Brand protection and authentication

Transcription

1 Issues and opportunities Mike Fairley Director, Strategic Development Labels and Packaging Group Tarsus Group

2 Question: What do the following have in common? Robbie Williams Nike Viagra Microsoft software Orgasms Rolex

3 Answer: They are all regularly faked. Fakes, counterfeits, pirated goods are all terms used to describe merchandise that has been copied and sold without the consent of the brand owner

4 Question: Why should counterfeiting be such an issue? Answer: It is harmful to world economies, governments, business and individuals Global lost revenues due to counterfeiting are now approaching $1.4 billion a year or about 7-8% of world trade. Over 200,000 jobs are lost worldwide each year because of counterfeiting 100s of people die or are injured each year through using counterfeiting products

5 Question: What kind of counterfeit goods are most likely to cause prolonged illness and death? Answer: According to the World Health Organisation it is counterfeit or fake medicines

6 Question: What are the risks to health with counterfeit drugs? Answer: Active ingredients may be missing or the product adulterated with toxic substances, or with ingredients which clash with other medicines. This can have significant cost implications for drug manufacturers, pharmacies, medical insurance companies, hospitals and health services

7 Question: How do counterfeit or fake medicines get defined? Answer: A counterfeit medicine is said to be one that has no active ingredient or is an expired drug which has been re-labelled and sold. A fake drug may not resemble the original in any way Some Governments describe both of these as spurious medicines.

8 Question: What kind of pharmaceutical products are the most commonly counterfeited and where are they mainly being used?

9 Pharmaceutical products most commonly counterfeited Developed countries Emerging countries Hair loss Sexual dysfunction Hormones Obesity Anti-psychotics Cancer drugs HIV anti-vitals Antibiotics Painkillers Anti-malarial drugs Based on research by Business Insights

10 Question: So how does the counterfeiter work to defraud manufacturers of genuine goods and deceive the purchaser or general public at large?

11 Answer: Brand protection and By counterfeiting the entire product + packaging and labeling Counterfeiting packaging and labeling only to enable reject or out-of-date products to be re-packaged and passed-off as good Re-using genuine packs/labels with counterfeit products Unauthorised use of a look-a-like or registered brand name with a counterfeit product Counterfeiting of ownership/sale documents including guarantees Counterfeiting instruments of payment, i.e. cheques, credit cards

12 Questions: So who are the major producers and sellers of counterfeit or fake goods? Answer: Terrorist groups Organised crime gangs Drug smugglers Money launderers Fakes frequently sold through: Market or street traders The Internet

13 Fake goods sold through and Internet stores: A special Gift? In our online store you can buy replicas of Rolex watches and other brands. they look and feel the same as the real thing. - We have 20+ different brands in our selection - Free shipping if you order more then 5. - Save up to 40% compared to the cost of the other replicas. - Standard Features: Screw-in crown Unidirectional turning bezel where appropriate All the appropriate Rolex logos, on crown and dial Heavy weight Visit us for good

14 Fake goods sold through and Internet stores: Visit our new online pharmacy store and save up to 85% Only we offer: - All popular drugs are available (Vaigra, Cailis,Leivtra and many many more ) - Free shipping worldwide - No Doctor Visits - No Prescriptions - 100% Cust0mer Satisfacti0n Click here to visit our NEW ONLINE PHRAMACY STORE

15 Questions: Where are counterfeit drugs mainly produced? Answer: According to the OECD (Organisation for Economic Co-operation and Development) some 75% of fake drugs supplied worldwide have their origins in India. WHO (World Health Organisation) says that 40-50% of all medicines sold in Pakistan are counterfeit.

16 Questions: Why are drugs such a problem? Answer: Brand protection and According to the WHO (World Health Organisation) around 30% of its member states have no or weak drug regulation. This is particularly the case in developing countries. The US Food and Drug Administration (FDA) saw an 800% increase in the number of counterfeit drug cases between 2000 and 2006

17 Points to note: Brand protection and Counterfeiters are very professional and well organised They often have a great deal of financial backing Are frequently in possession of the latest manufacturing technologies Soon catch up with the latest anticounterfeiting solutions And can be quite ruthless

18 Question: What other types of key products are being counterfeited worldwide? Perfumes and cosmetics Cigarette and tobacco products Clothing Footwear Textiles Sports clothing, sports shoes and sports products CDs, DVDs, etc Computer equipment and accessories Automotive and aeronautical parts Fashion accessories Toys Electrical products Chemicals Games and business software

19 Question: So what can the label industry and brand owners do to help authenticate products, reduce counterfeiting, enhance brand security and minimise theft or product tampering?

20 Answer: Brand protection and Wherever possible, build counterfeit deterrence, product and brand protection technologies into the design of the label or pack Combine technologies to provide the most effective overall solutions If possible, make each label/pack unique Keep ahead of the counterfeiters by changing the solutions used on a frequent basis

21 Question: What technology solution are available to the label converter and brand owner to provide brand protection and? Answer: Security substrates Security inks, varnishes and coatings Security designs and backgrounds Security printing and converting Sequential coding and numbering Optically Variable Devices (OVDs) primarily holograms Optically variable inks, films and coatings

22 Security Papers and boards containing: Security threads Watermarks Planchettes Security fibres Biocodes and DNA Microtaggants Luminescence OVI particles

23 Security inks and varnishes Luminescent inks Magnetic inks Iridescent OV inks Fugitive inks Photochromic inks Color change inks Black light varnishes Fluorescent additives

24 Security designs and backgrounds Guilloches Relief images Variable line thickness Micro text and microlettering (font sizes down to 0.1mm) Dataglyphs Digital watermarking

25 Sequential coding and numbering Bar codes Snowflake codes Datamatrix codes Laser coding Invisible coding Optical coding Magnetic coding

26 Optically variable devices (OVDs) Brand protection and Holograms: 2D, 3D, 2D-3D, stereogram Transparent holograms Self destruct labels and seals Optically variable inks and coatings

27 Question: How can you narrow down the choice of technology or security solution? Answer: One route is to use a grid that sets out high and low cost options, combined with high and low level security

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29 How can the grid aid selection? Aim for highest security with optimum cost Combine low and high security elements to enhance protection, i.e. sequential number over a hologram Use technologies from different areas of the grid for maximum effect Build your own grid for your own products

30 Question: Where is pharmaceutical brand protection and product likely to go next? Answer: Merging into a vision of an e-health system which links drug manufacturers, doctors, patients, hospitals, pharmacies, surgeries and clinics in a network where information passes securely between the individuals that need it - and where effective track and trace of individual drug items will offer and protection against counterfeiting, improve patient safety and aid product recall.

31 A future in which Automatic identification and Data Capture (AIDC) using GS1 coding systems will be fully adopted in the pharmaceutical and hospital supply chain and within improved patient care systems. AIDC will fully utilise barcodes, RFID technology and other machine-readable codes to identify, quickly and accurately, any item or process in the chain.

32 Question: Who is recommending and implementing this approach? Answer: The EFPIA (European Federation of Pharmaceutical Industries and Associations) recently recommended authenticating drugs at dispensing points, an approach supported by the FDA who are also recommending using machine readable unique numbers to serialise all packets of drugs. NOTE: Belgium has become the first country in Europe to introduce electronic using mass serialisation. Greece and Italy are expected to follow shortly

33 Question: How does the system work? Answer: A pharmacist scans a packet unique code while filling a prescription. The system uses that scan to query a remote product database and check whether the packet is authentic, in date and not subject to recall (in less than half a second). Only if something is wrong will the pharmacist be alerted to take action. The drug manufacturer or licensee will also be simultaneously advised.

34 A final comment: Point-of-sale systems in which counterfeit drugs are rapidly identified, and out-of-date medicines recalled, will eventually provide a safer future for everyone in the drug manufacture to patient supply chain