Overview of anti counterfeiting technologies and Opportunities for India

©2019 ASPA www.aspaglobal.com
Overview of Anti-Counterfeiting Technologies
Trends & Developments
Presented by:
Chander S Jeena
Secretary
Authentication Solution Providers’ Association (ASPA)
CSIR-NIIST, 3rd Industry Innovator Meet 2019
Thiruvanthapuram, April 11, 2019

Agenda
❖ Part I Introduction
❑ About ASPA
❑ Counterfeiting problem in India
❑ Factors responsible
❖ Part II Anti-Counterfeiting Solutions
❑ Overview & types of Anti-Counterfeiting solutions
❑ Usage trend and volume
❑ Current R&D and innovation (Examples)
❖ Part III Opportunities and Challenges
❑ Regulation & Market driven
❑ Challenges for Authentication Suppliers (Scientific & Commercial)
❑ Scope of Indigenization
❖ Part IV Future Steps & Conclusion
❑ Government support
❑ Building Awareness

About ASPA
❑ ASPA (Authentication Solution Providers’ Association) is a non-profit
organisation formed in 1998.
❑ AIM is to educate brand owners / authorities towards importance of
authentication solutions in order to fight the problem of counterfeiting.
❑ More than 59+ member companies across the globe providing diversified anti-
counterfeiting have join hands with us (including physical and digital
authentication solutions providers).
❑ Its member companies are protecting more than 20,000+ brands across globe.
❑ Works very closely with industry association such as International Hologram
Manufacturers Association (IHMA), Counterfeit Intelligence Bureau (CIB),
FICCI CASCADE, CII, ACMA, SIAM, PMFAI, Crop Life India, Indian Chamber
of Commerce, ASSOCHAM, Indian Beverage Association and others.
Part I Introduction

ASPA recent initiatives
An unique repository providing a record of incidents
of counterfeiting, theft and illegal diversion of
products worldwide.
www.counterfeitrepository.com
https://aspaglobal.com/events/brand-protection-workshop/
Awareness Campaign for Media
International Forum on Authentication
https://aspaglobal.com/events/authentication-forum-events/
Part I Introduction

Counterfeit in India – Scale of Problem
Part I Introduction
4725
5626
8965 9042 9198
20378
15035
7344
14140
13130
19066
10501
21957
19243
0
5000
10000
15000
20000
25000
Computer
Hardware
Alcoholic
Beverages
Tobacco Mobile
Phones
Auto
Components
FMCG
packaged
FMCG
personal
Loss of Sales to key industries (INR Crore)
FY 1112 FY 1314
Source: FICCI CASCADE

Counterfeit in India – Scale of Problem
Part I Introduction
1234
2511 2726
3174
4646
5660
1923
6309
3113
6704
5953 6096
0
1000
2000
3000
4000
5000
6000
7000
8000
Computer
Hardware
Alcoholic
Beverages
Auto
Components
Mobile Phones FMCG
personal
FMCG
packaged
Loss of Revenue to Govt (INR Crore)
FY 1112 FY 1314
Total loss of revenue more than INR 30000 crore
Source: FICCI CASCADE

Counterfeit in India – Pesticides
Part I Introduction
Notes:
In 2015, FICCI estimates that the non-genuine pesticides market in India is estimated at Rs 3200 crore (25% by value) and expected to grow
20% per year and by 2019 40%. According to recent study by FICCI, the domestic market increased with CAGR 3.5% for period 2013-16, and
expected to grow 6.4% by 2022.
Current 1 USD = INR 70.01 estimate for FY 2022
Sources: FICCI knowledge and strategy paper on Indian Agrochemicals Industry / Doubling Farmers’ Income: Role of Crop Protection
Chemicals & Solutions
13000 13455
22400
0
5000
10000
15000
20000
25000
FY 2014 FY 2017 FY 2022
Indian Crop Protection Domestic Market
Total Market (Rs Crore)
Reducing
counterfeit
market even by
5% means
additional
business of 600
crore every year
considering FY
2014 figure
Counterfeit Market
Rs 3200 cr (25%)
CAGR
40% of
value

Counterfeit in India New Trends
Sources: ASPA Counterfeit News Repository http://www.counterfeitrepository.com/
Darmer writes to CM, says no to loan waiver, request to curb fake pesticides
Edible oil unit raided for counterfeit, seized 7,300 kgs of EO
Counterfeit Index
Alone in Jan 2019, more than 25+ incidents have been reported of counterfeit seizures
Part I Introduction
Over 21000 unites of fake blood plasma seized in Northern States of India
Fake sugar free prepared from Homeopathic medicines
Fake mustard Oil, 70% of samples fail quality test
Spurious cosmetics wreck Kerala beauty parlours
One in five online products received fake products

Situation of Prosecution in most regulated sector (Medicines)
Sources: Lok Sabha and Press Information Bureau
Part I Introduction
211 214
237
152
141
110
86 85
16 6
44
10
0
50
100
150
200
250
FY 112 FY 1213 FY 1314 FY 1415
Prosecution of Manufacturing, Sales & Distribution of Spurious /
Adulterated Drugs
Prosecution launched Cases decided Person arrested

Factors Responsible
Counterfeiting Increase because of
various factors, however, the two
key factors are
Lack of Awareness
Consumer / Industry/ Govt.
empowerment to identify fake
vs. genuine
Part I Introduction

Types of Anti-counterfeiting Solutions / Technology
Security buying, important consideration;
❑ Use at-least one level of overt authentication
❑ Focus on ethical vendor which can provide multi layered security solution, have secure
manufacturing / services and adhering to best practices
❑ The solution should provide authentication element such as tampering resistance and can fulfill
integration process (security, manufacturing, compliance etc.)
❑ To select technology take help of published standards such as ISO 12931 and NASPO
Authentication
Physical Authentication
Anti-Counterfeiting Anti-Tamper
Tamper Evident
Labels / Closures
Digital
Serialization
Track and
Trace
Mobile
Authentication
Blockchain / AI
Part II Anti-Counterfeiting Solutions

Types of Anti-counterfeiting Solutions / Technology
Anti-Counterfeiting
Substrates &
embedded
security
Fibres,
planchhates
Thread
Watermark
Coatings
Security
Printing
Process
Intaglio
Digital
Printing
OVD’s &
Hologram
Security Inks
Optical effect
ink
Luminescent
inks
Machine
readable inks
Taggants
Organic
taggant
Rare earth
taggant
Nano
technology

Few Examples of Innovation – Substrates (Fibres)
Fibres - Fibres, planchattes & particles- The security fibre length (typically 3-8mm), thickness (typically 6-
8 denier), colour and colour combinations can be specified. The fibres are made of either polymer or
paper. Two or three different fibres are commonly used. The fibre properties and distribution density can
be defined for each individual colour. Small-format items such as tax stamps require higher fibre
distribution (fibres per 10cm2 area) to ensure that at least one fibre falls within the item level. More
recently, complex fibres have become available, such as striped, multicoloured fibres or shaped fibres,
as well as chemically, thermally or optically reactive fibres.
Source: Reconnaissance Anatomy of Tax Stamps & Polish Security Printing Works

Few Examples of Innovation – Substrates (Thread)
Security threads consist of polyester-based, often metallised, ribbons, that are incorporated
into the paper. Threads owe their security properties to two factors. One is the complex
process of incorporating them into the paper in the first place.
Use of thread in Tax Stamps China Color DanceTM

Few Examples of Innovation – Holograms
Some of the recent developments in holographic features. A) Hueck Folien Holographic
Stripe b) Photopolymer Holographic Material & c) Rolling Optics Crystal 3D effects
Source: Hueck-Folien / De La Rue & Rolling Optics

Few Examples of Innovation – Inks (Design Based)
Gemini™ – the original design variant uses two UV visible inks that are precisely colour
matched to appear as the same colour in normal lighting conditions. Under UV illumination
the two inks fluoresce to give different colours, allowing a quick and appealing way to
authenticate the banknote. The use of colour matched inks that fluoresce differently
creates an additional barrier for a counterfeiter to overcome compared to standard UV
features. Inks are applied so that under UV illumination they reveal a pattern made up of
geometric shapes rather than solid areas of colour.
Source: De La Rue

Few Examples of Innovation – Inks
Security Inks for printing codes
In addition to the security inks that are applied through
the more traditional processes of intaglio, offset,
silkscreen, flexography and gravure, there are a
growing number of security toners and inks available
for digital printing – in particular inkjet. Inkjet is the
most common printing method for personalising tax
stamps, including the application of unique barcodes
for track and trace purposes. Personalisation must be
done in such a way that it cannot be easily replicated,
and the type of inks used can play a key role in this..
Anti-Erasing Ink: Can be used to mark expiration dates on the label of medicinal or other
consumable products to stop counterfeiters from selling expired goods with changed dates.
Holograms – Security Holograms have been used for anti-counterfeiting measures for a long
time.
Source: Luminescence

Few Examples of Innovation – Inks
Machine readable inks: Machine-readable inks fall into the covert category of
security features. They include magnetic inks, as well as inks that contain pigments
with unique spectral profiles. A particular ink can be assigned to specific applications
and used to verify the authenticity of the tax stamp – and in turn the product –
through the use of special reading devices. The covert category also includes inks
which carry ‘taggants’, which are also known as forensic markers.
Source: SICPA

Few Examples of Innovation – Taggants
Taggants
Organic Taggant
In-organic taggants Nanotechnology
Rare-earth taggants have been used extensively and to great effect in banknotes, where
their presence is verified by detectors throughout the manufacturing process, and
subsequently by detectors in high-speed sorting machines. These inorganic taggants are,
however, unsuitable for inkjet printing, due to their size and abrasive nature.

Few Examples of Innovation – Product Authentication
Key learnings:
- Integration
- Usage
Source: FMC Corporation, Security Seal for Crop Protection

Few Examples of Innovation – Key Message
Level of
Security
Types Key Trend
Overt Hologram, Optical
Inks, Threads,
Watermark & Printing
process
New generation feature which can
provide instant recognition
Bold features
Magnetic features
Integration with IT technologies
Covert &
Forensic
Security Inks,
Taggants,
Dedicated feature for authorities
Machine readable
More complex & combination
DNA & Nano technology based
Rare materials

Usage Trends, Volume and Market Size
Part III Opportunities & Challenges
Tax Stamp Production in India
Annual Volumes 22 billion
Annual Growth Rate 12-15%
Commercial Producers (Paper based) 3
Commercial Producers (Hologram) 8
Issuing authorities 29+7
*All commercial producers of tax stamps in India are ASPA members. In fact, one of our member
companies was the first to introduced holographic tax stamp in India.
Global Volumes approximately 200 billion stamps
Source: ASPA / International Tax Stamp News

Volume – Global Currency production
Banknotes
Annual Volumes Circulation 130
billion
Annual Growth Rate 5-6% (excluding
china)2-15%
Commercial Producers – Substrates (Paper+Polymer) 11
Government Producers – Substrates (paper) 15
Commercial Producers – banknotes 7
Government Producers – Banknotes 55
Issuing authorities / currencies 186
Source: Currency News

Other New Markets
Fuel Marking
Cannabis

Recent Regulation – Global & International
Industry Area Regulation Requirement
Pharma USA DSSCA Serialization & traceability
Pharma EU FMD Serialization with Tamper
Evident solutions
Tobacco Global &
India
FCTC & TPD Tax stamps with traceability
Crop-
Protection
India Labelling Hologram with barcode
Foods India &
Global
Product
traceability
Liquor India &
Global
Tax Stamps Goa, Maharashtra, Rajasthan
& others

Usage Trends, Volume and Market Size

Challenges for Authentication Solutions Providers
Scientifically &
Technology
Commercial &
Marketing
Staying ahead of counterfeiters &
development of new features
How to be part of global value
chain?
Investment in capacity building –
Technology, Traceability and
standardization
Building Awareness
Proper training for selling
technologies (especially in
product authentication sector)
How to integrate consumer in
authentication process?Standards

Support from Government
Part IV Future Steps
Step 1: Government must recognize Anti-Counterfeiting as an industry working
on consumer protection & country economy.
Step 2: Set up an institute of learning center for development of Anti-
Counterfeiting Technologies and solutions.
Step 3: Anti-Counterfeiting Industry in India could be emerged as global hub of
quality production (BPO / KPO).
Step 4: Government can set up an Anti-Counterfeiting Task Committee which can
comprising of Scientist, Association and other leading experts
Step 5: Government can mandate brand owners should spend some percentage
of their CSR budget in brand protection & anti-counterfeiting activities. At the end,
Brands is their biggest asset. In return, brand owners must be incentivize for their
commitment towards quality products.

Opportunities for CSIR as an institutions
Part IV Future Steps
KNOWLEDGE
CENTRE
Bridging Gap
between
institutes /
companies &
Govt.
R&D /
Innovation
Education
Assistance to
Industry /
Govt. in
Technology
Transfer &
Consultancy
IIT Kanpur (National
Centre for Flexible
Electronics working on
3D tag
Forensic Institutes
Industry Certification Program
Michigan University (A-CAPP)
Creating talent pool of Anti-
Counterfeiting professionals
Representation at global level
(Standards Body Meeting)
G2G - US Engraving Global Bid

Thank You
For more information, please contact
Secretariat
Authentication Solution Providers’ Association
21-Ground Floor, Devika Tower 6,
Nehru Place, New Delhi 110019, India
Email: info@aspaglobalcom
Website: www.aspaglobal.com
Disclaimer: Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and
opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the
Authentication Solution Providers 'Association (ASPA). ASPA does not endorse or approve, and assumes no responsibility for, the content, accuracy or
completeness of the information presented. 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, ASPA would not be responsible for such errors.

Overview of anti counterfeiting technologies and Opportunities for India

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Overview of anti counterfeiting technologies and Opportunities for India

Ähnlich wie Overview of anti counterfeiting technologies and Opportunities for India (20)

Mehr von Authentication Solution Providers' Association (ASPA)

Mehr von Authentication Solution Providers' Association (ASPA) (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Overview of anti counterfeiting technologies and Opportunities for India