Counterfeiting Protection & Reduction MECH 3620 Advanced Manufacturing Process By: Rafael Mendez

Background  What is counterfeiting?  Counterfeiting is the practice of manufacturing goods, often of inferior quality, and selling them under a brand name without the owner’s authorization. There are many well known brands around the world that fall victim to the counterfeiting industry every year. Counterfeiting is illegal, in many countries it is punishable by criminal laws and civil laws, with penalties ranging from injunctions to damages to imprisonment.  The manufacturing of counterfeits is most prevalent in developing countries with a strong, inexpensive manufacturing capability, including many nations throughout Asia (such as China and Taiwan), although counterfeit goods are sold around the globe. Counterfeits are manufactured to a lesser degree in developed countries. (INTA.ORG)  How serious is the counterfeiting problem?  According to the International Anti-Counterfeiting Coalition, In the United States alone counterfeiting is a $600 billion a year industry and is one the fastest growing industries around the globe. It is currently estimated that counterfeit goods make up around 5-7% of world trade.  In the US, the FBI has called counterfeiting “the crime of the century”. Counterfeiting results in lost tax revenue for the government and also fuels black market trade. Counterfeits are not only a serious threat to the commercial world but also to consumer safety and public health.

IHS Inc.- a business information and analytics software company Non-U.S.-based suppliers accounted for more than $2 billion (revenue loss) during the five-year period from 2007 to About $400 Million per year. Global Economic Effect

Overview  In order to raise awareness relating to this issue, many companies have begun taking precautionary measures to protect their products from being counterfeited. Preventative Measures Counterfeit DetectionInstant product verification process with unique product ID. Diversion DetectionDetect and identify the location of diverted products Marketing AccelerationConnectivity with the consumer beyond point of purchase. Track and TraceUnique ID provides manufactures instant track and trace capabilities Document ProtectionProtects the content of the entire document from modification. Real Time MetricsReal-time data integration, analysis and reporting.

Limitations As counterfeiters become more sophisticated, the security gaps in these technologies become open to exploitation.

Bilcare Research nonCloneable ID™ Technologies  nonClonableID™ system comprises of tags with a unique materials-based “fingerprint” that is prohibitively difficult to replicate.  These can be seamlessly integrated into any supply chain system, and through the use of Bilcare’s reader.  Help to provide a secure authentication of any product.  This solution provides a comprehensive anti-counterfeiting solution that also enables secure Track-n-Trace, leading to e-Pedigree (electronic documentation) of the products across the supply chain – from manufacturer to consumer.  This technology innovatively exploits micro and nano-particulate materials together with their optical properties to provide a foolproof authentication solution.

Discussion Benefits & Advantages This technology is cost-effective and can be incorporated into almost any production market. It provides a real time data analysis that help to identify any existing or potential discrepancies. Currently, this type of tag technology is not replicable. This unique feature of non-reproducibility of the fingerprint ensures total security of the system even under circumstances wherein parts of the system may get compromised.

Conclusion The simplest way to begin the anti counterfeiting process is by informing the consumers about the effects and risk of counterfeit products. Explain the possible consequences related to the use of counterfeit products. The loss of jobs and cost to companies when there products are counterfeited. Additional safety measures:  What strategies can companies implement for a more comprehensive anti-counterfeiting solution?  For companies that are serious about finding a solution to counterfeiting, top management involvement with periodic review is necessary. Prohibition of counterfeit goods is essential either at the points of origin or within the channels of distribution.  Companies need to deploy anti-counterfeiting strategies that set up various layers of security. To challenge the counterfeiters, it is important to use a combination of overt and covert methods including such methods which reduce the dependence on human elements.  Companies need to constantly look at new technologies to increase supply chain security for secure Track- n-Trace of products from point of origin to point of sale.

Reference “Six Degrees Counterfeit Prevention LLX”. Nov 30, 2013 “US Department of Defense Counterfeit Regulations Impact Global Suppliers ”. Counterfeit-Regulations-Impact-Global-Suppl. Nov 25,2013 “Authentication, Secure Track n Trace, Drug e pedigree and Access Cards Security” Nov 23,

Bilcare Research nonCloneable ID™ Technologies Counterfeit Detection & Track and Trace  What strategies can companies implement for a more comprehensive anti-counterfeiting solution?  For companies that are serious about finding a solution to counterfeiting, top management involvement with periodic review is necessary. Prohibition of counterfeit goods is essential either at the points of origin or within the channels of distribution.  Companies need to deploy anti-counterfeiting strategies that set up various layers of security. To challenge the counterfeiters, it is important to use a combination of overt and covert methods including such methods which reduce the dependence on human elements.  Companies need to constantly look at new technologies to increase supply chain security for secure Track-n-Trace of products from point of origin to point of sale.