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www.homai.org 1
The Holography Times
Vol. 8, Issue 24
TheHolographyTimesEndeavour to protect people and products
May 2014 | Volume 8 | Issue 24
Counterfeit threat for
Industry on RISE
electronic
plug it
www.homai.orgHoMAI quarterly newsletter
www.homai.org2
The Holography Times
Vol. 8, Issue 24 News Bytes
www.homai.org 3
The Holography Times
Vol. 8, Issue 24
Dear Reader,
Welcome to the 24th
edition of The Holography Times.
As you know our previous edition focused on Auto
Counterfeiting and we received overwhelming response
from majority of you. We would like to thanks you all for
your valuable inputs and time.
Our current edition will focus on “The making of
counterfeit electronic parts” which has become a very big
business across the globe. In fact, counterfeit electrical
and electronic products now occupy second place after
pharmaceuticals. Worldwide counterfeiting of electrical
products is estimated to range anywhere between US $
11 billion to US $20 billion annually. In North America
alone, the electrical product counterfeiting is estimated
to be in the US $300 million to US $ 400 million range and
rapidly growing. Research from the Mobile Manufacturers
Forum (MMF) says around 148 million counterfeit or
substandard mobile phones were sold worldwide in 2013,
mostly in developing countries.
Although not much has been done in India to assess
the impact of counterfeit electrical components, there
is a study by FICCI CASCADE that focused on computer
hardware and mobile phones. According to this study
counterfeit computer hardware constitute 26.4 percent, or
` 47 billion by value, of the total market size estimated at
` 179 billion for 2012. Similarly, the Grey market for Mobile
Phone constitute 20.8 percent, or ` 90 billion by value, out
of total market size estimated at ` 434 billion in 2012.
Our current issue highlights the “Issue of Electrical and
Electronic products Counterfeiting” and needs of an
effective anti-counterfeiting strategy to combat this
problem. Apart from this the issue also covers industry
updates including news, patents and events.
Do send us your feedback/critics at info@homai.org.
C S Jeena
Editor
In this issue
9
15
Viewpoint
Industry updates
Counterfeiting News Update	 17
Global patents	 18
Upcoming events	 19
News bytes	
Counterfeit threat for
electronic industry
on rise: plug it
Coded holograms:
keeping the supply
chain secure
Very interesting issue, especially the part regarding
automotive industry problems. It seems that big step
in protecting vehicles and major vehicle parts are
METAL micro-holograms - all with a unique code.
Jiri (George) Perkous
Owner of Segment Security, LLC and Holoptica, LLC
Thank you for The Holography Times. I look forward
to staying in touch and reading your articles.
Paul Westwood OAM
Director of Forensic Document Services Pty Ltd,
Sydney Area, Australia
A really interesting and complete article.
Congratulations!
Beatriz Cerrolaza
Chief Financial Officer & Chief Marketing Officer,
ALISE DEVICES, S.L., Madrid Area, Spain
4
www.homai.org 1
The Holography Times
Vol. 7, Issue 23
TheHolographyTimesEndeavour to protect people and products
Dec 2013-Jan 2014 | Volume 8 | Issue 23
www.homai.orgHoMAI quarterly newsletter
Grey market
29.60%
Direct tax loss to
Government
93 Million ($)
Sales loss to industry
2 Billion ($)
Indirect tax Loss to
Government
512 Million ($)
Tax loss to the
Exchequer
605 Million ($)
COUNTERFEITING
CROSSED
USD 2 BILLION MARK
Feedback
www.homai.org4
The Holography Times
Vol. 8, Issue 24
Fake labels taking a toll on liquor firms:
NEED HEALTM
Bangalore, India: Counterfeit
labelhasbecomeincreasingly
lucrative in some States because
of a sharp rise in taxes, according
to news published by Mint.
United Spirits Ltd (USL), Pernod
Ricard and Allied Blenders and
Distillers Pvt. Ltd (ABD) and
other top liquor companies
are losing out on liquor sales
in fast-growing eastern states
such as West Bengal, Assam and
Bihar because of a significant
increase in sales of fake labels—
poor quality blends that are
packaged as popular alcohol
brands. Over the years, apart
from the states in eastern India,
bottles of counterfeit alcohol
have been sold in some other
states including Andhra Pradesh,
Rajasthan and Haryana, where
regulation is relatively weaker.
States in eastern India account
for roughly 10-12 percent of
liquor sales in the country and
are among the fastest growing
regions in India at a time when
overall growth in India’s liquor
industry has dropped to its
lowest in a decade. Last week,
India’s fourth largest distiller
Tilaknagar Industries Ltd bought
the branded alcohol business
of Kolkata-based IFB Agro to
increase its presence in states
such as West Bengal and Assam.
Incidentally, all these States
(West Bengal, Bihar and
Assam) are not using any
kind of authentication/ anti-
counterfeiting solutions to
curb this menace. According
to Hologram Manufacturers’
Association of India (HOMAI),
“the problem can be curbed to
a large extent with the usage
of HEALTM
(Holographic Excise
Adhesive Label). In India more
than 18 States & UT are already
using security hologram as
excise adhesive label on liquor
bottles. This provides them an
effective anti-counterfeiting
tool in identification of spurious
liquor and curbing the problem
of illicit liquor and consequently
helping in increasing state
excise revenue. A state that uses
hologram tax stamps on liquor
bottles collects higher revenue
per person as compared to those
states who do not use a hologram
tax label” (See table below).
Source: www.livemint.com/
www.homai.org
Table: Comparison of State using HEAL vs not using any anti-counterfeiting solutions
State excise department using anti-counterfeiting solution
Name of Department 	 2001-02	 2011-12	 Increase in 	 Population of	 Revenue Per
	(`Crore#)	(`Crore)	 last 10	 State in Crore	 Person in
			 Years	 Census 2011 	 `*
Delhi	 606.41	2533.72	1927.31	1.67	 1517.19
Tamilnadu	 2058.21	9975.21	7917.00	7.21	 1383.52
Uttarakhand 	 232.04	755.98	523.94	1.01	 754.97
Madhya Pradesh 	 704.68	 4316.49	 3611.81	 7.25	 595.37
State excise department not using any anti-counterfeiting solution
Name of Department 	 2001-02	 2011-12	 Increase in 	 Population of	 Revenue Per
	(`Crore#)	(`Crore)	 last 10	 State in Crore	 Person in
			 Years	 Census 2011 	 `*
West Bengal	 512.43	2117.04	1604.61	9.13	 231.87
Bihar 	 238.90	1980.98	1742.08	10.38	 192.32
Jharkhand 	 100.21	457.10	356.89	3.29	 138.93
Assam	 150.91	503.35	352.44	3.11	 161.84
*Revenue per person = Revenue in 2011-12/Population of State
# 1 Crore = 10 million
Leading News
www.homai.org 5
The Holography Times
Vol. 8, Issue 24
Uses and applications
KENYA eyeing more revenue from bottled
water with new tamper proof stamps
Nairobi, Kenya: The Kenya
Revenue Authority (KRA)
will use the modern stamp duty
on bottled water to seal loopholes
of possible tax evasion. The new
stamps are tamper proof, having
enhanced security features.
However, the move is likely to
put a halt to the fast growing
bottled water industry estimated
to rake in more than Sh16 billion
annually. Thisfollowsasuccessive
application of the modern stamp
duty technology on tobacco,
wines and spirits. Commissioner-
General John Njiraini said the
achievements made in the two
sectors will encourage them to
roll out the same system for the
beer and soft drinks to improve
tax efficiency on excisable goods.
Bottled water sector is our next
emerging selling tax compliance
area and we have to put our feet
on it,” he said. Njiraini noted that
the new security features will
improve the tax administration
in the country. He noted that the
new features make it difficult to
counterfeit the stamp duty to
be used in excisable goods. The
old stamp duty could easily be
counterfeited, denying it some
significant revenue. “The system
provides us with the capability
to authenticate genuine excise
stamps on a real time basis
during field visits,” he said.
Previously, the authentication
was done manually, creating a
loophole on possible tax evasion.
Since its roll out in December last
year, the taxman has impounded
over 10,000 pieces of wines and
spirit products from over 400
outlets. “The culprits have paid
various fines with some running
as high as Sh1.5 million. We shall
also have the goods in question
forfeited,” Njiraini warned. The
new system is able to monitor
the entire chain process of an
excisable good earmarked for the
market.
Source: :www.standardmedia.co.ke
Amarnath Shrine Board enhanced
security features of Yatra form
Jammu and Kashmir, India: To
curb duplication of registration
forms of Amarnath yatra, the Shri
Amarnathji Shrine Board (SASB)
will issue new forms this year
onwards, with security features
of currency notes. The forms will
be printed by Security Printing
and Minting Corporation of India
Limited (SPMCIL) and will cost
nearly ` 7.5 million.
The revised form will have many
security features, including the
Ashoka pillar watermark and text
‘Shri Amarnathji Shrine Board’
and the board’s logo printed in
the background, which can be
seen only through a powerful
magnifying glass. The logo, which
will be printed in fluorescent
blue ink, can be viewed under
ultraviolet light, and the printing
would be done with chemically-
sensitive security ink.
Source: :www.hindustantimes.com
www.homai.org6
The Holography Times
Vol. 8, Issue 24
Policy
Canadian Government introduces
extensive amendments to Trade-marks
Act in Economic Action Plan, 2014
On March 28, 2014, the
Canadian government
introduced the Economic Action
Plan 2014 Act, No. 1 as part of an
omnibus budget implementation
bill. The bill includes significant
amendments to the Trade-marks
Act that are designed to put
Canada in a position to adhere to
major international trade-mark
treaties, including the Madrid
Protocol, the Nice Agreement and
the Singapore Treaty. Continuing
the trend set by Bill C-8, the
pending Combating Counterfeit
Products Act, the new bill repeats
some amendments included in
the previous bill and includes
additional provisions, repealing
or replacing some of the unusual
or even unique aspects of the
Canadian Act. For example, a
“trade-mark” will become a
“trademark”, “wares” will become
“goods” and both associations
of similar trade-marks and
the “distinguishing guise” will
disappear from Canadian practice.
With significant changes the
definition of a trade-mark will
be greatly expanded to cover a
“sign or a combination of signs”
including a word, a personal
name, a design, a letter, a numeral,
a colour, a figurative element,
a three-dimensional shape, a
hologram, a moving image, a
mode of packaging goods, a sound,
a scent, a taste, a texture and the
positioning of a sign.
Source: www.lexology.com
French Customs signs
agreement with IACC
Kazakhstan to host anti-
counterfeiting global forum
PARIS: French Customs (DNRED) and
the IACC, a Washington, D.C.-based non-
profit organization committed to combating
trademark counterfeiting and piracy, signed
a Memorandum of Understanding (MOU)
that enhances cooperation between the two
organizations regarding the enforcement
of trademarks and copyrights. This
unprecedented agreement will improve
the ability of French authorities and the
IACC to communicate, cooperate, and share
information and resources, as well as further
efforts in combating online counterfeit
merchants via the IACC’s RogueBlock program.
With retail e-commerce sales rising steadily
over the past decade, the Internet provides an
enticing platform for criminal merchants to
sell counterfeit goods. The IACC’s RogueBlock
program uses a “follow-the-money” approach
and provides a system for brand owners
to report online sales of illegal counterfeit
goods. By collaborating with the world’s
largest international payment brands, the
RogueBlock program works to choke off
funding to counterfeit merchants.
Source: www.internet.itbusinessnet.com
Kazakhstan’s Ministry of Justice will be organising an
anti-counterfeiting international forum on May 21 at the
Palace of Independence in national capital Astana.
According to a Ministry of Justice the following issues will
be discussed:
(1) Problems of counteraction against counterfeiting,
falsified and defected products
(2) 	 Food and pharmaceutical safety
(3) 	Dissemination of pirated music. audio and video
products on the Internet and
(4) 	 Issues on harmonization of legislation in the sphere of
intellectual property within the Customs Union.
The ministry is expecting speakers and participants
from Governments of Kazakhstan, Russia and Belarus;
representatives of World Intellectual Property Organization
(WIPO), Eurasian Economic Commission for Europe, World
Customs Organization (WCO), World Health Organization,
Interpol, International Trademark Association (INTA);
InternationalFederationofthePhonographicIndustry(IFPI);
African Intellectual Property Organization, Governments of
the countries of the Commonwealth of Independent States
and far abroad, NGOs, rights holders, universities and other
interested parties.
Source: www.business-standard.com
www.homai.org 7
The Holography Times
Vol. 8, Issue 24
Project awarded
GHANA approve tax stamp contract worth
US $ 50 million to Authentix
Ghana: The Parliament of
GHANA has approved a
contractbetweenthegovernment
of Ghana and Authentix, USA for
the procurement of tax stamp
systems. The purpose of the
agreement is to actualise the
implementation of the provisions
in the Excise Tax Stamp Act 2013
which was passed by the House in
December2013.Itseekstoengage
the services of and expertise
of Authentix International in
the implementation of the tax
stamp system in the country.
Under the agreement, Authentix
would be responsible for the
installation of a system Web
Based Portal, an appropriate
stamp affixing machinery where
necessary on production lines of
manufacturers, an operational
and production testing, a testing
validation and acceptance of
machinery and systems and the
training of officers in the use of
monitoringanddetectiondevices.
The Government of Ghana will
pay the supplier the sum of US$
11,790,000 per year for a period
of five years for its services as
well as a monthly installation of
US$982,500 for four years after
an initial payment on delivery,
installation and final acceptance.
Source: www.parliament.gh
De La Rue is
awarded latest
Bahrain passport
contract, securing
a partnership of
almost 50 years
IRSIS awarded
Philippines tax
stamp project
Manama, Bahrain; De La Rue has been awarded a 5 year supply
contract by the Kingdom of Bahrain for the nation’s machine
readable passport and high security film laminate bio-data page
protection solution. This award secures a partnership that first started
in 1971 and includes a book redesign within the contract terms.
Bahrain’s Passport contract award, made earlier this year, covers the
supply of 100 thousand machine readable passports per year for the
next five years. De La Rue has also been commissioned to design a
new book for the government, which will include the latest security
features and technologies, countering specific threats and ensuring
the document’s integrity against potential attack and counterfeit. In
addition to the book, De La Rue will be supplying half a million specially
designed MLIS™ patches, a proprietary high security thin film laminate,
to protect the holders details on the book’s bio-data page.
Source: www.delarue.com
Philippines: IRSIS Corp.., a
joint venture of four IT Firms
including (CAI-STA Philippines,
Inc., Philcox Philippines, Inc.,
Latent Image Technology Ltd.,
and Comclark Network and
Technology Corp) has been
awarded the Bureau of Internal
Revenue’s (BIR) security tax
stamp project worth P521.64
million., which is expected to
be rolled out by the middle of
this year. BIR Commissioner
Kim S. Jacinto-Henares said the
contract for the Internal Revenue
Stamps Integrated System
(IRSIS) project, which will aid in
monitoring the supply and sale
of tobacco products, was signed
last November.
Source: www.bworldonline.com
www.homai.org8
The Holography Times
Vol. 8, Issue 24
Standard and development
NASPO SA 2013 security audit now
combines ISO 14298 requirements
(Washington, DC): The North
American Security Products
Organization (NASPO)announced
today a new audit that combines
two highly recognized security
standards for producers of
documents of value employing
added security features designed
to protect against counterfeiting.
The new NASPO audit now covers
security requirements from
ISO (International Organization
of Standardization) and from
NASPO (North American
Security Products Organization),
providing both convenience
and cost savings to those firms
seeking security assurance
certification on a national and/or
international level.
Producers of security
documents, cards and foils can
now achieve both the NASPO
Security Assurance standard
(NASPO SA 2013) and the
ISO 14298 standard (Graphic
Technology -Management of
Security Printing Processes)
through a single NASPO audit.
This allows organizations to
meet the requirements of a key
international security standard
from ISO as well as national
security standards of ANSI/
NASPO (American National
Standards Institute). NASPO will
also offer individual audits to
ANSI/NASPO SA 2013 and ISO
14298 to those organization not
requiring combined audits.
NASPO SA 2013 is an accepted
security standard by ANSI
used today by private industry
as well as state and federal
agencies. It was developed for
security printers, security foil
producers, technology suppliers
or any organization seeking to
implement or enhance their
securitypractices.Theconformity
assessment process of NASPO SA
2013 has been proven to meet
the security requirements of a
broad base of users.
The ISO 14298 standard is
similar to NASPO SA 2013,
but does not include security
technology suppliers or other
security organizations. Thanks
to NASPO’s participated in the
development of ISO 14298,
the NASPO and ISO standards
share common auditing
and conformity assessment
procedures, making it easier
now to meet the requirements of
both standards through a single
auditing process.
“NASPO has developed our audit
processes over the last 10 years
to meet the high requirements of
security contractors and users,”
said Richard Ward, Chairman of
NASPO. “A NASPO Certification
represents trust and credibility
in the audit process and a level
of assurance that the standards
requirements are being met and
implemented as intended.”
Source: :www.naspo.info
MIT develops smartphone-readable
particles to prevent counterfeiting
Chemical engineers from
Massachusetts Institute of
Technology (MIT) have invented
a new type of tiny, smartphone-
readable particle that is invisible
to the naked eye, containing
coloured stripes of nanocrystals
that glow brightly when lit
up with near-infrared light.
“These particles can easily be
manufactured and integrated into
a variety of materials and can
withstand extreme temperatures,
sun exposure and heavy wear,”
explainedPatrickDoyle,achemical
engineering professor at MIT.
They could also be equipped with
sensors that can “record” their
environments. To manufacture
the particles, the researchers
used stop-flow lithography, a
technique developed previously
by Doyle. Many strategies have
been developed to try to label
legitimate products and prevent
illegal trade - but these tags
are often too easy to fake, the
researchers found. Using this
procedure, the researchers
can generate vast quantities of
unique tags. With particles that
contain six stripes, there are one
million different possible colour
combinations.
Thiscapacitycanbeexponentially
enhanced by tagging products
with more than one particle. For
example, if researchers create a
set of 1,000 unique particles and
then tag products with any 10 of
those particles, there would be
1,030 possible combinations - far
more than enough to tag every
grain of sand on earth.
Source: www. gadgets.ndtv.com
www.homai.org 9
The Holography Times
Vol. 8, Issue 24
Cover Story
Counterfeit threat for
electronic industry on
rise: plug it
Introduction:
Imagine incidents such as
an aircraft crashing due to
malfunctioning counterfeit
parts, a medical equipment
blurs off in the middle of the
surgery, a missile misses the
target and hits the own camp
and a heavily invested satellite
fails reaching its destiny or a
fake mobile battery exploding
even as one is using the phone.
The counterfeit electronic parts
are available everywhere from
sophisticated semi-conductors
and chips used in commercial
and military electronics as well
as the normal day to day used
electronics items, and they
represent a serious hazard if
used in critical systems such as
aircraft navigation, life support,
military equipment, or space
vehicles.
After the crash of the C-130J
Super Hercules near Gwalior
there were controversial news
reported in the media about
counterfeit electronics being
the reason for this unfortunate
incident. Actually, certain
avionics displays fitted in this
aircraft as original equipment
were manufactured by L3
Display Systems Corporation, a
US Company1
. In November 2010,
the company become aware
that its in house failure rate
for a chip installed on display
units used in C-130J and C-27J
had more than tripled from 8.5
percent to 27 percent. When
sent for testing, the parts were
found as suspected counterfeit.
Although, the company did not
give any recall notice, But when
this matter became known to
the public, the US Senate Armed
Services Committee decided
to investigate the matter and
released its report on May 21,
2012. The report admitted that
counterfeit electronics parts
were breaking into the defense
supply chain and could endanger
the lives of troops and allies.
While the report focuses on the
risks posed to military systems,
there is no reason to believe that
the risks are any different for
non-military systems2
.
Author: Author is Secretary of Hologram Manufacturers
Association of India (HoMAI) since 2006 and also serves as
Editor of The Holography Times.
C S Jeena
Brief Abstract:
Counterfeiting is not a new term for
electronic industry as counterfeit
electrical and electronic products
now occupy second place after
pharmaceuticals estimated to
range anywhere between US$11
billion to $20 billion worldwide
every year. However, counterfeit
electronic parts have been much
in the public eye in recent weeks.
On March 28, 2014 one of Indian
Air Force Aircraft (C-130J Super
Hercules) crashed near Gwalior city
killing five crew members. There
were controversial news reported
in media about the counterfeit
electronics being the reason for
C-130J air crash. Over the past
several years the electronics industry
has seen a marked increase in the
availability of counterfeit electronic
components. Counterfeiters
have attacked every commodity
of electronics, from simple
components such as capacitors,
to complex integrated circuits such
as microprocessors. In expensive
commercial devices, as well as high
cost military components, have seen
counterfeiting on the rise. This article
highlights the serious risk, its impact
and the possible proactive steps that
can be taken to curb this menace.
1.	 “Did IAF’s ‘US-made’ C-130J Super Hercules that crashed have fake Chinese parts?,” Chidanand Rajghatta,TNN | Mar 30, 2014 available at
http://timesofindia.indiatimes.com/india/Did-IAFs-US-made-C-130J-Super-Hercules-that-crashed-have-fake-Chinese-parts/articleshow/
32977838.cms
2.	 “Inquiry into Countefeit Electronic Parts in the Department of Defense Supply Chain: Report of the Committee on Armed Services United
States Senate” hereinafter the “SAAC report,” available at http:// www.armed-services. senate.gov/Publications/ Counterfeitpercent20
Electronic20percent20Parts.pdf.
www.homai.org10
The Holography Times
Vol. 8, Issue 24
Cover Story
Size of counterfeit
electronic components
problem:
The making of counterfeit
electronic parts has become
a very big business. In fact,
counterfeit electrical and
electronic products now
occupy second place after
pharmaceuticals. Worldwide
counterfeiting of electrical
products is estimated to range
anywhere between US$11
billion to $20 billion annually.
In North America alone, the
electrical product counterfeiting
is estimated to be in the $300
million to $400 million range
and rapidly growing3
. Research
from the Mobile Manufacturers
Forum (MMF) says around
148 million counterfeit or
substandard mobile phones
were sold worldwide in 2013,
mostly in developing countries4
.
Although not much has been
done in India to assess the
impact of counterfeit electrical
components, there is a study
by FICCI CASCADE that focused
on computer hardware and
mobile phones. According to
this study counterfeit computer
hardware constitutes 26.4%,
or ` 47.25 billion by value, of
the total market size estimated
at ` 179.01 billion for 2012.
Similarly, the Grey market for
Mobile Phone constitute 20.8%,
or ` 90.42 billion by value, out
of total market size estimated
at ` 434.09 billion in 20125
. (See
Table 1).
Most commonly
counterfeited
electronics items
From components such as fuses,
cables and circuit breakers
to household equipment,
professional work tools and
automotive and aviation spare
parts, nothing is safe from
counterfeiting. While the
appearance and packaging can
be very convincing, the products
themselves are often sub-
standard and may represent a
severe safety hazard, causing
accidents and costing lives. (See
table 2 and Table 3)
Reason / factor
for increase in
electronic components
counterfeiting:
The problem is, increasing
because of various factors,
including global as well as local
such as;
Table 1: Counterfeit Computer Hardware and Mobile Phone in India
Particulars		 Computer Hardware	 Mobile Phones
Estimated sales to Industry	 Grey Market (percentage)	 26.4	 20.8
	 Sales loss	 INR 47.25 billion	 INR 90.42 billion
Estimated tax loss to the Government	 Direct tax loss	 470 million	 4.96 billion
	 Indirect tax loss	 11.87 billion	 26.78 billion
	 Tax loss to the exchequer	 12.34 billion	 31.74 billion
*The loss has been calculated for the year 2012
3.	 “Sharks in the Water,” By John Estey, National Electrical Manufacturers Association, T&D World Magazine (May 2007) available at http://
tdworld.com/business/sharks-water
4.	 “Counterfeit/Substandard Mobile Phones, A resource guide for Government,” White paper published by Mobile manufactures Forum available
at http://www.mmfai.org/public/docs/eng/MMF_CounterfeitPhones_EN.pdf
5.	 “Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sector,” published by FICCI Committee
Against Smuggling and Counterfeiting Destroying Economy (CASCADE) available at http://www.ficci.com/spdocument/20190/Executive-
Summary-invisible-enemy-aug-8-2013.pdf
www.homai.org 11
The Holography Times
Vol. 8, Issue 24
Cover Story
1. Global number of illegal
manufacturing due to
shortcoming of existing
legislation: According
to Electronic Industries
Association of India ELCINA,
the component industry
has suffered because duty-
free imports of about 217
categories of electronic
components like capacitors,
resistors and transformers
were allowed from 2005
under an information
technology agreement with
theWorldTradeOrganization
(WTO-ITA1). Many of India’s
more than 1,000 small
companies manufacturing
electronic components
have shut operations6
. In
an investigation spanning
six months, the Directorate
of Revenue Intelligence
has found that for over
3,673 items brought from
China, the importers usually
declared 1-9 percent of the
actual value of the goods7
.
2. 	 Easy availability of
material due to global
E-Waste handling: China
may be a principal source
of counterfeit parts, but
the United States and other
countries in the developed
world generate the
electronic waste (“e-waste”)
from which semi-conductors
and other micro-electronic
parts are extracted by
counterfeiters. The parts
recovered from the
salvaged electronics waste
which are non-functional
are processed by the
counterfeiters to give a look
of an original component8
.
3. 	 Inadequate surveillance
efforts by brand owner
to identify counterfeit
products;
4.	 Tampering/Repackaging:
Counterfeit electronic
component enter the
supply chain through local
manufacturing, importing
from China in the form of
fake packaging or in original
packaging sourced from
mechanics or service stations;
5. 	 Higher margins: In
comparison to genuine
electronic component
makers, a counterfeiter earns
anywhere from 35 percent
to 75 percent on selling
counterfeit electronic parts.
6. Consumer Education: Lack
of consumer education to
identify authentic electronic
Table 3. Top 5 Most Counterfeited
Semiconductors in 2011
(Percentage of Counterfeit
Part Reports)
Rank	 Commodity 	 % of reported
	Type	 Incidents
1	 Analog IC 	 25.20%
2	 Microprocessor	13.40%
	 IC 	
3	 Memory IC 	 13.10%
4	 Programmable 	 8.30%
	 Logic IC
5	 Transistor 	 7.60%
Source: IHS Parts Management 2012
6.	 “Dragon on the Rampage: A flood of cheaper Chinese goods, sometimes better than their Indian counterparts, is forcing small manufacturers
to shut shop and turn into traders,” by Taslima Khan, Edition: Mar 2, 2014 published by Business Today available at http://businesstoday.
intoday.in/story/chinese-imports-hitting-india-msme-sector/1/203041.html
7.	 MP3 player for Rs 2, LED torch for Rs 8: Undervalue Chinese imports, make a killing, C Unnikrishnan, TNN.
8.	 “U.S. e-waste drives counterfeit components problem,” by Victoria Fraza Kickham, published by Global Purchasing available at http://
globalpurchasing.com/latest-news/us-e-waste-drives-counterfeit-components-problem
Table 2: Percentage of Market Revenue for Most Commonly Counterfeited Product Types by Application Market in 2011
(Percentage Share of Revenue in Millions of U.S. Dollars)
Part Type	 Industrial	 Automotive	 Consumer	 Wireless	 Wired 	 Computer	 Other
Analog IC	 14%	17%	21%	29%	6%	14%	0%
Microprocessor IC 	 4%	 1%	 4%	 2%	 3%	 85%	 0%
Memory IC	 3%	2%	13%	26%	2%	53%	1%
Programmable Logic IC	 30%	 3%	 14%	 18%	 25%	 11%	 0%
Transistor	 22%	12%	25%	8%	10%	22%	0%
Source: IHS iSuppli March 2012
www.homai.org12
The Holography Times
Vol. 8, Issue 24
Cover Story
parts and about the ill effects
of counterfeit parts.
Impact of counterfeit
electronic component =
huge social and financial
liability:
When counterfeit electrical
devices, components and spare
parts enter manufacturing supply
chains, they can add fire, shock
and explosion risks that may cost
workers their lives, cause serious
property damage and involve
unpredictable financial liability.
One fake component can void
guarantees for entire systems and
installations, resulting in severe
financial losses and liabilities.
Manufacturers, installers,
specifiers and employers can be
heldresponsibleforincidentsand
accidents linked to counterfeit
components. Counterfeit
electrical products do not comply
with performance and safety
specifications; they are not tested
or approved. Counterfeit aviation
parts, for example pose a serious
risk to the safety of military,
civil and commercial aviation
industry.
Steps in combating
electronic counterfeiting9
Several studies have been done
to measure the impact of the
problem, but suggested solution
has invariably focused primarily
on enhanced effectiveness of law
enforcement. It is important that
a holistic solution is developed
in this fight. The solution to this
ever-growing menace lies at the
very core of the product, i.e. a
dire need to create an end-to-
end holistic brand protection
strategy10
;
As a first step, every CEO or
Brand owner should take head
on the threat of brand attack
and prepare a Brand Risk
Management (BRM) plan as
an intrinsic part of the overall
business plan, review and report.
The team may comprise the CEO/
Brand owner, Brand Managers,
Head of Marketing, Product
Development, Sales, Logistic,
Packaging, Manufacturing or an
outside consultant accountable
for the brand. The idea is to curb
the penetration of counterfeits,
across levels.
The anti-counterfeiting strategy
can be broken into various stages
such as:
i. 	 Anti-counterfeiting
policy and brand
protection program
	 By establishing and pursuing
an anti - counterfeiting
policy and brand protection
program a company is able to
provideproofthatallduecare
was taken to limit or reduce
counterfeiting and protect
trademarks and brands.
Together	they provide a
shield for liability, and also
a protection against loss of
reputationandadversepublic
opinion.Thebrandprotection
programand	 a n t i -
counterfeiting policy should
list pro-active measures that
are put in place toidentify and
report fake products. They
help limit the negative effects
of	counterfeiting and reduce
reaction time should such an
eventoccur.
Elements to consider include:
• 	 supply chain processes,
inspection, audits and
quality control
• 	 Identification and evaluation
of risks and threats
• 	 Detection and reporting
processes, including handling
of counterfeit products
• 	 Overall risk-management
and adequate response
procedures
The policy also needs to address
product labelling (including anti-
counterfeiting technologies)
and training of staff on how to
recognize counterfeit products.
Furthermore, it should provide
assistance and training
programs to officials tasked with
enforcing seizures of counterfeit
products. The latter because
only the manufacturer of the
genuine product knows whether
an item is fake or genuine. Part
of this may include the setting
up of a product database, online
reporting mechanisms, and
simple protocols that provide
investigators with tips on how to
spot fakes.
Table 4: Impact of counterfeit component components
Consumers 	 Legitimate Manufacturers 	 Government / Social
Loss of Life 	 Loss of revenue	 Loss of revenue
Loss of Job 	 Increases warranty costs and so the maintenance cost	 Funding of criminal enterprises
	 Financial Liability due to law suites
	 Loss of brand integrity and goodwill
	 Expected life of the product decreases
9.	 Brand Protection: Challenges and Solutions, Pradip Shroff, Published at The Holography Times, Volume 4, issue 13 available at http://www.
homai.org/AdminPanel/PDF/Issue13.pdf
10.	 ISO Standards 12931 “Performance criteria for authentication solutions used to combat counterfeiting of material goods”, http://www.iso.
org/iso/catalogue_detail?csnumber=52210
www.homai.org 13
The Holography Times
Vol. 8, Issue 24
ii. Register trademarks and
copyrights
	 Register trademarks in
all countries you sell,
manufacture, and license
or 	distribute products in.
This is essential to protect
trademarks and brands.
Also, 	 apply for
patents and register designs.
For details and registration
procedures, consult a
trademark attorney.
iii. Adopt ISO standards and
Join trade associations
	ISO has developed
new Standards 1293
“Performance criteria
for 	authentication tools
used in anti-counterfeiting
or material goods”: The
new ISO 12931 is already
published and would be
a very useful document
for any-one who wants to
follow globally accepted
standards and approach to
fighting 	 against the
counterfeit.TheISOdocument
can be seen on http://www.
iso.org/iso/catalogue_
detail?csnumber=5221010
.
It is strongly recommended
that all brands who want to
have a safety net of a global
standard, should plan to
comply with this standard.
	 Similarly, SAE International,
a global association of more
than 138,000 engineers and
related technical experts in
the aerospace, automotive,
and commercial-vehicle
industries has come up
with the first revision
to its 	 c o u n t e r f e i t
parts avoidance technical
standard “AS5553
Fraudulent/Counterfeit
Electronic Parts;Avoidance,
Detection, 	 Mitigation, and
Disposition.11
” This new
revisioninparticularprovides
terminology references and
reporting mechanisms to
facilitate the flow-down of
the standard globally. Further,
try to join anti-counterfeiting
association or your local
chamber of commerce, such
as FICCI CASCADE, as these
national and international
trade bodies can guide and
provide best practices against
combating counterfeiting.
For 	example, The National
Electrical Manufacturers
Association is so concerned
aboutthisinfluxofcounterfeit
products that its board of
governors has made it one
of its top-three priorities
to focus the attention of
government, the 	 supply
channel and the public on the
harm caused by counterfeit
electrical products12
. In India,
FICCI CASCADE13
is doing 	
similar work.
iv.	 When fake products are
found
	 After contacting the relevant
law enforcement authorities,
consider reaching out to a
memberoftheIECConformity
Assessment System14
(For
Indiaitis BIS).Theycandirect
you to one of the national
certification agencies and
laboratories who might be
abletohelpyousetupatesting
and inspection program to
avoid future problems, as
well as product training for
manufacturing staff and law
enforcement agencies.
v.	 Anti-counterfeiting
technologies15
	 There are a number of anti-
counterfeiting technologies
that can help better
protect and authenticate
products. And while they
can’t completely eliminate
counterfeiting, they can
make it less attractive
and less profitable,
increasing 	 the level of risk
for the counterfeiters. Use a
secure, anti-counterfeiting
device comprising overt,
covert & forensic security
features like security
hologram seals and labels,
tamper evident security
films and light-sensitive
ink designs. While there
a number of technologies
available in the market, it is
advisable to choose smart
and at the right time while
keeping track of some basic 	
guidelines like:
•	 Instead of focusing on
features, find a vendor who
can provide you overt as well
as covert technologies as it is
important to select a solution
using multiple technologies.
•	 Seek help from an
established trade association
to select ethical vendor, best
practices and resources to
fight counterfeiting.
•	 Selectthetechnologyinterms
of the difficulty in replicating
and tamper evidence
offered, uniqueness,
availability of suppliers, ease
of identification and user
friendliness.
•	 Solutions should also have
feasibility of being integrated
with the automated
production/ packaging
line if required, especially
wherever the volumes are
very large
	 Try to combine low and
high security elements
to enhance protections,
for 	example, by integrating
sequential or unique
numbers in the solution.
vi.	 Market surveillance,
quality control, inspection
• 	 Establish classical market
surveillance, including at
customs barriers and ports
• 	 Obtain and test samples from
open markets, websites and
auction sites. Make it known
that you run such tests
• 	 Keepadatabaseofcompanies
and manufacturers that
Cover Story
www.homai.org14
The Holography Times
Vol. 8, Issue 24
have been suspected to
counterfeit your products
• 	 Send “Cease and
desist” letters for every
infringement to establish
brand and trademark
protection measures
• 	 Tighten supply chain,
production and delivery
path of genuine products
• 	 Establish factory, pre-
shipping and port of entry
inspections (as counterfeit
products sometimes hide in
genuineshipments)consider
involving an IEC Conformity
Assessment System member
for inspection and testing
pre-shipping and at market
entry point.
vii.	 Interception and
cooperation with law
enforcement
	 Registeredforcustomswatch
programs. Organizations
including Interpol, World
Trade Organisation, World
Customs Organization,
World Intellectual
Property Organization and
International Chamber of
Commerce are working
closely together to improve
international cooperation
and border enforcement
through increased customs
co-ordination and exchange
of information and best
practices. The IEC and its
Conformity Assessment
System members concretely
support these efforts on the
ground through inspection
and testing.
Conclusion:
While the trade of counterfeit
electronic parts has dramatically
increased, tackling counterfeits
is not impossible. Counterfeiting
is a problem that needs to be
addressed quickly and decisively.
Ideally, as a first move, more
effective partnerships should be
built between law enforcement
agencies and the private sector
with focus on intelligence
sharing, awareness and product
identification training.
•	 Manufacturers should create
a team that focuses on anti-
counterfeiting strategy
•	 Selection of right anti-
counterfeiting strategy
should be employedUse
first level of authentication
features to empower your
customers to identify your
genuine products
•	 Track supply chain at
distributor end
•	 Information to customer
In our view a company that
implements the suggestions
outlined in this article will
definitely see a marked
improvement in their fight
against counterfeiting. In case
you need more information,
please e-mail to us at info@
homai.org and we will be happy
to work with you to eliminate the
menace of counterfeiting.
Resources
1. “Counterfeit Electronic Parts: What
to do Before The Regulations
(and Regulators) Come?,”
Federal Contracts Report, 97
FCR???,6/21/2012, The Bureau
of National Affairs, Inc. (800-372-
1033) http://www.bna.com
2. “Counterfeit Chips on the Rise,”
IEEE Spectrum (June 2012),
available at http://spectrum.
ieee.org/computing/hardware/
counterfeit-chips-on-the-rise.
3. 	KPMG Study: Managing the Risks
of Counterfeits in the IT Industry
(on file with the authors) available
at:http://www.agmaglobal.
org/press_events/press_docs/
Counterfeit_WhitePaper_Final.pdf
(“No anticounterfeiting effort is
entirelyfoolproof,butthebetterones
can make a significant differences.”
4. 	 ChinaWTO.com, “Trade
Regulations, Customs and
Standards,” at http://
chinawto.com/wto/index-e.
asp?sel=info&info=regulation.
5. “Counterfeit threats for electronic
parts,” by Nicole Faubert
(December 30, 2013) available at
http://thecounterfeitreport.com/
article/253/Counterfeit-threats-
for-electronic-parts.html
6. “The Counterfeit Repair Parts
Tsunami,” by Robert M.
Williamson available at http://
www.swspitcrew.com/articles/
Counterfeit%20Parts%200911.
pdf
7. 	 “Counterfeit components: Methods
to protect against fake parts,”
avilable at http://www.eeherald.
com/section/sourcing-database/
component_sourcing_guide2.html
8. 	 HOMAI–HologramManufacturers
Association of India, www.homai.
org
9. 	 How to Select a Security Feature
- a Structured Guide for the
Selection of a Security Technology
for Documents and Items of Value,
Published in June 2009 by the
Document Security Alliance (DSA)
and North American Security
Products Organization (NASPO)
10.	 TheSeriousRisksFromCounterfeit
Electronic Parts, Forbes
11.	 “SAE International’s counterfeit electronic parts risk mitigation standards,” at www.sae.org
12.	 NEMA, Public Policy, Anti-Counterfeiting, https://www.nema.org/Policy/Anti-Counterfeiting/pages/default.aspx
13.	 FICCI Committee Against Smuggling and Counterfeiting Destroying Economy (CASCADE), http://www.ficci-cascade.com/
14.	 “Piracy in Electrical and electronic products: Anti-counterfeiting best practice and strategies,” International Electrotechnical Commission
available at http://www.iec.ch/about/brochures/pdf/conformity_assessment/IEC_Counterfeiting_brochure_LR.pdf
15.	 “Steps to Identify Authentication Solutions to Curb Counterfeiting,” C S Jeena, published at The Holography Times, Volume 7, Issue 20 available
at http://www.slideshare.net/cjhomai/steps-to-identifyauthenticationsolutionstocurbcounterfeiting
Cover Story
www.homai.org 15
The Holography Times
Vol. 8, Issue 24
Guest Column
Coded holograms:
keeping the supply chain secure
Companies have to contend with
challenges stemming from supply
chain security lapses (which can
result in theft, diversions and
product recalls), counterfeiting
and regulations. In addition these
factors can impair the health
and reputation of companies by
adversely impacting on profits,
brand credibility and research
initiatives. With industry,
regulatory authorities, security
agencies and governments
around the world realising the
significance of implementing
product tracking and tracing
systems which build on product
serialisation, it becomes
mandatory for those in the
supply chain to comply with
legislation pertaining to the
locations in which they operate.
Even where this is not mandated
by law, tracking and tracing
systems improve defences
against counterfeiting and
other infringements as well
as improving distribution and
inventory control.
Typically, distribution systems
run the gamut of manufacturers,
wholesalers,distributors,stockists
and retail outlets before products
reach the end user or customer.
Ensuring product protection,
including authentication
capabilities, across various touch
points throughout the supply
chain through track and trace
implementation, is important to
address the challenges industry
faces. Apart from providing
visibility and full traceability
from manufacturer to consumer,
successful serialisation programs
can prove to be a key differentiator
and a clear competitive advantage
for companies.
Today,QuickResponse(QR)codes,
which use four standardised
encoding modes (numeric,
alphanumeric, byte/binary and
kanji) to efficiently store data, are
being linked with holograms to
provide integrated track & trace
and authentication solutions
which, among other benefits, can
help governments improve excise
duty collection and minimize
product counterfeit, contraband
and illegal parallel trading by
enabling tracking of each saleable
item from its point of origin to the
point of sale. Incorporating these
codes in to a hologram delivers
authentication of the product and
the code in one feature, making
this an efficient and effective
method of product protection.
Systems like Andrews &
Wykeham’s THESEUS™ can also
be applied as an anti-counterfeit
solution not related to taxation
for such market segments as
pharmaceutical. Not only do
systems like this one assist in
maximising tax collection and
reducing counterfeits, they are
also tools the government can
use to leverage public confidence.
THESEUS™ for example includes
an open Internet interface, which
enables any member of the public
Everyone involved in the goods
supply chain - manufacturers,
distributors, consumers, taxation and
government authorities- has learnt
the value of security holograms and
will be reassured by their presence
on products and/or the packaging,
recognising the benefits they
provide. However, as coding and
serialisation becomes mandated in
various countries for products such
as medicines and tobacco products,
the ability to incorporate QR, data
matrix and other types of code in to
holograms further enhances the role
they can play in supply chain control.
Ian Lancaster, general secretary
of the International Hologram
Manufacturers Association, highlights
the latest developments.
Ian Lancaster
IHMA
www.homai.org16
The Holography Times
Vol. 8, Issue 24
to verify products are genuine
and duty-paid, and uses high-
security labels with holographic
and security print features,
carrying two-dimensional QR-
format barcodes with item-
specific information. These codes
are protected from unauthorised
access and reproduction by
state-of-the-art electronic digital
signature (EDS) technology.
Another technology finding its
way to increased integration
with holography is coding
foil, which is used to stamp
various markings onto product
packaging by means of a coding
device. These markings provide
the consumer with important
information such as a product’s
expiration date, production date,
the weight, or the price, and
are especially beneficial when
it comes to the need to mark a
product’s quality or add high
performance labelling. And in
today’s health and eco-conscious
world, manufacturers ensure
that these foils comply with all
necessary regulations, including
the strict limits in EN 71/Part
3, the EU packaging guidelines
94/62/EC, and the American
CONEG specification for heavy
metals and lead chromate. The
Kurz Group, for example, is a
market leader whose eco-friendly
coding foils are enabling product
manufacturers and others in the
supply chain to choose from a
diverse product line that includes
a wide range of grades and
colours to meet the demanding
requirements of modern product
packaging, labelling and retailing.
Coding foils are just one product
that can be integrated with
holograms to boost the role played
in supply chain control. Kurz’s
TRUSTSEAL® range of difficult to
copy holographic authenticity
features visually enhance the
brand, build consumer confidence,
and provide a high level of
counterfeit protection. These
optical security features can be
combined with the web-based
TRUSTCODE®
identification
system. The TRUSTCODE®
system
connects the real world to the
virtual one: detailed product
information can be accessed by
buyers, retailers, customs officials
and brand owners using different
smart phone scanning processes.
The company has also developed
diffractive 2 D barcodes with an
appealing aesthetic that enhances
the value of the product. Rather
than being printed, the barcode is
appliedasasilvercoloredstamping
foil into which the actual code has
been incorporated as a diffractive,
holographic-like structure.
Elsewhere, companies like MTM
Technologies Inc are pioneering
othercodedholographysolutions
such as the HoloTag to protect
against brand piracy and product
theft in the supply chain within
the framework of its integrated
security concept. Integrated with
other technologies the MTM
hologram linked with a taggant
combines visible proof of any
tampering with an individual
security code for authentication.
The HoloTag 2D barcode system
has applications in many areas:
from government revenue
collection to publishers and
manufacturers of products.
Checks can be carried out within
the supply chain with a HoloTag
trackandtracemobileapplication
that can be downloaded onto
most smart phones, or accessed
from a browser, allowing the
user to gather a lot of information
in the field and track this in real
time. The technology plays an
important part in combating
counterfeiting and piracy of
taxable items, helping brand
owners control their inventories
and prevent them from producing
excess items which can be targets
for smuggling.
Unquestionably, one of the keys
to the success of holograms since
being adopted for authentication
purposes in the early 1980s has
been the ability to adapt and
constantly find new roles. We
will undoubtedly see more and
more interesting developments
for the technology that will offer
far reaching benefits that develop
and expand further the role of
track and trace. So, with the
seemingly remorseless march
of technology and the resolve of
governments, anti-counterfeiting
agencies and companies around
the world to stand firm in the face
of international organised crime,
as well as the casual opportunist,
there’s no reason why the
hologram will not continue
to evolve, becoming further
enmeshed in global supply chains
and continuing to add real value.
The International Hologram
Manufacturers Association
(IHMA) - www.ihma.org - is made
up of nearly 90 of the world’s
leading hologram companies.
IHMA members are the leading
producers and converters
of holograms for banknote
security, anti-counterfeiting,
brand protection, packaging,
graphics and other commercial
applications around the world.
IHMA member companies
actively cooperate to maintain
the highest professional, security
and quality standards.
Issued on behalf of the IHMA by
Mitchell Halton Watson Ltd.
For further details contact
Andy Bruce on +44 (0) 191 233 1300
or email andy@mhwpr.co.uk
Guest Column
www.homai.org 17
The Holography Times
Vol. 8, Issue 24
Industry Updates
Food & Beverage
Fake Oranges seizures becomes Hong Kong’s
first counterfeit fruit scandal
http://www.scmp.com/news/hong-kong/
article/1496013/fake-fruit-gives-buyer-sour-taste
Illicit liquor seized worth ` 1.6 million, Mumbai,
Maharashtra, India
http://timesofindia.indiatimes.com/City/
Thane/Over-75000-litres-of-illicit-liquor-seized/
articleshow/33031649.cms
Police seize illicit liquor worth ` 2.14 cr
http://freepressjournal.in/city-police-seize-cache-
of-illicit-liquor-worth-rs-2-14-crore/
Delhi Police seized 5000 bottles of illicit liquor
http://www.dnaindia.com/india/report-delhi-
police-seizes-5000-quarter-bottles-of-illicit-
liquor-1969810
Fake VODKA worth £ 1 million found
http://www.mirror.co.uk/news/uk-news/fake-
vodka-worth-1m-found-3151850
Fake pesticides a threat to Kashmir apples
http://indianexpress.com/article/india/india-
others/fake-pesticides-a-threat-to-kashmir-apples/
Cosmetics and Personal Care
Dubai smells a fake: Dh2 million counterfeit
perfumes seized, UAE
http://www.emirates247.com/news/emirates/
dubai-smells-a-fake-dh2-million-counterfeit-
perfumes-seized-2014-03-24-1.542731
Dh 4.1 million fake cosmetics seized in Dubai
http://www.khaleejtimes.com/kt-article-display-1.
asp?xfile=data/crime/2014/April/crime_April31.
xml&section=crime
Pharmaceuticals
A $ 2million health counterfeiting ring
http://www.newsday.com/long-island/nassau/
health-product-counterfeiting-ring-busted-in-
nassau-officials-say-1.7322609
Haryana drug wholesalers booked for
smuggling cough syrup
http://timesofindia.indiatimes.com/city/
chandigarh/2-Haryana-drug-wholesalers-
booked-for-smuggling-cough-syrup/
articleshow/31310436.cms
Security and Fiduciary Documents
Men caught with $4.1 trillion worth of fake
bonds at Vatican Bank, Italy
http://rt.com/business/vatican-bank-fake-
bonds-285/
ISI fake notes may flood Indian polls, India
http://www.deccanchronicle.com/140401/nation-
current-affairs/article/isi%E2%80%99s-fake-
notes-may-flood-indian-polls
Automotive Components
Mumbai Police seized fake high security
number plates
http://timesofindia.indiatimes.com/city/mumbai/
Mumbai-Police-raid-on-fake-high-security-number-
plates/articleshow/30864818.cms
Counterfeiting news update
www.homai.org18
The Holography Times
Vol. 8, Issue 24
Industry Updates
Publication	 Title	 Int.	 Application	 Applicant / Inventor
DD.MM.YYYY		 Class	 Number	
06.03.2014	 Wo/2014/032238 -Optically 	 D21h 21/42	 Pct/Cn2012/080718	 Sicpa Holding Sa /
	 Variable Security Threads and 			 Ritter, Gebhard
	Stripes
		
Brief Abstract: A more sophisticated optically variable security thread or stripe was provided. It could be used
in the field of anti-counterfeiting, and comprised: a substrate and i ) a first optically variable layer (1) imparting
a first different color impression at different viewing angles, ii )a second optically variable layer (2) imparting
a second different color impression at different viewing angles, iii)a first color constant layer (4) having a color
matching the color impression of the first or second optically variable layer at a first viewing angle, iv) a second
color constant layer (5) having a color matching the color impression of the first or second optically variable layer
at a second viewing angle, and v ) one or more material-free regions (0), wherein the first optically variable layer
(l), the second optically variable layer (2), the first color constant layer (4), the second color constant layer (5) and
the one or more material-free regions (0) are jointly visible from one side of the security thread or stripe. A process
for making said security thread or stripe was also disclosed.
19.02.2014	 2698404 -Microparticles, 	 C09c 1/00	 12771357	 Dainippon Printing
	 Anti-Counterfeiting Ink, 			 Co Ltd / Yamauchi
	 Particle Sets, 			 Tsuyoshi
	 Anti-Counterfeiting Toner,
	 Anti-Counterfeiting Sheet and
	 Anti-Counterfeiting Medium
Brief Abstract: A main object of the present invention is to provide fine particles, a particle group, an anti-
counterfeiting ink, an anti-counterfeiting toner, an anti-counterfeiting sheet, and an anti-counterfeiting medium
enabling to achieve a high level of authentication. The object of the present invention is achieved by providing the
fine particle comprising an identification information group including multiple types of identification information
identifiable by magnification, characterized in that the identification information group includes first identification
information and second identification information which cannot be identified at any magnifying power capable of
identifying the first identification information.
13.02.2014	 WO/2014/023523 - 	 G06K 19/06	 PCT/EP2013/064927	 3S Simons Security
	 Microparticle, In Particular 			 Systems Gmbh/
	 Microparticle For The 			 Simons, Rolf
	 Anti-Counterfeiting Marking
	 Of Products
Brief Abstract: The invention relates to a microparticle (10), in particular a microparticle (10) for the anti-
counterfeiting marking of products. The microparticle (10) has at least one first layer (20) and at least one second
layer (30). The first layer (20) forms an outer face (22) of the microparticle (10), and at least the outer face (22) is
equipped with at least one mark (15), which is pre-applied onto the outer face (22). None of the dimensions of the
microparticle (10) exceed approximately 100 μm. The invention further relates to a method for producing at least
one microparticle (10), to a label, to a spread, and to a corresponding use.
Global patents
www.homai.org 19
The Holography Times
Vol. 8, Issue 24
Upcoming events
Date	 Event Name / Place / Website
21-23 May, 2014	 Pharma Pro Pack Expo 2014
	 Mumbai, India, www.pharmapropack.com
16-18 June, 2014	 Security Document World
	 London, United Kingdom, www.sdw2014.com
23-25 June, 2014	 High Security printing 2014, Latin America
	 Hotel Sheraton, Santiago, Chile, www.hsp-latinamerica.com
23-25 June, 2014	 Anti-counterfeiting for Pharmaceuticals and Medical Devices
	 Philadelphia, Pennsylvania, 	 www.anticounterfeitingpharma.com
8-11 Sep, 2014	 The 3rd International banknote Designer Conference
	 Montreal, Canada, www.banknotedesignersconference.com
15-17 Sep, 2014	 Tax Stamp Forum
	 Dubai, UAE, www.taxstampforum.com
29 Oct – 1 Nov, 	 Label Expo India
2014*	 PragatiMaidan, New Delhi, www.labelexpo-india.com
3-6 Nov, 2014	 Automotive Aftermarket Products Expo
	 Sands Expo, Las Vegas, USA, www.aapexshow.com
19-20 Nov, 2014	 Brand Protection and Anti-Counterfeiting
	 Munich, Germany, www.brandprotectionevent.com
3-5 Dec, 2014*	 The Holography Conference
	 Istanbul, Turkey, www.theholographyconference.com
19-21 Jan, 2015	 High Security Printing 2015, Asia, Middle East & Africa
	 Hotel Makati-Shangrila, Manila, The Philippines, www.hsp-europe.com
3-4 March, 2015	 IP Protect Expo 2015
	 Business Design Centre, London, www.ip-protectexpo.com
23-25 March, 2015	 High Security Printing 2015, Europe
	 Hotel Corinthia, Budapest, Hungary, www.hsp-europe.com
22-24 April, 2015	 Security Printers 2015
	 Copenhagen, Denmark, www.securityprinters.org
10-13 May, 2015	 The currency conference
	 Vancouver, Canada, www.currencyconference.com
Published by
Hologram Manufacturer Association of India
(HoMAI)
Editorial Team
Issue Editor	 :	 C S Jeena
Advisor	 :	 Mr. Pradip H Shroff
		 Mr. Manoj Kochar
		
Designed &	 :	 EYEDEA Advertising
Printed by		 1250/13, Govindpuri,
		 Kalkaji, New Delhi-19 	
		(India)
	 	eyedeaadvertising@gmail.com
		www.artworxindia.in
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 to Holography 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:
21-Ground Floor, Devika Tower 6
Nehru Place, New Delhi 110019, India
Telfax: +91 (11) 41617369
Email: info@homai.org,
Website: www.homai.org
Disclaimer:
The data used here are from various
published and electronically available
primary and secondary sources. Despite
due diligence the source data may contain
occasional errors. In such instances, HoMAI
would not be responsible for such errors.
About HoMAI
The Hologram Manufacturers
Association of India (HoMAI)
is the world’s 2nd and Asia
only association representing
hologram industry.
Counterfeit cartoon
* HoMAI participatin events. Meet us at these events to know more about us.
Industry Updates
www.homai.org20
The Holography Times
Vol. 8, Issue 24

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The Holography Times, Vol 8, Issue 24

  • 1. www.homai.org 1 The Holography Times Vol. 8, Issue 24 TheHolographyTimesEndeavour to protect people and products May 2014 | Volume 8 | Issue 24 Counterfeit threat for Industry on RISE electronic plug it www.homai.orgHoMAI quarterly newsletter
  • 3. www.homai.org 3 The Holography Times Vol. 8, Issue 24 Dear Reader, Welcome to the 24th edition of The Holography Times. As you know our previous edition focused on Auto Counterfeiting and we received overwhelming response from majority of you. We would like to thanks you all for your valuable inputs and time. Our current edition will focus on “The making of counterfeit electronic parts” which has become a very big business across the globe. In fact, counterfeit electrical and electronic products now occupy second place after pharmaceuticals. Worldwide counterfeiting of electrical products is estimated to range anywhere between US $ 11 billion to US $20 billion annually. In North America alone, the electrical product counterfeiting is estimated to be in the US $300 million to US $ 400 million range and rapidly growing. Research from the Mobile Manufacturers Forum (MMF) says around 148 million counterfeit or substandard mobile phones were sold worldwide in 2013, mostly in developing countries. Although not much has been done in India to assess the impact of counterfeit electrical components, there is a study by FICCI CASCADE that focused on computer hardware and mobile phones. According to this study counterfeit computer hardware constitute 26.4 percent, or ` 47 billion by value, of the total market size estimated at ` 179 billion for 2012. Similarly, the Grey market for Mobile Phone constitute 20.8 percent, or ` 90 billion by value, out of total market size estimated at ` 434 billion in 2012. Our current issue highlights the “Issue of Electrical and Electronic products Counterfeiting” and needs of an effective anti-counterfeiting strategy to combat this problem. Apart from this the issue also covers industry updates including news, patents and events. Do send us your feedback/critics at info@homai.org. C S Jeena Editor In this issue 9 15 Viewpoint Industry updates Counterfeiting News Update 17 Global patents 18 Upcoming events 19 News bytes Counterfeit threat for electronic industry on rise: plug it Coded holograms: keeping the supply chain secure Very interesting issue, especially the part regarding automotive industry problems. It seems that big step in protecting vehicles and major vehicle parts are METAL micro-holograms - all with a unique code. Jiri (George) Perkous Owner of Segment Security, LLC and Holoptica, LLC Thank you for The Holography Times. I look forward to staying in touch and reading your articles. Paul Westwood OAM Director of Forensic Document Services Pty Ltd, Sydney Area, Australia A really interesting and complete article. Congratulations! Beatriz Cerrolaza Chief Financial Officer & Chief Marketing Officer, ALISE DEVICES, S.L., Madrid Area, Spain 4 www.homai.org 1 The Holography Times Vol. 7, Issue 23 TheHolographyTimesEndeavour to protect people and products Dec 2013-Jan 2014 | Volume 8 | Issue 23 www.homai.orgHoMAI quarterly newsletter Grey market 29.60% Direct tax loss to Government 93 Million ($) Sales loss to industry 2 Billion ($) Indirect tax Loss to Government 512 Million ($) Tax loss to the Exchequer 605 Million ($) COUNTERFEITING CROSSED USD 2 BILLION MARK Feedback
  • 4. www.homai.org4 The Holography Times Vol. 8, Issue 24 Fake labels taking a toll on liquor firms: NEED HEALTM Bangalore, India: Counterfeit labelhasbecomeincreasingly lucrative in some States because of a sharp rise in taxes, according to news published by Mint. United Spirits Ltd (USL), Pernod Ricard and Allied Blenders and Distillers Pvt. Ltd (ABD) and other top liquor companies are losing out on liquor sales in fast-growing eastern states such as West Bengal, Assam and Bihar because of a significant increase in sales of fake labels— poor quality blends that are packaged as popular alcohol brands. Over the years, apart from the states in eastern India, bottles of counterfeit alcohol have been sold in some other states including Andhra Pradesh, Rajasthan and Haryana, where regulation is relatively weaker. States in eastern India account for roughly 10-12 percent of liquor sales in the country and are among the fastest growing regions in India at a time when overall growth in India’s liquor industry has dropped to its lowest in a decade. Last week, India’s fourth largest distiller Tilaknagar Industries Ltd bought the branded alcohol business of Kolkata-based IFB Agro to increase its presence in states such as West Bengal and Assam. Incidentally, all these States (West Bengal, Bihar and Assam) are not using any kind of authentication/ anti- counterfeiting solutions to curb this menace. According to Hologram Manufacturers’ Association of India (HOMAI), “the problem can be curbed to a large extent with the usage of HEALTM (Holographic Excise Adhesive Label). In India more than 18 States & UT are already using security hologram as excise adhesive label on liquor bottles. This provides them an effective anti-counterfeiting tool in identification of spurious liquor and curbing the problem of illicit liquor and consequently helping in increasing state excise revenue. A state that uses hologram tax stamps on liquor bottles collects higher revenue per person as compared to those states who do not use a hologram tax label” (See table below). Source: www.livemint.com/ www.homai.org Table: Comparison of State using HEAL vs not using any anti-counterfeiting solutions State excise department using anti-counterfeiting solution Name of Department 2001-02 2011-12 Increase in Population of Revenue Per (`Crore#) (`Crore) last 10 State in Crore Person in Years Census 2011 `* Delhi 606.41 2533.72 1927.31 1.67 1517.19 Tamilnadu 2058.21 9975.21 7917.00 7.21 1383.52 Uttarakhand 232.04 755.98 523.94 1.01 754.97 Madhya Pradesh 704.68 4316.49 3611.81 7.25 595.37 State excise department not using any anti-counterfeiting solution Name of Department 2001-02 2011-12 Increase in Population of Revenue Per (`Crore#) (`Crore) last 10 State in Crore Person in Years Census 2011 `* West Bengal 512.43 2117.04 1604.61 9.13 231.87 Bihar 238.90 1980.98 1742.08 10.38 192.32 Jharkhand 100.21 457.10 356.89 3.29 138.93 Assam 150.91 503.35 352.44 3.11 161.84 *Revenue per person = Revenue in 2011-12/Population of State # 1 Crore = 10 million Leading News
  • 5. www.homai.org 5 The Holography Times Vol. 8, Issue 24 Uses and applications KENYA eyeing more revenue from bottled water with new tamper proof stamps Nairobi, Kenya: The Kenya Revenue Authority (KRA) will use the modern stamp duty on bottled water to seal loopholes of possible tax evasion. The new stamps are tamper proof, having enhanced security features. However, the move is likely to put a halt to the fast growing bottled water industry estimated to rake in more than Sh16 billion annually. Thisfollowsasuccessive application of the modern stamp duty technology on tobacco, wines and spirits. Commissioner- General John Njiraini said the achievements made in the two sectors will encourage them to roll out the same system for the beer and soft drinks to improve tax efficiency on excisable goods. Bottled water sector is our next emerging selling tax compliance area and we have to put our feet on it,” he said. Njiraini noted that the new security features will improve the tax administration in the country. He noted that the new features make it difficult to counterfeit the stamp duty to be used in excisable goods. The old stamp duty could easily be counterfeited, denying it some significant revenue. “The system provides us with the capability to authenticate genuine excise stamps on a real time basis during field visits,” he said. Previously, the authentication was done manually, creating a loophole on possible tax evasion. Since its roll out in December last year, the taxman has impounded over 10,000 pieces of wines and spirit products from over 400 outlets. “The culprits have paid various fines with some running as high as Sh1.5 million. We shall also have the goods in question forfeited,” Njiraini warned. The new system is able to monitor the entire chain process of an excisable good earmarked for the market. Source: :www.standardmedia.co.ke Amarnath Shrine Board enhanced security features of Yatra form Jammu and Kashmir, India: To curb duplication of registration forms of Amarnath yatra, the Shri Amarnathji Shrine Board (SASB) will issue new forms this year onwards, with security features of currency notes. The forms will be printed by Security Printing and Minting Corporation of India Limited (SPMCIL) and will cost nearly ` 7.5 million. The revised form will have many security features, including the Ashoka pillar watermark and text ‘Shri Amarnathji Shrine Board’ and the board’s logo printed in the background, which can be seen only through a powerful magnifying glass. The logo, which will be printed in fluorescent blue ink, can be viewed under ultraviolet light, and the printing would be done with chemically- sensitive security ink. Source: :www.hindustantimes.com
  • 6. www.homai.org6 The Holography Times Vol. 8, Issue 24 Policy Canadian Government introduces extensive amendments to Trade-marks Act in Economic Action Plan, 2014 On March 28, 2014, the Canadian government introduced the Economic Action Plan 2014 Act, No. 1 as part of an omnibus budget implementation bill. The bill includes significant amendments to the Trade-marks Act that are designed to put Canada in a position to adhere to major international trade-mark treaties, including the Madrid Protocol, the Nice Agreement and the Singapore Treaty. Continuing the trend set by Bill C-8, the pending Combating Counterfeit Products Act, the new bill repeats some amendments included in the previous bill and includes additional provisions, repealing or replacing some of the unusual or even unique aspects of the Canadian Act. For example, a “trade-mark” will become a “trademark”, “wares” will become “goods” and both associations of similar trade-marks and the “distinguishing guise” will disappear from Canadian practice. With significant changes the definition of a trade-mark will be greatly expanded to cover a “sign or a combination of signs” including a word, a personal name, a design, a letter, a numeral, a colour, a figurative element, a three-dimensional shape, a hologram, a moving image, a mode of packaging goods, a sound, a scent, a taste, a texture and the positioning of a sign. Source: www.lexology.com French Customs signs agreement with IACC Kazakhstan to host anti- counterfeiting global forum PARIS: French Customs (DNRED) and the IACC, a Washington, D.C.-based non- profit organization committed to combating trademark counterfeiting and piracy, signed a Memorandum of Understanding (MOU) that enhances cooperation between the two organizations regarding the enforcement of trademarks and copyrights. This unprecedented agreement will improve the ability of French authorities and the IACC to communicate, cooperate, and share information and resources, as well as further efforts in combating online counterfeit merchants via the IACC’s RogueBlock program. With retail e-commerce sales rising steadily over the past decade, the Internet provides an enticing platform for criminal merchants to sell counterfeit goods. The IACC’s RogueBlock program uses a “follow-the-money” approach and provides a system for brand owners to report online sales of illegal counterfeit goods. By collaborating with the world’s largest international payment brands, the RogueBlock program works to choke off funding to counterfeit merchants. Source: www.internet.itbusinessnet.com Kazakhstan’s Ministry of Justice will be organising an anti-counterfeiting international forum on May 21 at the Palace of Independence in national capital Astana. According to a Ministry of Justice the following issues will be discussed: (1) Problems of counteraction against counterfeiting, falsified and defected products (2) Food and pharmaceutical safety (3) Dissemination of pirated music. audio and video products on the Internet and (4) Issues on harmonization of legislation in the sphere of intellectual property within the Customs Union. The ministry is expecting speakers and participants from Governments of Kazakhstan, Russia and Belarus; representatives of World Intellectual Property Organization (WIPO), Eurasian Economic Commission for Europe, World Customs Organization (WCO), World Health Organization, Interpol, International Trademark Association (INTA); InternationalFederationofthePhonographicIndustry(IFPI); African Intellectual Property Organization, Governments of the countries of the Commonwealth of Independent States and far abroad, NGOs, rights holders, universities and other interested parties. Source: www.business-standard.com
  • 7. www.homai.org 7 The Holography Times Vol. 8, Issue 24 Project awarded GHANA approve tax stamp contract worth US $ 50 million to Authentix Ghana: The Parliament of GHANA has approved a contractbetweenthegovernment of Ghana and Authentix, USA for the procurement of tax stamp systems. The purpose of the agreement is to actualise the implementation of the provisions in the Excise Tax Stamp Act 2013 which was passed by the House in December2013.Itseekstoengage the services of and expertise of Authentix International in the implementation of the tax stamp system in the country. Under the agreement, Authentix would be responsible for the installation of a system Web Based Portal, an appropriate stamp affixing machinery where necessary on production lines of manufacturers, an operational and production testing, a testing validation and acceptance of machinery and systems and the training of officers in the use of monitoringanddetectiondevices. The Government of Ghana will pay the supplier the sum of US$ 11,790,000 per year for a period of five years for its services as well as a monthly installation of US$982,500 for four years after an initial payment on delivery, installation and final acceptance. Source: www.parliament.gh De La Rue is awarded latest Bahrain passport contract, securing a partnership of almost 50 years IRSIS awarded Philippines tax stamp project Manama, Bahrain; De La Rue has been awarded a 5 year supply contract by the Kingdom of Bahrain for the nation’s machine readable passport and high security film laminate bio-data page protection solution. This award secures a partnership that first started in 1971 and includes a book redesign within the contract terms. Bahrain’s Passport contract award, made earlier this year, covers the supply of 100 thousand machine readable passports per year for the next five years. De La Rue has also been commissioned to design a new book for the government, which will include the latest security features and technologies, countering specific threats and ensuring the document’s integrity against potential attack and counterfeit. In addition to the book, De La Rue will be supplying half a million specially designed MLIS™ patches, a proprietary high security thin film laminate, to protect the holders details on the book’s bio-data page. Source: www.delarue.com Philippines: IRSIS Corp.., a joint venture of four IT Firms including (CAI-STA Philippines, Inc., Philcox Philippines, Inc., Latent Image Technology Ltd., and Comclark Network and Technology Corp) has been awarded the Bureau of Internal Revenue’s (BIR) security tax stamp project worth P521.64 million., which is expected to be rolled out by the middle of this year. BIR Commissioner Kim S. Jacinto-Henares said the contract for the Internal Revenue Stamps Integrated System (IRSIS) project, which will aid in monitoring the supply and sale of tobacco products, was signed last November. Source: www.bworldonline.com
  • 8. www.homai.org8 The Holography Times Vol. 8, Issue 24 Standard and development NASPO SA 2013 security audit now combines ISO 14298 requirements (Washington, DC): The North American Security Products Organization (NASPO)announced today a new audit that combines two highly recognized security standards for producers of documents of value employing added security features designed to protect against counterfeiting. The new NASPO audit now covers security requirements from ISO (International Organization of Standardization) and from NASPO (North American Security Products Organization), providing both convenience and cost savings to those firms seeking security assurance certification on a national and/or international level. Producers of security documents, cards and foils can now achieve both the NASPO Security Assurance standard (NASPO SA 2013) and the ISO 14298 standard (Graphic Technology -Management of Security Printing Processes) through a single NASPO audit. This allows organizations to meet the requirements of a key international security standard from ISO as well as national security standards of ANSI/ NASPO (American National Standards Institute). NASPO will also offer individual audits to ANSI/NASPO SA 2013 and ISO 14298 to those organization not requiring combined audits. NASPO SA 2013 is an accepted security standard by ANSI used today by private industry as well as state and federal agencies. It was developed for security printers, security foil producers, technology suppliers or any organization seeking to implement or enhance their securitypractices.Theconformity assessment process of NASPO SA 2013 has been proven to meet the security requirements of a broad base of users. The ISO 14298 standard is similar to NASPO SA 2013, but does not include security technology suppliers or other security organizations. Thanks to NASPO’s participated in the development of ISO 14298, the NASPO and ISO standards share common auditing and conformity assessment procedures, making it easier now to meet the requirements of both standards through a single auditing process. “NASPO has developed our audit processes over the last 10 years to meet the high requirements of security contractors and users,” said Richard Ward, Chairman of NASPO. “A NASPO Certification represents trust and credibility in the audit process and a level of assurance that the standards requirements are being met and implemented as intended.” Source: :www.naspo.info MIT develops smartphone-readable particles to prevent counterfeiting Chemical engineers from Massachusetts Institute of Technology (MIT) have invented a new type of tiny, smartphone- readable particle that is invisible to the naked eye, containing coloured stripes of nanocrystals that glow brightly when lit up with near-infrared light. “These particles can easily be manufactured and integrated into a variety of materials and can withstand extreme temperatures, sun exposure and heavy wear,” explainedPatrickDoyle,achemical engineering professor at MIT. They could also be equipped with sensors that can “record” their environments. To manufacture the particles, the researchers used stop-flow lithography, a technique developed previously by Doyle. Many strategies have been developed to try to label legitimate products and prevent illegal trade - but these tags are often too easy to fake, the researchers found. Using this procedure, the researchers can generate vast quantities of unique tags. With particles that contain six stripes, there are one million different possible colour combinations. Thiscapacitycanbeexponentially enhanced by tagging products with more than one particle. For example, if researchers create a set of 1,000 unique particles and then tag products with any 10 of those particles, there would be 1,030 possible combinations - far more than enough to tag every grain of sand on earth. Source: www. gadgets.ndtv.com
  • 9. www.homai.org 9 The Holography Times Vol. 8, Issue 24 Cover Story Counterfeit threat for electronic industry on rise: plug it Introduction: Imagine incidents such as an aircraft crashing due to malfunctioning counterfeit parts, a medical equipment blurs off in the middle of the surgery, a missile misses the target and hits the own camp and a heavily invested satellite fails reaching its destiny or a fake mobile battery exploding even as one is using the phone. The counterfeit electronic parts are available everywhere from sophisticated semi-conductors and chips used in commercial and military electronics as well as the normal day to day used electronics items, and they represent a serious hazard if used in critical systems such as aircraft navigation, life support, military equipment, or space vehicles. After the crash of the C-130J Super Hercules near Gwalior there were controversial news reported in the media about counterfeit electronics being the reason for this unfortunate incident. Actually, certain avionics displays fitted in this aircraft as original equipment were manufactured by L3 Display Systems Corporation, a US Company1 . In November 2010, the company become aware that its in house failure rate for a chip installed on display units used in C-130J and C-27J had more than tripled from 8.5 percent to 27 percent. When sent for testing, the parts were found as suspected counterfeit. Although, the company did not give any recall notice, But when this matter became known to the public, the US Senate Armed Services Committee decided to investigate the matter and released its report on May 21, 2012. The report admitted that counterfeit electronics parts were breaking into the defense supply chain and could endanger the lives of troops and allies. While the report focuses on the risks posed to military systems, there is no reason to believe that the risks are any different for non-military systems2 . Author: Author is Secretary of Hologram Manufacturers Association of India (HoMAI) since 2006 and also serves as Editor of The Holography Times. C S Jeena Brief Abstract: Counterfeiting is not a new term for electronic industry as counterfeit electrical and electronic products now occupy second place after pharmaceuticals estimated to range anywhere between US$11 billion to $20 billion worldwide every year. However, counterfeit electronic parts have been much in the public eye in recent weeks. On March 28, 2014 one of Indian Air Force Aircraft (C-130J Super Hercules) crashed near Gwalior city killing five crew members. There were controversial news reported in media about the counterfeit electronics being the reason for C-130J air crash. Over the past several years the electronics industry has seen a marked increase in the availability of counterfeit electronic components. Counterfeiters have attacked every commodity of electronics, from simple components such as capacitors, to complex integrated circuits such as microprocessors. In expensive commercial devices, as well as high cost military components, have seen counterfeiting on the rise. This article highlights the serious risk, its impact and the possible proactive steps that can be taken to curb this menace. 1. “Did IAF’s ‘US-made’ C-130J Super Hercules that crashed have fake Chinese parts?,” Chidanand Rajghatta,TNN | Mar 30, 2014 available at http://timesofindia.indiatimes.com/india/Did-IAFs-US-made-C-130J-Super-Hercules-that-crashed-have-fake-Chinese-parts/articleshow/ 32977838.cms 2. “Inquiry into Countefeit Electronic Parts in the Department of Defense Supply Chain: Report of the Committee on Armed Services United States Senate” hereinafter the “SAAC report,” available at http:// www.armed-services. senate.gov/Publications/ Counterfeitpercent20 Electronic20percent20Parts.pdf.
  • 10. www.homai.org10 The Holography Times Vol. 8, Issue 24 Cover Story Size of counterfeit electronic components problem: The making of counterfeit electronic parts has become a very big business. In fact, counterfeit electrical and electronic products now occupy second place after pharmaceuticals. Worldwide counterfeiting of electrical products is estimated to range anywhere between US$11 billion to $20 billion annually. In North America alone, the electrical product counterfeiting is estimated to be in the $300 million to $400 million range and rapidly growing3 . Research from the Mobile Manufacturers Forum (MMF) says around 148 million counterfeit or substandard mobile phones were sold worldwide in 2013, mostly in developing countries4 . Although not much has been done in India to assess the impact of counterfeit electrical components, there is a study by FICCI CASCADE that focused on computer hardware and mobile phones. According to this study counterfeit computer hardware constitutes 26.4%, or ` 47.25 billion by value, of the total market size estimated at ` 179.01 billion for 2012. Similarly, the Grey market for Mobile Phone constitute 20.8%, or ` 90.42 billion by value, out of total market size estimated at ` 434.09 billion in 20125 . (See Table 1). Most commonly counterfeited electronics items From components such as fuses, cables and circuit breakers to household equipment, professional work tools and automotive and aviation spare parts, nothing is safe from counterfeiting. While the appearance and packaging can be very convincing, the products themselves are often sub- standard and may represent a severe safety hazard, causing accidents and costing lives. (See table 2 and Table 3) Reason / factor for increase in electronic components counterfeiting: The problem is, increasing because of various factors, including global as well as local such as; Table 1: Counterfeit Computer Hardware and Mobile Phone in India Particulars Computer Hardware Mobile Phones Estimated sales to Industry Grey Market (percentage) 26.4 20.8 Sales loss INR 47.25 billion INR 90.42 billion Estimated tax loss to the Government Direct tax loss 470 million 4.96 billion Indirect tax loss 11.87 billion 26.78 billion Tax loss to the exchequer 12.34 billion 31.74 billion *The loss has been calculated for the year 2012 3. “Sharks in the Water,” By John Estey, National Electrical Manufacturers Association, T&D World Magazine (May 2007) available at http:// tdworld.com/business/sharks-water 4. “Counterfeit/Substandard Mobile Phones, A resource guide for Government,” White paper published by Mobile manufactures Forum available at http://www.mmfai.org/public/docs/eng/MMF_CounterfeitPhones_EN.pdf 5. “Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sector,” published by FICCI Committee Against Smuggling and Counterfeiting Destroying Economy (CASCADE) available at http://www.ficci.com/spdocument/20190/Executive- Summary-invisible-enemy-aug-8-2013.pdf
  • 11. www.homai.org 11 The Holography Times Vol. 8, Issue 24 Cover Story 1. Global number of illegal manufacturing due to shortcoming of existing legislation: According to Electronic Industries Association of India ELCINA, the component industry has suffered because duty- free imports of about 217 categories of electronic components like capacitors, resistors and transformers were allowed from 2005 under an information technology agreement with theWorldTradeOrganization (WTO-ITA1). Many of India’s more than 1,000 small companies manufacturing electronic components have shut operations6 . In an investigation spanning six months, the Directorate of Revenue Intelligence has found that for over 3,673 items brought from China, the importers usually declared 1-9 percent of the actual value of the goods7 . 2. Easy availability of material due to global E-Waste handling: China may be a principal source of counterfeit parts, but the United States and other countries in the developed world generate the electronic waste (“e-waste”) from which semi-conductors and other micro-electronic parts are extracted by counterfeiters. The parts recovered from the salvaged electronics waste which are non-functional are processed by the counterfeiters to give a look of an original component8 . 3. Inadequate surveillance efforts by brand owner to identify counterfeit products; 4. Tampering/Repackaging: Counterfeit electronic component enter the supply chain through local manufacturing, importing from China in the form of fake packaging or in original packaging sourced from mechanics or service stations; 5. Higher margins: In comparison to genuine electronic component makers, a counterfeiter earns anywhere from 35 percent to 75 percent on selling counterfeit electronic parts. 6. Consumer Education: Lack of consumer education to identify authentic electronic Table 3. Top 5 Most Counterfeited Semiconductors in 2011 (Percentage of Counterfeit Part Reports) Rank Commodity % of reported Type Incidents 1 Analog IC 25.20% 2 Microprocessor 13.40% IC 3 Memory IC 13.10% 4 Programmable 8.30% Logic IC 5 Transistor 7.60% Source: IHS Parts Management 2012 6. “Dragon on the Rampage: A flood of cheaper Chinese goods, sometimes better than their Indian counterparts, is forcing small manufacturers to shut shop and turn into traders,” by Taslima Khan, Edition: Mar 2, 2014 published by Business Today available at http://businesstoday. intoday.in/story/chinese-imports-hitting-india-msme-sector/1/203041.html 7. MP3 player for Rs 2, LED torch for Rs 8: Undervalue Chinese imports, make a killing, C Unnikrishnan, TNN. 8. “U.S. e-waste drives counterfeit components problem,” by Victoria Fraza Kickham, published by Global Purchasing available at http:// globalpurchasing.com/latest-news/us-e-waste-drives-counterfeit-components-problem Table 2: Percentage of Market Revenue for Most Commonly Counterfeited Product Types by Application Market in 2011 (Percentage Share of Revenue in Millions of U.S. Dollars) Part Type Industrial Automotive Consumer Wireless Wired Computer Other Analog IC 14% 17% 21% 29% 6% 14% 0% Microprocessor IC 4% 1% 4% 2% 3% 85% 0% Memory IC 3% 2% 13% 26% 2% 53% 1% Programmable Logic IC 30% 3% 14% 18% 25% 11% 0% Transistor 22% 12% 25% 8% 10% 22% 0% Source: IHS iSuppli March 2012
  • 12. www.homai.org12 The Holography Times Vol. 8, Issue 24 Cover Story parts and about the ill effects of counterfeit parts. Impact of counterfeit electronic component = huge social and financial liability: When counterfeit electrical devices, components and spare parts enter manufacturing supply chains, they can add fire, shock and explosion risks that may cost workers their lives, cause serious property damage and involve unpredictable financial liability. One fake component can void guarantees for entire systems and installations, resulting in severe financial losses and liabilities. Manufacturers, installers, specifiers and employers can be heldresponsibleforincidentsand accidents linked to counterfeit components. Counterfeit electrical products do not comply with performance and safety specifications; they are not tested or approved. Counterfeit aviation parts, for example pose a serious risk to the safety of military, civil and commercial aviation industry. Steps in combating electronic counterfeiting9 Several studies have been done to measure the impact of the problem, but suggested solution has invariably focused primarily on enhanced effectiveness of law enforcement. It is important that a holistic solution is developed in this fight. The solution to this ever-growing menace lies at the very core of the product, i.e. a dire need to create an end-to- end holistic brand protection strategy10 ; As a first step, every CEO or Brand owner should take head on the threat of brand attack and prepare a Brand Risk Management (BRM) plan as an intrinsic part of the overall business plan, review and report. The team may comprise the CEO/ Brand owner, Brand Managers, Head of Marketing, Product Development, Sales, Logistic, Packaging, Manufacturing or an outside consultant accountable for the brand. The idea is to curb the penetration of counterfeits, across levels. The anti-counterfeiting strategy can be broken into various stages such as: i. Anti-counterfeiting policy and brand protection program By establishing and pursuing an anti - counterfeiting policy and brand protection program a company is able to provideproofthatallduecare was taken to limit or reduce counterfeiting and protect trademarks and brands. Together they provide a shield for liability, and also a protection against loss of reputationandadversepublic opinion.Thebrandprotection programand a n t i - counterfeiting policy should list pro-active measures that are put in place toidentify and report fake products. They help limit the negative effects of counterfeiting and reduce reaction time should such an eventoccur. Elements to consider include: • supply chain processes, inspection, audits and quality control • Identification and evaluation of risks and threats • Detection and reporting processes, including handling of counterfeit products • Overall risk-management and adequate response procedures The policy also needs to address product labelling (including anti- counterfeiting technologies) and training of staff on how to recognize counterfeit products. Furthermore, it should provide assistance and training programs to officials tasked with enforcing seizures of counterfeit products. The latter because only the manufacturer of the genuine product knows whether an item is fake or genuine. Part of this may include the setting up of a product database, online reporting mechanisms, and simple protocols that provide investigators with tips on how to spot fakes. Table 4: Impact of counterfeit component components Consumers Legitimate Manufacturers Government / Social Loss of Life Loss of revenue Loss of revenue Loss of Job Increases warranty costs and so the maintenance cost Funding of criminal enterprises Financial Liability due to law suites Loss of brand integrity and goodwill Expected life of the product decreases 9. Brand Protection: Challenges and Solutions, Pradip Shroff, Published at The Holography Times, Volume 4, issue 13 available at http://www. homai.org/AdminPanel/PDF/Issue13.pdf 10. ISO Standards 12931 “Performance criteria for authentication solutions used to combat counterfeiting of material goods”, http://www.iso. org/iso/catalogue_detail?csnumber=52210
  • 13. www.homai.org 13 The Holography Times Vol. 8, Issue 24 ii. Register trademarks and copyrights Register trademarks in all countries you sell, manufacture, and license or distribute products in. This is essential to protect trademarks and brands. Also, apply for patents and register designs. For details and registration procedures, consult a trademark attorney. iii. Adopt ISO standards and Join trade associations ISO has developed new Standards 1293 “Performance criteria for authentication tools used in anti-counterfeiting or material goods”: The new ISO 12931 is already published and would be a very useful document for any-one who wants to follow globally accepted standards and approach to fighting against the counterfeit.TheISOdocument can be seen on http://www. iso.org/iso/catalogue_ detail?csnumber=5221010 . It is strongly recommended that all brands who want to have a safety net of a global standard, should plan to comply with this standard. Similarly, SAE International, a global association of more than 138,000 engineers and related technical experts in the aerospace, automotive, and commercial-vehicle industries has come up with the first revision to its c o u n t e r f e i t parts avoidance technical standard “AS5553 Fraudulent/Counterfeit Electronic Parts;Avoidance, Detection, Mitigation, and Disposition.11 ” This new revisioninparticularprovides terminology references and reporting mechanisms to facilitate the flow-down of the standard globally. Further, try to join anti-counterfeiting association or your local chamber of commerce, such as FICCI CASCADE, as these national and international trade bodies can guide and provide best practices against combating counterfeiting. For example, The National Electrical Manufacturers Association is so concerned aboutthisinfluxofcounterfeit products that its board of governors has made it one of its top-three priorities to focus the attention of government, the supply channel and the public on the harm caused by counterfeit electrical products12 . In India, FICCI CASCADE13 is doing similar work. iv. When fake products are found After contacting the relevant law enforcement authorities, consider reaching out to a memberoftheIECConformity Assessment System14 (For Indiaitis BIS).Theycandirect you to one of the national certification agencies and laboratories who might be abletohelpyousetupatesting and inspection program to avoid future problems, as well as product training for manufacturing staff and law enforcement agencies. v. Anti-counterfeiting technologies15 There are a number of anti- counterfeiting technologies that can help better protect and authenticate products. And while they can’t completely eliminate counterfeiting, they can make it less attractive and less profitable, increasing the level of risk for the counterfeiters. Use a secure, anti-counterfeiting device comprising overt, covert & forensic security features like security hologram seals and labels, tamper evident security films and light-sensitive ink designs. While there a number of technologies available in the market, it is advisable to choose smart and at the right time while keeping track of some basic guidelines like: • Instead of focusing on features, find a vendor who can provide you overt as well as covert technologies as it is important to select a solution using multiple technologies. • Seek help from an established trade association to select ethical vendor, best practices and resources to fight counterfeiting. • Selectthetechnologyinterms of the difficulty in replicating and tamper evidence offered, uniqueness, availability of suppliers, ease of identification and user friendliness. • Solutions should also have feasibility of being integrated with the automated production/ packaging line if required, especially wherever the volumes are very large Try to combine low and high security elements to enhance protections, for example, by integrating sequential or unique numbers in the solution. vi. Market surveillance, quality control, inspection • Establish classical market surveillance, including at customs barriers and ports • Obtain and test samples from open markets, websites and auction sites. Make it known that you run such tests • Keepadatabaseofcompanies and manufacturers that Cover Story
  • 14. www.homai.org14 The Holography Times Vol. 8, Issue 24 have been suspected to counterfeit your products • Send “Cease and desist” letters for every infringement to establish brand and trademark protection measures • Tighten supply chain, production and delivery path of genuine products • Establish factory, pre- shipping and port of entry inspections (as counterfeit products sometimes hide in genuineshipments)consider involving an IEC Conformity Assessment System member for inspection and testing pre-shipping and at market entry point. vii. Interception and cooperation with law enforcement Registeredforcustomswatch programs. Organizations including Interpol, World Trade Organisation, World Customs Organization, World Intellectual Property Organization and International Chamber of Commerce are working closely together to improve international cooperation and border enforcement through increased customs co-ordination and exchange of information and best practices. The IEC and its Conformity Assessment System members concretely support these efforts on the ground through inspection and testing. Conclusion: While the trade of counterfeit electronic parts has dramatically increased, tackling counterfeits is not impossible. Counterfeiting is a problem that needs to be addressed quickly and decisively. Ideally, as a first move, more effective partnerships should be built between law enforcement agencies and the private sector with focus on intelligence sharing, awareness and product identification training. • Manufacturers should create a team that focuses on anti- counterfeiting strategy • Selection of right anti- counterfeiting strategy should be employedUse first level of authentication features to empower your customers to identify your genuine products • Track supply chain at distributor end • Information to customer In our view a company that implements the suggestions outlined in this article will definitely see a marked improvement in their fight against counterfeiting. In case you need more information, please e-mail to us at info@ homai.org and we will be happy to work with you to eliminate the menace of counterfeiting. Resources 1. “Counterfeit Electronic Parts: What to do Before The Regulations (and Regulators) Come?,” Federal Contracts Report, 97 FCR???,6/21/2012, The Bureau of National Affairs, Inc. (800-372- 1033) http://www.bna.com 2. “Counterfeit Chips on the Rise,” IEEE Spectrum (June 2012), available at http://spectrum. ieee.org/computing/hardware/ counterfeit-chips-on-the-rise. 3. KPMG Study: Managing the Risks of Counterfeits in the IT Industry (on file with the authors) available at:http://www.agmaglobal. org/press_events/press_docs/ Counterfeit_WhitePaper_Final.pdf (“No anticounterfeiting effort is entirelyfoolproof,butthebetterones can make a significant differences.” 4. ChinaWTO.com, “Trade Regulations, Customs and Standards,” at http:// chinawto.com/wto/index-e. asp?sel=info&info=regulation. 5. “Counterfeit threats for electronic parts,” by Nicole Faubert (December 30, 2013) available at http://thecounterfeitreport.com/ article/253/Counterfeit-threats- for-electronic-parts.html 6. “The Counterfeit Repair Parts Tsunami,” by Robert M. Williamson available at http:// www.swspitcrew.com/articles/ Counterfeit%20Parts%200911. pdf 7. “Counterfeit components: Methods to protect against fake parts,” avilable at http://www.eeherald. com/section/sourcing-database/ component_sourcing_guide2.html 8. HOMAI–HologramManufacturers Association of India, www.homai. org 9. How to Select a Security Feature - a Structured Guide for the Selection of a Security Technology for Documents and Items of Value, Published in June 2009 by the Document Security Alliance (DSA) and North American Security Products Organization (NASPO) 10. TheSeriousRisksFromCounterfeit Electronic Parts, Forbes 11. “SAE International’s counterfeit electronic parts risk mitigation standards,” at www.sae.org 12. NEMA, Public Policy, Anti-Counterfeiting, https://www.nema.org/Policy/Anti-Counterfeiting/pages/default.aspx 13. FICCI Committee Against Smuggling and Counterfeiting Destroying Economy (CASCADE), http://www.ficci-cascade.com/ 14. “Piracy in Electrical and electronic products: Anti-counterfeiting best practice and strategies,” International Electrotechnical Commission available at http://www.iec.ch/about/brochures/pdf/conformity_assessment/IEC_Counterfeiting_brochure_LR.pdf 15. “Steps to Identify Authentication Solutions to Curb Counterfeiting,” C S Jeena, published at The Holography Times, Volume 7, Issue 20 available at http://www.slideshare.net/cjhomai/steps-to-identifyauthenticationsolutionstocurbcounterfeiting Cover Story
  • 15. www.homai.org 15 The Holography Times Vol. 8, Issue 24 Guest Column Coded holograms: keeping the supply chain secure Companies have to contend with challenges stemming from supply chain security lapses (which can result in theft, diversions and product recalls), counterfeiting and regulations. In addition these factors can impair the health and reputation of companies by adversely impacting on profits, brand credibility and research initiatives. With industry, regulatory authorities, security agencies and governments around the world realising the significance of implementing product tracking and tracing systems which build on product serialisation, it becomes mandatory for those in the supply chain to comply with legislation pertaining to the locations in which they operate. Even where this is not mandated by law, tracking and tracing systems improve defences against counterfeiting and other infringements as well as improving distribution and inventory control. Typically, distribution systems run the gamut of manufacturers, wholesalers,distributors,stockists and retail outlets before products reach the end user or customer. Ensuring product protection, including authentication capabilities, across various touch points throughout the supply chain through track and trace implementation, is important to address the challenges industry faces. Apart from providing visibility and full traceability from manufacturer to consumer, successful serialisation programs can prove to be a key differentiator and a clear competitive advantage for companies. Today,QuickResponse(QR)codes, which use four standardised encoding modes (numeric, alphanumeric, byte/binary and kanji) to efficiently store data, are being linked with holograms to provide integrated track & trace and authentication solutions which, among other benefits, can help governments improve excise duty collection and minimize product counterfeit, contraband and illegal parallel trading by enabling tracking of each saleable item from its point of origin to the point of sale. Incorporating these codes in to a hologram delivers authentication of the product and the code in one feature, making this an efficient and effective method of product protection. Systems like Andrews & Wykeham’s THESEUS™ can also be applied as an anti-counterfeit solution not related to taxation for such market segments as pharmaceutical. Not only do systems like this one assist in maximising tax collection and reducing counterfeits, they are also tools the government can use to leverage public confidence. THESEUS™ for example includes an open Internet interface, which enables any member of the public Everyone involved in the goods supply chain - manufacturers, distributors, consumers, taxation and government authorities- has learnt the value of security holograms and will be reassured by their presence on products and/or the packaging, recognising the benefits they provide. However, as coding and serialisation becomes mandated in various countries for products such as medicines and tobacco products, the ability to incorporate QR, data matrix and other types of code in to holograms further enhances the role they can play in supply chain control. Ian Lancaster, general secretary of the International Hologram Manufacturers Association, highlights the latest developments. Ian Lancaster IHMA
  • 16. www.homai.org16 The Holography Times Vol. 8, Issue 24 to verify products are genuine and duty-paid, and uses high- security labels with holographic and security print features, carrying two-dimensional QR- format barcodes with item- specific information. These codes are protected from unauthorised access and reproduction by state-of-the-art electronic digital signature (EDS) technology. Another technology finding its way to increased integration with holography is coding foil, which is used to stamp various markings onto product packaging by means of a coding device. These markings provide the consumer with important information such as a product’s expiration date, production date, the weight, or the price, and are especially beneficial when it comes to the need to mark a product’s quality or add high performance labelling. And in today’s health and eco-conscious world, manufacturers ensure that these foils comply with all necessary regulations, including the strict limits in EN 71/Part 3, the EU packaging guidelines 94/62/EC, and the American CONEG specification for heavy metals and lead chromate. The Kurz Group, for example, is a market leader whose eco-friendly coding foils are enabling product manufacturers and others in the supply chain to choose from a diverse product line that includes a wide range of grades and colours to meet the demanding requirements of modern product packaging, labelling and retailing. Coding foils are just one product that can be integrated with holograms to boost the role played in supply chain control. Kurz’s TRUSTSEAL® range of difficult to copy holographic authenticity features visually enhance the brand, build consumer confidence, and provide a high level of counterfeit protection. These optical security features can be combined with the web-based TRUSTCODE® identification system. The TRUSTCODE® system connects the real world to the virtual one: detailed product information can be accessed by buyers, retailers, customs officials and brand owners using different smart phone scanning processes. The company has also developed diffractive 2 D barcodes with an appealing aesthetic that enhances the value of the product. Rather than being printed, the barcode is appliedasasilvercoloredstamping foil into which the actual code has been incorporated as a diffractive, holographic-like structure. Elsewhere, companies like MTM Technologies Inc are pioneering othercodedholographysolutions such as the HoloTag to protect against brand piracy and product theft in the supply chain within the framework of its integrated security concept. Integrated with other technologies the MTM hologram linked with a taggant combines visible proof of any tampering with an individual security code for authentication. The HoloTag 2D barcode system has applications in many areas: from government revenue collection to publishers and manufacturers of products. Checks can be carried out within the supply chain with a HoloTag trackandtracemobileapplication that can be downloaded onto most smart phones, or accessed from a browser, allowing the user to gather a lot of information in the field and track this in real time. The technology plays an important part in combating counterfeiting and piracy of taxable items, helping brand owners control their inventories and prevent them from producing excess items which can be targets for smuggling. Unquestionably, one of the keys to the success of holograms since being adopted for authentication purposes in the early 1980s has been the ability to adapt and constantly find new roles. We will undoubtedly see more and more interesting developments for the technology that will offer far reaching benefits that develop and expand further the role of track and trace. So, with the seemingly remorseless march of technology and the resolve of governments, anti-counterfeiting agencies and companies around the world to stand firm in the face of international organised crime, as well as the casual opportunist, there’s no reason why the hologram will not continue to evolve, becoming further enmeshed in global supply chains and continuing to add real value. The International Hologram Manufacturers Association (IHMA) - www.ihma.org - is made up of nearly 90 of the world’s leading hologram companies. IHMA members are the leading producers and converters of holograms for banknote security, anti-counterfeiting, brand protection, packaging, graphics and other commercial applications around the world. IHMA member companies actively cooperate to maintain the highest professional, security and quality standards. Issued on behalf of the IHMA by Mitchell Halton Watson Ltd. For further details contact Andy Bruce on +44 (0) 191 233 1300 or email andy@mhwpr.co.uk Guest Column
  • 17. www.homai.org 17 The Holography Times Vol. 8, Issue 24 Industry Updates Food & Beverage Fake Oranges seizures becomes Hong Kong’s first counterfeit fruit scandal http://www.scmp.com/news/hong-kong/ article/1496013/fake-fruit-gives-buyer-sour-taste Illicit liquor seized worth ` 1.6 million, Mumbai, Maharashtra, India http://timesofindia.indiatimes.com/City/ Thane/Over-75000-litres-of-illicit-liquor-seized/ articleshow/33031649.cms Police seize illicit liquor worth ` 2.14 cr http://freepressjournal.in/city-police-seize-cache- of-illicit-liquor-worth-rs-2-14-crore/ Delhi Police seized 5000 bottles of illicit liquor http://www.dnaindia.com/india/report-delhi- police-seizes-5000-quarter-bottles-of-illicit- liquor-1969810 Fake VODKA worth £ 1 million found http://www.mirror.co.uk/news/uk-news/fake- vodka-worth-1m-found-3151850 Fake pesticides a threat to Kashmir apples http://indianexpress.com/article/india/india- others/fake-pesticides-a-threat-to-kashmir-apples/ Cosmetics and Personal Care Dubai smells a fake: Dh2 million counterfeit perfumes seized, UAE http://www.emirates247.com/news/emirates/ dubai-smells-a-fake-dh2-million-counterfeit- perfumes-seized-2014-03-24-1.542731 Dh 4.1 million fake cosmetics seized in Dubai http://www.khaleejtimes.com/kt-article-display-1. asp?xfile=data/crime/2014/April/crime_April31. xml&section=crime Pharmaceuticals A $ 2million health counterfeiting ring http://www.newsday.com/long-island/nassau/ health-product-counterfeiting-ring-busted-in- nassau-officials-say-1.7322609 Haryana drug wholesalers booked for smuggling cough syrup http://timesofindia.indiatimes.com/city/ chandigarh/2-Haryana-drug-wholesalers- booked-for-smuggling-cough-syrup/ articleshow/31310436.cms Security and Fiduciary Documents Men caught with $4.1 trillion worth of fake bonds at Vatican Bank, Italy http://rt.com/business/vatican-bank-fake- bonds-285/ ISI fake notes may flood Indian polls, India http://www.deccanchronicle.com/140401/nation- current-affairs/article/isi%E2%80%99s-fake- notes-may-flood-indian-polls Automotive Components Mumbai Police seized fake high security number plates http://timesofindia.indiatimes.com/city/mumbai/ Mumbai-Police-raid-on-fake-high-security-number- plates/articleshow/30864818.cms Counterfeiting news update
  • 18. www.homai.org18 The Holography Times Vol. 8, Issue 24 Industry Updates Publication Title Int. Application Applicant / Inventor DD.MM.YYYY Class Number 06.03.2014 Wo/2014/032238 -Optically D21h 21/42 Pct/Cn2012/080718 Sicpa Holding Sa / Variable Security Threads and Ritter, Gebhard Stripes Brief Abstract: A more sophisticated optically variable security thread or stripe was provided. It could be used in the field of anti-counterfeiting, and comprised: a substrate and i ) a first optically variable layer (1) imparting a first different color impression at different viewing angles, ii )a second optically variable layer (2) imparting a second different color impression at different viewing angles, iii)a first color constant layer (4) having a color matching the color impression of the first or second optically variable layer at a first viewing angle, iv) a second color constant layer (5) having a color matching the color impression of the first or second optically variable layer at a second viewing angle, and v ) one or more material-free regions (0), wherein the first optically variable layer (l), the second optically variable layer (2), the first color constant layer (4), the second color constant layer (5) and the one or more material-free regions (0) are jointly visible from one side of the security thread or stripe. A process for making said security thread or stripe was also disclosed. 19.02.2014 2698404 -Microparticles, C09c 1/00 12771357 Dainippon Printing Anti-Counterfeiting Ink, Co Ltd / Yamauchi Particle Sets, Tsuyoshi Anti-Counterfeiting Toner, Anti-Counterfeiting Sheet and Anti-Counterfeiting Medium Brief Abstract: A main object of the present invention is to provide fine particles, a particle group, an anti- counterfeiting ink, an anti-counterfeiting toner, an anti-counterfeiting sheet, and an anti-counterfeiting medium enabling to achieve a high level of authentication. The object of the present invention is achieved by providing the fine particle comprising an identification information group including multiple types of identification information identifiable by magnification, characterized in that the identification information group includes first identification information and second identification information which cannot be identified at any magnifying power capable of identifying the first identification information. 13.02.2014 WO/2014/023523 - G06K 19/06 PCT/EP2013/064927 3S Simons Security Microparticle, In Particular Systems Gmbh/ Microparticle For The Simons, Rolf Anti-Counterfeiting Marking Of Products Brief Abstract: The invention relates to a microparticle (10), in particular a microparticle (10) for the anti- counterfeiting marking of products. The microparticle (10) has at least one first layer (20) and at least one second layer (30). The first layer (20) forms an outer face (22) of the microparticle (10), and at least the outer face (22) is equipped with at least one mark (15), which is pre-applied onto the outer face (22). None of the dimensions of the microparticle (10) exceed approximately 100 μm. The invention further relates to a method for producing at least one microparticle (10), to a label, to a spread, and to a corresponding use. Global patents
  • 19. www.homai.org 19 The Holography Times Vol. 8, Issue 24 Upcoming events Date Event Name / Place / Website 21-23 May, 2014 Pharma Pro Pack Expo 2014 Mumbai, India, www.pharmapropack.com 16-18 June, 2014 Security Document World London, United Kingdom, www.sdw2014.com 23-25 June, 2014 High Security printing 2014, Latin America Hotel Sheraton, Santiago, Chile, www.hsp-latinamerica.com 23-25 June, 2014 Anti-counterfeiting for Pharmaceuticals and Medical Devices Philadelphia, Pennsylvania, www.anticounterfeitingpharma.com 8-11 Sep, 2014 The 3rd International banknote Designer Conference Montreal, Canada, www.banknotedesignersconference.com 15-17 Sep, 2014 Tax Stamp Forum Dubai, UAE, www.taxstampforum.com 29 Oct – 1 Nov, Label Expo India 2014* PragatiMaidan, New Delhi, www.labelexpo-india.com 3-6 Nov, 2014 Automotive Aftermarket Products Expo Sands Expo, Las Vegas, USA, www.aapexshow.com 19-20 Nov, 2014 Brand Protection and Anti-Counterfeiting Munich, Germany, www.brandprotectionevent.com 3-5 Dec, 2014* The Holography Conference Istanbul, Turkey, www.theholographyconference.com 19-21 Jan, 2015 High Security Printing 2015, Asia, Middle East & Africa Hotel Makati-Shangrila, Manila, The Philippines, www.hsp-europe.com 3-4 March, 2015 IP Protect Expo 2015 Business Design Centre, London, www.ip-protectexpo.com 23-25 March, 2015 High Security Printing 2015, Europe Hotel Corinthia, Budapest, Hungary, www.hsp-europe.com 22-24 April, 2015 Security Printers 2015 Copenhagen, Denmark, www.securityprinters.org 10-13 May, 2015 The currency conference Vancouver, Canada, www.currencyconference.com Published by Hologram Manufacturer Association of India (HoMAI) Editorial Team Issue Editor : C S Jeena Advisor : Mr. Pradip H Shroff Mr. Manoj Kochar Designed & : EYEDEA Advertising Printed by 1250/13, Govindpuri, Kalkaji, New Delhi-19 (India) eyedeaadvertising@gmail.com www.artworxindia.in 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 to Holography 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: 21-Ground Floor, Devika Tower 6 Nehru Place, New Delhi 110019, India Telfax: +91 (11) 41617369 Email: info@homai.org, Website: www.homai.org Disclaimer: The data used here are from various published and electronically available primary and secondary sources. Despite due diligence the source data may contain occasional errors. In such instances, HoMAI would not be responsible for such errors. About HoMAI The Hologram Manufacturers Association of India (HoMAI) is the world’s 2nd and Asia only association representing hologram industry. Counterfeit cartoon * HoMAI participatin events. Meet us at these events to know more about us. Industry Updates