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In this issue
Dear Readers, Welcome to the 17th issue of The Holography Times. Illicit liquor trade poses a serious threat to government, socially as well economically. Excise duty which is an important source of revenue is continually under threat from the practice of illicit trade. Considerable amount of money which could be used to benet the government services of a country are being diverted to the pockets of criminals participating in illegal trading. In addition, the illicit trade in liquor poses a serious threat to consumer health. To counteract it, some State governments have implemented holographic excise adhesive label (HEAL) as part of their anti-counterfeiting strategy. This has not only minimized the hooch tragedies and duplication, but has also substantially increased the excise revenue collection in States. This issue brings our cover story on Holographic Excise Adhesive Label. Apart from this, the issue also covers article on Step for a better usage of technologies, along with industry updates and much more. As always we look forward to receive your feedback/ critics. Please e-mail us at info@homai.org.

Holographic excise adhesive label (HEAL)

7
Protection against counterfeiting
By Jean-Michel Loubry

13
News Bytes Counterfeit Seizure Report Global Patents 4 16 17 18 18

With Regards, C S Jeena

Upcoming Events Latest Tenders

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Liquor bottles in Jharkhand to carry holograms

It will be 18th state in the country to adopt the practice aimed at increasing revenue and checking sale of spurious liquor
New Delhi: Jharkhand will be the 18th State in the country that will be shortly making a mandate for all the liquor companies to use hologram on their bottles to prevent counterfeiting. The step will help the Jharkhand State excise in increasing revenue as well as in minimizing the tragedies due to illicit liquor, a statement from Hologram Manufacturers Association of India (HOMAI) said. In India more than 17 States & UT are already using hologram on liquor bottles. Mandated usage of hologram in these States like Uttar Pradesh, Tamil Nadu, Uttrakhand, Madhya Pradesh, Puducherry, Delhi, Chhattisgarh, Kerala, etc. has not only minimized the tragedies due to spurious liquor but have also substantially increased the excise revenue collection by more than 25-30 per cent. For example the state using holograms are earning more revenue. In 2010-11 the revenue earned by Tamil Nadu and Uttar Pradesh excise was `8,115 crore and `6,725 respectively, while States which are similar in capacity to population and size such as Maharashtra and West Bengal only able to peg `5,800 crore and ` 1,770 crore only.
Source: www.homai.org

Scriba Nano tecnologie launches multi-functional labels

Scriba Nanotecnologie, an Italybased security technology company, has introduced EN-TAG multi-functional labels to enable pharmaceutical companies to authenticate their products while ensuring drugs are kept at correct temperature conditions. EN-TAG is an ultra-miniaturized data matrix technology applied to a standard holographic feature or re lective surface, such as metallic foils, hologram strips. The covert feature offers the highest level of security combined with high information content (~30 kB per cm). The information content of a single EN-TAG is 20 to 100 times higher than that offered by a standard 2D data matrix. It equips each product with a counterfeit-proof data carrier label for authentication and traceability purposes, and is designed to enhance an existing holographic substrate. The labels can be used to store digital data such as company logos, videos, or drug pedigree information in any language, including drug name, dosage form and strength, expiration date, lot number. EN-TAG can be used as stand-alone labels or complemented with other overt or covert features for additional layers of security. EN-TAG has an integrated authentication technology with a thermo-sensitive, FDA-approved polymeric layer. Thermal monitoring is made possible by detecting the subtle optical changes that take place when the tag is exposed to temperatures exceeding a pre-set threshold. Threshold temperatures are fully customizable to speci ic temperature requirements. The secure information contained is not affected if an EN-TAG is exposed to higher-than-threshold temperatures. Dr Claudio Rota, business development advisor at Scriba Nanotecnologie, said, One of the features of this technology is its ability to offer the industry a truly unique, low-cost solution for authenticating their drugs, as well as ensuring that their products have been properly stored during transport. For temperature-sensitive products in particular, such as biologics, food products, and wine, the technology is a irst-in-class security feature with a clear-cut value proposition.
Source: www.labelsandlabeling.com

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UAlbany Nanocollege & APDN partner on nanochip anti-counterfeiting program

Collaborative research will advance DNA deposition technologies targeting over $300B market for nanosecurity applications in nanoelectronics, aerospace and defense

he College of Nanoscale Science and Engineering (CNSE) of the University at Albany and Long Island-based Applied DNA Sciences, Inc. (OTCBB:APDN) announced a partnership to enable nanotechnology-driven innovations that would play a critical role in preventing the counterfeiting of computer chips a collaboration in the groundbreaking area of nanosecurity that initially targets the $20 billion defense industry chip market and has the potential to impact nanoelectronics and aerospace markets well in excess of $300 billion. Research and development will include the integration of new methods for DNA deposition on nanoelectronics wafers and computer chips both prior to, and including, inal packaging to ensure the integrity and security of processed wafers. The partnership between CNSE and APDN will support research, development and deployment of authentication protocols and procedures in established process

lows, including CMOS, MEMS, photonics, and other device derivatives, as well as advanced packaging technologies, such as 3-dimensional wafer-towafer and die-on-wafer. When realized, these advances would enable comprehensive supply chain protection well into the foreseeable future. The collaboration comes on the heels of the enacting of the 2012 National Defense Authorization Act. This law will signi icantly strengthen protections against the wave of counterfeit electronic parts coming into the defense supply system by requiring that military suppliers and government agencies create and implement counterfeit detection and avoidance systems, among many other strict anticounterfeiting provisions. These new mandates could be enabled through a CNSE-APDN partnership. The APDN system marks computer chips with uncopyable DNA codes, which can then be used to authenticate the originality of chips anywhere

along the supply chain. The APDN technology can not only enhance inspection, but also goes much further to forensically verify originality, using botanical DNA to create tags to mark the product in a unique way. As part of the collaboration, CNSE and APDN intend to establish a joint technology development partnership model engaging nanoelectronics device fabricators, leading aerospace and defense system integration companies, and state and federal government agencies to further advance the implementation of counterfeit protection measures. CNSE recently submitted a technology development proposal in partnership with APDN and other leading nanoelectronics companies in response to a Broad Agency Announcement issued by the Intelligence Advanced Research Projects Activity (IARPA), which invests in technology programs that have the potential to provide our nation with an overwhelming intelligence advantage over future adversaries.
Source: www.cnse.albany.edu

Skanem acquire 51 per cent stake in interlabels

kanem Group one of Europes largest producers of selfadhesive labels partners with the Indian labeling company Interlabels in order to take part in a growing market in South Asia. Skanem is buying 51 per cent of the shares
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in Interlabels. Owner and CEO of Skanem, Ole Rugland, says,India is a market with a great potential and rapid consumption growth. Through this partnership, we get access to this exciting market. The introduction into India represents

a strategically important step forward for Skanem Group. This is Skanems irst establishment in India, but Skanem already has one factory in Asia, which is located in Bangkok, Thailand.
Source: www.skanem.com

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Sai security printers secures $7m funding from aureos capital

Aureos South Asia Fund has invested $7 million or ` 35 crore in Sai Security Printers Pvt Ltd (SSPPL), a paper packaging company based in Faridabad and Bangalore. The fund is managed by Aureos South Asia Managers Ltd, a subsidiary of the emerging markets PE fund manager Aureos Capital, which has $1.3 billion under management. SSPPL will use the funds to build on its already strong production and technology capabilities, and will work towards moving into new markets, adding new customers and providing endto-end packaging and printing solutions while increasingly focusing on high-margin business, said Vijay Raghavan, managing director of SSPPL. The company started out as a security printing business and evolved into a multi-product packaging company. It manufactures labels and mono-cartons for pharmaceutical, food and beverage and FMCG industries, and currently employs around 600 people. SSPPL has a strong customer base, marked by high customer retention. Its strategy for future development includes expansion into recession-resilient and higher-margin products for the pharmaceutical, beverages and FMCG sectors, commented Balaji Srinivas, Managing Partner of Aureos India. Incorporated in 2001, Aureos has extended its footprint to more than 50 emerging markets across Asia, Africa and Latin America by establishing 17 regional private equity funds. These funds are managed through a network of 28 of ices worldwide, by a team of over 90 investment professionals. Aureos has recently announced that it plans to raise $200 million or ` 900 crore for its new India fund. The Aureos India Fund II will focus on investing in companies across emerging sectors and target tier II and tier III cities, which remain below the radar of mainstream international investors. Its last deal took place in July 2011 when it invested in Chennai-based publishing services provider Newgen Knowledge Works Private Limited.
Source: www.vccircle.com

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Cover Story

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Holographic excise adhesive label (HEAL)

Securing tax revenue, protecting consumer and curbing illicit liquor trade by C S Jeena
The liquor industry is a major source of excise revenue for all States in India. In fact, it is the second largest revenue contributor for many States after sales tax. More than two decade ago, Tamilnadu Government took the revolutionary step and introduce rst holographic excise adhesive label (HEAL) in India. The step taken by Tamilnadu was appreciated and further adopted by many other States in India. Today, more than 17 States excise department are using HEAL. This has not only minimized the hooch tragedies and duplication, but has also substantially increased the excise revenue collection in States. This article highlights the role of HEAL as an effective anti-counterfeiting solution in securing tax revenue, protecting consumer and curbing illicit liquor trade.

Other Taxes 9% Stamps & Registration 11%

Motor Vehicle Tax 5%

State Excise 13% Sales Tax 62%

Figure 1: Composition of State tax revenues for 2010-114 *Other taxes include income from agricultural income, land revenue, electricity duties, entertainment taxes and other taxes duties

Globally, tax revenue from excise duties on the production and sale of beverage alcohol contribute an important source of Government revenue. The inancial revenues for European governments arising from the production and sale of beer, i.e., taxes paid by breweries, beer consumers and employees together, total around 38 billion a year, including 19 billion in VAT and 10.5 billion in excise duties. This represents more than total annual government expenditure of countries such as Finland or Poland (estimated at around 34 billion).1 In the United States, the beverage alcohol industry pays over $ 21 billion in directly to State and local revenue during 2008.2 Scenario in India Under the Indian constitution, liquor is one commodity which

the States are entitled to charge excise duty (Article 246)3. Revenue from excise duty is a signi icant contributor for many States in India accounting for more than 10 per cent of their own tax revenue. In fact, it is the second largest source of income for States after sales tax ( igure 1 and table 1).4 The only state that does not depend on alcohol to generate revenue is Gujarat, which imposes prohibition in 2000-01. The major states in which liquor contributes a major chunk of their revenue kitty (F.Y. 201011) include Andhra Pradesh (` 9014 cr), Karnataka (` 8345 cr), Tamilnadu (` 8115 cr), Uttar Pradesh (` 6725 cr), Maharashtra ( ` 5800 cr), Madhya Pradesh (` 3604 cr), Punjab (` 2461 cr), Rajasthan (` 2859 cr), Haryana (` 2100 cr) & Bihar (` 1542 cr).5

1. Ernst & Young, 2005 2. Distilled Spirits Council of the United States, 2008 3. Article 246 The power of the state government to levy and collect the state excise duties is derived from Article 246 of the Constitution of India and entry 51 of list II State list with seventh schedule thereto. 4. Reserve Bank of India, Study on State Finances Budget, 2010-11 5. Press releases, State excise department www.homai.org

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Table 1: Budget estimates of States and Union Territories for period 2010-114
State a) Tax revenue (` lakh) b) State own tax revenue (` lakh) 4699900 14400 497584 1064393 750548 221849 1646929 295552 350528 596728 3622832 2088423 1867018 6383832 28874 46181 11826 20330 1036001 1630800 1902086 21124 4143832 66705 402430 3525489 2000773 1558250 131715 c) State excise revenue (` lakh) 751200 1700 25946 140000 132000 11967 210000 54946 28000 52500 742500 183621 340000 580000 600 10019 206 362 95050 252000 245000 5550 750818 7000 68693 569531 175978 168000 47500 d) Percentage of excise revenue in State own tax revenue 16 12 5 13 18 5 13 19 8 9 20 9 18 9 2 22 2 2 9 15 13 26 18 10 17 16 9 11 36

Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamilnadu Tripura Uttrakhand Uttar Pradesh West Bengal Delhi NCR (UT) Puducherry (UT)

6150421 83037 1257041 3424412 1231135 277506 1866300 459034 641603 1230700 4528841 2570999 2971759 7472155 123281 131602 68132 86040 2036418 1921563 3127307 71162 5184001 173605 636890 6696669 3521379 1558250 131715

Prominent Sectors Based on beverage type the Indian alcohol industry has three prominent sectors; a) the IMFL / Beer / Wine sector, b) the country liquor sector, and c) the illicit liquor sector. a) IMFL / Beer: Among these the IMFL is organized & centralized in India and constituted 34 per cent of alcohol market in India. In 2010, sales volumes of the IMFL industry were approximately 1,985 million liters or 221 million cases.

b) Country Liquor: In contrast, to the IMFL and beer sector, the country liquor industry is more decentralized. It is regionalised and fragmented due to high state entry barriers requiring presence of a distillery in the state and constituted 37 per cent of market with volumes of 250 million cases in 2010. c) Illicit liquor industry: Parallel to this, the illicit liquor industry has also seen an increase in India. A signi icant proportion of the alcoholic drink
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Industry Breakup Mn cases (2010)6

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Beer 197 29%

IMFL 234 34%

IMIL 250 37%

WINE 1 0%

in India, is produced illicitly by the informal sector or consists of Second or D Market (tax evaded beverages) and therefore remain undocumented. It has been speculated that such unrecorded consumption may be as much as 45 per cent of all use, although there is very little recent data available.7 Reports of excise raids on illegal distilleries and con iscation of illicit alcohol are also regularly featured in the media. Alone in Karnataka (2010-11), the department conducted 59,124 illicit distillation centres in State, registered 10,924 cases and arrested 4,597 persons. The department has seized 69,984 boxes of IMFL, 116,903 boxes of beer, 106,071 boxes of molasses and 107,058 boxes of arrack.8 In 2011, Maharashtra State excise department has seized counterfeit and illegal liquor amounted `16 crore. It was 25 per cent higher than the previous rate seized amount equivalent to `12.8 crore in 2010. The trend continues in 2012, as `1.5 crore illicit liquor have been seized by State excise department till February 2012. The problem is such severe that State excise of icer in Maharashtra has demanded gun for protection of their enforcement of icer.9 Challenges for State Excise There are various reasons due to which illicit liquor / smuggling increases. It can be prohibition policy of the state, inter-state smuggling of alcohol products, tax duties and lack of proper anticounterfeiting strategy.

For example Gujarat is adopting a complete prohibition policy in state. Irionically this step increases the consumption of illicit liquor and loss of excise revenue amounted `3000 crore per annum.10 Rajasthan State excise department stopped using HEAL from November 2010 which again resulted in increased number of illicit liquor. Recently a factory has been seized in Bhanipura (Rajasthan) seizing 1050 litres illicit spirits.11 The State Government and Departments faces various challenges i.e. How to protect consumer from ill effects of illicit liquor? How to differentiate fake liquor bottles from genuine? How to combat smuggling of IMFL & Country liquor? How to ensure fool proof labeling and supply chain? How to avoid re illing / reusing of genuine liquor bottle with illicit liquor? How to increase excise revenue?

Segment Whisky Brandy Rum Gin Vodka Others

Volume (Mn cases) 137.5 43.4 43.8 2.2 7.3 0.2

% of IMFL 59 19 19 1 3 0

Source: IWSR, Industry & Company Estimates

Global practices to ight against illicit liquor/ counterfeiting A solution can be excise adhesive labels (EALs) or tax stamp which applied to bottles as selfadhesive labels. Known by a variety of names (excise stamps, excise adhesive label, tax stamps, tax seals, banderols), these are the weapon of choice for many government around the world to secure the valuable revenue

6. 7. 8. 9. 10. 11. www.homai.org

IWSR, Industry & Company Estimates Lal Chand Report Business standard, 29/06/2011 Mid Day, 27/11/2011 [excise department demands guns] / CNN, IBN Live, 16/12/2011 Rediff.com, Dec 11, 2002[Prohibition- Gujarat worst keep secret] & The Times of India, June 19, 2009 [Gujarat seeks Rs 3000 cr for liquor ban] Rajasthan Patrika, 19/01/2012 [Fake illicit liquor factory seized]

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Table 2: HEAL used by some countries12

Country Ukraine Latvia Serbia Hungary Usage of HEAL on Alcohol Alcohol Alcohol & Cigarettes Alcohol and Cigarettes Effect in Revenue Tax revenue double in 4 years equivalent to USD 3 billion Increase of USD 21 million in 2 years 10 times increase in cigarette revenue / 5 times increase in spirits revenue NA

derived from customs and excise duty on alcohol, acting as proof of originality and authentication and a barrier to the distribution of counterfeited products. Hungary & Latvia has been using HEAL since 1994-95 and have resulted in phenomenal increases in tax receipts.12 (See table 2) As of 2007, 59 countries are using HEAL for spirits. It is estimated than 33 billion holographic stamps were produced in 2007, making them the highest secure product produced after bank notes.13 Although, all these countries are keep upgrading their tax stamp with advanced overt & covert features to be ahead against counterfeiters. Practices in India The revolution of irst EALs was introduced by Tamilnadu Government in early eighties. These were on a thin glassine based paper with a strong adhesive. Each label was serial numbered and was given by Tamilnadu Govt. to companies that illed IMFL against payment of tax.14 Then in 1999-2000, Tamilnadu again take the initiative and started using India irst HEAL15, which was followed by Uttar Pradesh in 2001 & Kerala in 2002. Today, more than 17 states are using approximately 15 billion HEAL. 75 per cent of

these are used in form of full Polyester holographic labels and 25 per cent paper based, with holographic element. Integration of digital and nondigital (Importance of visual authentication) Recently, Andhra Pradesh has become first state to start using a combination of authentication and digital technology as it is going to use advanced HEAL comprising hologram for authentication and bar code for track & trace. However, track and trace technology itself have vulnerabilities. Physical and sensory authentication tools will still be needed both during and after the development of track and trace systems around the world. If we do not integrate both digital and nondigital (physical and sensory) authentication methods into our approach, then we risk wasting the major investments that are about to be made in track and trace. Examiner may need to verify the liquor bottle visually due to lack of availability of reader, power failure, network failures or simple time constraints at crowded control sites. An electronic authentication is not possible everywhere especially in remote areas so it generate a

12. 13. 14. 15.

Reconnaissance international Reconnaissance international PRS Permacel Ltd Holostik India Limited www.homai.org

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Table 3: State and Union Territory (UT) using HEAL with annual capacity (in 2011)16
State/Union Territory Andhra Pradesh* Chattisgarh Haryana* Himachal Pradesh** Jharkand (in process)**** Karnataka** Kerala Madhya Pradesh Meghalaya Orissa Punjab** Rajasthan*** Sikkim Tamil Nadu Uttrakhand Uttar Pradesh Delhi (UT) Puducherry (UT)
* ** *** **** NA State using paper based EAL earlier, now decided to use HEAL; State using paper based EAL with or without holographic component; State excise department stopped the usage of HEAL since November 2010; Figure of Jharkhand are for year 2012. Not Available

Year of Introduction* 2012 2005 2009 2011 2012-13 2002 2002 2007 2009 2007 2011 2005 2010 1999 NA 2001 2009 2006

Annual Volume (crore) 2,64 72 90 7 54 240 70 72 NA 48 50 72 NA 300 15 180 36 12

requirement of an instant visual authentication like a hologram with advanced levels of security features for authentication. Bene it of using HEAL The usage of HEAL by these States has proved the acceptance and effectiveness of hologram as authentication device. It has helped the department in combating various challenges such as; 2. 1. Provide visual authentication: HEAL plays an important role for visual authentication to differentiate fake liquor bottle from genuine, for both enforcement authorities and for individual consumer. These HEAL are customized with overt and covert features, being overt for

a lay man consumer and covert & forensic feature for enforcement authorities which can be proof of the authenticity of bottle. Further, holograms are be best overt authentication feature available, as an electronic authentication is not possible everywhere especially in remote areas (India). Increased tax revenue: According to various reports and HoMAI,17 the mandated usage of security HEAL in States such as Uttar Pradesh, Tamil Nadu, Uttrakhand, Madhya Pradesh, Puducherry, Chhattisgarh etc. have increase revenue collection. For example Tamil Nadu and Uttar Pradesh, excise revenues were `8116

16. 17. www.homai.org

Approximate quantity calculated on based of State excise tender document Hologram Manufacturers Association of India

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Table 4: Comparison of key State with population more than 6 crores18

a) State using excise adhesive labels State Revenue 2005-06 ` Crore 2685 3177 3397 3089 1370 1276 Revenue 2010-11 ` Crore 9014 8116 8345 6726 3604 2859 Inc in turnover over last 6 years 6329 4939 4948 3637 2234 1583 Population (2011) in Crore19 8.46 7.21 6.11 19.95 7.25 6.86

Andhra Pradesh Tamilnadu Karnataka Uttar Pradesh Madhya Pradesh Rajasthan*

*State excise department stopped the usage of HEAL since November 2010;

b) State not using any type of excise adhesive labels State Revenue 2005-06 ` Crore 2824 743 319 Revenue 2010-11 ` Crore 5800 1770 1542 Inc in turnover over last 6 years 2976 1026 1224 Population (2011) in Crore19 11.23 9.13 10.3

Maharashtra West Bengal Bihar

3.

crores and `6725 crores respectively in 2010/11. By contrast, in states similar in size and population such as Maharashtra and West Bengal, excise revenue was much lower at `5800 crores and `1769 crores respectively (see table 4 a & b). Prevent Funding of criminal enterprises: The people that bene it most from counterfeiting are criminals who then use their proceeds to fund other criminal activity of to further their own enterprises. Further the usage of HEAL enhance the State image/ goodwill, as it create consumer con idence.

value. This is true regarding other Indian States also. Counterfeiting can be curb to a great extent with proper combination of high security HEAL and digital system with proper enforcement methodology.
De initions 1. Alcohol means ethyl alcohol of any strength and purity having the chemical composition of (CHOH). Help in combating smuggling as it ensure ful proof labelling. foreign liquor means-

2. 3.

4.

a) all liquor (other than country liquor, recti ied spirit, denatured spirit and perfumed spirit), imported into India, on which customs duty is leviable under the Indian Tariff Act, 1934 (XXXII of 1934) or the Customs Act, 1962 (52 of 1962); b) all liquor manufactured in India (other than recti ied spirit, denatured spirit, and perfumed spirit), on which duty at a rate higher than levied on Country liquor is leviable; c) all beer (including ale, porter and stout) manufactured in India or abroad, and d) all sacramental wine prepared from pure dire grapes by a process or fermentation only without the addition of alcohol or any other ingredient. 4. Liquor means intoxicating liquor and includes lahan and all liquid consisting of or containing alcohol; also any substance which the State government may by noti ication declare to be liquor for the purposes of this Act.

Conclusion HEALs have become the main tool now used by the government and the enforcement to authenticate sealed IMFL and Beer bottles sold in the State. Hence the ef icacy of this excise adhesive labels, as an advanced and true tamper evident seal, has great
18. State excise department 19. Census 2011

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Expert Insight

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Protection against counterfeiting:

a new step for a better usage of technologies
By Jean-Michel Loubry

Author is a specialist of traceability solutions and Chairman of ISO / Project Committee 246 Anti-Counterfeiting Tools and a technical traceability expert on authentication standards. He is an electronics engineer and graduate in strategic management, and has made his career in major hi-tech companies of the telecommunication sector, starting in research and development, then pre-sales manager for export markets, and product marketing manager. He managed the French national traceability center from 2006 to 2011. He can be contacted at +33 (0)6 42 47 58 56 or by email at jmloubry@gmail.com.

Increasing dramatically each year, counterfeiting is not inevitable. ISO/PC246 brings its contribution to combat counterfeiting of material goods by facilitating the selection of authentication technologies. Counterfeiting: a real risk for organizations Counterfeiting is a worldwide issue, impacting all markets, not only luxury. Estimations say that counterfeiting may reach up to 10 per cent of the worldwide commercial exchanges. However no reliable igures exist to quote the size of the counterfeit business, but depending on markets and countries estimations vary form a few percent to more than 80 per cent. Many of counterfeit products can be dangerous for populations and counterfeiting impacts the pro itability of the organizations through IPR infringement. The risks are important for companies facing counterfeiting: loss of turnover, hacking of knowhow, loss of jobs and risk to be sued if the fake products cause accidents
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and if there is no way to prove it is a counterfeit. Costs, if these risks occurred may be important, impacting the durability of a company. Counterfeiters are more and more professionals and the quality of the copies (i.e. the level of likeness) is increasing, making the detection of fakes dif icult even for trained people. Protecting the products and even all kind of material goods is a necessity, especially when the economical context demands to take care of all % of pro itability. Fake material goods may impact the health and the security of consumers, patients or citizens and therefore are a risk for companies, are the material goods protected by IPR or not. To be able to differentiate fake from authentic is the purpose of anticounterfeiting solutions. Anticounterfeiting solutions: ISO 12931 helps to select Choosing a solution using secured technologies may be complicate for companies as many anticounterfeiting solutions exist, but

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few information are available on references and on effectiveness. Facilitating the choice, the implementation and the usage of anticounterfeiting solutions with a standard was required either by brand owners, suppliers and authorities. All these parties have been involved in the workgroup which issued the NWIP presented by France in 2008. The resulting ISO Project Committee (ISO/PC246) started its job in the early months of 2009. ISO/PC246 is composed of 17 P-Members and 13 O-Members coming from all over the world. This worldwide collaboration and the willingness to succeed in this project is a good sign toward material goods users or providers. ISO 12931 is intended to contribute to an organizations understanding of its authentication needs, possible strategies, and challenges. It is intended to give the organization a set of criteria to analyses, specify and implement its authentication solutions. ISO/PC246 has created a standard that de ines the Performance criteria for authentication used to combat counterfeiting of material goods (ISO 12931), that is applicable for any solution whatever the technology. It is planned to be published as an International Standard (IS) beginning of 2012. ISO 12931 speci ies performance criteria and evaluation methodology for authentication solutions used to establish material good authenticity throughout the entire material good lifecycle. It does not specify how technical solutions achieve these performance criteria. ISO 12931 is intended to contribute to an organizations understanding of its authentication needs, possible strategies, and challenges. It is intended to give the organization a set of criteria to analyses, specify and implement its authentication solutions. The organization will determine the level of security assurance required for the selected authentication solution. The

authentication solution provider is expected to comply with the risk and security requirements of the organization. ISO 12931 is intended for all types and sizes of organizations that require the ability to validate the authenticity of material goods. It is intended to guide such organizations in the determination of the categories of authentication elements they need to combat those risks, and the criteria for selection of authentication elements which provide those categories, having undertaken a counterfeiting risk analysis. Such authentication elements may be part of the material good itself and/or its packaging. The criteria will apply to the material good and/ or its packaging. Authentication elements may be added or intrinsic to material good and/or its packaging. This International Standard is not intended to constrain the organizations choice of authentication technologies. The veri ication processes of authentication elements deployed in these solutions require the ability to read, capture and sometimes perform sampling using human senses or tools. These tools will either offer a local on the-spot response or will call, in real-time, into a secure information system, or possibly rechannel the data, sample, or material good towards a structure offering expert analysis for an offline diagnosis. Thus, in relation with the speci ication of the material good protection, an authentication solution is the result of a creation process followed by a veri ication process. The creation process consists of de ining, generating and manufacturing the authentication elements and integrating them with the
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material good or its packaging. The veri ication process consists of checking the authentication elements along the distribution chain by trained people using human senses, tools or references. There are 3 main categories of solutions using overt, covert or forensic authentication elements which require respectively human senses, tools or forensic analysis to be checked. Overt authentication can be directly performed by an informed inspector and does not require any additional equipment to allow a feature to be veri ied as genuine. Covert authentication elements are not instantly recognizable or interpretable by the human senses. They require authentication tools and/or specialized knowledge to verify their presence and validity. Forensic analysis involves the use of knowledge and dedicated scienti ic methods to validate the authentication elements or intrinsic attributes of a material good. According to the organizations protection strategy, knowledge about the presence and the method to verify the authentication elements will be made public or restricted. General audience will make any consumer aware of authentication elements available for him to act as an inspector. This make also the counterfeiter know what to focus on to deceive the consumer who, by de inition, is not an expert. Restricted audience is dedicated to professional inspectors like custom agents or any expert appointed by a right owner. ISO 12931 gives a performance criteria
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considered when choosing an authentication solution, assuming (again) that a risk analysis has been performed irst. Based upon these criteria the authentication solution speci ier may determine what class or combination of categories of solutions meets the needs and Authentication solutions are a key means for detecting counterfeits and therefore support investigation and enforcement against counterfeiting and provide increased corroborative evidence. requirements of the user. These criteria are addressing the different steps of the material good lifecycle. The main categories of criteria are: The physical characteristics of the authentication elements that will determine the capability of those elements to be added or used with the material good and/ or its packaging, to resist to manufacturing and logistics processes so they remain readable when required The attack resistance of the authentication solution, either on the authentication elements side than on the tools side, will determine the complexity for a counterfeiter to copy and/ or access to secrets to be able to imitate or reproduce the authentication element or circumvent the authentication tool The implement ability of the authentication solution considering all practical criteria that will make the authentication process work in the ield such as environmental conditions or telecommunication networks requirements

The performance of an authentication solution depends upon a proper risk analysis and criteria analysis that establish a set of compliance speci ications. ISO 12931 also describe effectiveness assessment as a means to evaluate that a solution is complying with the established standard and if the solution is providing a measurable result. In addition to the overall solution effectiveness assessment should be established based on the speci ication for each of the criteria categories. Authentication solutions are a key means for detecting counterfeits and therefore support investigation and enforcement against counterfeiting and provide increased corroborative evidence. Monitoring the behavior of an authentication solution in the ield is the best way to react and better to prevent the penetration of fakes. Conclusion Fighting against fake is a strategy involving legal and technical approaches. In both cases, the capability to ight is a key issue. Therefore the strategy has to be adapted to the organizationshuman and inancial means. Are sophisticated solutions better than simple ones? Not sure. Pragmatism is a good way to consider the combat against counterfeiting. ISO 12931 brings a full list of need to be considered criteria to be sure to go through all necessary characteristics or features that an organizations authentication solution may require. ISO 12931 is also a frame to be extended for market sectors facing speci ic issues or regulations. ISO/IS 12931 is planned to be published soon and is perhaps already published when you will read these lines.

list of to be

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Industry Updates

Counterfeit Seizure Report

The HOMAI counterfeit report displays all of the counterfeiting seizures reported in Indian newspaper for period January 2012 February 2012.
D/M/Y 03/01/12 04/01/12 06/01/12 06/01/12 09/01/12 10/01/12 09/01/12 12/01/12 12/01/12 14/01/12 14/01/12 17/01/12 17/01/12 18/01/12 18/01/12 18/01/12 20/01/12 24/01/12 24/01/12 04/02/12 08/02/12 08/02/12 16/02/12 17/02/12 18/02/12 19/02/12 News Reported 6 Nigerians arrested in fake lottery scam, Mumbai (Maharashtra) Fake certi icate racket busted in Navi Mumbai (Maharashtra) Fake notes seized in Old Delhi, two held (Delhi) Factory seized making spurious Ghee, Jabalpur (Madhya Pradesh) Man arrested for smuggling foreign liquor (Delhi) 70 yr old grandson held for bootlegging (Delhi) Liquor seized (Rajasthan) Fake ration card in Sonia name found (Maharashtra) Cops probe sale of fake tickets worth Rs 1 crore at Auto Expo (Delhi) Airport employee held for smuggling (Delhi) Fake 3 crore ration card seized (India) Fake certi icates probe widens (Delhi) Fake drugs seized worth Rs 30 lakh (Uttar Pradesh) Fake Footwear seized (Delhi) 120 fake driving licenses, SIM card seized (Jammu and Kashmir) Liquor tragedy, 6 percent died (Assam) Fake Indian currency seized, one arrested (Puducherry) 2 held for selling illegal weapons, 200 forged DLs seized (Haryana) Fake homeopathic drug found (Delhi) Ramjas detects 12th Class fake mark sheet (Delhi) Of icials found involved in faking property paper (Delhi) Five teachers caught with fake degrees (Maharashtra) Fake ilters racket busted; 7 nabbed (Jammu and Kashmir) Illicit liquor worth Rs 1.5 crore seized (Maharashtra) They faked US dollars, forged passports (Delhi) Fake illicit liquor factory seized (Rajasthan) Sector Fake Document Certi icate Bank Notes FMCG Liquor Liquor Liquor Identity Document Entry Tickets Memory Card Identity Document Identity Document Pharmaceutical Footwear Driving Licences Liquor Bank Note Driving Licences Pharmaceutical Mark-Sheet Fake Document Degree Diesel Illicit Liquor Currency Illicit liquor Reported in Media Free Press Journal Free Press Journal Times of India Nai Duniya Tribune Hindustan Times Rajasthan Patrika Times of India Times of India Hindustan Times Dainik Jagran Times of India Dainik Jagran Hindu Daily Excelsior Assam Tribune Hindu Pioneer Navbharat Times Asian Age Pioneer DNA Kashmir Times DNA Times of India Rajasthan Patrika

For detailed, subscribe to HoMAI press monitor or e-mail at info@homai.org

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Industry Updates

The Holography Times

Global Patents
Publication DD.MM.YYYY 02.02.2012 Title Int. Class G03H1/00 Application Number PCT/US2011/045824 Applicant WO/2012/016105Complex Holograms, method of making and using complex hologram SABIC INNOVATIVE PLASTICS IP B.V / TAKEMORI, Michael

Brief Abstract: A method of making a hologram (10) includes recording a hologram in a holographic recording medium (14) at a irst deformation ration, changing the irst deformation ratio to a second deformation ration that is different from the irst deformation ration; and recording a second hologram in the holographic recording medium (14) at the second deformation ration to form a recorded holographic medium.

26.01.2012

WO/2012/010665 Combination of a luminescence substance with a hologram

B41M3/14

PCT/EP2011/062552

SONY DADC AUSTRIA AG / EBERT, Dieter

Brief Abstract:The invention relates to a combination or composition for marking products, comprising a luminescence substance on the basis of oxides, oxide sulphides and/or oxide luorides of lanthanide ions and a holographic substrate for receiving or reconstructing a volume hologram. The luminescence substance has a characteristic emission spectrum and, in combination with the volume hologram, can be used to authenticate and/or identify products such as substances or substance mixtures.

19.01.2012

WO/2012/007120- Security Element comprising hologram structures

B42D15/00

PCT/EP/2011/003345

GIESECKE & DEVRIENT GMBH / KELLER, Mario

Brief Abstract: The invention relates to a security element for security papers, valuable documents and other data carriers, comprising a surface hologram structure and a volume hologram structure. In this case, the invention provides for the volume hologram structure to be swollen up in partial regions and thereby to form additional information in the form of a two- or multicoloured motif and in the form of a microstructure. 12.01.2012 WO/2012/003592Security Document with holographic foil and printed machine-readable markings B42D 15/10 PCT/CH2010/000175 ORELL FSSLI SICHER HEITSDRUCK AG / EICHENBERGER, Martin

Brief Abstract:A security document has a substrate (1) with a foil element (6) applied to it. The foil element (6) comprises a security feature, such as a diffractive structure (12), for example a hologram. To easily detect a removal of the foil element (6) using conventional detection devices, markings (4, 14, 15) intersecting with the foil element (6) are printed onto the top surface (7) of the foil element (6), the bottom surface (8) of the foil element (6), or onto the substrate (1), thus that they are removed together with the foil element (6).

12.01.2012

WO/2012/004016Beam Divergence and various collimators for holographic or stereoscopic displays

G03H 1/22

PCT/EP2011/055593

SEEREAL TECHNOLO GIES S.A. / FTTERER, Gerald

Brief Abstract: The invention relates to a holographic display comprising a lighting device, a magnifying unit (VE) and a light modulator (SLM), wherein the lighting device comprises at least one light source and a collimation unit (LCU), wherein the collimation unit (LCU) is designed such that it collimates the light of the at least one light source and generates a light wave ield of the light of the light source with a pre-determinable plane wave spectrum, wherein the magnifying unit (VE) is arranged downstream of the collimation unit (LCU) in the light propagation direction, wherein the magnifying unit (VE) comprises a trans missive volume hologram (VH) that is arranged and designed such that, on the basis of a trans missive interaction of the light wave ield with the volume hologram (VH), an anamorphic divergence of the light wave ield can be achieved, and wherein the light modulator (SLM) is arranged in the light propagation direction either upstream or downstream of the anamorphic magnifying unit (VE).

For more visit at www.wipo.int/patentscope/search

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Industry Updates

Upcoming Events
The 9th Pan European High Security Printing Conference Mar 27-29, 2012, St Petersburg, Russia, Web: www.cross-conferences.com Cartes in Asia Mar 28-29, 2012, Hong Kong, Web: www.cartes-asia.com IP Protect Expo 2012: Brand Protection in Action Mar 28-29, 2012, London, United Kingdom, Web: www.ip-protectexpo.com 1st international forensic technology fair Mar 28-30, 2012, Warsaw, Poland, Web: www.crimelab.pl Pharmaceutical Anti-Counterfeiting April 24-25, 2012, London, United Kingdom, Web: www.appelconsulting.co.uk 3rd Annual Anti-Counterfeiting for Pharmaceutical and Medical Devices Summit April 30-May 1, 2012, Philadelphia, PA Web: www.anticounterfeitingpharma.com DRUPA May 3-16, 2012, Dusseldorf, Germany, Web: www.drupa.com Security Document World 2012 May 21-23, 2012, London, United Kingdom, Web: www.sdw2012.com Rosupak 2012 June 18-22, 2012, Moscow, Russia, Web: www.rosupack.com Latin American High Security Printing Conference July 2-4, 2012, Rio De Janeiro, Brazil, Web: www.cross-conferences.com Pack Plus South 2012 July 6-9, 2012, Hyderabad, India, Web: www.packplus.in 2nd International Banknote Designers Conference Sep 2-6, 2012, Stockholm, Sweden, Web: www.banknotedesignersconference.com PABS Product Authentication and Brand Security Conferences 2012 Sep 11-12, 2012, Chicago, IL, UA, Web: www.awa-bv.com 7th Security Document Summit Sep 12-14, 2012, Beijing, China, Web: www.cids.com.cn 11th Asian, Middle East & African High Security Printing Conference Sep 24-26, 2012, Dubai, UAE, Web: www.cross-conferences.com Eco Print 2012 Sep 26-27, 2012, Berlin, Germany, Web: www.ecoprintshow.com Security Printers Conference & Exhibition, Oct 17-19, 2012, Bordeaux, France, Web: www.intergraf.eu Holopack Holoprint 2012 Oct 28-30, 2012, Vienna, Austria, Web: www.holopack-holoprint.com

Latest Tenders
Security Printing & Hologram tender that have been noti ied in past month include; India - Hologram excise adhesive label, Uttrakhand, deadline20/03/2012 United States - Printing of Cigarette Tax Stamps, deadline- 19/03/2012. Macedonia - Applied holographic stripe for printing excise stamps for labeling tobacco products and alcoholic beverages, deadline 03/04/2012 Belgium - Development and purchase of the matrix in the form of holograms sticker to include in the access cards to buildings of the EU Council, deadline 16/03/2012 For more information or enquiry, email us at info@homai.org.

About HoMAI The Hologram Manufacturers Association of India (HoMAI) is the worlds 2nd and Asia only association representing hologram industry.

Published by: Hologram Manufacturer Association of India (HoMAI) Issue Editor: C S Jeena The Holography Times is a quarterly newsletter published by 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.

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www.homai.org

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Holographic Solutions for Excise Revenue Protection

K A N T A S Track-Pack India Ltd.

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