1. Progress Report on Chipless RFID Applications
SARcode™ Development By InkSure Technologies 1 1

2. InkSure Technologies
Provider of covert, machine readable security solutions (“CMRT”) to definitively and quickly identify genuine branded products and documents for protection against counterfeiting
Our expertise in spectral detection of covert marks enables InkSure to provide the most advanced readers in the authentication industry
Over 5 years of commercial sales
Billions of consumer products protected with InkSure technology
Product and Image Security (“PISEC”) award winner: 2000, 2003, 2006
Member Document Security Alliance (“DSA”), North America Security Products Organization (“NASPO”), Product and Image Security Foundation
U.S. public corporation (INKS.OB)
Corporate Headquarters in Fort Lauderdale, FL; Global R&D Center at the Science Park in Rehovot, Israel

3. InkSure RF
Three patents granted and three additional applications pending.
Highly skilled and dedicated R&D team with expertise in:
Leading mathematical algorithm research
Experts in radar methods, RF and RFID technologies
Advanced Chemistry Research
Advanced optical/spectral research
Recipient of 2007 Frost & Sullivan Product Innovation Award –Chipless Tag Market, Asia Pacific
Proof of concept successfully demonstrated publicly at IDTechEx’s RFID Smart Labels USA 2006 conference in Boston, March 2006
Beginning initial field testing, with commercial launch expected by end of 2008

4. What is Chipless RFID? A “Read-Only” system (no chip, no memory)
Bits of data based on a new printed symbology
Potential to produce the lowest cost RFID tag
Capabilities for printing directly and covertly on products or packaging
Frequencies above UHF The RFID Connection
Ability to read without line-of-sight at any angle. i.e. through packaging
Ability to read at extended distances
Ability to read multiple tags with anti-collision 4 4

5. Tag Price Comparisons Source: IDTechEX
Chipless Chip
Range 1m(3.3ft)
32¢
Tag price*
10¢
10-20¢
Range 0.1m (3.9in) 4¢
Target to sell trillions a year 2¢
Sub-Cent
Anti-theft 1 bit ID
96 bits
More Data k bit
*When bought in millions

6. SARcode™ Development Vision
Develop a low-cost Chipless RFID tag
Printed directly and covertly on products or packaging
RFID tag price: under one cent
Major advantages over barcodes or chip based RFID:
Easily Detectable: Does not require line-of-sight
Lower Cost: Requires less ink than printed RFID antennas and no silicon chip; does not take costly package space and improves package aesthetics
Efficient: Enables detection of multiple codes simultaneously and remotely
Higher coding ability: Codes a significantly higher amount of information than standard bar-codes, enabling EPC encoding
Anti-counterfeiting solution: Easily integrated
96 bit coding
Remotely detectable
12 digit/~40 bit
Require contact reading 6 6

7. How to get there… Take Advantage of Diffraction
Create a New Symbology: “SARcode”
Utilize Radar-Based Imaging Principles
Develop a New Portfolio of SARcode Readers
Integrate Existing Printing Processes with SARcode Software

8. Understanding the Diffraction Phenomena
The existence of diffraction has limited the extent to which symbols or images (such as barcodes) can be compressed.
Diffraction is the bending, spreading and interference of waves when they pass by an obstruction or through a gap. When a bar code symbol is placed too near another symbol, its waves interfere with those of its neighbour (diffraction) and vice versa, making it impossible to accurately read either bar.
This limitation has restricted the density with which symbol-based codes can be printed, and therefore the minimum size required for machine-readable codes. By extension, this has also limited the number of digits which can be used, for example, in barcodes.

9. Taking Advantage of Diffraction
Current technologies do not take into account that the diffraction phenomena are predictable
Diffraction is not a random, chaotic event - it is measurable and predictable
Diffraction is 3 dimensional which allows a system to understand an object’s depth and orientation in relation to the reader
Estimating an object’s depth and orientation allows the system to read multiple discrete tags
All Without Line of Sight

10. The SARcode Concept - Controlling the Diffraction Effects
The SARcode creates up to 96 bits in a small area and consumes only 10% of the conductive ink required for a printed RFID antenna!!!!
Sequence of 37 symbols, each positioned (or not) in 1 of 9 potential vertical positions
Special symbols for tag positioning
96 bits matrix = EPC code capacity
Very high error correction capacity
Tag dimensions = 119mm x 50mm
119mm x 50mm (4.68 x 1.9 inches)

11. Radar-Based Imaging
The reader is based on a multi antenna array, is operating in the MM wave spectra and is based on InSAR and SAR algorithms. It detects multi-symbol patterns and their inter-symbol diffraction effects. The tag is carrying up to 96 bits of information and can be read in an extended range.
Synthetic Aperture Radar (SAR) is a form of RADAR technology in which sophisticated post-processing techniques of SAR data are used to produce a very narrow effective beam.
The result is a map of radar reflectivity, including both amplitude and phase data.
The SAR principle is expected to be used in all reader applications.
The series of observations can produce the same resolution as of that of a very large antenna; InkSure’s process creates a synthetic aperture that is much larger than the length of the reader’s discrete antennas.
Interferometer Synthetic Aperture Radar (InSAR)
InSAR extracts data from the phase information.
Utilizing major improvements and developments of InSAR algorithms, we can detect typical static/ hand held applications.
InSAR allows the tag size to be substantially smaller.

12. SAR Fundamentals
Forming a very narrow beam using a large synthetic aperture
Narrow beam = high resolution
Output = image 12

13. SAR image 3D view 13

14. SARcode Processing Example
What You See
What the Reader Sees
What the Mathematic Model Sees
Thank you Prof. Boag.
SAR interpretation of the diffraction patterns produce a unique image for each label, like the sample that is shown on the left bottom of the slide. As you can observe, the presence of each symbol (reminder: symbol is a printed character with conductive ink on a surface) in the label is reflected as high intensity (red color) area in the image. We can process the image that is created in order to extract the symbol structure and sequence.
There are three basic operations that have to be performed;
Locate the label in the image and isolate it from the surroundings
Analyze the image and identify individual symbols
Interpret the symbols according to the symbology used and reconstruct the label
The image on the right hand side describes the first step of the processing. The bounding box of the label area is calculated, and further interpretation of the label contents is focused in that area only. In case of multiple labels in one image, this is the step that separates the labels and creates a separate detection task for each one.
Notice Diffraction “Blur” 14 14

15. Multiple Tags Reading Process
Second step:
High resolution SAR for single tag data detection
First step:
Low resolution SAR reading multi tag
Third step:
Image Processing resulting in evaluation of tag bit data
…0101
…1101

16. InkSure Readers SARCam I - Conveyor Version
Up to 1 foot reading distance; 3 feet in 2009
Weighs less than 1 pound
Up to 150 milliseconds reading time
Dual tag reading option over single item /reading process
Reading compatibility with any released SARcode format
“Tailor Made” designs for specialty applications
Connectivity feature to any infrastructure, backbone
~30cm(11.8 inches)
~10cm(3.9 inches) 16 16

17. InkSure Readers – SARCam II For Stationary Applications
Read range of 5” to 12”; up to 2 feet in 2009
Up to 150ms reading time
Multiple tag reading options
Reading compatibility with any released SARcode format
“Tailor Made” designs for specialty applications
Connectivity features. 17

18. InkSure Readers – SARCam III For Portable/Handheld Applications
Up to 1 foot reading distance; 2 feet in 2009
Up to 850ms reading time
Multiple tag reading options
Reading compatibility with any released SARcode format
“Tailor Made” designs for specialty applications
Connectivity features
~25 cm( 9.8inches)
~35 cm (13.8inches)
Weighs Less Than 2 Pounds 18

19. InkSure Readers – SARCam III Multiple tag reading requirements
Range separation > 1” or
Cross-range separation > ½”
Up to 3 tags (2008)
Cross-range separation
30 degree in all axis
Range separation 19

20. InkSure Readers – 2008 SARCam I Conveyor Availability:
Beta/Pilot: 06/2008
Commercial: 11/2008
SARCam II Stationary and SARCam III Handheld Availability:
Beta/Pilot: Q3/2008
Commercial: Q1/2009 20

21. SARcode Printing Capabilites
Creating a 96 bit tag pattern
SAR interpretation of the diffraction patterns produce a unique image for each label, like the sample that is shown on the left bottom of the slide. As you can observe, the presence of each symbol (reminder: symbol is a printed character with conductive ink on a surface) in the label is reflected as high intensity (red color) area in the image. We can process the image that is created in order to extract the symbol structure and sequence.
There are three basic operations that have to be performed;
Locate the label in the image and isolate it from the surroundings
Analyze the image and identify individual symbols
Interpret the symbols according to the symbology used and reconstruct the label
The image on the right hand side describes the first step of the processing. The bounding box of the label area is calculated, and further interpretation of the label contents is focused in that area only. In case of multiple labels in one image, this is the step that separates the labels and creates a separate detection task for each one. 21

22. SARcode Printing Capabilities
Creating a 64 bit tag pattern
Thank you Prof. Boag.
SAR interpretation of the diffraction patterns produce a unique image for each label, like the sample that is shown on the left bottom of the slide. As you can observe, the presence of each symbol (reminder: symbol is a printed character with conductive ink on a surface) in the label is reflected as high intensity (red color) area in the image. We can process the image that is created in order to extract the symbol structure and sequence.
There are three basic operations that have to be performed;
Locate the label in the image and isolate it from the surroundings
Analyze the image and identify individual symbols
Interpret the symbols according to the symbology used and reconstruct the label
The image on the right hand side describes the first step of the processing. The bounding box of the label area is calculated, and further interpretation of the label contents is focused in that area only. In case of multiple labels in one image, this is the step that separates the labels and creates a separate detection task for each one. 22

23. Printing Flexibility Tag size Vs. data capacity
34 bits (5cm/1.97” x 5.08cm/2”)
96 Bits(5cm/1.97”x11.43cm/4.5”)
15 Bits(2cm/.787”x5.08cm/2”)
41 Bits(2cm/.787”x11.43cm/4.5”) 23

24. Printing Flexibility Different tag layouts for different applications – 64bit example
B2R5
B3R5
121mm X 41mm
(4.76x 1.6 inches)
88mm X 41mm
(3.46 x 1.6 inches)
B2R2
B3R2
15 Bits(2cm/.787”x5.08cm/2”)
80mm X 45mm
(3.15 x 1.77 inches)
119mm X 45mm
(4.68 x 1.77 inches) 24

25. InkSure SARcode Formats Size/Data Conversion Method: 28-to-74 bit25

26. InkSure SARcode Formats Size/Data Conversion Method: 34-to-96 bit26

27. InkSure SARcode Print Process Capabilities
Conductive Ink Development
Nano-scale development underway
Sintering tests for InkJet printing underway
Thermal Transfer Ribbon in test and available (InkSure and IIMAK joint development)
Tag image –
Screen Printing
Tag image –
Ink Jet Printing

28. How Our Technology Will Be Used
Consumer Promotions
Estimated Annual Volume Potential: Billions ¹
Brand Protection Needs for Multi-Layer Anti- Counterfeiting
Estimated Volume Potential:100s of billions ¹
Printing Industry – Sorting and Verification of Documents
Drug/Pharmaceutical Identification
Estimated Volume Potential: 100s of billions¹
¹ ID TechEX and Internal estimates for unit volumes

29. How Our Technology Will Be Used
Asset tracking /internal identification
Estimated Volume Potential: Hundreds of Millions¹
Replacement of barcodes for added information and added “package real estate”
Estimated Volume Potential: Trillions¹
Anywhere “Low Cost and Easy to Print” is important= $ & ¢ !!

30. SARcode Summary 2008 2009 and Beyond Pilot tests begin
Read Range =1 foot (conveyor/handheld)
Read Speed=0.15 second (conveyor), 0.85 second (handheld)
Information Capacity = up to 96 bits
Print Sizes = 4.6” x 1.6”
Non-Line of sight reading = yes
Orientation Flexibility = yes
Anti–collision = yes
Anti-counterfeiting capability = no
2009 and Beyond
Commercial Availability
Read Range =3 feet (conveyor), 2 feet (handheld)
Read Speed = 0.15 sec. (conveyor), 0.85 second (handheld)
Information Capacity = up to 113 bits
Print Sizes = 4.6” x 1.6”
Non-Line of sight reading = yes
Orientation flexibility = yes
Anti –collision = yes
Anti-counterfeiting capability = yes 30 30