The Holography Times, February 2010, Volume 3, Issue No 9
Ht issue 14 201106
1. June 2011 | Volume 5 | Issue 14 www.homai.org
The Holography Times
An endeavour to protect products and people
Regulatory
control
The Holography Times is a quarterly newsletter published by
Hologram Manufacturers Association of India (HoMAI)
Pharmaceutical industry
needs an effective strategy to
combat counterfeiting
Pharma company
initiative
Anti-counterfeiting
strategy
Usage of anti-counterfeiting
technology
Consumer
education &
retailer recognition
www.homai.org 1
2. VISIONFOIL 104 H
The Holography Times News Bytes
The real thing
The VISIONFOIL 104 Hologram from BOBST gives you and your customers
the strategic advantage needed to win the war against product and
brand piracy, delivering ultra precise application of every size and
type of hologram currently in the market, plus many that are not yet
commonplace. From banknotes to visas, and from tickets to packaging,
the VISIONFOIL 104 H handles them all effortlessly.
After all, it’s the real thing.
2 www.homai.org
B O B S T G R O U P . C O M
3. The Holography Times
Viewpoint
Pharmaceutical industry needs
an effective strategy to combat
counterfeiting
In 2010, the global sale of counterfeit drugs was estimated
US $75 billion*. That’s a 92 percent increase in just fi ve years,
according to estimates from the Centre for Medicines in the
Public Interest (CMPI). This is a major issue for drug companies
and an even bigger problem for patients those live may depend
on these medications.
Globally, governments and drug companies are implementing
various efforts to tackle this problem for example;
- in 2005, Malaysian government started usage of
holographic label on all its registered medicines;
- in 2009, the EFPIA announced the pilot of its coding and
identifi cation solution in Sweden;
- in July 2010, the National Agency for Food and Drug
Administration and Control (NAFDAC) started using Mobile
Authentication Services (MAS) and an RFID system;
- and recently the Drug Controller General of India (DCGI) is
going to implement bar-codes for pharma exports in India
from July 2011.
Although these initiative are welcome, still there is a need to do
lot more.
The negative impact of counterfeiting can be diminished to a
great level if it becomes a part of every brand strategy – plan
and review process with the accountability of the brand owners
towards its most valuable assets- for example Brand.
C S Jeena
Editor
1US $ = ` 45 (3 month average)
In this issue
4-7
News Bytes
8
Pharmaceutical
Industry
Needs an effective strategy to
combat counterfeiting
Global Trends 11
Hologram providing effective
combination of authentication features
Expert Insight 13
Enterprise risk assessment &
management
Tender Updates 15
Industry Trends 16
Global Patents 17
Industry Updates 18
Upcoming Event, 2011 19
www.homai.org 3
4. The Holography Times News Bytes
Holograms may be included in trademark law
It follows news from Taiwan
where government authorities
have introduced a bill to expand the
types of representation protected
by trademark law by including
holograms, 3D shapes and
movements for the fi rst time.
The idea is that anything that serves
to ‘identify’ something, whether
in the form of words, patterns,
graphics, colors, holograms or
sounds, could be submitted for
trademark protection in Taiwan.
The International Hologram
Manufacturers Association
(IHMA) says that this will boost
the protection of the intellectual
property rights of holograms and
will be a boon for brand owners
looking to protect their products
and market share.
Holograms have to date been deemed
to be covered by copyright law (as
covered in the Berne Conventions)
and the European Community
Design Rights, but they have not
been specifi cally mentioned in any
national legislation on trademark
or copyright. The Taiwanese move
is therefore a step forward for the
‘normalisation’ of holograms as a
protected item.
Wang Mei-Hua, Director-General
of Taiwan’s Ministry of Economic
Affairs’ Intellectual Property Offi ce
(IPO), said that if the revised law is
passed, animation and holograms
that appear on mobile phones could
also receive trademark protection.
She said the Nokia Corp image
that appears when its cell phones
are turned on has already been
registered as a trademark in several
countries and the fi rm could also
apply for protection in Taiwan if the
draft bill is passed.
The Trademark Act amendment
approved by the Legislative
Economic Committee will add
animations (movement), laser
logo (hologram) and three-dimensional
shapes to the current
legal recognition of a trademark
as a word, fi gure, symbol, color,
sound, three-dimensional shape or a
combination thereof’.
Glenn Wood, US media
representative for the IHMA,
welcomed the news, adding: “This
has got to be seen as a step in the right
direction as holograms play a vital
part in the battle to stem the fl ood of
counterfeit goods emanating from
Taiwan and other parts of the world.
It should help all involved in anti-counterfeiting
and brand protection
and could pave the way for similar
moves around the world, which has
to come eventually.” ■
Source: www.ihma.org
“The International
Hologram
Manufacturers
Association (IHMA)
has welcomed a move
which could lead
to holograms being
specifi cally covered
under a national
trademark law for the
fi rst time”
Alpha Lasertek installed Optodigital KINEMAX
Alpha Lasertek India
one of the most
trusted anti-counterfeit
hologram manufacturers
in India has installed an optodigital
KINEMAX hologram mastering
system from Polish Holographic
System, Poland. The system
comprises HiSec type of origination
and litho type origination with a
resolution of 120,000 dpi*. The
company has already commissioned
this system and is pleased with its
performance.
Founded in 1991, Alpha Lasertek
is focusing on to develop the most
effective overt technology to help
Indian consumer in identifi cation
of fake products. According to
Urvinder Singh, Director Alpha
Lasertek “The system will help in
providing cutting-edge technology
to our esteemed customer’s, as with
this we can provide highly secured
hologram including ‘Grey color’
hologram”. The quality and features
of this system are very close to
e-beam master but available at 10%
of the price of e-beam master”. ■
For more information contact at
+91.9717499005 or
e-mail urvinder@alt.co.in
* DPI stand for dots per inch, a measure of printing resolution
4 www.homai.org
5. The Holography Times News Bytes
Contraband cigarette
market estimated at
` 1,700 cr (USD 425 million)
Hologram
seals to
prevent
spurious
N EW DELHI: ‘Extremely high’
liquor excise duty on cigarettes in
India has increased the incentives
for contraband trade in the country,
estimated at ` 1,700 crore (USD 425
million), according to a Euromonitor
International Study.
The illicit cigarette market in terms of
volumes has grown by 57.7 per cent
during 2004 to 2009 in India, as per the
study commissioned by industry body
ASSOCHAM.
Commenting on the fi ndings, Tobacco
Institute of India Director Udayan
Lal said, “The extremely high excise
duty rates on cigarettes provide a very
lucrative opportunity for evasion.”
According to him, the clandestine
activity has gained momentum, after
the central government cummulatively
increased the excise duty on cigarettes
by 42 per cent. The forecast is that
illicit consumption will continue to rise
over the next fi ve years.
Illicit cigarettes consist of not only
smuggled international brands, but also
duty-evaded cigarettes manufactured
domestically by small, unscrupulous
manufacturing units. “The Institute
seeks tax stability on cigarettes,
coupled with a widening of the tax
base through reduction in the large
tax differential between cigarettes and
other tobacco products,” Lal said.
In the list of top 15 countries with high
consumption of illicit cigarettes, India
is at the fi fth position in terms of growth
rate between 2004-2009 in volumes,
followed by Malasiya, Romania,
Pakistan and France, respectively.
“In 2008, the per pack price gap
between tax paid and contraband
widened across all price segments.
For example, a premium brand pack
of 20 sticks of India Kings retailed at
` 100, while its smuggled competitors
such as Marlboro and Rothmans were
available at a steep discount, selling for
` 80-85,” according to the report.
Globally, the world’s top 15 countries
account for some 79 per cent of
global illicit cigarette consumption
with China the largest (36.2 per cent),
despite a 19.4 per cent fall in illicit
cigarette consumption over 2004-09.
“The BRIC countries accounted for
around 50 per cent of all illicit trade in
2009,” it added. ■
Source: Euromonitor
Hyderabad, Andhra
Pradesh, India: The state
government of Andhra Pradesh
in India is contemplating
introduction of hologram seal
with bar coding to check sale
of spurious liquor and also to
improve the revenue generation.
The excise department has fi xed
a target of ` 9000 crore (USD 2
billion) as revenue from excise
for 2011-12.
According to offi cial sources,
the paper seals being put on
the liquor bottles are easily
tampered with. Hologram seal
with bar coding would help in
preventing the sale of spurious
liquor as well as identifying the
distillery where the liquor has
been manufactured and the date
of manufacture and other such
details.
The sources said the government
proposes to introduce holograms
of three different colours. Two
different colours for exports and
imports and another for those
manufactured and sold within
the state. ■
Source: www. articles.timesofi ndia.
indiatimes.com
Table 1: The 10 biggest market for illicit trade in 2007
Ranking Country Illicit trade (bns of cigarettes)
1 China 214
2 Russian Federation 76
3 United States 62
4 EU 58
5 Brazil 38
6 Phillippines 19
7 India 18
8 Indonesia 14
9 Pakistan 13
10 Turkey 12
www.homai.org 5
6. The Holography Times News Bytes
` 500 crore
(USD 125 million) for
high-security
number plates
Gujarat, India: The state government has initiated the
process to implement the ` 500-crore (USD 125
million) High Security Registration Plates (HSRP) project
for all types of vehicles across Gujarat. The project is
aimed at preventing duplication of the registration plates,
thereby preventing crimes. The city has about 17.69 lakh
(1.7 million) vehicles, including two, three and four-wheelers.
The system has security features to prevent counterfeiting
and duplication of such registration number plates. The
specifi cations of plates on different type of vehicles have
already been laid down in order to ensure uniformity in
size, colour and specifi cations of the registration plates
across the country.
As per the guidelines of the Union Ministry of Road
Transport, the State Transport Department has started the
work of establishing technical network for the project.
The government has recently invited tenders for the
project, which will be implemented on the build, own
and operate (BOO) basis.
According to the State Transport Commissioner, J P
Gupta, “After the implementation of this project, all new
vehicles will use HSRP, while the older vehicles will
have to replace their old number plates with HSRP. The
government will appoint authorised vendors at all the
Regional Transport Offi ces (RTOs) from where vehicle
owners can get HSRPs.”
The plates will be highly secure with “lock, hologram
and unique numbers”. “At present, there is no standard
number plate system in the state,” he said, adding that
the project will cover the entire state within a year. The
department is also working on digitisation of all the
vehicle data and is likely to introduce chip-based driving
license and vehicle registration book, said Gupta. ■
Source: www.articles.timesofi ndia.indiatimes.com
6 www.homai.org
7. The Holography Times News Bytes
Schreiner
MediPharm
unveils
specialty
labels for
autoinjectors
Schreiner MediPharm, a
Germany-based provider of
specialty pharmaceutical labelling
products, has launched a new multi-functional
label for self-medicating
autoinjectors and pens.
The new label is equipped with
a tamper-evident feature in the
form of a perforation that provides
assurance the autoinjector or pen
was not previously opened and
that it contains the correct drug.
The position of the perforation
also ensures that once it has been
opened, the cap cannot be closed
again undetected. Additionally,
there is a transparent window in
the label that enables the user to
visually check the fi ll level of the
contents within.
Holograms to
safeguard handicraft
products
To prevent the user’s hand from
slipping during the injection, the
label has a non-slip texture for
improved grip and safe handling.
Due to the special material
properties the label snugly fi ts
the shape of the autoinjector and
reliably adheres to the plastic
surface.
‘With a focus on safety and
comfort, we have created a unique
solution that can be customized to
suit various injection systems,’ said
Gene Dul, President of Schreiner
MediPharm. ‘The self-medication
market is growing rapidly and this
product will help improve patient
safety on several levels.’ ■
Source:www.schreiner-medipharm.
com
Ufl ex to set up US
polyester-fi lm plant
Raipur, Chhattisgarh, India: In an attempt to
preserve the traditional art of Chhattisgarh, the
government has decided to use holograms on every
handicraft produced in the state. The Chhattisgarh
Handicraft Development Board is developing hologram
for the purpose.
Now, the buyers will get guarantee cards with every
handicraft item that they purchase. The authorities
believe this step will curb the duplication and theft of
the traditional art and craft of the region. Till now, the
authorities have managed to get only bimetal patented.
This has encouraged the fraudsters to duplicate other
items or steal these items and sell them at higher prices
in the international market. ■
Source: www.cghandicraft.com
India-based substrate provider Ufl ex Ltd. will set
up a polyester-fi lms plant in the US. The project
represents a USD 80-85 million investment, which will
be made through a 100% subsidiary of the company,
reports Equity Bulls.
Ufl ex has expanded its plastic-fi lms production
operations across the globe over the past few years. It
recently opened a new site in Egypt and added capacity
to its Mexico plant. The US site will be the company’s
sixth facility. In February, Ufl ex announced a USD80
million investment to construct a new plant in Wrzesnia,
Poland. That facility is said to begin operations in June
2012. ■
Source: www. ufl exltd.com
www.homai.org 7
8. The Holography Times
Indian pharmaceutical industry
Needs an effective strategy to combat counterfeiting
Counterfeit pharmaceuticals
are an ongoing problem
worldwide and the labelling
industry has been heavily
regulated as a result. Different
geographies can sometimes
be at a higher risk than others,
and in recent months, India
has been cited as a source of
counterfeits. The recent decision
of Government of India of
fi nalization of implementing bar
code attract the attention of the
industry. This comes on the heels
of a discovery of “Made in India”
labels on fake pharmaceutical
products produced in China.
To combat this, all Indian
pharmaceutical exports will
carry a barcode as of July 1,
2011 on primary, secondary and
tertiary packaging.
Missing Element - No
protection from fakes or
tampering
The better-late-than-never rule
will allow medicine to be traced
and tracked to its source of origin.
Bar code is a good solution for
tracking and tracing of goods, but
a problem will always remain if
the product is counterfeit during
the supply chain. As when the
code is simply printed onto the
packaging, it does not protect
Cover Story
the pack against counterfeiting
or tampering.
i. Traceability features are not
immune against foregery
and require additional anti-counterfeiting
feature to
ensure their own authenticity
as well as the authenticity of
the product they are attached
to.
ii. The codes can simply be
copied and printed on to
illegal produced packaging,
or the original product can
be removed from the original
pack and replaced by fake.
iii. The consumer is obvious to
this if the produce pack itself
is not properly protected.
One needs to understand
that product identifi cation
technologies such as barcode and
DMS1 tracking should be used to
facilitate the overt, covert and
other forensic technology, not
to compete with these proven
technologies.
Example: EFPIA2 product and
verifi cation project (Figure 1)
In May 2009, the EFPIA
announced the pilot of its
coding and identifi cation
solution in Sweden. The EFPIA
“One needs to understand
that product identifi cation
technologies such as
barcode and DMS tracking
should be used to facilitate
the overt, covert and other
forensic technology, not to
compete with these proven
technologies”
8 www.homai.org
9. The Holography Times
Cover Story
Table1 : Overview of some security options
Manufacturer Distribution Regional Pharmacist / End User
Holograms Minimal cost Easy to check Easy to check Easy to check Easily
Micro-printing Minimal cost Easy to check Easy to check Easy to check Education is
Taggants Moderate to Special reader Special reader Special reader Manufacturer
high cost required required required would need to
Color shifting Moderate to Easy visual Easy visual Easy to see / would need to
inks / Digital high cost inspection / inspection / manufacturer Brand
watermarks reader required reader required authenticate differentiation
Frangible and Minimal to Easy to detect Easy to detect Easy to detect Easy visual to
other security moderate cost tampering / tampering / tampering / detect
stocks reader required reader required reader required tampering
Serialisation Moderate to Special equipment Special equipment Special equipment Possible human
high cost needed, track- needed, track- needed, track- code available
RFID Moderate to Special equipment Special equipment Special equipment Manufacturer
high cost needed, track- needed, track- needed, track- would need to
solution does not provide for
verifi cation by the patient, as it is
the Pharmacists who will check
a unique identifi cation code on
each individual pack when it is
dispensed to patient.
These codes are generated and
applied by manufacturers using a
simple 2D Data Matrix Barcode,
which contain a unique serial
number. The scan revealed any
duplication of data on packs and
triggers the system to immediately
alert the pharmacist to the
possibility of a counterfeit product.
This solution presumes that all data
collected in a central location in a
timely fashion and can be queries
against at anytime from almost
anywhere. This opens up a list of
question;
i. Who is going to be responsible
for storing and managing this
data?
ii. Who will pay for it?
Cycle Distribution Hospitals
Centre
with proper with proper with proper important
equipment equipment equipment
and-trace and-trace and-trace
and-trace and-trace and-trace authenticate
iii. Are pharmaceuticals fi rms
willing to share their data with
everyone else in the supply
chain?
iv. Most pharmaceutical products
pass through many hands along
the supply chain before they
reach their fi nial destination,
which increases the chances
of product counterfeiting,
especially in European
market, where distribution
involves many countries and
languages. The long supply
chain increases the risk of
products being repackaged or
exchanged at the temporary
storage facilities.
With this solution, a pharmaceutical
company still loses, because you
cannot tell which product is the
counterfeit, so if the fake product
was dispensed fi rst, then you are
going to end up holding back the
genuine product when you get a
duplicate hit.
recognized
security
authenticate
EFPIA had himself acknowledges
that the system check the code,
not the product, so it does not
necessarily authenticate that the
medicines is genuine, but it will
identify that the code is genuine.
(see, Pharma Anti-counterfeiting
news, Issue no1, August 2009).
Anti-Counterfeiting is a multi-layered
approach
Counterfeiters can quickly
identifi ed and duplicate many drugs
and drug safety measures. This is
why a multi-layered approach to
counterfeiting is essential for opting
drug security. Printers should
provide both overt and covert anti-counterfeiting
solution.
EFPIA and OPPI3 (India) both
have specifi ed various safety
elements for every drug unit. As
per EFPIA, fi rst, products should
have a tamper-evident container
closure system with overt and or
covert authentication features,
second, packaging should contain
www.homai.org 9
10. The Holography Times
An effective strategy
Malaysia Meditag
Introduction:
The Malaysian Government
considers healthcare a priority
and has introduced a number of
schemes in past to help boost the
sector. The most notable, and
benefi cial to OTC, was been the
launch of “Meditag” holographic
authentication sticker. It was
introduced in 2005 by Malaysian
Ministry of Health to confi rm the
authenticity of medicines registered
with the Ministry.
a randomized 2D barcode on each
unit, and lastly, the supply chain
should be transparent.
Further, the choice of technique
should be depends on how the drug
manufacturer intends to use security
features, for example, a mandatory
in favor of an individual technology,
can backfi re, once it fails.
Need of multi-layered security
In selecting a security feature,
various tradeoffs are necessary
between security and usability. It
is possible to secure a document
or product almost absolutely
by applying layer after layer of
complex security features, but to
fully authenticate would require far
What is Meditag?
The self-adhesive holographic
Meditag measures 8mm x16mm
and contains three levels of security.
For unaided visual security, the
label employs Hologram Industries
(HI) proprietary diagram technique.
A second level of security can be
established through the use of a
handheld instrument, and a third
level for machine readability is also
provided for forensics testing.
more equipment and resources that
is really feasable or necessary.
The most effective brand protection
is a multi-layered solution, with
suffi cient barriers to deter criminal
activity, ideally combing both
overt and covert approaches. This
strategy will go a long way towards,
protecting patient safety, as well as
country reputation and revenues of
pharma companies.
References
i. HoMAI report on pharma counterfeiting
and hologram
ii. How to select a security feature “ The
Document Security Alliance (DSA) and
The North American Security Products
Organisation (NASPO)” www.
documentsecurityalliance.org / www.
naspo.org
Cover Story
Result: Since the Ministry of
health introduced meditag in
2005 instances of un-registered
medicines (which are often
counterfeit) on the market has
fallen by up to one-third.
Source: Paper presented by Ministry
of Health at Global Forum on
Pharmaceutical Anti-Counterfeiting
held in Washington, DC, June 2008 and
by Mediharta at Holopack-Holoprint,
November 2010.
iii. Solutions in the fi ght against drug
counterfeiters “Schreiner MediPharm”
www.schreiner-medipharm.com
iv. Anti-Counterfeiting – A multi layered
approach “Eric Caro of Catalent
Pharma Solutions” www.samedanltd.
com / www.catalent.com
v. DuPont anti-counterfeiting solutions /
www.authentication.dupont.com
vi. European Federations of Pharmceutical
Industries and Association (EFPIA)
white paper “The Anti-Counterfeiting
of Medicines”
Bibliography
1. DMS- Digital Mass Serialization
2. EFPIA- European Federations
of Pharmceutical Industries and
Association
3. OPPI- Organization of Pharmaceuitical
Producers of India
10 www.homai.org
11. The Holography Times Global Trends
Pharmaceutical anti-counterfeiting
Hologram providing effective combination of authentication features
by Ian Lancaster & Glenn Wood, IHMA
“Holograms can now
combine authentication
overt features with
covert elements and
forensic and track
and trace elements
to provide a highly
effective weapon in
the fi ght against illicit
products”
Counterfeit concerns
A joint survey by the International
Pharmaceutical Federation (FIP)
and Pfi zer revealed that pharmacists
are concerned over the global
problem of counterfeit medicines.
The survey, conducted by APCO
Insight, was reported at the FIP
Congress, Lisbon, Portugal.
Consequently, Ian Lancaster,
general secretary of the International
Hologram Manufacturers
Association (IHMA), believes
that the pharmaceutical industry
can do more to combat counterfeit
pharmaceuticals.
Lancaster cites survey results that
almost two thirds (63 per cent) of
2000 community, retail, and hospital
pharmacists surveyed in Europe, the
United States, and Australia believe
current policies and technology are
insuffi cient to deal with counterfeit
medicines. In addition, 61per
cent of those surveyed also said
that the prevalence of counterfeit
medication is a serious issue in
their country.
“Pharmacists feel more has
to be done about tackling the
counterfeiters and ensuring patients
receive safe, effective, and bona
fi de medicines,” says Lancaster.
“So one of the key challenges is
for manufacturers and producers to
stay ahead of the counterfeiters.”
Role of packaging
Packaging-based solutions may
begin to play a more frequent role
in such programs now that the
European Parliament voted for the
“EU Falsifi ed Medicines Directive”
in February 2011. The directive
seeks to develop packaging and
labeling measures that can help
the marketplace distinguish
falsifi ed medicinal products from
other illegal products as well as
from infringements of intellectual
property rights. (For more details
on the legislation, please see “EU
Moves toward Pan-European
Law.”)
Glenn Wood, U.S. media
representative for the IHMA, said
“Any move to tackle the global rise
in pharmaceutical counterfeiting
has to be seen as positive.
This is a critical time for those
involved in tackling counterfeit
pharmaceuticals. Counterfeits are
on the increase with confi scation at
borders or during enforcement raids
on the rise not only in developing
countries but also in the United
States and in other developed
nations.”
Wood calls the EU Falsifi ed
Medicines Directive a welcome
move. “Along with other global
initiatives, the directive will
undoubtedly play a vital part in
the constant battle to stem the
fl ood of counterfeit drugs and help
producers stay one step ahead of
the criminals.”
Hologram authentication as
solution
Lancaster and Wood suggest that
holograms can play a key role
in combating criminal activity.
“Holograms work best where the
packaging remains with the unit
dose—almost everywhere except
the United States—and when they
are regionalized for a specifi c
market,” says Lancaster. “In the
www.homai.org 11
12. The Holography Times
“The evolving
anti-counterfeiting role
of holograms lies in
their ability to combine
authentication with
detection,”
United States, pharmacists don’t
usually have access to the original
unit-dose packaging and the bulk
packs they purchase almost never
have holograms.”
Hologram providing three
layered security
Holograms can now combine
authentication overt features with
covert elements and forensic and
track and trace elements to provide
a highly effective weapon in the
fi ght against illicit products, says
Wood. And they can be used as
seals, labels, or as the foil in a
blister pack.
Lancaster adds that there are
examples of how holograms provide
a successful and vital detection
function in pharmaceutical anti-counterfeiting
strategies. A few
years ago Malaysia introduced
its Meditag serialized hologram
label to be found on all registered
medicines—traditional and
western—which has helped the
Global Trends
Ministry of Health inspectors to
detect unauthorized and counterfeit
product.
“The evolving anti-counterfeiting
role of holograms lies in their ability
to combine authentication with
detection,” says Lancaster. “And
sometimes pack enhancement, as
Rodotex GmbH has shown with its
packaging for Vitamin C+Kollagen
in Indonesia. This is why the
more enlightened pharmaceutical
companies and enforcement
agencies continue to make them
an integral part of modern anti-counterfeiting
strategies.”
Sources:
The International Hologram
Manufacturers Association (IHMA),
which is made up of over 80
leading producers and converters
of holograms for banknote security,
anti-counterfeiting, brand protection,
packaging, graphics and other
commercial applications around the
world. For more information, go to
www.ihma.org.
12 www.homai.org
13. The Holography Times Expert Insight
Enterprise risk assessment & management
Mr. Pradip Shroff is the President of HOMAI, Board Member of IHMA, and
Vice-chairman of PRS Permacel Pvt. Ltd. He is a B.Tech from IIT Mumbai,
M.S. from Case Western Reserve University, USA, and accredited by
Coaching Foundation India Ltd as a CEO coach. He has worked with Johnson
& Johnson India for almost 25 years and has been involved in developing
solutions for brand protection for over 35 years.
Security & Exchange Board
of India (SEBI), to protect
interest of investors, has made risk
assessment and management as
an important aspect for all listed
companies under its Clasue 49 –IV
(c) of listing. Following activities
are mandatory for all listed
companies:
i. Procedures to inform Board
about risk assessment and
minimization;
ii. Periodic review of procedures
to ensure that executive
management;
iii. Controls risk through a
properly defi ned framework;
iv. Risk management report to
be submitted to the Board for
review.
The intent of SEBI is to protect
interest of investors. It is a good
management practice that every
company, listed or unlisted, ‘for
profi t’ or ‘not for profi t’, can benefi t
by practicing in true spirit. The
ERM will help protect long term
sustainability of any organization.
Enterprise Risk Assessment &
Management (ERM) should be
on agenda of every management
meeting and every board meetings.
The simple steps to follow in risk
managements are:
i. Identify the sources of risk.
ii. Assess the likely damage that
can be caused by each risk
identifi ed.
iii. Determine probability of the
risk becoming a reality.
iv. Calculate expected loss due
to each risk = damage x
probability
v. Develop a strategy based
on expected loss and cost of
mitigating the risk.
vi. Implement the strategy
vii. Review the impact of the
strategy and make changes if
required.
viii. Establish an ongoing process
of review and corrections.
Let us now review risk for various
assets of an enterprise. These risks
can be classifi ed as under:
• Risks to physical properties
• Risks to information
• Risks to brands
Risks to physical properties
Physical properties like offi ces,
plant and machinery are subject
to various types of risks such as
Theft, Fire, Earthquake, etc. There
are several established strategies,
“The ERM will help
protect long term
sustainability of any
organization. ERM
should be on agenda
of every management
meeting and every
board meetings.”
www.homai.org 13
14. The Holography Times Cover Story
(Managing Director, Risk Coordinator, Principal Risk Owners (PROs)
Supply chain HR &
Administration
approaches and solutions available
for risk mitigation against theft -
such as providing doors & windows
with locks, video camera etc. The
mitigation strategy against risk
of fi re is also well known. There
are experts available to carry out
a complete risk profi le. The best
way to fi ght fi re is to prevent it
by carefully handling all possible
sources, by providing training at
all levels. In case of a fi re there
are still several well established
tools and technologies available
to fi ght – Smoke detectors, fi re
extinguishers, sprinklers etc. Well
managed companies have a safety
manager, a safety management
plan and review systems.
Risks to information
Information is power and clearly
a company has to have plans
to protect its confi dential and
important information. The need
and awareness has increased in
recent past due to extensive use of
IT technology. There are several
strategies and tools available
to manage this risk. Use of fi re
walls and spam control are very
common. The high tech companies
Board of Directors / Audit Committee
ERM Steering Committee
Risk-coordinator is usually the company secretary
Sub committee with risk operatives
Legal and
Secretariat Production Finance Marketing
Risk Management Organization Structure
involved in sensitive information
adhere to international standards
(ISO 27001).
Risks to brands
It takes many years and consistent
efforts to build a brand. Brand
represents the emotional bond
that the stake holders have. Brand
is intangible but it is the most
valuable asset for a company.
Consumers buy products of a
known brand as she feels confi dent
about the consistency in the
promise delivered by the brand.
Global brand names like Johnson
& Johnson, Coke, and Toyota have
values which run in billions of
dollars. Indian brands like Tata,
TVs, and Bajaj are well known.
An attack on brand can cause a
signifi cant blow and lead to huge
loss of consumer base, loss of
market share and loss of profi t.
The cost of rebuilding a damaged
brand is huge and requires very
intense efforts. The brand attack
can be by pilferage in transit,
by adulteration, infringement of
spurious products etc.
Brand risk management is a new
concept and needs to be on the
agenda of every management team
and every board of directors. There
are various options available to
develop a customize strategy for
Brand risk management. One
can draw inspiration from good
management practices adopted
in known areas like - health,
safety, environment, quality.
Enterprises can form a brand risk
management team with CEO as a
leader and possibly with the help
of an external expert the team can
prepare itself to mitigate risk to a
brand.
Summary
Risk mitigation strategies are a
necessity of the modern times.
Every company listed or unlisted
needs to pay a serious attention
to this important and critical
aspect for long term sustainability.
Among various sources of risks,
brand risk management requires
highest attention. Companies
must develop a risk profi le and
continuously review plan, action
and performance.
14 www.homai.org
15. The Holography Times Industry Updates
Tender Updates
Organisation Date State
(Country) Details
Jaipur Vidyut Vitran Nigam Limited February 2011 Rajasthan, Supply of tamper evident
India polycarbonate seals
Maharashtra State Board of Secondary & February 2011 Maharashtra, Printing of hologram & laminated
Higher Secondary Education India statement of marks sheet and certifi cates
Directorate of Geology and Mining February 2011 Uttar Pradesh, India Supply of multicolored security hologram
Central Tobacco Research Institute February 2011 Andhra Pradesh, Supply of holograms of 24 microns
India thickness with self adhesive and in
sheet form
Government of Tamilnadu, February 2011 Tamilnadu, India Production and supply of polyester
Excise Department hologram excise lables
Government of Goa, Excise Department February 2011 Goa, India Supply of security hologram
stickers
Sukhmani Society for Citizen Services February 2011 Punjab, India Supply of high security holograms.
Centre for Development of March 2011 Kerala, Supply & installation of rack 2U server
Imaging Technology India & high speed hologram hot stamping
machine
Government of Orissa, March 2011 Bhubaneswar Printing, production & supply of
Excise Department Orissa, India polyester hologram excise labels
Government of Uttarakhand March 2011 Uttrakhand, India Supply of EALs (excise adhesive labels)
Excise Department
Dakshinanchal Vidyut April 2011 Uttar Pradesh, India Supply of hologram seal
Vitran Nigam Limited
Izpalnitelna Agentsiya April 2011 Bulgaria Holographic products and designs
“Avtomobilna Administratsiya
Madhya Pradesh Agricultural April 2011 Madhya Pradesh, Work of hologram printing
Marketing Board India
Gulbarga University April 2011 Karnataka, Supply of holograms
India
United Nations Development Programme April 2011 Afghanistan ID card plastic lamination ribbons with
(UNDP) UN hologram best suitable for NISCA PR
5302 laminator
Offi ce Of The Director of April 2011 United States Pre-Qualifi cations are invited for
National Intelligence proposers~ day announcement for the
IARPA synthetic holographic
observation (SHO) program
To get the latest tender, subscription and information email at info@homai.org
www.homai.org 15
16. The Holography Times Industry Updates
Industry Trends
Consolidated 2009 (million) 2010 (million) Change
sales revenue
Hologram Industries, € 28.3 € 31.9
France +13%
Identity Document 14.3 45%
Vehicle Identifi cation 9.1 29%
Brand Protection 3.9 12%
Fiduciary documents 3.2 10%
Other 1.5 4%
Total 32.0 100%
Oberthur technologies, € 904.6 € 978.8 +8.2%
Germany
Card Systems 712.9 72.8%
Security Printing 145.7 14.9%
Identity 101.6 10.4%
Cash Protection 17.8 1.8%
Total 978.8 100.0%
G&D, € 1684 € 1688 +0.2%
Germany
Card & services 705 41.76%
Banknote 753 44.60%
Govt solutions 210 12.44%
New Business 20 1.8%
Total 1688 100.0%
API, £ 93.4 £ 86.4 -9.5%
United Kingdom
Shiner International, China USD 34.5 USD 58.2 +68.5%
Source: www.bloomberg.com
Indian Hologram Industry increasing with 19% growth
New Delhi: Hologram Manufacturers Association of
India (HOMAI), the industry body deal in promotion of
holography in India has released its 2nd Financial Study
of hologram industry in India. According to the report the
hologram market in India is constantly increasing with an
average growth rate of 19 per cent per annum in last fi ve
years.
Indian market overview
The hologram market in India, currently estimated at
` 2.4 billion, is further projected to grow at 15 per cent
CAGR for the next fi ve years as there is a huge demand of
holographic features in sectors such as Identity Documents,
Tobacco and Brand Protection. According to HOMAI, the
increasing need for enhanced security and protection of
consumers from counterfeiting products as well as quality
services, reasonable price, increases in export are the
reason behind this constantly growth.
Research Method
The report has been done on the basis of primary data based
on reported fi gures of 21 HOMAI member companies.
The report consists of 3 sections covering i) Financial
highlights of industry 2005-2010 ii) Analysis of key
rations 2005-2010 and iii) conclusions and trend analysis.
It comprises of fi gures and statistics on capital employed,
net fi xed assets, current assets, current liabilities, sales,
sales to fi xed assets, credit period, inventory, raw material
to sales, profi t etc. The report comprises 20 pages and
costs USD 675.
The report will be useful for industry researchers, hologram
manufacturers, manufacturers of branded and security
sensitive products, advisory fi rms in the sector, global
investors looking at India in terms of future investments in
this industry ■
For more information contact at info@homai.org
16 www.homai.org
17. The Holography Times Industry Updates
Global Patents
Publication Title Int. Application Applicant
Date Class Number
05.05.11 (WO 2011/053087) Solar cell and H01L 31/042 PCT/KR2010/00764 LG Innotek Co., Ltd
manufacturing method thereof
05.05.11 (WO 2011/052405) Optical communication G02F 1/31 PCT/JP2010/068158 National University
system Corporation Hokkaido
University
21.04.11 (WO 2011/046822) Hologram and G03H 1/00 PCT/US2010/051973 E.I. Du Pont de Nemours
associated methods of fabrication and Company
thereof and use in security/authentication
applications
21.04.11 (WO 2011/046420) Forgery-proof vehicle No IPC found PCT/MX2010/000111 DIAZ LOPEZ, Eduardo
identifi cation plate with a stamped/
encapsulated hologram
21.04.11 (WO 2011/045972) Image displaying B42D 15/10 PCT/JP2010/063326 Toppan Printing Co.,
medium, labeled article, and method of Ltd.
manufacture thereof
21.04.11 (WO 2011/045543) Method and device for G07D 7/12 PCT/FR2010/052180 Hologram Industries
checking a secured document
14.04.11 WO 2011/044464) System, method and G03H 1/04 PCT/US2010/051981 Massahussetts Institute
apparatus for wavelength-coded of Technology
multi-focal microscopy
14.04.11 (WO 2011/043525) Method for transposing B29C 45/14 PCT/KR2010/002615 Janghan Inpla Co., Ltd.
hologram into molded material by using
micro unevenness hologram
14.04.11 (WO 2011/043208) Optical element, G02B 5/30 PCT/JP2010/066651 Nec Corporation
light source device, and
projection-type display device
10.03.11 (WO 2011/027514) Authenticity G03H 1/26 PCT/JP2010/005233 Dai Nippon Printing
determination hologram and fabrication Co., Ltd.
method therefor
10.03.11 (WO 2011/027472) Optical information G03H 1/02 PCT/JP2009/065594 Kabushiki Kaisha
recording medium Toshiba
10.03.11 (WO 2011/026794) Vivarium comprising A01K 63/00 PCT/EP2010/062563 GEYER, Daniel
a hologram
03.03.11 (WO 2011/025210) An apparatus and a G03H 1/22 PCT/KR2010/005621 LG Electronics Inc.
method for reconstructing a hologram
20.01.2011 (WO 2011/006929) Method and device for G03H 1/02 PCT/EP2010/060141 MANN+HUMMEL
marking objects, particularly components GMBH
of a motor vehicle, with an embossed
hologram and objects marked in this way
For more information, visit www.wipo.int - Gateway to Patent Scope – Database Search – PCT Applications
International Applications (PCT)
This search tool allows you to search around published International Patent Applications and to view the latest information
and documents available to the International Bureau. This facility features: full-text search in Descriptions and Claims;
search using unlimited keywords; bibliographic search; Boolean operators; and graphical results
www.homai.org 17
18. The Holography Times Industry Updates
Anti-counterfeiting technology
patent round-up
Microsoft has been awarded a US patent (No. 7,878,398) on its techniques to create counterfeit- and tamper-resistant
labels using randomly-occurring features. These may be inherent to the label itself or added to it, for
example by applying fi bre optic strands. “This pattern is unique to each label and may not be exactly duplicated at
a reasonable cost,” says the patent.
AlpVision has been granted patents in India (No. 243454) and Indonesia (ID P0025514B) for its Cryptoglyph
invisible marking technology which can be applied to carton boxes, blister packs, labels and other pharmaceutical
packaging materials. The process prevents counterfeiting through incorporation of a signature in form of an
invisible mark in parts of or over the entire packaging or label. The company said it now has Cryptoglyph patents
in force in all major countries around the world.
US company Axsun Technologies has been granted a US patent (No.7,875,457) for a product authentication
system. It is based on machine-readable taggants that can be detected using Raman spectroscopy. The taggant
information is used to “identify, validate, and distinguish the origin of the source” of an item and after scanning
is rendered unreadable by chemical modifi cation, “thereby controlling the taggants’ lifecycle,” says the patent.
Axsun is best known in pharma circles for its near infrared (NIR) spectrometer range.
AuthentiForm Technologies (now CertiRx Corp) has been awarded a US patent (No. 7,874,489) for its product
authentication technology. The new patent which claims priority over an earlier dossier (No. 692,225), covers
methods, reagents and apparatus for authenticating product using a ‘signature array’ of microparticles, printed
symbols or other entities. “Methods of the invention are easy to implement and can be covert, but are diffi cult to
replicate, simulate, alter, or transpose, and resist tampering and inadvertent or intentional alteration,” it claims.
Swiss fi rm CSEM SA (Centre Suisse d’Electronique et de Microtechnique) has been granted a US patent (No.
7,864,424) covering the use of so-called zero-order diffractive pigments (ZOPs) which can be used to add “very
pronounced” colour effects on products which thanks to their material properties are diffi cult to copy and cost-effective
to mass produce. The iridescent optical effect varies as the image is tilted or rotated, says the patent.
Document Security Systems, Inc. has been awarded seventeen new patents in the last 12 months for technologies
in counterfeit prevention, product authentication and brand protection. The new patents include:
i) AuthentiGuard™ Prism - A covert brand protection and authentication technology where a hidden image is
revealed with a proprietary lens. The hidden image disappears on copies and scans.
ii) AuthentiGuard™ VeriGlow - An invisible image system which can be seen by passport scanners currently
installed around the world. This multi-layered, covert authentication technology is used for high security
documents for government as well as labels and packages for the pharmaceutical industry.
iii) AuthentiGuard™ Pantograph 5000 - The “warning word” overt counterfeit deterrent technology designed to
protect checks, coupons, documents, labels and packaging from today’s sophisticated scanning and copying
systems used by modern counterfeiters.
18 www.homai.org
19. The Holography Times
Industry Updates
Upcoming Events
HOMAI Annual General Meeting 2011
July 9, 2011, The Claridges, Surajkund, Delhi/NCR, Faridabad, India
The 3rd Tax Stamp Forum
Sep 13-14, 2011, Washington DC, USA
For more details contact: Tel: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790
Email: info@reconnaissance-intl.com; Web: www.taxstampforum.com
Label Expo Europe 2011
Sep 28 - Oct 01, 2011, Brussels, Belgium
For more details contact: Web: www.labelexpo-europe.com
Holo-pack. Holo-print 2011
Nov 9-11, 2011, Las Vegas, USA
For more details contact: Tel.: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790
E-mail: info@reconnaissance-intl.com , Web: www.holopack-holoprint.com
Label Expo Asia
Nov 29 - Dec 02, 2011, Shanghai / PRC
For more details contact: Web: www.labelexpo-asia.com
Pack Plus 2011
Dec 7-10, 2011, New Delhi, India
For more details contact: Tel.: +91 22 27812093
E-mail: info@packplus.in, Web: www.packplus.in
The Hologram Manufacturers
Association of India (HOMAI) is a
non-profi t organization established in
1998 to represents and promotes the
interest of hologram industry in India as
well as to fi ght against counterfeiting.
Affi liated with International Hologram
Manufacturers Association (IHMA),
UK it is the only second body of its
type in world. It encourage adoption
of current technologies and standards
for high security so as to stay ahead of
the counterfeiters.
For more details please visit us at
www.homai.org
Published by:
Hologram Manufacturer Association of India
(HoMAI)
Issue Editor:
C S Jeena
The Holography Times is a quarterly
newsletter published by Hologram
Manufacturers Association of India (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
Designed and Printed by
EYEDEA Advertising
E-439/9, SDV, Charmwood Village,
Faridabad, Haryana (INDIA)
E-mail: eyedeaadvertising@gmail.com
on behalf of HoMAI
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.
A
MUST
REQUIRED
2nd
Indian
financial
study 2010
An analysis of Indian
Hologram Industry by HOMAI
You need it; if you are a
Hologram manufacturer
Supplier to industry
Hologram strategist
Anti-counterfeit consultant
Converters of holographic materials
Financial broker and analyst tracking
Anti-counterfeiting solutions providers
E-mail: cjhomai@gmail.com | Web: www.homai.org
www.homai.org 19