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© 2013 1 | The Resurgence of UHF RFID
© 2013 2 | Agenda UHF RFID past, present, future Gen2 V2 Q&A
© 2013 3 | EPC UHF Gen2 was Ratified in 2004… First UHF Gen2 demonstration at 2005 EPCglobal US conference –Two readers inventorying tags Transmitting simultaneously Rejecting interference –40 tags moving fast No missed tags
© 2013 4 | …But Adoption was Painfully Slow
© 2013 5 | Reason: The Industry Focused on Pallets Metro pallet testing Motorized pallet sled Changeable pallets Walmart pallet testing Dock door w/ interfering readers Pallet w/ 40 boxes of soap
© 2013 6 | Fast-Forward to Today
© 2013 7 | The UHF Tag Market is Growing 35% YoY Source: VDC Research Group
© 2013 8 | Item-Level Tagging Fuels the Resurgence Brand Protection Logistics/Security Customer Service Race Timing Operational Configuration Asset Management Retail Inventory Medical Inventory Laundry Management
© 2013 9 | UHF Passive RFID Dominates the Market UHF has outstripped and will grow at 5× the rate of HF/NFC New markets and design-ins will prefer UHF by a wide margin
© 2013 10 | Two Applications Fuel the Resurgence 1.Retail Apparel –On-shelf availability:> 90% –Sales uplift: 5% to 12% –Enables omnichannel fulfillment –Apparel, but also sporting goods, shoes, jewelry, fragrances, tires 2.Embedded RFID –Consumables authentication Example: Coke Freestyle –Device configuration Example: HP Envy
© 2013 11 | UHF RFID Transforms Retail Apparel Inventory Management Loss Prevention Point of Sale Customer Experience “We've spent the last 153 years building warehouses, we just called them stores” Peter Sachse, Chief Stores Officer, Macy’s Omnichannel Fulfillment
© 2013 12 | UHF RFID Enables Embedded Use Cases Freeestyle: 100+ drink dispenser Freestyle uses embedded RFID –Internal readers –Tags on cartridges Coca Cola Freestyle delights fans –Thousands deployed across the US –Expanding worldwide
© 2013 13 | Embedded RFID Will Become Pervasive Consumer electronics will embed UHF RFID broadly Zero-power communications = endless applications –Locked in transit –Device configuration –Sensor-enabled tags –Premise-aware security –Warranty and service history Desktops Laptops Servers Embedded Phones Netbooks Tablets Smart TVs
© 2013 14 | The Resurgence Will Accelerate Identify an ItemConfigure an Item Locate an Item Authenticate an Item
© 2013 15 | Handheld Inventory => Autonomous Locationing xArray is an overhead steered-beam reader Provides real-time item location and movement Distance (m)
© 2013 16 | Locationing Demonstration xArray mounted at 3.2m (10.5ft) height Tags occupy 12.2 × 13.5 m (40 × 44 ft) floor space 3264 tags; square turns green when inventoried Video is real-time
© 2013 17 | Manual Identification => Autonomous Authentication Today: Convenience and fraud detection/prevention –Fraud in diesel filling today is 5% of sales or $1.8Bn annually Next: Vehicle fault monitoring –RFID tag linked to CAN bus sends truck data at every stop
© 2013 18 | Agenda UHF RFID past, present, future Gen2 V2 Q&A
© 2013 19 | What is Gen2 V2? A backward-compatible extension to Gen2 V1.2.0 A joint effort between GS1 EPCglobal and ISO Addresses requirements from >100 end users –Protect consumer privacy –Use a tag for loss prevention –Store product information in a tag –Restrict access to stored information –Authenticate a tagged item as genuine All new features are optional –Bare-bones tags can coexist with full-featured tags
© 2013 20 | Gen2 V2 Expands Tag Access Gen2 TodayDefinition SelectSelect a population of tags InventoryInventory selected tags; get their EPCs AccessRead/write/lock tag memory; kill the tag New in Gen2 V2.0.0 In Gen2 V1.2.0 V2 EnhancementsDefinition AnticounterfeitingAuthenticate a tag as genuine SecurityModify tag information securely File ManagementCreate files and assign access privileges UntraceabilityHide tag data to protect consumer privacy Loss PreventionUse a tag for EAS
© 2013 21 | Anticounterfeiting: Business Need Use case today –RFID tags ensure compliance with regulations for tire use and chassis certification Future opportunity –Authenticate tags to increase confidence that certification is genuine
© 2013 22 | Anticounterfeiting: Gen2 V2 Solution Today Reader reads static TID bits from tag memory TID can be spoofed Today Reader reads static TID bits from tag memory TID can be spoofed End users have asked for robust anticounterfeiting –To know that a tag and its attached item are genuine –Applications include luxury goods, pharma, healthcare, tolling Sol’n: Authenticate tag using a security algorithm 1001101… V2 Tag computes its response using a stored secret key Response cannot be spoofed V2 Tag computes its response using a stored secret key Response cannot be spoofed
© 2013 23 | Security: Business Need Use case today –Refugee identification & transportation in Italy –RFID tags improve efficiency of refugee receiving centers Future opportunity –Store refugee data securely in RFID tag
© 2013 24 | Security: Gen2 V2 Solution Today User memory is write locked using access password Memory is visible Today User memory is write locked using access password Memory is visible Some applications need to store tag data securely –To prevent unauthorized persons from accessing/altering the data –Applications include ID cards, transit tickets, passports, aerospace Sol’n: Secure user memory using a security algorithm 1001101… V2 User memory has read, write, and lock access privileges Memory access is by privilege V2 User memory has read, write, and lock access privileges Memory access is by privilege
© 2013 25 | Files: Business Need Use case today –Track each aircraft part’s flight hours using RFID –15% less labor; 25% less maintenance time Future opportunity –Securely track aircraft parts and part sharing for passenger airlines –Requires data files with secure access privileges
© 2013 26 | Files: Gen2 V2 Solution Today User memory is organized as a single flat file User memory is visible Today User memory is organized as a single flat file User memory is visible Some applications need to store tag data in files –With privilege-based access for file reading/writing/locking –Applications include consumer electronics, aerospace Sol’n: A simple file system in tag’s user memory V2 User memory is partitioned into multiple files File access is by privilege V2 User memory is partitioned into multiple files File access is by privilege User Memory
© 2013 27 | Consumer Privacy: Business Need Privacy Concerns Have Mostly Abated Since the RFID Privacy Heyday in 2004 But Privacy Protections Remain Important Informing consumers, Metro, 2008 Washington Post cartoon, 2004
© 2013 28 | Consumer Privacy: Gen2 V2 Solution Today Tag memory is organized as EPC, TID, User Hide memory by killing tag Today Tag memory is organized as EPC, TID, User Hide memory by killing tag Some applications need to protect consumer privacy –Prevent unauthorized persons from reading portions of tag memory –Applications include retail, healthcare, pharma, ID cards Sol’n: User can hide/unhide portions of tag memory V2 Tag memory remains organ- ized as EPC, TID, User Hide/unhide memory regions V2 Tag memory remains organ- ized as EPC, TID, User Hide/unhide memory regions User TID EPC Hide none or all Hide none, part, or all Hide none, serial #, or all User TID EPC All visible or kill tag
© 2013 29 | Loss Prevention: Business Need German customs official with 1 million pair counterfeit Nike shoes By 2015, the International Chamber of Commerce expects the value of counterfeit goods globally to exceed $1.7 trillion 1 Apparel and fashion accessories still make up the largest share of counterfeit goods worldwide 1 In Italy, fake clothing & accessories were $3.4Bn in 2008 2 Today: More lucrative than illegal drug trade, with less penalty risk 3 1 http://money.cnn.com/2012/09/27/news/economy/counterfeit-goods/ 3 Economic Indicator: Even Cheaper Knockoffs July 31, 2010 New York Times 2 New York/New Jersey Intellectual Property Rights Conference: IP Crimes, Victims & Cases, Nov 2009 A big (and growing) problem
© 2013 30 | Loss Prevention: Gen2 V2 Solution Today Facility database to indicate whether item is owned, sold No tag-based EAS standard Today Facility database to indicate whether item is owned, sold No tag-based EAS standard Some applications want to use RFID to deter theft –Storing EAS data in the tag rather than in a database –Applications include retail, healthcare, oil & gas Sol’n: “store” and “sold” codes in tag memory V2 Store code tag is owned by facility and not foreign Sold code item is sold V2 Store code tag is owned by facility and not foreign Sold code item is sold User TID EPC 32-bit sold code 32-bit store code
© 2013 31 | Gen2 V2 Status GS1 EPCglobal ratified the protocol Oct 30, 2013 –Submitted it to ISO for standardization ISO will ratify two security algorithms in 1H14 –29167-11 (PRESENT-80) –29167-17 (CryptoGPS) Tags, readers, infrastructure will be available and operational in 2015
© 2013 32 | Agenda UHF RFID past, present, future Gen2 V2 Q&A
Alien Technology® Patti Blessing Director Business Development
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