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Swiss Auth Blog 2009
Glossary


Bottles & packaging materials being reused by counterfeiters

From DNAIndia.com this article mentions a warning to consumers as counterfeiters are collecting and reusing bottles and other packaging materials.


The packaging industry is losing revenue: Beers and spirits make up the bulk of this, at around 55%, while food & beverages and pharmaceuticals account for 15% each; the rest is made up by cosmetics & perfumery and exports.


So the packaging of the product must be designed so that it is a one use item, and the consumer must be warned that Pharmaceutical products must be packed (and designed) in a certain way, otherwise it can be a counterfeit product. (Tony Zafiropoulos)

 

Tony Zafiropoulos
9/30/2009


An emerging economy in Africa (Nigeria)

From AllAfrica.com This article discusses the challenges that Nigeria faces.


Nigeria's challenge is to use it's meager resources in the most prudent way.  Is quality important? Is brand protection important?  If Nigeria can make less expensive products with decent quality is that a good policy?


I believe that Nigeria has a different set of problems than some of the other countries that have been thrust into law enforcement of counterfeit products.


In Nigeria the issue is using meager resources in the most prudent way. One of the arguments is why not copy brands if they have enough quality to make it worthwhile for the country.  This kind of an argument is not a good one in my opinion. As growth by counterfeiting is not a good growth industry.  It is an easy choice for me to make from here, but Nigeria has to look at the long-term implications, good growth with property rights and Intellectual Property rights are more sustaining than a quick lets counterfeit our way into prosperity.


I am really affirming what the choices are for Nigeria, and they have chosen the right path, with trying to go after substandard Tobacco makers for example.  It is sometimes good to look at all of your options however ridiculous it seems at first.  It will keep you on track when the distractions come up as they surely will.(Tony Zafiropoulos)

 

Tony Zafiropoulos
9/29/2009


Acushnet (Titleist, Footjoy and Cobra) broke counterfeit goods ring

Article at Worldgolf.com: Acushnet found the sellers operating out of Ebay and physically out of London Borough.


"This is a historic case not only for the golf manufacturers, but for all brand owners who must combat the increasing global problem of online counterfeit products," said Lisa Rogan, Acushnet Company Trademark Manager.


This is great news - unfortunately this is only the tip of the iceberg - since it is so easy to set up shop, there are a lot of people creating counterfeit goods. (Tony Zafiropoulos)

 

Tony Zafiropoulos
9/28/2009


Futaba counterfeit products could be deadly

RC Heli Resource.com has a news story from July 2009 discussing Futaba Gyro and Tail Servos

"According to Futaba the pins on the real product are gold, whereas the fake or counterfeit (on the right) are silver. It is fortunate for Futaba that the counterfeiter created such a relatively easy to see difference in the counterfeit product.  In the future in this as well as other products counterfeiters can easily create the pins to be gold, and thus now the counterfeit product is indistinguishable from the real product.


It would be prudent for manufacturers to create an authenticity solution that is unbreakable, and while having to be read with a reader to authenticate, it is impossible to make copies with the true authenticity mark.  Contact us for more information" (Tony Zafiropoulos)


Tony Zafiropoulos
9/28/2009


World Customs Organization: 2008 report shows increases in counterfeit goods


WCO has a website and a 2008 IPR (Intellectual Property) report.  "The production of goods which infringe intellectual property rights is still increasing, thereby posing an ever-greater threat to the health and safety of consumers on every continent, and to artistic and industrial
design in countries around the world."


"With more than 2000 different counterfeited trademarks intercepted at border crossings originating from 106 countries and heading to 140 countries and a 77% increase in the number of seizures over 2007 (14981 versus 8421).  With a total value intercepted at 3.1 Billion Euros, or 4.5 Billion Dollars there is a definite need for authentication products to combat the ever increasing counterfeit products. The top products counterfeited were pornographic items(79.5mil), cigarette items(33.9mil), medicines(33.9mil), and games and toys(20mil)." Tony Zafiropoulos.

 

(pictures from WCO report)


Tony Zafiropoulos
9/27/2009


Sheriff could not tell fakes from real vehicle stickers

Dallas Morning News: Dallas county sheriff could not tell the difference between counterfeit and real vehicle inspection stickers.

Quotes:

Not even Sheriff Lupe Valdez could tell the difference between the fake stickers and the real deal.

Valdez and County Judge Jim Foster said the task force's efforts are reducing harmful emissions by stopping polluting vehicles from getting fake stickers.


"The person making the counterfeits was a person working at a printer shop.  The quality of printing capabilities is making it harder to distinguish printing (only) authentication methods."  (Tony Zafiropoulos)

 

Tony Zafiropoulos
9/26/2009


Man arrested for sale of $2mil worth of counterfeit goods.

Seattle911Blog

Has a police blotter of an arrest of a man who sold $2mil worth of counterfeit goods.

Including Bowflex exercise machines, designer blenders, North Face Backpacks, and counterfeit DVD's. He had to give up two sports cars and $30,000 in property when taken into custody. The ICE - Immigration and Customs Enforcement made the arrest.

 

Tony Zafiropoulos
9/25/2009


SIFE Lecture on Counterfeit Goods.

SIFE Lecture on counterfeit Goods at Canisius College in Western New York.

Canisius College will welcome British Journalist and Broadcaster Tim Phillips to campus on Tuesday, October 29, 2009 at 7:30 p.m. in the Montante Cultural Center. Phillips will present “Knockoff,” a discussion about the damage done to consumers and economic development by the production and consumption of counterfeit goods.

 

Tony Zafiropoulos
9/24/2009


MISSISSIPPI AG   has an anti-counterfeit strategy  
WAPT ABC Channel16 in Jackson, MS - says that the Attorney General has started 'Operation knock-out Knock-off' to help educate consumers and incarcerate criminals in the counterfeit industry.


"The fake goods, which pose a health danger to residents, are our primary concern," Hood said. "However, we're also going after those who make or sell knock-offs of brand label products. We have found that dope dealers are turning to the lucrative trade of selling counterfeit products such as Apple iPods and Sony camcorders. The trade of counterfeit products and pirated music and movies has also been linked to terrorist organizations as a funding source. It is a type of theft that costs American and Mississippi businesses dearly on the economic front and injure our consumers."


Tony Zafiropoulos
9/23/2009


Electrical industry Alert on counterfeit AC/DC converters
ECNMag.com article: Aimtec has confirmed that counterfeit versions of its DC/DC converters are being manufactured and sold, by unauthorized distributors, to unsuspecting customers in various regions around the world.   "While the company continues to thoroughly investigate their sources," states Vladimir Serafimov, President of Aimtec Inc., "we must warn customers of the quality and reliability risks associated with the use of counterfeit products." 




Tony Zafiropoulos
9/22/2009


World Health Organization(WHO) website:IMPACT
Impact:International Medical Products Anti-Counterfeiting Taskforce
WHO has created a global coalition of stakeholders to combat counterfeiting.

One of the messages at the site is: "Counterfeit Drugs Kill", it is there to create public awareness.

Anti-malaria and HIV drugs are frequently counterfeited.

Tony Zafiropoulos
9/21/2009


CCC-TV analyze RFID Security
Analyzing RFID Security Video at CCC-TV
"The video discusses RFID weaknesses,  using the Mifare classic cards and show an open source software-controlled RFID reader.  This way one can read RFID tags."

Tony Zafiropoulos
9/20/2009


GSM is not secure - your calls can be listened to
Register.co.uk article about the A5/1 encryption algorithm in GSM. Apparently there is a better encryption algorithm, but it is not being used by the mobile phones and carrier companies.  The A5/1 encryption algorithm has been cracked. 

 

The article mentions another method where a fake cell station can be created and force phones to skip encryption technology, thus making it easy to listen in on conversation on your GSM cell phone.

Tony Zafiropoulos
9/19/2009


RFID privacy and other issues
Heise Online has an article about several RFID problems. "First problem is cracking the RFID encryption itself. The article mentions Juels and colleagues cloning a State of Washington electronic drivers license, which could be read at 50 meters and at .5 meters with the state supplied sleeve.  The article mentions a potential solution to encryption obfuscation by hiding the secret key in hundreds of RFID tags.  But when doing this the consumer can no longer test the RFID authenticity by themselves."

In my opinion(Tony Zafiropoulos)  RFID being electronic in nature will always have a potential of a porous defense. Its encryption is only as good as the hacker knowledge and resources in trying to crack it. Over and over throughout history all electronic means have been cracked with enough time and resources.  When you hear 128bit encryption in computer encryption technologies you can just be sure that the hacker will have to take more time to crack the code.

If you really do need an unbreakable code mechanism/solution then talk to us about a chemical compound-encryption solution.  

Tony Zafiropoulos
9/18/2009


European Commission adopts new anti-counterfeiting measures
Jpost has an article about the EU resolution on anti-counterfeiting measures. Although this is another good step in the right direction by giving companies more information about this problem (fake goods), the only way to combat this problem is to have excellent product identification capabilities.

Tony Zafiropoulos
9/17/2009



Uganda fake medicine: 5 tons impounded


Newvision, the Uganda website has listed  several drugs that were inside containers that had different labels:

"The other highly-counterfeited drug, Co-trimoxale, commonly known as Septrin was found missing in a tin labelled Co-trimoxale. Instead, Panadol was in the tins. Patients suffering from HIV/AIDS also use Septrin before they can start on ARVs."

“So a person with HIV/AIDS is taking Panadol thinking it is Septrin,” warned Muhammad Lukwago, the NDA inspector of drugs at the briefing at Interpol Kampala in Kololo.



Tony Zafiropoulos
09/16/2009


Counterfeit Medicine - can be deadly


Fake products can be deadly if used in dangerous situations. Counterfeit Medicine is deadly since filling your prescription correctly (but with counterfeit medicine) effects the health of the medicine user.

The FDA has put together a quick bulleted list of items to look for.

 

"The Lanthanoid compund does not change it's chemical state(period) and could be used on the product (after FDA testing).  So the Pharmaceutical solution includes individual pill identification, as well as packaging and reader technology."  says Tony Zafiropoulos

 


Tony Zafiropoulos
09/15/2009


Anti-Counterfeiting Solution

Anti-Counterfeiting efforts require a systemic approach. It has to be integrated into your products, product packaging, and marketing efforts for it to work correctly.

There also needs to be good anti-counterfeit enforcement programs. Agents have to go and investigate counterfeit products. Your agents can bring the fake products to the attention of law enforcement agencies worldwide.

Your products have to differentiate with other products in the marketplace, and differentiate with fake products created by counterfeiters.

There has to be a marketing and anti-counterfeit strategy in place.


Tony Zafiropoulos
09/15/2009


Wireless Bluetooth reader to locate passive ID Tags

From RFID News.mobi Blog:
"The Bluetooth RFID reader eliminates the need for a wired connection between the RFID reader and the central database, with Bluetooth connectivity…  

Daily RFID has released 13.56MHz Bluetooth RFID reader DL990 for mobile applications."

It is interesting to note that the wireless Bluetooth frequency which is in most newer cellphones as well is now being used by the RFID industry.  In anti-counterfeiting technologies one must make the technology hard to reverse-engineer (or crack/hack).   Setting up an easy to use technology has the drawback of also inviting hackers with their electronics expertise to attempt to break the security precautions of RFID technologies. 

There are a lot less hackers out in the world which can reverse-engineer chemical compounds and then develop the compound in such a way that it reflects green and in such a way where there is actually information embedded in it.




The above picture is a simple representation of a spectral emission  signature that would have to be reverse-engineered. 

This is why we claim with certainty that our technology is not hackable within a reasonable time frame.

Of course with enough time and resources anything can be reverse engineered. But when you make the effort so difficult only very large efforts (the machinery of state governments for example) or setting the time frame to several years of concerted effort. You have essentially changed the game.

Tony Zafiropoulos
09/14/2009


RFID anti-counterfeiting measures hacked

Researchers hack US RFID passports  from a V3.co.uk website:
"In a paper co-authored with staff at the University of Washington and internet security firm RSA, the team detailed how the RFID chips can be cloned from distances of up to 50 metres. They also found that a key anti-cloning technique recommended by the Department of Homeland Security (DHS) had not been used on the tags."

The article is from Oct 24, 2008. But it does show a weakness of the RFID anti-counterfeiting technology. Being electronic in nature it will be easier to clone than a chemical scanning type of anti-counterfeit technology.

Tony Zafiropoulos
09/13/2009


Boston area counterfeit bust in a flea market in Hillsville:




Use your common sense, if it is too cheap versus the real thing it usually is fake or counterfeit.

Tony Zafiropoulos
9/13/2009



U.S. Chamber of Commerce hails legislation

US Chamber of Commerce Press Release
The U.S. Chamber of Commerce’s Global Intellectual Property Center (GIPC) hailed a new anti-counterfeiting law passed by the Illinois legislature and scheduled to be signed into law today as vital to protecting the state’s innovative economy by strengthening enforcement efforts and criminal penalties.

This was accomplished on 8/25/2009
, the created law placed Illinois Law in line with federal law. It defines a counterfeit mark. It increased penalties for repeat offenders and when the counterfeit goods produce injury and death.

Tony Zafiropoulos
09/12/2009

Fake or Counterfeit Products  versus "real"

Consumer Reports has a website page that discusses and attempts to show some differences between actual fake or counterfeit products versus the real products.

There is even a quiz giving you a selection of counterfeit and real products. Electrical extension cords (the UL label), MP3 players - or the Apple Nano, a diabetic strip, jeans, sunglasses, a tote, and finally a sneaker.  The sneaker was "one of the best counterfeits I have ever seen" said El Haddad, vice president of New Balance.

Tony Zafiropoulos
09/10/2009

Authenticate your products

What are the various methods of authentication? Brand printing, Holograms, electronic means (RFID or other chips).  What method of anti-counterfeiting should your product have?

Ours is a unique technology, as we use Lanthanoid chemical compound to create a signature which can then be read with a scanner. In fact several megabytes of data can be stored in the chemical.

Which method is likely impossible to counterfeit?  With our chemical, one not only has to be able to read it, but also then one has to create the chemical.  And since we know what effort it took to make the chemical we know it will not be easy to recreate the compound especially in the form that we will have created for your company specifically. We can create millions of different signatures.


Tony Zafiropoulos
09/09/2009


How to best Authenticate your product?
One method of authentication and keeping track of your products is RFID or Radio Frequency Identification. such as in RFIDJournal, here the computer chip is built into the watch (very similar to how Swiss Authentication canintegrate itself into products). It is true that the RFID product does not have many details since we did not sign a non-didclosure form.
 
But here is a  thought - a quick Google search using the keywords "crack RFID" brings the following article from EETimes, which tells of a professor stating that a standard cellphone has all the material which can listen in on an RFID chip.  And unfortunately they have no encryption.  Thus it is relatively easy to crack the RFID chip.
 
Tony Zafiropoulos
9/6/2009


How to best authenticate your products is the question. 

There are many ways to do this, create new printing techniques (on packages), or set up holograms, but they can be imitated as well, in hologramsuppliers.com where their solution is to set up a sufficiently difficult hologram that will need a reader to verify.

Our solution also needs a reader, our solution also allows for several megabytes of information to be included in the marker.  The marker is not analyzable, unlike any hologram.  This is due to its chemical composition
 
Tony Zafiropoulos
09/04/2009