Kodak has developed a technology that it says will provide a unique product-specific solution to counterfeiting
Counterfeiting is big business. The annual cost to the global economy is estimated to be somewhere in the region of $700bn and, according to technical director of brand protection consultancy Secura Monde, Igi LeRoux, the situation is getting worse.
LeRoux says that in some industries counterfeit products constitute a major ‘brand’ and for at least one leading perfume company counterfeits are its biggest competitor. With brand reputation on the line, in addition to potential losses in sales and profits, LeRoux asks: “Can a reputable brand owner afford not to do anything about it?”
Steve Powell, general manager and director, Kodak Security Solutions believes counterfeiters are more organised and are becoming more sophisticated. With laboratories and the same manufacturing equipment as the brands, some counterfeiters are able to produce products so close to the original that they can fool even the legitimate manufacturers themselves.
As more and more fake products appear, the need to find effective ways of detecting them becomes even more urgent. And Powell thinks Kodak may have found a solution.
The Kodak Traceless system brings together the company’s expertise in digital imaging and its work in materials science. The technology uses invisible markers which are embedded into the product or into its packaging during the manufacturing or printing process. The markers are unique to each product, developed by Kodak in consultation with the manufacturer to determine the most appropriate and effective way of embedding the markers for that product. The final solution is based on how the product is produced.
The marker materials can be mixed with a wide range of materials including inks, toners, varnishes, paper pulp, plastics, powders, pigments, liquids and textiles, without affecting the characteristics of the end product or packaging, claims Kodak.
The product can then be verified as the real thing by using a hand-held Traceless system scanner. The company says that systems are in place to prevent counterfeiters from duplicating the markers, the readers or the associated software, and users have secure control of the technology and markers, which are supplied by Kodak to match only a specific production event.
Kodak is already working with customers in a wide range of industries affected by counterfeiting, including perfume and cosmetics manufacturers. However, it is reluctant at this stage to reveal any names.
What it will share is the ways in which the technology can be used. Its primary use is of course in the detection of counterfeit brands by brand inspection managers. However, Powell says, one area in which it will also bring benefits is in the detection of products diverted into the grey market - a particularly big issue for fragrances. Unique markers can be embedded that relate to different distribution channels, enabling manufacturers to detect whether their brands are in the channels they are supposed to be.
The cost of the technology is dependent on volume. However, Powell says that costs are kept down as the system is easy to implement and there is little impact on the production process.
He wants to challenge brand owners to give it a try: “Does a brand want its next news story be a counterfeiting incident - or a story of the proactive action it has taken against counterfeiting?”