has never been compromised nor is it expected to be compromised.

Although it remains possible to produce counterfeit items, it is impossible to issue a corresponding certificate on cryptographic smart chips, as this can only be done by a certification authority. It is because of this that WISeAuthentic can promise its 100% authentic guarantee.


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GLOBAL ANTI-COUNTERFEITING SOLUTION

THE MARRIAGE OF FINE CRAFTSMANSHIP AND TECHNOLOGY WISeAuthentic is a bespoke solution that can be adapted for the specific needs of a variety of businesses. Makers of fine jewellery, watches and other luxury products have a long tradition of certificates of authenticity attesting pieces to be genuine.

Digital certificates are impossible to forge and bring the added value of enabling online verification of the item. Furthermore, the electronic data contained on the cryptographic chip can access the entire pedigree of the object, documenting every sale and transfer of ownership. Digital certificates

of authenticity are bound to the object, not the owner of the merchandise. This allows for the authentication of a piece of jewellery, timepiece, bag or other luxury product while maintaining the anonymity of the owner. Uniquely, the digital certificate permits the remote revocation of the

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certification of an item. If an object is reported lost or stolen, the history of the item can be updated online to reflect this event, thus protecting consumers from fraud.

THE PRINCIPLE BEHIND DIGITAL CERTIFICATES TRADITIONAL PAPER-BASED CERTIFICATES

The concept of WISeAuthentic was derived from the practice of providing a paper certificate of authenticity with the purchase of a luxury product. This document certifies that the merchandise is a genuine article and commonly includes the original nature of the item, its components, identifying details such as the year of production and the serial number engraved on product. The document is issued and signed by the manufacturer.

While a charming memento for any consumer, the paper-based certificate offers no proof of authenticity due to the fact that paper can be forged with a comparable amount of effort already accessible to those equipped with the means to counterfeit products. Once the product is in the market, it would not be possible, for example, to identify that the certificate and product originated from the manufacturer. Furthermore, only an expert would be capable of validating the authenticity of the product (as well as the certificate of authenticity) after a physical examination.

DIGITAL CERTIFICATES OF AUTHENTICITY

The digital certificate of authenticity, as provided by WISeKey, is issued and signed by an authorized certification authority. A certification authority, or CA, is a recognized entity that issues digital certificates. The digital certificate can be stored on a cryptographic chip, either on a smartcard which references a serial number or unique identification code that can be found on the item, or on an NFC tag on the item or smartcard.

There are a multitude of benefits of using cryptography for this kind of authentication, but the most significant is that a certificate on a cryptographic smart chip or NFC tag cannot be forged. Cryptography is a widely available, standards-based technology with a reliable validation mechanism that can establish proof of product identity over the Internet using strong authentication. The digital nature of the certificate also opens a variety of options for uses of online services or e-boutiques.

PAPER VS. DIGITAL: A COMPARISON

Paper

Can be forged with reasonably accessible techniques

No reliable signature or validation system available

Loss of control after delivery

Digital

Certificate on a cryptographic smart chip or NFC tag cannot be forged

Based on widely-used and well-known PKI technology

Can be revoked if item is lost or stolen Encrypted at military and bank grade

security levels Border patrols and other agents are

already equipped with digital readers Based on public, asymmetrical keys


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A SUITE OF ADDED VALUE

FORM FACTOR ALLOWS EASY AUTHENTICATION The original WISeAuthentic anti-counterfeiting solution stores the digital certificate on a cryptographic chip on a smartcard. The customer receives the item, packaged with the smartcard and a standard USB card reader. The UBS reader is connected to a computer, allowing the smartcard

to be inserted in order to read the data on the chip. These readers are similar to those that border patrols and customs agents use to verify identification cards.

WISeAuthentic has been enhanced to support Near Field Communication (NFC) technology. It is now possible to have the item or a smartcard with a contactless NFC chip rather than a standard contact chip. The certificate is still stored with the same level of security, but now an NFC-equipped smart phone can be used to read the certificate and access the online authentication platform.

It is possible to protect some luxury products by attaching an NFC chip using PH-neutral glue. Anyone would be able to read the NFC tag with a smart phone and immediately verify the authenticity of the object using the online platform. Each time the tag is read by a smart phone, the action is recorded in the items database, potentially helping authorities locate stolen or lost goods.

REAL-TIME SALES DATA At the time of the sale, the reseller will activate the guarantee. The guarantee details are stored on the cryptographic chip and, when the reseller activates it at the time of sale, this action activates the


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product warranty and proof of authenticity for third parties. Activation always takes place online, so it will not matter if the sale is made by a boutique, reseller or an auctioning platform.

The WISeKey platform updates the object database with the record of the sale. These details can also be tracked online in real-time for sales data completely independent of intermediaries. Importantly, WISeAuthentic always preserves the anonymity of the objects owner, as only the authenticated item and the reseller are recorded.

This activation process enables the manufacturer to benefit from precise and real-time sales data.

PRODUCT TRACKING The end customer will be able to access a web authentication platform using their easy-to-read NFC tag or standard smartcard. Following product authentication, the end customer will have access to such product characteristics as its pedigree or history, documentation or manuals, pictures, and more.

The cryptographic chip stores the products identity, but the items record is centralized so that the information found on the authentication platform can be changed and updated as necessary. It is this feature that allows the system to assist in tracking stolen items.

MARKETING CAPABILITIES The end customer can also be granted access to an exclusive online platform using the very strong authentication provided by the smartcard or NFC tag. This platform can become an exclusive social media platform reserved for owners. Manufacturers can use this system for highly effective customer relationship marketing purposes.

Markeing Personalized messages

Direct connecion with all your customers, without

intermediaries

Ani-Counterfeiing Strong authenicaion Online vericaion

Warranty fraud protecion

Sellout Sales reporing and Traceability

Monitoring of markets Gray market control


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PROVEN TECHNOLOGY The WISeAuthentic solution is not based on a manufacturing secret. WISeAuthentic is built on proven Public Key Infrastructure (PKI) technology, which has been used in the banking industry and national defense agencies for more than 20 years. WISeAuthentic uses PKI to create a digital certificate that, like an electronic fingerprint, contains the products identity code.

100% AUTHENTIC ONLINE AUCTIONS OR RETAIL SHOP

BE GENUINE ONLINE WISeAuthentic is an anti-counterfeiting solution that uniquely provides the 100% authentic guarantee of a genuine item over the Internet.

The Internet has become an unparalleled, or unavoidable, sales network. Unfortunately, it is the platform through which most counterfeit objects are sold. WISeAuthentic enables brands to equip their products so that they can be identified online, certified as genuine before the sale and therefore increasing customer confidence in the object as well as the online shop.

This concept is applicable for any official retailers or authorized auctioning platforms.


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SUCCESS STORY

HUBLOT GENVE Hublot became the first company in the world to protect all of their watches with WISeAuthentic when the solution was adopted by the luxury watch manufacturer in 2009. WISeAuthentic combines state-of-the-art technology with Hublots strong tradition of watchmaking know-how to attain the highest level of counterfeiting protection for its products. In addition to using a smartcard to prove the identity of the watch, WISeAuthentic can provide complete life-cycle information beginning with the origin of the watch.

WISeAuthentic was rolled out to over 400 boutiques worldwide. The deployment was completed at the end of April 2009, and it has received high praise from the reseller network ever since. WISeKey also installed the solution in Hublots manufacturing and after-sales departments to provide customers, owners and resellers with additional value-added services in

addition to offering a fool proof method of identifying a genuine Hublot watch.

WISeAuthentic provides a secure platform that is accessed via the watchmakers website, allowing the watch to be identified and authenticated, along with other post-sales services that are reserved uniquely for clients.

Hublots management is highly satisfied with the WISeAuthentic deployment. Not only are the risks of watches being counterfeited greatly reduced, the sales are monitored in real time, allowing quantifiable direct marketing activities and control of the grey market.

I am proud to be the pioneer in this domain, as even though imitation is flattering, manufacture of counterfeit watches is an inacceptable plague for the whole of the watchmaking industry, and we must use every means possible to fight it.

Jean-Claude Biver, Hublot


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PROTECTING BRANDS WORLDWIDE

WISEAUTHENTIC MARKETS WISeKeys innovative technology offers a 100% proof of authenticity needed by many industries affected by counterfeiting. After three years of research and development in collaboration with the luxury goods industry, WISeKey launched a Business Unit in 2009 dedicated to better understanding the needs of these specific industries. The objective is to address and fight the counterfeit market, which represents approximately five to seven per cent of all world trade.

Thanks to the proximity of our global headquarters in Geneva, the WISeAuthentic platform was developed with the input of fine watchmakers. The market debut of the solution was in collaboration with two luxury timepiece manufacturers. WISeAuthentic has been endorsed by the president of the Fdration Horlogre Suisse as the best practice for a global anti-counterfeiting strategy.

The technology, infrastructure and value proposition of WISeAuthentic has been customized to support many markets and their anti-counterfeiting efforts, including:

Luxury goods Gemstones (diamonds, etc.) Arts Pharmaceuticals Aeronautic parts

WISeAuthentic solution is a bespoke solution that can be tailored to suit specific business needs.

WISEAUTHENTIC BENEFITS

For the manufacturer

Unique anti-counterfeiting solution that is impossible to forge

Retroactively applicable to items already on the market, such as vintage or antiques

Online lifecycle tracking system of sales, delivery and after sales services

Control over the grey market Fraud prevention Direct marketing to the end customer

without any intermediaries Easily deployed Uses proven technology based on known

standards and normal equipment

For the customer

Simple method to prove the value of the acquisition

Value-added feature facilitating resale Proof of authenticity for third-parties Advance information on new collections

and limited editions Invitations to exclusive events and other

offers Peace of mind


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From the illegal export of protected commodities to the use of supply lines by terrorist groups and transnational criminal networks, illicit trade hinders the fundamental building blocks of development, democracy, human rights and rule of law. It supports corrupt practices among government officials and private citizens alike. The value of illicit trade globally rivals the individual GDP of most members of the G8. 1

WISEKEY ON ILLICIT TRADE WISeKey is a member of the World Economic Forum Global Agenda Council on Illicit Trade. Established four years ago, the Global Agenda Councils are select, invitation-only groups aiming to find solutions to address major global challenges.

WISeKey has actively participated with the Council, authoring a white paper and contributing to a report on technologies used in the fight against counterfeiting., your active participation and guidance will be essential in ensuring that the Council delivers pertinent insights and

Recognizing WISeKey as one of the world's most relevant companies developing solutions to fight counterfeiting, WISeKeys founder and CEO Carlos Moreira was named Vice-Chair of the Global Agenda Council on Illicit Trade 2012.1

1 Global Agenda Council on Illicit Trade 2011. http://www.weforum.org/content/global-agenda-council-illicit-trade-2011


WISeKey S.A. 2012. All rights reserved. 11

ABOUT WISEKEY

Wherever security relies on identity, WISeKey has the solution. WISeKey is a leading information security and identity management company, and provides specialized security technologies for data protection, and effective identification and authentication of people and objects, over closed networks, physical infrastructures, and the Internet to ensure secure communications and transactions, without compromising trust.

With more than a decade of leadership in information security and identity management, WISeKeys solutions aim to:

Protect you from eavesdroppers and data theft with its Mobile Security Protect your organization from data leakage or theft with its Online Trust Solutions Protect your products from counterfeiters and the grey market and offer direct marketing

possibilities with its Digital Brand Management

WISeKey, a World Economic Forum Global Growth company, is headquartered in Geneva, Switzerland, and has regional subsidiaries around the world. Since 1999, WISeKey has successfully deployed solutions to resolve advanced e-security issues for organizations in industry sectors such as defense, health, education, finance, and government.

WISeKey S.A. World Trade Center II Route de Pr-Bois, 29 P.O. Box 853 CH-1215 Geneva 15 Switzerland

Phone: +41 22 594 3000 Fax: +41 22 594 3001

http://www.wisekey.com http://www.wiseauthentic.com

For more about WISeAuthentic and WISeKeys Digital Brand Management, please contact:

Digital Brand Management Sales Department Phone: +41 22 594 3000 E-Mail: [email protected]