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The Authentication Times
Issue 28
TheAuthenticationTimesJanuary 2016 | Volume 10 | Issue 28
www.aspaglobal.com
The official newsletter of Authentication Solution Providers’ Association (ASPA)
Identify
fake
pesticides
with authentication
solutions
Diverse technologies, common goal.
ASPA wishes you a fraud free
www.aspaglobal.com
www.aspaglobal.com
2
The Authentication Times
Issue 28
Dear Reader,
Welcome to the first issue of the year and wish you a Happy 2016!
We hope this year is filled with joyful learning, abundant opportunity,
and success in all that you choose to do.
Coming to The Authentication Times, the current edition focusses
on the issue of counterfeit pesticides that are being rampantly
used in India. Agriculture industry, which is the backbone of our
Indian economy, is facing multiple threats from the growth of these
counterfeit pesticides. Though the problem is not a new one and exists
since last 35 years, however, the situation has become worse in the
last five years. The counterfeit pesticides industry in India is growing
at an annual rate of 20 per cent. If not immediately addressed, it
can reach up to 40 per cent (approximately) share by value in the
pesticides industry by 2019.
Our cover story highlights this core issue and details on its various
types along with the reasons for the increase in counterfeit pesticides.
The story also brings to light the authentication solutions that can be
implemented in India to curb this menace to a great extent in the
interest of farmers, industry and country.
In this issue, you will also find an interesting interview with Pantec
GS Systems and Arkansas Tobacco Control, various industry updates,
news bytes, counterfeit seizure report and global patents.
We thank you for your continual support and look forward to receive
your feedback.
Sincerely,
Chander S Jeena
Editor
In this issue
Viewpoint
Policy initiatives	 3
Investment and	 4
financials
Strategic moves	 5
Security 	 6
enhancements
Event review	 8
Identify fake	 10
pesticides with
authentication
solutions
Face to face	 16
Market report	 19
Industry updates	 20
www.aspaglobal.com
3
The Authentication Times
Issue 28
Policy initiatives
Armenia joins international fight against
counterfeit medicines
Intellectual
Property
Protection
Advisory
Board
launched at
Dubai
International Tax Stamp
Association (ITSA) launched at
Miami, USA
Armenia joined the
international fight against
the crimes, which may cause
threat to public health as a result
of distribution and sales of
counterfeitmedicalproducts.The
Armenian Parliament discussed
the issue of Armenia’s accession
to the convention of Council of
Europe on “Counterfeiting of
medical products and similar
crimes posing a risk to the public
health”. Mr. Sergey Khachatryan,
Health Minister of Armenia,
mentioned that the convention
also refers to the criminalisation
of acts of deception to mislead
the public by fake documents,
false packaging or labelling
Source: www.armenpress.am
In order to erase counterfeit
productsfromDubaiandensure
purchase of original goods by the
consumers, the Department of
Economic Development (DED),
Dubai, has announced the launch
of the ‘Intellectual Property
Protection Advisory Board. This
is to bring businesses and the
government together to combat
counterfeiting and trademark
violations. The first-of-its-kind
public-private partnership across
the world to protect Intellectual
Property (IP), the Board is
aimed at strengthening Dubai’s
reputation as a competitive
businessdestinationandenhance
the UAE’s position across global
competitiveness rankings.
Source: www.emirates247.com
To respond to the need for better
understanding of the benefits
of excise tax stamps and tax
stamp technologies, as well as
to promote high professional
standards in this sector, new
International Tax Stamp
Association (ITSA) was launched
at Miami, USA. The event took
place immediately before the
opening of the 2015 Tax Stamp
Forum, which ran from 11-13
November, 2015 at the Trump
National Doral Hotel in Miami.
Membership of ITSA is open to
legally incorporated companies
and businesses that supply tax
stamp components and features,
as well as finished tax stamps,
equipment for stamp design,
manufacture, application and
authentication, and systems for
coding and marking stamps.
Nicola Sudan of Reconnaissance
has been appointed as Secretary
General of this association
and can be contacted at +27
21 911 0170 or email nicola@
reconnaissance-intl.com.
Source: www.its-association.org
From left: Zbigniew Sagan (Advanced Track & Trace), Juan Yanez (Thomas Greg
& Sons), Francis Goossens (Thomas Greg & Sons), Christine Macqueen (SICPA),
Kelly Smith (Ashton Potter), Thanapol Kongboonma (Chanwanich), Michel Mariton
(Hologram Industries), Nicola Sudan (Secretary General & Reconnaissance),
Nampetch Chivakul (Chanwanich)
www.aspaglobal.com
4
The Authentication Times
Issue 28
Investment and financials
Pollard announces record revenue in
third quarter financial
Peruri reports
20 per cent
increase in Q3
profit
INNOVIA
spends £15m
to set up new
line for UK
banknotes
Printer Ashton
Potter poised
for growth with
new facility in
2016
Pollard, one of the largest
providers of instant tickets,
releaseditsthirdquarterfinancial
results ended September 30,
2015. The company has achieved
sales of $57.9 million, compared
to $53.5 million in the three
months ended September 30,
2014. “The lottery industry is a
growing, progressive business
looking for creative partners,”
stated Co-Chief Executive
Officer Doug Pollard, “and we
are dedicated to meeting these
high expectations. Our approach
to supporting lotteries through
all channels and products is
critical for our success. Products
such as our new Eco ScratchTM
environmentally friendly ticket is
a great example of an innovative
product gaining significant
lottery acceptance.”
Source: www.newswire.ca
State-owned printing Company
PerusahaanUmumPercetakan
Uang Republik Indonesia (Perum
Peruri) recorded a 20 per cent
increase in net profit to Rp231
billion in the third quarter of this
year compared with the same
period last year. The operating
income of the company was
Rp2.17trillioninthethirdquarter
of this year,” Peruri President
Director Prasetio informed.
He added that this year Peruri
recorded a good performance
with operating income surging
in the third quarter from Rp1.72
trillion in the same period last
year. Its operating profit grew 42
per cent to Rp373 billion in the
third quarter, he said.
Source: www.antaranews.com
Innovia Films opened a new
production line that will
manufacture material for the
Bank of England’s first polymer
bank notes. The company has
spent £15m setting up the new
line, which uses its unique
‘bubble’ process to make a
polymer film known as Clarity C.
This will be coated at a purpose-
built opacification plant, also at
Wigton, before being sent for
printing at a De La Rue’s high-
security bank note press in
Essex. Wigton will produce the
material for 2bn £5 and £10 bank
notes over the next five years.
The £5 note, featuring Winston
Churchill, enters circulation next
autumn followed by a £10 note
depicting Jane Austen in 2017.
Source: www.cumberlandnews.
co.uk
Canadian-born, U.S.-bred
securityprinterAshtonPotter
will be poised with a new facility
in 2016. The 200-employee
companyrecentlymadeheadlines
with the news that it was
constructing a 55,000-square-
foot office, manufacturing and
storage facility, a $3.2 million
project. The new space, complete
with a 127-vehicle parking lot
and loading dock, will enable
Ashton Potter to exit a leased
space and move in next door to
its headquarters. It is among the
largest suppliers of stamps and
stamped envelopes to the U.S.
Postal Service (USPS) and churns
out roughly a quarter of the
world’s stamps in both pressure-
sensitive label and water-
activated gum (WAG) form.
Source: www.piworld.com
www.aspaglobal.com
5
The Authentication Times
Issue 28
Nanotech & Hueck Folien signs
MoU
De La Rue announces completion
of manufacturing footprint review
Hologram Industries becomes Surys
ASSA ABLOY
acquires IAI
industrial
systems B.V. Nanotech Security Corp
and Hueck Folien GmbH
of Baumgartenberg, Austria
announced the signing of a
Memorandum of Understanding
whichcontemplatesanoperational
agreement to collaborate in the
production of a colour shifting
security feature in optical thin
film (OTP). The OTF product is
anticipated to initially be used in
banknotes as threads and then
expand into other markets in the
future. The proposed agreement
reflects a mutual commitment for
extensive co-development work
at both companies on equipment
and technology over the past year.
Working closely together, the
alliance will focus on maximizing
global opportunities utilizing
Nanotech’s colour shifting thin
film technologies combined
with HueckFolien’s large volume
production and worldwide
distribution channels.
Source: www.otcmarkets.com
De La Rue plc (“De La Rue” or
“the Group”) announces the
results of its review to optimise
the manufacturing footprint.
This demonstrates positive early
progress on the delivery of the five
year strategic plan.
The main conclusions are:
•	 Reduction in banknote print
capacity from 8bn banknotes
per annum to 6bn and in the
number of production lines
from eight to four
•	 Expected savings in excess
of £13m per annum from
FY18/19 in additionto the
Group’s existing ongoing cost
saving initiatives
•	 Threecentresofexcellencefor
banknote print: Gateshead in
the U.K., Kenya and Sri Lanka.
Closure of Malta banknote
production
•	 Associated capex of less
than £30m, half of which is
incremental to normal annual
run rate, and exceptional
restructuring costs of £8m
•	 Creation of centre for
excellence for Identity and
Security Print in Malta as part
of Invest and Build strategy.
Source: www.delarue.com
ASSA ABLOY has entered into
a definitive agreement with
DOCDATA N.V. to acquire IAI
industrial systems B.V. and its
subsidiaries (“IAI”), a leading
Dutch company specializing in
security printing solutions for
government ID, bank notes and
other security solutions.
“IAI is an important technological
additiontotheASSAABLOYGroup.
The company complements
our current offering within
secure identity solutions. The
acquisition of IAI considerably
enhances the Group´s position
within government ID and will
provide complementary growth
opportunities,” says Johan Molin,
President and CEO of ASSA
ABLOY.
“The addition of the IAI portfolio
to HID’s expertise in the field of
secure identity documents sets
HID apart in the industry as the
only company offering a full range
of both identity card and passport
personalization solutions
coupled with the production
of high-quality, high-security
documents.”, says Stefan Widing,
Executive Vice President ASSA
ABLOY and Head of business unit
HID Global.
Source: www.news.cision.com
Secure identity solutions
developer Hologram
Industries has become Surys,
creating a new player in eID and
identity document providers.
Speaking to Security Document
World at Cartes, Surys President
HuguesSouparis said that the
change in name was designed
to reflect the company’s wide-
ranging offerings. “SURYS offers
solutions to ensure that national
IDs, travel documents, drivers’
licences are easy to authenticate
and hard to counterfeit,” notes
the new company on its website.
The newly created companies
offeringsincludeidentity,vehicles,
bank notes and brand solutions,
including products which can
authenticate using smartphones.
Source: www.surys.com
Johan Molin
President and CEO of ASSA ABLOY.
Strategic moves
www.aspaglobal.com
6
The Authentication Times
Issue 28
Security enhancements
Kazakh National Bank unveils
new 20,000-Tenge note
Kazakh National Bank has
unveiled new 20,000-tenge
bank note on December 1.
This bank note was created
in 2013 and was signed by
then-Chairman of the National
Bank GrigoryMarchenko, who
planned to dedicate it to the
20th anniversary of the tenge
in November 2013. Its design
is similar to other bank notes:
its face contains mainly vertical
pictures; the back, horizontal. Its
dimensions are 155 millimetres
long and 79 millimetres wide.
The note is grey blue and features
trans-illuminated from both
sides, a composite thread mark in
the form of the Samruk mythical
bird and its contour lines in the
form of a transparent window.
Source: www.astanatimes.com
Banks in
Ethiopia
to issue
standardized
cheques to 	
tackle
forgery
National Bank of Ethiopia
(NBE) has piloted use of
standardized cheques in all
banks of Ethiopia from the end of
November 2015, Addis Fortune
reported. The standardized
cheques are identical in
appearance, except for logos
of individual banks. They have
security features which will
make them difficult to forge.
NBE for the purpose of tackling
forgery and speeding up clearing
and settlement processes has
taken the initiative of issuing
the standardized cheques
in 2013. The long process of
clearing and settling post-dated
cheques will no more be in
place when the standardized
cheques are introduced. There
will be a digital platform for
financial transactions that can
be made with a simple swipe
at the scanner, communicating
the messege via an integrated
network developed by ET-Switch.
Thus there will no longer be
physical transfer of cheques.
NBE has awarded the contract
to Madrass Security Printers, an
Indian company with 25 years’ of
experience in security printing.
Source: africa-ontherise.com
China releases newYUAN
banknote
China’s central bank released
a new 100-yuan banknote in
November 2015. The design stays
largely the same as its former
series, but the new banknotes are
harder to conterfeit and easier for
machines to read. The 100-yuan
note is the largest denomination
of the Chinese currency. The new
note will be the third edition
of the fifth series, which was
introduced in 1999. The second
edition, which is in current use,
was issued in 2005.
Counterfeit prevention is in the
center of this upgrade. Colour-
changing ink will be applied to
the pattern of the number 100 in
the centre of the note. The colour
will change from golden to green
when the angle is adjusted. Other
new features include a security
line on the right of the bill, which
will change from hot pink to
green when the viewing angle is
adjusted, and a textured pattern
across the image of the Great Hall
of the People on the back of the
note.
Source: www.en.people.cn
www.aspaglobal.com
7
The Authentication Times
Issue 28
Security enhancements
Turkey to issue
biometric passports
in 2016
Turkey is preparing to issue biometric passports
to its citizens as part of an agreement with the
European Union. Government officials say they plan
to begin printing the new passports in March, and will
issue new citizen ID cards at the same time. The move
is intended to comply with recent agreements with
the European Union, which recently offered 3 billion
euros to Turkey as part of an arrangement that will
see Turkey help the EU to manage a major influx of
refugees. In return, Turkish citizens will gain access
to the Schengen zone, an area largely comprising EU
member states that allows relatively unrestricted
travel within its borders. But a condition of that access
is the implementation of biometric passports. It is a
major security matter as some EU members call for
even stricter border controls over security concerns.
Source: www.refworld.com
UK unveils new
passports design
The Home Office has unveiled the new designs for
UK passports. The new book celebrates 500 years
of creativity in the United Kingdom and features well
known images from artists, landmarks, architecture,
iconic British innovations and the performing arts. The
new travel documents, which are updated every five
years, feature advances in the use of security printing
by using UV and infrared light, inks and watermarks to
stop fraudsters from forging the new designs.
Source: www.gov.uk
www.aspaglobal.com
8
The Authentication Times
Issue 28
Cover Story
Introduction:
The Agriculture Industry, which
is the backbone of our Indian
economy, is facing multiple
threats from the growth of fake
pesticides. According to a latest
study conducted by FICCI, the
fake pesticides industry in India
was estimated at INR 3,200 crore
(USD 525 million) in 2013, which
accounted for 25 per cent by
value and 30 per cent by volume
ofthedomesticpesticideindustry
in 2013. The study indicates that
this market is expected to grow
at the rate of 20 per cent per
annum in terms of value, and
if not addressed, can reach to
approximately 40 per cent share
byvalueinthepesticidesindustry
by 2019. The problem is extreme
in many States including Uttar
Pradesh, Jharkhand, Madhya
Pradesh, erstwhile Andhra
Pradesh, Haryana, Maharashtra,
West Bengal, Karnataka and
Tamil Nadu.
Consequences of
counterfeit pesticides:
The contribution of the Indian
agriculture sector in the Indian
GDP already declined from 19.34
per cent in 2001-02 to 15.79
per cent in 2013-14. Moreover,
as per census 2011, India has
approximately 119 million
cultivators and this number is
decreasing by approximately
2,000 every day. This trend
is worrying and will create a
natural stretch on the agriculture
sector in the future. The growth
by C S Jeena
It has been over three decades
since India Today, one of India’s
leading publication covered
a story on the problem of
fake pesticides in Punjab and
Haryana. In these last 35 years,
the predicament of farmers
in India has worsened year
by year, as they continue to
fight a grim battle against fake
pesticides. On the other hand,
the fake pesticides industry in
India has been growing at an
annual rate of 20 per cent and
now constitutes approximately
30 per cent of the total crop
protection market.
While fighting fake pesticides
is a complex problem, the
adoption of new generation
authentication solutions
can greatly help various
stakeholders in tackling this
growing menace.
The article highlights this
core issue and details on its
various types along with the
reasons for the increase in
counterfeit pesticides. The
story also brings to light the
authentication solutions that
can be implemented in India
to curb this menace to a
great extent in the interest of
farmers, industry and country.
Identify fake
pesticides with
authentication
solutions
•	 Counterfeit pesticides
industry in India is
estimated as ` 3,200
crore (US $ 525
million) in 2013
•	 Expected to a grow
with 20 percent
per annum in value
terms and if not
addressed, can reach
to approximately
40 percent share by
value in the pesticides
industry by 2019
www.aspaglobal.com
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The Authentication Times
Issue 28
Cover Story
Financial Year	 Counterfeit pesticides	 Reported by
	 market size in India (`)	
2008-09	 ` 1,200 crore	 Agrochemicals Policy Group (APG)
2009-10	 ` 1,400 crore	 Agrochemicals Policy Group and FICCI report on Indian
	 	 Agrochemical industry http://www.ficci.com/events/20563/
	 	 add_docs/sectorbrief.pdf
2013	 ` 3,200 crore 	 FICCI & Tata Strategic Management Group Press Release
	 	 dated Sep 23, 2015
of spurious pesticides is adding
fuel to the fire as India suffered
a loss of 10.6 million tons of food
grain production in 2015-16.
In light of this, India’s position
as one of the leading food grain
exporters in the world is also at
stake.Thereisnodenyingthatthe
damage through such products
is multi-fold and the counterfeit
pesticides pose a significant
threat to various stakeholders.
These include:
a) Farmers: Risk of life &
valuable crop loss:
Various cases of farmers
committing suicide due to loss
of crops have been reported by
the media. Although there are
various reasons for the loss of
crops, the involvement of fake
pesticides can’t be ignored or
denied. Spurious pesticides are
known to damage the crops
resulting in a decreased yield or
at times, even destroying a field.
Some examples of this include:
- 	 Punjab: More than half of 5
lakhs hectares’ cotton crop
was completely destroyed
- 	 Jammu and Kashmir: Crop
production went down by 50
per cent
- 	 Fake pesticides are a serious
threat to the Kashmir apple
industry which is worth `
4,000 crore (US $ 750 million)
b) Consumers: Risk of Health
Counterfiet pesticides pose
increased risks to consumers
through unknown and untested
residues. Unlike legal, registered
products, spurious pesticides
could contain unknown toxic
impurities and have not been
tested for human health impact.
Residues of unknown and
untested substances could get
carried into harvested food and
compromise consumer health,
whilst also posing health threats
to farmers through exposure
duringapplication.In2013,atotal
of 23 children died in Bihar after
they consumed contaminated
free school lunches containing
monocrotphos pesticides.
c) Government: Risk of
reputation, exports and
economic damages
Increased cases of spurious
pesticides make the public
lose their confidence in the
government’s ability to regulate
the agricultural sector effectively.
In 2013-14, India exported 29
million tons of food grains (worth
` 1,578 billion) and 3 million tons
of fruit and vegetables worth ` 88
billion. In such a scenario, India’s
position as one of the leading
food grain exporters in the
world is also at stake as there is
increased possibility of rumours
or sabotage by other countries
or rejection of Indian exports
Table: Counterfeit pesticides market size in India
•	 Fake pesticides a
threat to Kashmir
apple industry worth
` 4,000 crore (US $ 750
million)
•	 In 2013-14 India
exported 29 million
tons of food grains
(worth ` 1,578 billion)
and 3 million tons of
fruit and vegetables
worth ` 88 billion
* 1 billion = 100 crore
www.aspaglobal.com
10
The Authentication Times
Issue 28
goods items from developed
countries. In recent years, the
European Union and Saudi Arabia
temporarily stopped buying
some varieties of vegetables from
India after detecting pesticide
residues in the exported produce.
Indian officials say such cases
result from the overuse of
chemicals. The latest cases of
rejection include that of Soybean
and Alphanso Mango. Not only
this, the government loses not
just the tax revenue but also
its prestigious goodwill and
reputation.
d) Industry: Loss of sales and
reputation
Due to the presence of counterfeit
pesticides, the farmers lose
faith in legitimate products and
companies, which result in loss
of reputation and customer trust.
Also at stake are the Indian crop
protection industry, which is
estimated at ` 25,000 crore (US
$ 4.1 billion) in Financial Year
2014 along with the Food Retail
industry.
e) Environmental risk
Thereishighriskofenvironmental
contamination and adverse
effects on groundwater,
following crops and biodiversity.
Firstly, the production of
counterfeit products may
subvert environmental
regulations leading to the
production processes and waste
contaminating the land, air
and water. Secondly, the use of
counterfeit products, such as
pesticides, may cause severe
crop and environmental damage.
Thirdly, the destruction of
counterfeit products can result
in more landfill waste or toxic
fumes from incineration.
Types of counterfeit
pesticides:
To fight any type of counterfeit
activity, one needs to first
understand the nature, extent
and reasons behind the increase
of such activity in various sectors
as it varies by market and can
originate from many different
sources in different forms. The
three main forms of counterfeit
pesticides are;
a) Fake pesticides:
These products are often sold in
simple packs (white bottles) with
minimal information on the label
about their use and no mention
of any health or environmental
precautions. They contain
anything from water or talc, to
diluted and outdated or obsolete
stocks, including banned or
restricted materials. Some fakes
also provide a degree of biological
control, as they sometimes may
contain an illegal and untested
copy of the proprietary active
substance.
b) Counterfeits of genuine
branded products:
These are sophisticated copies
of legitimate branded products
usually with high quality of
labelling and packaging. Most
contain a copy of the original
active substance; however,
its biological efficacy is often
diminished owing to high level
impurities of manufacturing
and process by-products. Such
products are often difficult to be
distinguished from the genuine
ones. Mostly, farmers are fooled
into buying them unknowingly in
absence of proper education and
awareness.
In various cases, counterfeiters
purchase genuine, empty bottles
Cover Story
The Indian crop
protection industry
which is estimated at
` 25000 crore (US $
4.1 billion) in Financial
Year 2014 and the Food
Retail industry is at
stake due to all these
incidents
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11
The Authentication Times
Issue 28
Cover Story
Only 25-30 percent of
farmers are aware of
the use of pesticides
and don’t ask for
specified chemical or
brand and often ignore
if specified details
are not available on
products
from the farmers on as high
as 25 per cent of the M.R.P.
mentioned on the original bottle.
This way, the counterfeiters put
substandard ingredients into the
bottle and resell it.
c) Illegal parallel imports:
These are legitimate parallel
traded products substituted with
illegal generic copies, repackaged
and sold as legitimate products.
Reasons behind increase
of counterfeit pesticides
The problem is increasing
because of various factors like;
a) Difficulty in identification of
fake products with legitimate
one due to lack of awareness:
In India, majority of the farmers
are illiterate and there exists a
lack of education and awareness
at the farmer level. Only 25-30 per
cent of farmers are aware of the
correct use of pesticides. Many do
not ask for specified chemicals or
brands and often ignore if specific
details are not available on the
products. Ironically, even though
the food manufacturers and
producers are consumer-oriented
companies, they do not speak
publicly about this problem. Many
food companies do recognize the
challenges but prefer to resolve
these quietly and directly with
their suppliers.
The main disadvantage of this
practice is that it does not bring
the problem out in the open and
consequently thousands of food
producers remain uninformed
about the existence of this grave
issue and thus how to deal with
it. It is important that farmer
organisations and Co-ops play
a leading role in increasing
awareness about the risks of using
counterfeits.
b) Lack of monitoring and
surveillance
In India, the responsibility
of enforcement is divided
between the regional and
national authorities but
the political divisions and
sensitivities have led to weak
enforcement coordination
and action. At national levels,
this requires multi-disciplined
specialists’ teams with skills
in policing and prosecution,
chemicals, agriculture, customs,
environment, etc. These skills are
available, but more often than not
are not working together.
c) Focus on high-profile
sectors
National anti-counterfeit
activities tend to focus on
high profile sectors where the
VAT losses are largest (luxury
goods, CDs, clothing, software,
pharmaceuticals). Less high
profile sectors like farmers do
not get the requisite resources–
despite the acute environmental
and health threats posed by
counterfeit pesticides.
d) Inadequate judicial
frameworks and penalties
India does not have adequate
legislation to properly prosecute
counterfeiting. For example, in
some countries, it is illegal to
buy or sell counterfeits, but not
to possess them. Other countries
have inadequate penalties. In
one known case, a convicted
counterfeiter found in possession
of hundreds of tons of illegal
pesticides was only given a very
small fine.
e) Challenges of quantifying
the problem
It is difficult to present detailed
data of the extent and growth of
the problem because of its illegal
nature. This is the same problem
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12
The Authentication Times
Issue 28
Cover Story
encountered by all sectors who
face counterfeiting. Even in areas
where judicial authorities devote
significant resources, like illegal
cigarette smuggling or narcotics,
the estimates of the size of the
problem vary wildly.
Role of authentication
Solutions in fighting this
menace
Counterfeiters today are tech
savvy and can easily produce
packaging material similar or
better than that of genuine
products. But, if there is a
problem, there are solutions.
Technology-based solutions
could be one of the strategies
to counter the problem.
Various studies and scholars
have attempted to propose
technology-based solutions to
combat fake agro-inputs products
in the supply chain. The proven
adoption of these technologies
by countries like Tanzania and
Uganda can be treated as case
studies. These authentication
solutions have multiple benefit as
they provide
a) tamper proof packaging;
b) product authentication and
c) tracking and tracing of product
Proposed solutions for
India (see figure 1)
In India, farmers do not have
any tool/medium to differentiate
genuine pesticides from fake ones
at the time of purchase. Due to
lack of awareness and illiteracy,
they rely on the visual appeal
and can only check the quality
of products with the marking
of ISI/AGMARK. However, with
the advancement in digital
technology, it has become easy
for unethical manufacturers
to produce fake ISI/AGMARK
products as well. Farmers only
come to know about counterfeit
pesticides after there has been a
lossofcroporfield.However,until
Figure1: Authentication solution to identify fake pesticides (high security holographic label with track and trace solution)
Via text message
The ID code can
be verified
with a mobile
phone.
Via missed call
Farmers can
check the
authenticity of
pesticides by
giving a missed
call at
1800 180 1551
(Toll free)
At the Point-of Sale
via mobile app
Consumers can check the
originality of a product
with a smartphone
directly at the POS. For
that they have to scan
the QR code and follow
the instructions of the
website they are
directed to.
Via Internet
The product label can
also be  checked via
website which can
be open with every
browser.
Via Extranet
Customs /
enforcement
authorities can log
in the secure extranet
server  and check
the hidden security
features, which are
only visible with
magnifying glasses
or special reading
devices.
At the Point-of Sale
Consumers can check the originality
of a product with a smartphone
directly at the POS. For that they
have to scan the QR code and follow
the instructions of the website they
are directed to.
to the website to verify the
originality of the product.
Via Extranet
Experts or customs agents can log
in the tesa connect & check extranet®
and check the hidden security features,
which are only visible with
magnifying glasses or special
reading devices.
Via Internet
The tesa connect & check website®
can be opened with every browser
via PC, notebook or mobile phone
and the security features of the label
can be checked.
Via text message
The ID code can be veri ed
with a mobile phone.
At the Point-of Sale
Consumers can check the originality
of a product with a smartphone
directly at the POS. For that they
have to scan the QR code and follow
the instructions of the website they
are directed to.
Via Mobile Web
The printed QR code on the
label can be captured with a
smartphone. The ID code
as well as the website for
authentication are integrated
in the QR code. The user is
therefore directly forwarded
to the website to verify the
originality of the product.
Via Extranet
Experts or customs agents can log
in the tesa connect & check extranet®
and check the hidden security features,
which are only visible with
magnifying glasses or special
reading devices.
Via Internet
The tesa connect & check website®
can be opened with every browser
via PC, notebook or mobile phone
and the security features of the label
can be checked.
Via text message
The ID code can be veri ed
with a mobile phone.
At the Point-of Sale
Consumers can check the originality
of a product with a smartphone
directly at the POS. For that they
have to scan the QR code and follow
the instructions of the website they
are directed to.
Via Mobile Web
The printed QR code on the
label can be captured with a
smartphone. The ID code
as well as the website for
authentication are integrated
in the QR code. The user is
therefore directly forwarded
to the website to verify the
originality of the product.
Via Extranet
Experts or customs agents can log
in the tesa connect & check extranet®
and check the hidden security features,
which are only visible with
magnifying glasses or special
reading devices.
Via Internet
The tesa connect & check website®
can be opened with every browser
via PC, notebook or mobile phone
and the security features of the label
can be checked.
1800 180 1551
Proven adoption
of authentication
technologies by
countries like Tanzania
and Uganda can be
treated as
case studies
www.aspaglobal.com
13
The Authentication Times
Issue 28
Cover Story
that happens, there is no way to
analyse the contaminants in the
fakeproductsasthefarmersapply
the in all of their crops, or use up
the packing materials. Therefore,
there remains a constant need
to spread awareness on ‘How to
identify genuine pesticides from
the fake ones?’
The usage of authentication
technologies on pesticides
products can be of great help
to the farmers and authorities,
not only in identifying the fake
products but in identifying
the counterfeiters involved
in the fake pesticides’
business as well. Further, the
government authorities can
use anti-counterfeiting devices
comprising of overt, covert and
forensic security features.
Examples of such tools are
security hologram seal and labels,
tamper evident security film, low
cost transponder tags, and light
sensitive ink designs. Integrated
with track and trace technologies,
these solutions can help farmers
and enforcement authorities in
identification of genuine and fake
pesticides.
All these anti-counterfeiting
solutions (label) can be linked
with the database of our
Indian Government Kisan Call
Centre. According to the Indian
Government, nearly 70 lakh
farmers across the country
are registered with the KISAN
SMS Portal. The farmers can
easily check the originality of
pesticides by giving a missed call
or SMS at the toll free number
1800- 180-1551. A message is
then sent to each farmer in his
preferred language and contains
information about the pesticide’s
batch number, expiry date and
originality.
Conclusion
Adopting authentication
solutions is a win-win situation
for all the stakeholders; as the
brand owner and the authorities
enjoytherevenuesandtax/duties
respectively and the consumer
has an access to the original
product. These authentication
solutions also help the end
consumer to identify a genuine
product in turn winning his
loyalty and boosting the brand
value.
References and Sources:
•	 Federation of Indian Chambers of
Commerce and Industry (FICCI)
in association with Tata Strategic
Management Group (TSMG), Study on
Sub-Standard Spurious / Counterfeit
Pesticides in India 2015- Report
•	 http://www.tsmg.com/resources/
reports.html
•	 Tribune News Service, Agri chief held in
pesticide scam,
•	 http://www.tribuneindia.com/news/
punjab/agri-chief-held-in-pesticide-
scam/141746.html
•	 The Dollar Business, Agri Exports worth
$ 27billion at stake due to fake pesticides
says study,
•	 https://www.thedollarbusiness.com/
agri-exports-worth-27-billion-at-stake-
due-to-fake-pesticides-says-study/
•	 DNA India, Fake pesticides may cause
rejection of soybean,
•	 http://www.dnaindia.com/india/report-
fake-pesticides-may-cause-rejection-of-
soybean-1890611
•	 Press Trust of India, Use of genuine
agrochemicals can raise pulses output by
25%
•	 http://indiatoday.intoday.in/story/use-
of-genuine-agrochemicals-can-raise-
pulses-output-by-25per cent/1/533972.
html
•	 Tesa Scribos Solutions for Chemical
Industry, tesa PrioSpot® and tesa
VeoMark®
•	 http://www.tesa-scribos.com/eng/
markets/chemical_industry
•	 Combating Fake Agro-Inputs Products
in Tanzania using Mobile Phones,
International Journal of Computer
Applications (0975 – 8887) Volume 97–
No.17, July 2014
•	 Frederick M. Fishel, UF/IFAS Extension,
University of Florida, PI-174, The Global
increase in Counterfeit Pesticides
•	 https://edis.ifas.ufl.edu/pi210
•	 CropLife International, Anti-
Counterfeiting.
•	 https://croplife.org/crop-protection/
anti-counterfeiting/
The farmers can easily
check the originality of
pesticides by giving a
missed call or SMS at
toll free number 1800-
180-1551. The message
can be provided to
each farmer’s in his
preferred language and
contain information
about the pesticides
batch number, expiry
date and originality
www.aspaglobal.com
14
The Authentication Times
Issue 28
Event review
The Holography ConferenceTM
Shanghai, China, 2-4 December 2015
T
he 25th International Holography Conference
organised by Reconnaissance International
was held on December 2-4, 2015 at Shanghai,
China. Holography ConferenceTM
is a major event for
hologram manufacturers across the globe to discuss
the latest developments in holography industry. The
event saw active participation of approximately 140
delegates from 80 organisations and 24 countries.
The Conference was supoorted by ASPA as their
media and association partner and well sponsored
by companies across the globe. Some of the sponsors
included China Banknote Printing and Minting
Corporation (CBPM) as Platinum Sponsors, DiArts,
Giriraj Foils, Optaglio, Sanjan Packing Machinery,
Wood & Associates International as Silver Sponsors,
IHMA and China Trade Association for Anti-
Counterfeiting as Association.
The companies exhibited at this forum included;
•	 Combustion Ingenieros
•	 Computer Holography Centre
•	 Demax Holograms
•	 Krypten
•	 Optrace
•	 Polish Holographic Systems
•	 DiArts
•	 Giriraj Foils
•	 Optaglio
•	 Sanjan Packing Machinery
•	 Wood & Associates International
•	 International Hologram Manufacturers
Association (IHMA)
•	 China Trade Association for Anti-Counterfeiting
as Association.
•	 Zhongchao special security technology co.
Like every year, the event also organised the
International Hologram Manufacturers Association’s
(IHMA) Annual General Meeting (AGM) along-
with this conference. The AGM came across as a
fruitful event with Mr. Rohit Mistry and Mr. Manoj
Kochar were selected as the IHMA Governing Body
Members, Holostik bagged the Holography Excellence
Commended Award for Best Applied Security Product
and ASPA Secretariat presented paper on Hologram
in India. Further, Giriraj Foils also exhibited on
Enhancing Indian Companies’ Commitment to Quality
and Ethics at the conference.
Holography Excellence Awards 2015
At the forum, the Excellence for Holography Awards
were awarded to organisations for their outstanding
contribution in holographic projects for the year.
Sponsored by the industry newsletter Holography
NewsTM
, these awards and commendations were
presented on December 3, 2015 at the Gala Dinner
and were sponsored by IHMA.
The award nominations were submitted for five
categories: Innovation in Holographic Technology,
Best Origination, Best Applied Security Product and
Best Applied Decorative/ Packaging Product. In
addition to this, the IHMA Board’s judges also picked
one project as the ‘Best of Year’ and selected the
recipient of the Brian Monaghan Award for Business
Innovation.
Giriraj Foils exhibiting at conference Colour DanceTM
www.aspaglobal.com
15
The Authentication Times
Issue 28
Event review
Wayne Tompkin
Best applied security product Best OriginationAfzal Inner
The winners and commendations for 2015 are:
Winner of this year’s Innovation in Holographic
Technology award was China’s Zhongchao Special
Security Technology Co Ltd, a division of China
Banknote Printing & Minting Corporation, with its
ColorDance™ product, designed for banknote security
stripes. This new type of optical anti-counterfeiting
technology differs greatly from traditional holography
by containing special optical micro-nanostructures
showing novel optical effects such as dynamic image
with full parallax and steady colour.
Also commended was Bowater Holographics for
Bowater Polycopier, CSEM SA for ‘Holograms & DOE’s
Structured in Hardened Steel’ and Morphotonix
S.a.r.l./Kyburz & Cie S.A for ‘Decoration and Security
in One for Swiss Watch Dials’.
Combustion Ingenieros S.A.S. Technological of
Colombia was awarded as the Best Origination
winner for its Nobel Prize Tribute hologram honoring
the memory of Colombian writer and Nobel Prize
winning author Gabriel García Márquez. Each view
of the hologram shows a multiplicity of characters,
landscapes and elements depending on illumination
source position.
Combustion Ingenieros was also commended for
their ‘Powerful Chinese Dragon’ metal-embedded
hologram. Also commended in this category were
Hologram Industries, now called as Surys, for its
design for the security laminate on the national
passport of The Sultanate of Oman.
The winner of this year’s Best Applied Security
Product was the Bank of Israel in association with
Leonhard Kurz Stiftung & Co. KG, for the first of four
new denomination Series C banknotes released into
circulation. The banknotes carry Kurz’s KINEGRAM®
VOLUME®foilstripefeaturingvibrantlycolouredbold
designs from the KINEGRAM® origination process,
which are combined with physical principles and
materials entirely different from typical holographic
foils. Also commended was Holostick India Ltd for the
‘Afzal Inner’ hologram for export tobacco pouches.
Two entries were commended for the Best Applied
Decorative/Packaging Product award. Firstly, a three-
company alliance between NovaVision Inc, Royal
Canadian Mint and Pacific Holographs produced the
2015 Fine Silver Hologram Coin featuring ‘Lustrous
Maple Leafs’ embedded into one of the coin faces.
Optaglio Ltd was also commended for their Fine
Silver Coin to commemorate the 25th Anniversary of
the Canadian Space Agency.
The Hellenic Institute of Holography was awarded
‘Best of Year’ for the Bowater Collection of Fabergé
OptoClones™, which are remarkably accurate full
colour holographic reproductions of the famous
ornaments now housed in the Fabergé Museum in St.
Petersburg, Russia.
The proud recipient of the Brian Monaghan Award
for Business Innovation was Wayne Tompkin Ph.D,
Head of Optical Technology for OVD Kinegram Corp.
After a career in holography spanning over 25 years,
Wayne is responsible for the development and
origination of many of OVD’s KINEGRAM® projects
for the protection of banknotes, ID documents, and
brand protection. Wayne has also authored more
than 25 papers, and his technical expertise has been
recognized in over 400 patents worldwide.
For more information visit: https://www.reconnaissance.
net/holography-conference/
www.aspaglobal.com
16
The Authentication Times
Issue 28
TAT - Please brief us a bit about
Pantec.
Pantec GS Systems AG provides
efficient, high quality print
refining solutions for label,
packaging and security printing
industries. Sophisticated high
performance rotary and flatbed
hot foil stamping & embossing,
high frequency vacuum foil
saving and precision high speed
hologram placement are the key
focus areas of Pantec GS Systems.
Leading printers in all sectors,
as well as worldwide operating
groups, rely on Pantec GS Systems
products for efficiency refining
and differentiation.
TAT - What solutions does
Pantec offer for authentication
and packaging sector?
The SWIFT is a unit to save
expensive foil and place
registered patches and hologram
with rotary hot foil stamping
units. The Pantec Vacuum foil
system allows frequencies up to
20/sec on each stream (200,000
per hour with 3 streams). SWIFT
is designed to be movable on
any printing station on the rail
of narrow web printing systems.
SWIFT is quick and simple to
setup with click-in vacuum walls
for up to 9 foil saving and 6
holograms streams.
SWIFT is used by bay security
printing customers for technical
labels and tax stamp applications
as well as firms in body care and
cosmetics for foil saving and
prestigious patch placement.
CHEETAH is mainly used in the
packaging sector today. Tobacco
industries in China are moving
from sheet fed to roll fed placing
holograms and saving foil up to
120 m/min. Also, CHEETAH is
usedinlineinrotogravurepresses
as well, where overprinting is
a requirement. Philipp Morris
Parliament packs are using
overprinted holograms, stamped
with Pantec inline in Komori
presses.
RHINO is the worldwide proven
flatbed inline foil embossing
system series that revolutionized
the wine and spirit label market.
Its robustness, reliability and
payback for specialists in these
markets as a surprise at first.
Dozens of systems run integrated
Mr. Peter Frei is CEO of Pantec GS Systems, Kradolf, Switzerland.
During his recent visit to India, Peter, in an interaction with Authentication
Times, talks about the company’s ambitious plans for India and some
of the challenging projects undertaken to maintain the company’s
growth trajectory.
Pantec SWIFT RHINO - Multicolor Registered Hologram RHINO II
Face to face
www.aspaglobal.com
17
The Authentication Times
Issue 28
Face to face
in more than ten different
printing presses in all major
globally-active firms and local
specialist houses. The RHINO
II series accommodates one or
two foil stepping servo levels for
independent patterns. With 7
strokes per sec, small, short, cost-
effective tools produce at high
speed. RHINO II is an athletically
fast, agile and robust runner.
TAT - How are Pantec solutions
different or unique from other
players in the market?
Pantec solutions are integrating
In-line. They are faster than
offline systems, with stronger and
more robust and quick change.
Pantec process control is very
precise. For instance, hologram
placement precision allows
highest prestigious designs to
make use of concentric accuracies
of 0.15 mm. The unique vacuum
foil buffering system allows more
than double the performance
compared to mechanical systems.
Pantec is efficient, high quality
refining: best in performance and
quality.
TAT - What factors make your
company successful?
Apart from the above-mentioned
performance, robustness, quick
change and stamping quality,
it’s our service. Pantec RHINO
has been installed in all wine
and spirit areas, from Australia,
Russia, California to South
America. Global firms in labels
and packaging rely on our Swiss
quality, our service hotline and
quick reaction of skilled staff.
TAT - What kind of challenges
your company faced in initial
stages and what the scenario
now?
Initially, some press
manufacturers doubted about
the feasibility to integrate into
servo presses, especially the
flat bed RHINO. They were also
cautious about reliability and
change time, as these factors
go into efficiency. Now, because
of the word of mouth from
our happy customers, we have
contented clients all around the
globe. It puts these questions out
of question for Pantec systems.
TAT - What are the key factors
which make Pantec enter the
Indian market? How do you see
this market?
India has a strong spirit
label industry, where foil and
embossing for differentiation
is very important. These areas
have the same potential line as
international wines and spirits
that picked up unique multi-foil
and embossing design for shelf
attraction.
Similar to Philipp Morris, we
see that prestigious branding
with brilliant and holographic
effects is important in India. Such
customers often need to protect
their brands as well. Having the
opportunity to place hologram
at up to 150 m/min and still at a
precision of 0.15 mm allow them
to protect while increasing sales
with shelf attractiveness, just
like Philipp Morris does with the
Parliament.
TAT - Kindly let us know about
the company expansion plan
across the globe and kind of
investment company planning
to do in India in 2016-17?
Pantec has tripled its staff and
output in the last five years.
Globally, both packaging and
label refining keeps growing for
us like in the past, we assume.
After a pilot customer phase in
India we expect to grow fast as
we globally did in the wine and
spirit industry. Moreover, we
believe that security printing
and brand protection combined
with prestigious patches
attractiveness has high potential
in India, where Pantec has the
systems that can cope with Indian
mass production.
For more information, contact
peter.frei@pantec.com
Pantec RHINO - fine structures with
the power of a rhino
Pantec RHINO - extreme relief on
label stock
Multistep - 4 color -
structure Debossing
- relief embossing -
Magnesium tool 1
www.aspaglobal.com
18
The Authentication Times
Issue 28
Can you please brief us about
yourself and Arkansas Tobacco
Control ?
I have worked for the State
of Arkansas since 1994 and
currently I am an Auditor /
Investigator with Arkansas
Tobacco Control (ATC).
Previously, I was an Acting
and Interim Director of ATC
and also a Cigarette and Other
Tobacco Products Auditor with
the Revenue Division of the
Arkansas Department of Finance
and Administration from 1994
to 1997. I also served in the US
Army and US Army Reserve from
1982 to 2004 finishing my Army
career at the rank of Major. I
served in numerous countries to
include: United States, Panama,
Germany, Saudi Arabia, Kuwait,
Iraq and Turkey.
ATC is a governmental agency
under the state government
of the State of Arkansas. ATC
is a law enforcement agency
established in 1997 to regulate
the manufacture, distribution
and sale of tobacco products
in Arkansas. Primary duties of
ATC include: Sales-to-Minors
Enforcement, Untaxed Tobacco
Enforcement, issuance of
Tobacco Products permits and
licenses, Unfair Cigarette sales
act enforcement and Food and
Drug Administration Tobacco
Products enforcement.
Please brief us about Arkansas
Cigarette Stamps, when
they were introduced, types
of tax stamps, forms of tax
stamps, how they are applied,
implemented etc.?
Arkansasstartedtaxingcigarettes
in 1925 at a rate of 4 cents
per package of 20 cigarettes.
Tax stamps for the payment of
cigarette taxes have been used
since the beginning. The current
rate is $1.15 per package of
20 cigarettes. The cigarette
stamps are manufactured by
SICPA/Meyercord and are heat-
transferred i.e., they are ironed
on the packages by cigarette
stamping machines.
The Regular Arkansas Stamp rate
is $1.15/stamp, the Oklahoma
Border Zone Stamp rate is $1.06/
stamp, the Tennessee Border
Zone Stamp rate is $ 0.65/stamp
and the Louisiana Border Zone
Stamp rate is $ 0.89/stamp (see
figure 1).
Arkansas does sell a separate
stamp for cigarettes with 25
cigarettes per package. Below
is a picture of 25’s stamp for
the various border zones. The
Regular Arkansas 25’s Stamp is
similar but orange in colour (see
figure below).
The only cigarettes I know
that uses these stamps are
Marlboro 25’s. The cigarette
tax is paid when Arkansas
Cigarette Wholesalers with the
appropriate license/permit
purchase the stamps from the
Arkansas Department of Finance
and Administration. Cigarette
wholesalers must pay for them
immediately or if they have a
surety bond with the Arkansas
Department of Finance and
Administration, they can charge
them against their surety bond
for a limited time. The Regular
Arkansas Stamps (20’s) come
on rolls of 30,000 each and have
a net cost to the wholesaler of
$33,465.00. The various Border
Zone Stamps (20’s) come in rolls
of 9,000. The Regular Arkansas
(25’s) Stamps come in rolls of
2,000 and 4,800. The various
Border Zone (25’s) Stamps come
in rolls of 2,000. Each stamp on
a particular cigarette roll has
the same number on them. Of
Maurice T Gilmore
Expert speaks
Regular Arkansas
Stamp
Arkansas-
Oklahoma Border
Zone Stamp
Border Zone Cities:
Bonanza
Fort Smith
Siloam Springs
Van Buren
Arkansas-Tennessee
Border Zone Stamp
Border Zone Cities:
Marion
West Memphis
Arkansas- Missouri
and Louisiana Border
Zone Stamp
Missouri Border Zone
Cities:
Bella Vista
Blue Eye
Garfield
Gateway
Holiday Island
Mammoth Sprint
Oak Grove
Omaha
Pea Ridge
Louisiana Border
Zone City
Junction City
Figure 1: Tax stamps using by Arkansas.
www.aspaglobal.com
19
The Authentication Times
Issue 28
Expert speaks
note, cigarette wholesalers get a
3% discount when they buy the
stamps.
Here is the full chronology the
Arkansas Cigarette Stamp (20’s)
Rates: 4-6¢ 3/9/51; 6-8¢ 3/5/65;
8-12.25¢ 4/21/69; 12.25-12.75¢
7/1/70; 12.75- 17.75¢3/22/71;
17.75-21¢ 3/18/83; 21-22¢
7/1/91; 22-34.5¢ 2/1/93; 34.5-
31.5¢ 7/1/93; 31.5- 34¢7/1/01;
34-59¢6/1/03;59¢-$1.153/1/09
What are the challenges you
faced for implementation of
Arkansas Tax Stamps and why
Arkansas adopted Cigarette Tax
Stamps?
I assume Arkansas started using
tax stamps in 1925 on cigarettes
primarily to ensure greater
compliance by the cigarette
wholesalers in paying the
cigarette tax and to allow easy
verification by state investigators
and agents that the cigarette has
been paid.
The usual problems with our
stamp system are: quality of the
tax stamp, stamping machine
operator error and stamping
machine error. Based on what I
have seen, tax stamp quality has
been good in the last few years.
Errors caused by the stamping
machine themselves are usually
that the cigarette wholesaler is
using an old machine that is not
functioning correctly, i.e., falls
out of alignment, doesn’t iron on
the entire stamp, breaks down
frequently, etc. Operator errors
typically are: not adjusting the
machine to the different size
packs/cartons, being lazy and
not stamping certain cartons and
not applying the whole stamp on
packs that have to be stamped
without a machine.
How successful do you think
these tax stamps are in curbing
the illicit trade, increasing Govt.
revenueandhelpforenforcement
people in authentication?
Tax stamps on cigarettes have
been very successful in curbing
the illicit trade in cigarettes in
Arkansas as well as increasing
revenue for the State of Arkansas.
Throughout the history of ATC,
confiscations of cigarettes
without any tax stamp or ones
from another jurisdiction have
been few and small quantities of
cigarettes have been confiscated
for each case. Agents and
investigators do store inspections
statewide on a consistent
basis so the cigarette retailers
know ATC is checking the
cigarettes constantly. Agents and
investigators can quickly check
that a store’s cigarettes have the
appropriate tax paid because of
the tax stamp affixed to the packs.
Also, consumers and retailers
generally contact us immediately
when they see cigarettes without
or with another jurisdiction’s tax
stamps on them.
www.aspaglobal.com
20
The Authentication Times
Issue 28
Market Report
Counterfeit copies of top selling
games such as Pie Face or
Shopkins are costing toy firms up
to €1.4 billion across the EU each
year. A new report from the Office
of Harmonisation in the Internal
Market (OHIM) has revealed that
across the territory, 12.3 per cent
of toys and games sales are being
lost due to fake goods.
The UK is the second worst hit
by counterfeiters, with 11.6
per cent of the toy and game’s
sector sales lost to fake products
annually. However, it is the
German market that emerges
as the most affected, with the
presence of counterfeit toys and
games costing €327 million a
year, 10.9 per cent of the value
of production. The latest finding
also suggests that across Europe,
the loss translates into 6,150
jobs, as the report discovered
that legitimate manufacturers
employ fewer people than they
would have done in the absence
of counterfeiting.
Released by OHIM acting through
the European Observatory on
Infringements of Intellectual
Property Rights, covers the
manufacture of dolls, action
figures, stuffed animals, board
games, toy musical instruments,
model trains and puzzles.
“We are completing a picture
of the economic impact of
counterfeiting in a dozen
economic sectors across the EU,”
said Antonio Campinos, president
of OHIM.
The report shows us the extent to
which the toys and games sector
is impacted by the presence of
counterfeits in the market.” The
report itself emerges as discount
retailer B&M finds itself at the
centre of the latest counterfeit
goods scandal, as mid December
2015 saw Hasbro order the outlet
to remove its stock of fake copies
of the hit family game, Pie Face
from its shelves.
Hasbro’s action highlights it’s
no tolerance approach towards
handling reports of counterfeit
products, an issue that is costing
up to €370 in government
revenue across the EU in lost
VAT, income tax, social security
contributionsandtaxoncompany
profits. “Through our report,
we aim to help policy makers in
their work by providing data and
evidence-based studies, and help
consumers make more informed
choices,” continued Campinos.
Source: www.oami.europa.eu
EU toy industry loses €1.4bn a year to
fake goods
Country	 Annual Loss
Germany	 € 327 million
UK	 £ 174 Million
Spain	 € 167 Million
Italy	 € 201 Million
France	 € 168 Million
www.aspaglobal.com
21
The Authentication Times
Issue 28
Industry updates
www.connectidexpo.com
One global exhibition
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I Three dedicated conferences – biometric ID:HUB; secure ID:HUB;
and mobile ID:HUB. Follow one HUB or mix and match tracks.
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discussions by carefully selected expert speakers.
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Conference: March 14–16, 2016 · Exhibition: March 15–16, 2016
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Three focused conferencesThree focused conferences
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www.aspaglobal.com
22
The Authentication Times
Issue 28
Industry updates
Publication	 Title	 Int.	 Application	 Applicant / Inventor
DD.MM.YYYY		 Class	 Number	
29.10.2015	 WO/2015/163788 multilayered	 b42d 25/21 	 Pct/ru2015/000208	 Federalnoe	
	 product containing carrier with 			 gosudarstvennoe
	 protective markings, and 			 unitarnoe predpriyatie
	 method for determining 			 “goznak” (fgup
	 authenticity of product			 “goznak”) / trachuk,	
		 		 arkadiy vladimirovich
Brief Abstract: The invention relates to the field of protecting products against counterfeiting and is intended for using
an instrument for determining the authenticity of printed products to be protected, such as banknotes and securities
forms, labels, excise stamps and postage stamps, payment and identification documents, and also passports and travel
documents. The aim and technical solution of the proposed invention consist in creating a product containing a carrier
with hidden security markings applied to the surface thereof, wherein the markings are carried out using a luminescent
inorganic compound having a crystalline structure based on rare earth elements, characterized in being capable of
Stokes or Anti-Stokes luminescence outside of the visible range of the optical spectrum, carried out under the influence
of an excitation radiation which is within a first spectral range, and under a second influence on said luminescence by a
stimulating radiation which is within a second spectral range, and characterized in that the intensity of the luminescence
can change without changing the spectral composition thereof. The proposed technical solutions and methods for
controlling authenticity provide for a high level of counterfeiting protection for a valuable document.
29.10.2015	 WO/2015/161496 commodity 	 G06Q 30/00	 PCT/CN2014/076182	 KANG, Chia-Ming
	 anti-counterfeiting verification
	 system	
	
Brief Abstract: Provided is a commodity anti-counterfeiting verification system, wherein a commodity manufactured
by a manufacture end is provided with a verification information group, the manufacture end is provided with an
information processing unit, the manufacture end provides the commodity to an authorized sale end, the authorized
sale end is provided with an information display unit, a customer end acquires the commodity from the authorized sale
end, the customer end passes the verification information group to an information processing unit of the manufacture
end via a feedback unit, after comparing, the information processing unit makes an arithmetical unit create comparison
verification information randomly or not randomly and transmits same to an information display unit of the authorized
saleendandafeedbackunitofthecustomerend,anditisverifiedthattheauthorizedsaleendisauthorizedsalerecognized
by the manufacture end by confirming that the comparison verification information received by the feedback unit of the
customer end and the comparison verification information received by the information display unit of the authorized
sale end are consistent. It enables a customer to verify whether a purchasing source is a seller legally authorized by a
manufacturer when purchasing a commodity.
28.10.2015	 2936409 method and system for	 G06Q 30/00	 13815501	 SICPA HOLDING SA /
	 marking an item, an item so marked			 SETO MYRON
	 and a method and system for
	 authenticating a marked item 				
Brief Abstract: A method of marking and authenticating a manufactured item, comprising providing the manufactured
item with a visible anti-counterfeiting indicium, marking with marking means the manufactured item with a visible
alphanumeric string, marking with marking means the manufactured item with visible marking time data, and
transmitting with data transmission and control means marking time data marked on the manufactured item and
the alphanumeric string marked on the manufactured item. The method further comprises with computer database
control means, receiving the transmitted marking time data and the transmitted alphanumeric string and storing in
association in a database marking time information corresponding with the received marking time data marked on the
manufactured item and alphanumeric information corresponding with the received alphanumeric string marked on the
manufactured item. The method further comprises checking authenticity of the anti-counterfeiting indicium provided
on the manufactured item, interrogating the database with the alphanumeric string read from the manufactured item
to obtain marking time information for the manufactured item, and comparing the marking time information with
marking time data read from the manufactured item to determine if they match. The method comprises determining the
manufactured item as authentic if criteria are met, the criteria including that the checking step reveals an authentic anti-
counterfeiting indicium and the comparing step determines a match.
Global patents
www.aspaglobal.com
23
The Authentication Times
Issue 28
Upcoming events Published by
Authentication Solution Providers’ Assciation
(ASPA)
Editorial Team
Issue Editor	 :	 C S Jeena
Designed &	 :	 EYEDEA Advertising
Printed by		 1250/13, Govindpuri,
		 Kalkaji, New Delhi-19 	
		(India)
	 	eyedeaadvertising@gmail.com
		www.artworxindia.in
The Authentication Times is a quarterly
newsletter published by ASPA with an aim
to provide latest developments, research,
articles, patents and industry news to a
wide audience related to Authenticatoni in
India and World.
The editorial team welcomes your news,
contributions and comments. Please send
your product updates, press releases,
conference announcements or other
contributions to ASPA:
21-Ground Floor, Devika Tower 6
Nehru Place, New Delhi 110019, India
Telfax: +91 (11) 41617369
Email: info@aspaglobal.com
Website: www.aspaglobal.com
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, ASPA
would not be responsible for such errors.
ASPA is the Authentication Solution
Providers’ Association formerly
known as Hologram Manufacturers
Association of India (HoMAI). Founded
in 1998 as HoMAI it has now been
re-launched in 2014 as ASPA with a
mission to provide a platform where
authentication solution providers
can converge and collaborate to
develop customised cutting edge
authentication solutions for their
customers. For more details, please
visit: www.aspaglobal.com
Diverse technologies, common goal.
* ASPA participating events. Meet us at these event’s to know more about us.
Industry updates
Date	 Event Name / Place / Website
15-16 January 2016*	 FICCI International Conference on ‘Illicit Trade - Threat to 	
	 National Security and Economy’
	 New Delhi, India, www.ficcicascade.com
19-20 January 2016	 Access to Safe Medicines
	 London, UK, www.reconnaissance.net
10-12 February 2016	 Optical Document Security
	 San Francisco, USA, www.reconnaissance.net
14-16 March 2016	 High Security Printing Europe
	 Bucharest, Romania, www.reconnaissance.net
27-29 April, 2016*	 Pharma Pro & Pack Expo
	 Mumbai, India, www.pharmapropack.com
10-12 May, 2016, 	 Security Document World
	 London, UK, www.sdw2016.com
24-26 May, 2016	 The Annual Forum and Expo on Electronic Identity in Africa
	 Kigali, Rwanda, www.id4africaforum.com
1-3 June 2016	 World Custom Organization (WCO) IT Conference & Exhibition
	 Dakar, Senegal, www.wcoomd.org
20-22 June 2016	 High Security Printing Latin America
	 Mexico City, Mexico, www.reconnaissance.net
19-21 October, 2016*	 Smart Card Expo
	 New Delhi, India, www.smartcardsexpo.com
17-20 November, 2016*	 Label Expo
	 New Delhi, India, www.labelexpo-india.com
30 Nov–2 Dec 2016	 The Holography Conference
	 Warsaw, Poland
15-17 December, 2016*	 International Pack Tech India
	 Mumbai, India, www.packtech-india.com
28-31 December, 2016*	 Wine and Spirit Show 2016
	 Hotel Taj Bengal, Kolkatta.
	 Email: knowledgeunbiased@gmail.com
Cartoon Corner
www.aspaglobal.com
24
The Authentication Times
Issue 28

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The Authentication Times Issue 28

  • 1. www.aspaglobal.com 1 The Authentication Times Issue 28 TheAuthenticationTimesJanuary 2016 | Volume 10 | Issue 28 www.aspaglobal.com The official newsletter of Authentication Solution Providers’ Association (ASPA) Identify fake pesticides with authentication solutions
  • 2. Diverse technologies, common goal. ASPA wishes you a fraud free www.aspaglobal.com www.aspaglobal.com 2 The Authentication Times Issue 28 Dear Reader, Welcome to the first issue of the year and wish you a Happy 2016! We hope this year is filled with joyful learning, abundant opportunity, and success in all that you choose to do. Coming to The Authentication Times, the current edition focusses on the issue of counterfeit pesticides that are being rampantly used in India. Agriculture industry, which is the backbone of our Indian economy, is facing multiple threats from the growth of these counterfeit pesticides. Though the problem is not a new one and exists since last 35 years, however, the situation has become worse in the last five years. The counterfeit pesticides industry in India is growing at an annual rate of 20 per cent. If not immediately addressed, it can reach up to 40 per cent (approximately) share by value in the pesticides industry by 2019. Our cover story highlights this core issue and details on its various types along with the reasons for the increase in counterfeit pesticides. The story also brings to light the authentication solutions that can be implemented in India to curb this menace to a great extent in the interest of farmers, industry and country. In this issue, you will also find an interesting interview with Pantec GS Systems and Arkansas Tobacco Control, various industry updates, news bytes, counterfeit seizure report and global patents. We thank you for your continual support and look forward to receive your feedback. Sincerely, Chander S Jeena Editor In this issue Viewpoint Policy initiatives 3 Investment and 4 financials Strategic moves 5 Security 6 enhancements Event review 8 Identify fake 10 pesticides with authentication solutions Face to face 16 Market report 19 Industry updates 20
  • 3. www.aspaglobal.com 3 The Authentication Times Issue 28 Policy initiatives Armenia joins international fight against counterfeit medicines Intellectual Property Protection Advisory Board launched at Dubai International Tax Stamp Association (ITSA) launched at Miami, USA Armenia joined the international fight against the crimes, which may cause threat to public health as a result of distribution and sales of counterfeitmedicalproducts.The Armenian Parliament discussed the issue of Armenia’s accession to the convention of Council of Europe on “Counterfeiting of medical products and similar crimes posing a risk to the public health”. Mr. Sergey Khachatryan, Health Minister of Armenia, mentioned that the convention also refers to the criminalisation of acts of deception to mislead the public by fake documents, false packaging or labelling Source: www.armenpress.am In order to erase counterfeit productsfromDubaiandensure purchase of original goods by the consumers, the Department of Economic Development (DED), Dubai, has announced the launch of the ‘Intellectual Property Protection Advisory Board. This is to bring businesses and the government together to combat counterfeiting and trademark violations. The first-of-its-kind public-private partnership across the world to protect Intellectual Property (IP), the Board is aimed at strengthening Dubai’s reputation as a competitive businessdestinationandenhance the UAE’s position across global competitiveness rankings. Source: www.emirates247.com To respond to the need for better understanding of the benefits of excise tax stamps and tax stamp technologies, as well as to promote high professional standards in this sector, new International Tax Stamp Association (ITSA) was launched at Miami, USA. The event took place immediately before the opening of the 2015 Tax Stamp Forum, which ran from 11-13 November, 2015 at the Trump National Doral Hotel in Miami. Membership of ITSA is open to legally incorporated companies and businesses that supply tax stamp components and features, as well as finished tax stamps, equipment for stamp design, manufacture, application and authentication, and systems for coding and marking stamps. Nicola Sudan of Reconnaissance has been appointed as Secretary General of this association and can be contacted at +27 21 911 0170 or email nicola@ reconnaissance-intl.com. Source: www.its-association.org From left: Zbigniew Sagan (Advanced Track & Trace), Juan Yanez (Thomas Greg & Sons), Francis Goossens (Thomas Greg & Sons), Christine Macqueen (SICPA), Kelly Smith (Ashton Potter), Thanapol Kongboonma (Chanwanich), Michel Mariton (Hologram Industries), Nicola Sudan (Secretary General & Reconnaissance), Nampetch Chivakul (Chanwanich)
  • 4. www.aspaglobal.com 4 The Authentication Times Issue 28 Investment and financials Pollard announces record revenue in third quarter financial Peruri reports 20 per cent increase in Q3 profit INNOVIA spends £15m to set up new line for UK banknotes Printer Ashton Potter poised for growth with new facility in 2016 Pollard, one of the largest providers of instant tickets, releaseditsthirdquarterfinancial results ended September 30, 2015. The company has achieved sales of $57.9 million, compared to $53.5 million in the three months ended September 30, 2014. “The lottery industry is a growing, progressive business looking for creative partners,” stated Co-Chief Executive Officer Doug Pollard, “and we are dedicated to meeting these high expectations. Our approach to supporting lotteries through all channels and products is critical for our success. Products such as our new Eco ScratchTM environmentally friendly ticket is a great example of an innovative product gaining significant lottery acceptance.” Source: www.newswire.ca State-owned printing Company PerusahaanUmumPercetakan Uang Republik Indonesia (Perum Peruri) recorded a 20 per cent increase in net profit to Rp231 billion in the third quarter of this year compared with the same period last year. The operating income of the company was Rp2.17trillioninthethirdquarter of this year,” Peruri President Director Prasetio informed. He added that this year Peruri recorded a good performance with operating income surging in the third quarter from Rp1.72 trillion in the same period last year. Its operating profit grew 42 per cent to Rp373 billion in the third quarter, he said. Source: www.antaranews.com Innovia Films opened a new production line that will manufacture material for the Bank of England’s first polymer bank notes. The company has spent £15m setting up the new line, which uses its unique ‘bubble’ process to make a polymer film known as Clarity C. This will be coated at a purpose- built opacification plant, also at Wigton, before being sent for printing at a De La Rue’s high- security bank note press in Essex. Wigton will produce the material for 2bn £5 and £10 bank notes over the next five years. The £5 note, featuring Winston Churchill, enters circulation next autumn followed by a £10 note depicting Jane Austen in 2017. Source: www.cumberlandnews. co.uk Canadian-born, U.S.-bred securityprinterAshtonPotter will be poised with a new facility in 2016. The 200-employee companyrecentlymadeheadlines with the news that it was constructing a 55,000-square- foot office, manufacturing and storage facility, a $3.2 million project. The new space, complete with a 127-vehicle parking lot and loading dock, will enable Ashton Potter to exit a leased space and move in next door to its headquarters. It is among the largest suppliers of stamps and stamped envelopes to the U.S. Postal Service (USPS) and churns out roughly a quarter of the world’s stamps in both pressure- sensitive label and water- activated gum (WAG) form. Source: www.piworld.com
  • 5. www.aspaglobal.com 5 The Authentication Times Issue 28 Nanotech & Hueck Folien signs MoU De La Rue announces completion of manufacturing footprint review Hologram Industries becomes Surys ASSA ABLOY acquires IAI industrial systems B.V. Nanotech Security Corp and Hueck Folien GmbH of Baumgartenberg, Austria announced the signing of a Memorandum of Understanding whichcontemplatesanoperational agreement to collaborate in the production of a colour shifting security feature in optical thin film (OTP). The OTF product is anticipated to initially be used in banknotes as threads and then expand into other markets in the future. The proposed agreement reflects a mutual commitment for extensive co-development work at both companies on equipment and technology over the past year. Working closely together, the alliance will focus on maximizing global opportunities utilizing Nanotech’s colour shifting thin film technologies combined with HueckFolien’s large volume production and worldwide distribution channels. Source: www.otcmarkets.com De La Rue plc (“De La Rue” or “the Group”) announces the results of its review to optimise the manufacturing footprint. This demonstrates positive early progress on the delivery of the five year strategic plan. The main conclusions are: • Reduction in banknote print capacity from 8bn banknotes per annum to 6bn and in the number of production lines from eight to four • Expected savings in excess of £13m per annum from FY18/19 in additionto the Group’s existing ongoing cost saving initiatives • Threecentresofexcellencefor banknote print: Gateshead in the U.K., Kenya and Sri Lanka. Closure of Malta banknote production • Associated capex of less than £30m, half of which is incremental to normal annual run rate, and exceptional restructuring costs of £8m • Creation of centre for excellence for Identity and Security Print in Malta as part of Invest and Build strategy. Source: www.delarue.com ASSA ABLOY has entered into a definitive agreement with DOCDATA N.V. to acquire IAI industrial systems B.V. and its subsidiaries (“IAI”), a leading Dutch company specializing in security printing solutions for government ID, bank notes and other security solutions. “IAI is an important technological additiontotheASSAABLOYGroup. The company complements our current offering within secure identity solutions. The acquisition of IAI considerably enhances the Group´s position within government ID and will provide complementary growth opportunities,” says Johan Molin, President and CEO of ASSA ABLOY. “The addition of the IAI portfolio to HID’s expertise in the field of secure identity documents sets HID apart in the industry as the only company offering a full range of both identity card and passport personalization solutions coupled with the production of high-quality, high-security documents.”, says Stefan Widing, Executive Vice President ASSA ABLOY and Head of business unit HID Global. Source: www.news.cision.com Secure identity solutions developer Hologram Industries has become Surys, creating a new player in eID and identity document providers. Speaking to Security Document World at Cartes, Surys President HuguesSouparis said that the change in name was designed to reflect the company’s wide- ranging offerings. “SURYS offers solutions to ensure that national IDs, travel documents, drivers’ licences are easy to authenticate and hard to counterfeit,” notes the new company on its website. The newly created companies offeringsincludeidentity,vehicles, bank notes and brand solutions, including products which can authenticate using smartphones. Source: www.surys.com Johan Molin President and CEO of ASSA ABLOY. Strategic moves
  • 6. www.aspaglobal.com 6 The Authentication Times Issue 28 Security enhancements Kazakh National Bank unveils new 20,000-Tenge note Kazakh National Bank has unveiled new 20,000-tenge bank note on December 1. This bank note was created in 2013 and was signed by then-Chairman of the National Bank GrigoryMarchenko, who planned to dedicate it to the 20th anniversary of the tenge in November 2013. Its design is similar to other bank notes: its face contains mainly vertical pictures; the back, horizontal. Its dimensions are 155 millimetres long and 79 millimetres wide. The note is grey blue and features trans-illuminated from both sides, a composite thread mark in the form of the Samruk mythical bird and its contour lines in the form of a transparent window. Source: www.astanatimes.com Banks in Ethiopia to issue standardized cheques to tackle forgery National Bank of Ethiopia (NBE) has piloted use of standardized cheques in all banks of Ethiopia from the end of November 2015, Addis Fortune reported. The standardized cheques are identical in appearance, except for logos of individual banks. They have security features which will make them difficult to forge. NBE for the purpose of tackling forgery and speeding up clearing and settlement processes has taken the initiative of issuing the standardized cheques in 2013. The long process of clearing and settling post-dated cheques will no more be in place when the standardized cheques are introduced. There will be a digital platform for financial transactions that can be made with a simple swipe at the scanner, communicating the messege via an integrated network developed by ET-Switch. Thus there will no longer be physical transfer of cheques. NBE has awarded the contract to Madrass Security Printers, an Indian company with 25 years’ of experience in security printing. Source: africa-ontherise.com China releases newYUAN banknote China’s central bank released a new 100-yuan banknote in November 2015. The design stays largely the same as its former series, but the new banknotes are harder to conterfeit and easier for machines to read. The 100-yuan note is the largest denomination of the Chinese currency. The new note will be the third edition of the fifth series, which was introduced in 1999. The second edition, which is in current use, was issued in 2005. Counterfeit prevention is in the center of this upgrade. Colour- changing ink will be applied to the pattern of the number 100 in the centre of the note. The colour will change from golden to green when the angle is adjusted. Other new features include a security line on the right of the bill, which will change from hot pink to green when the viewing angle is adjusted, and a textured pattern across the image of the Great Hall of the People on the back of the note. Source: www.en.people.cn
  • 7. www.aspaglobal.com 7 The Authentication Times Issue 28 Security enhancements Turkey to issue biometric passports in 2016 Turkey is preparing to issue biometric passports to its citizens as part of an agreement with the European Union. Government officials say they plan to begin printing the new passports in March, and will issue new citizen ID cards at the same time. The move is intended to comply with recent agreements with the European Union, which recently offered 3 billion euros to Turkey as part of an arrangement that will see Turkey help the EU to manage a major influx of refugees. In return, Turkish citizens will gain access to the Schengen zone, an area largely comprising EU member states that allows relatively unrestricted travel within its borders. But a condition of that access is the implementation of biometric passports. It is a major security matter as some EU members call for even stricter border controls over security concerns. Source: www.refworld.com UK unveils new passports design The Home Office has unveiled the new designs for UK passports. The new book celebrates 500 years of creativity in the United Kingdom and features well known images from artists, landmarks, architecture, iconic British innovations and the performing arts. The new travel documents, which are updated every five years, feature advances in the use of security printing by using UV and infrared light, inks and watermarks to stop fraudsters from forging the new designs. Source: www.gov.uk
  • 8. www.aspaglobal.com 8 The Authentication Times Issue 28 Cover Story Introduction: The Agriculture Industry, which is the backbone of our Indian economy, is facing multiple threats from the growth of fake pesticides. According to a latest study conducted by FICCI, the fake pesticides industry in India was estimated at INR 3,200 crore (USD 525 million) in 2013, which accounted for 25 per cent by value and 30 per cent by volume ofthedomesticpesticideindustry in 2013. The study indicates that this market is expected to grow at the rate of 20 per cent per annum in terms of value, and if not addressed, can reach to approximately 40 per cent share byvalueinthepesticidesindustry by 2019. The problem is extreme in many States including Uttar Pradesh, Jharkhand, Madhya Pradesh, erstwhile Andhra Pradesh, Haryana, Maharashtra, West Bengal, Karnataka and Tamil Nadu. Consequences of counterfeit pesticides: The contribution of the Indian agriculture sector in the Indian GDP already declined from 19.34 per cent in 2001-02 to 15.79 per cent in 2013-14. Moreover, as per census 2011, India has approximately 119 million cultivators and this number is decreasing by approximately 2,000 every day. This trend is worrying and will create a natural stretch on the agriculture sector in the future. The growth by C S Jeena It has been over three decades since India Today, one of India’s leading publication covered a story on the problem of fake pesticides in Punjab and Haryana. In these last 35 years, the predicament of farmers in India has worsened year by year, as they continue to fight a grim battle against fake pesticides. On the other hand, the fake pesticides industry in India has been growing at an annual rate of 20 per cent and now constitutes approximately 30 per cent of the total crop protection market. While fighting fake pesticides is a complex problem, the adoption of new generation authentication solutions can greatly help various stakeholders in tackling this growing menace. The article highlights this core issue and details on its various types along with the reasons for the increase in counterfeit pesticides. The story also brings to light the authentication solutions that can be implemented in India to curb this menace to a great extent in the interest of farmers, industry and country. Identify fake pesticides with authentication solutions • Counterfeit pesticides industry in India is estimated as ` 3,200 crore (US $ 525 million) in 2013 • Expected to a grow with 20 percent per annum in value terms and if not addressed, can reach to approximately 40 percent share by value in the pesticides industry by 2019
  • 9. www.aspaglobal.com 9 The Authentication Times Issue 28 Cover Story Financial Year Counterfeit pesticides Reported by market size in India (`) 2008-09 ` 1,200 crore Agrochemicals Policy Group (APG) 2009-10 ` 1,400 crore Agrochemicals Policy Group and FICCI report on Indian Agrochemical industry http://www.ficci.com/events/20563/ add_docs/sectorbrief.pdf 2013 ` 3,200 crore FICCI & Tata Strategic Management Group Press Release dated Sep 23, 2015 of spurious pesticides is adding fuel to the fire as India suffered a loss of 10.6 million tons of food grain production in 2015-16. In light of this, India’s position as one of the leading food grain exporters in the world is also at stake.Thereisnodenyingthatthe damage through such products is multi-fold and the counterfeit pesticides pose a significant threat to various stakeholders. These include: a) Farmers: Risk of life & valuable crop loss: Various cases of farmers committing suicide due to loss of crops have been reported by the media. Although there are various reasons for the loss of crops, the involvement of fake pesticides can’t be ignored or denied. Spurious pesticides are known to damage the crops resulting in a decreased yield or at times, even destroying a field. Some examples of this include: - Punjab: More than half of 5 lakhs hectares’ cotton crop was completely destroyed - Jammu and Kashmir: Crop production went down by 50 per cent - Fake pesticides are a serious threat to the Kashmir apple industry which is worth ` 4,000 crore (US $ 750 million) b) Consumers: Risk of Health Counterfiet pesticides pose increased risks to consumers through unknown and untested residues. Unlike legal, registered products, spurious pesticides could contain unknown toxic impurities and have not been tested for human health impact. Residues of unknown and untested substances could get carried into harvested food and compromise consumer health, whilst also posing health threats to farmers through exposure duringapplication.In2013,atotal of 23 children died in Bihar after they consumed contaminated free school lunches containing monocrotphos pesticides. c) Government: Risk of reputation, exports and economic damages Increased cases of spurious pesticides make the public lose their confidence in the government’s ability to regulate the agricultural sector effectively. In 2013-14, India exported 29 million tons of food grains (worth ` 1,578 billion) and 3 million tons of fruit and vegetables worth ` 88 billion. In such a scenario, India’s position as one of the leading food grain exporters in the world is also at stake as there is increased possibility of rumours or sabotage by other countries or rejection of Indian exports Table: Counterfeit pesticides market size in India • Fake pesticides a threat to Kashmir apple industry worth ` 4,000 crore (US $ 750 million) • In 2013-14 India exported 29 million tons of food grains (worth ` 1,578 billion) and 3 million tons of fruit and vegetables worth ` 88 billion * 1 billion = 100 crore
  • 10. www.aspaglobal.com 10 The Authentication Times Issue 28 goods items from developed countries. In recent years, the European Union and Saudi Arabia temporarily stopped buying some varieties of vegetables from India after detecting pesticide residues in the exported produce. Indian officials say such cases result from the overuse of chemicals. The latest cases of rejection include that of Soybean and Alphanso Mango. Not only this, the government loses not just the tax revenue but also its prestigious goodwill and reputation. d) Industry: Loss of sales and reputation Due to the presence of counterfeit pesticides, the farmers lose faith in legitimate products and companies, which result in loss of reputation and customer trust. Also at stake are the Indian crop protection industry, which is estimated at ` 25,000 crore (US $ 4.1 billion) in Financial Year 2014 along with the Food Retail industry. e) Environmental risk Thereishighriskofenvironmental contamination and adverse effects on groundwater, following crops and biodiversity. Firstly, the production of counterfeit products may subvert environmental regulations leading to the production processes and waste contaminating the land, air and water. Secondly, the use of counterfeit products, such as pesticides, may cause severe crop and environmental damage. Thirdly, the destruction of counterfeit products can result in more landfill waste or toxic fumes from incineration. Types of counterfeit pesticides: To fight any type of counterfeit activity, one needs to first understand the nature, extent and reasons behind the increase of such activity in various sectors as it varies by market and can originate from many different sources in different forms. The three main forms of counterfeit pesticides are; a) Fake pesticides: These products are often sold in simple packs (white bottles) with minimal information on the label about their use and no mention of any health or environmental precautions. They contain anything from water or talc, to diluted and outdated or obsolete stocks, including banned or restricted materials. Some fakes also provide a degree of biological control, as they sometimes may contain an illegal and untested copy of the proprietary active substance. b) Counterfeits of genuine branded products: These are sophisticated copies of legitimate branded products usually with high quality of labelling and packaging. Most contain a copy of the original active substance; however, its biological efficacy is often diminished owing to high level impurities of manufacturing and process by-products. Such products are often difficult to be distinguished from the genuine ones. Mostly, farmers are fooled into buying them unknowingly in absence of proper education and awareness. In various cases, counterfeiters purchase genuine, empty bottles Cover Story The Indian crop protection industry which is estimated at ` 25000 crore (US $ 4.1 billion) in Financial Year 2014 and the Food Retail industry is at stake due to all these incidents
  • 11. www.aspaglobal.com 11 The Authentication Times Issue 28 Cover Story Only 25-30 percent of farmers are aware of the use of pesticides and don’t ask for specified chemical or brand and often ignore if specified details are not available on products from the farmers on as high as 25 per cent of the M.R.P. mentioned on the original bottle. This way, the counterfeiters put substandard ingredients into the bottle and resell it. c) Illegal parallel imports: These are legitimate parallel traded products substituted with illegal generic copies, repackaged and sold as legitimate products. Reasons behind increase of counterfeit pesticides The problem is increasing because of various factors like; a) Difficulty in identification of fake products with legitimate one due to lack of awareness: In India, majority of the farmers are illiterate and there exists a lack of education and awareness at the farmer level. Only 25-30 per cent of farmers are aware of the correct use of pesticides. Many do not ask for specified chemicals or brands and often ignore if specific details are not available on the products. Ironically, even though the food manufacturers and producers are consumer-oriented companies, they do not speak publicly about this problem. Many food companies do recognize the challenges but prefer to resolve these quietly and directly with their suppliers. The main disadvantage of this practice is that it does not bring the problem out in the open and consequently thousands of food producers remain uninformed about the existence of this grave issue and thus how to deal with it. It is important that farmer organisations and Co-ops play a leading role in increasing awareness about the risks of using counterfeits. b) Lack of monitoring and surveillance In India, the responsibility of enforcement is divided between the regional and national authorities but the political divisions and sensitivities have led to weak enforcement coordination and action. At national levels, this requires multi-disciplined specialists’ teams with skills in policing and prosecution, chemicals, agriculture, customs, environment, etc. These skills are available, but more often than not are not working together. c) Focus on high-profile sectors National anti-counterfeit activities tend to focus on high profile sectors where the VAT losses are largest (luxury goods, CDs, clothing, software, pharmaceuticals). Less high profile sectors like farmers do not get the requisite resources– despite the acute environmental and health threats posed by counterfeit pesticides. d) Inadequate judicial frameworks and penalties India does not have adequate legislation to properly prosecute counterfeiting. For example, in some countries, it is illegal to buy or sell counterfeits, but not to possess them. Other countries have inadequate penalties. In one known case, a convicted counterfeiter found in possession of hundreds of tons of illegal pesticides was only given a very small fine. e) Challenges of quantifying the problem It is difficult to present detailed data of the extent and growth of the problem because of its illegal nature. This is the same problem
  • 12. www.aspaglobal.com 12 The Authentication Times Issue 28 Cover Story encountered by all sectors who face counterfeiting. Even in areas where judicial authorities devote significant resources, like illegal cigarette smuggling or narcotics, the estimates of the size of the problem vary wildly. Role of authentication Solutions in fighting this menace Counterfeiters today are tech savvy and can easily produce packaging material similar or better than that of genuine products. But, if there is a problem, there are solutions. Technology-based solutions could be one of the strategies to counter the problem. Various studies and scholars have attempted to propose technology-based solutions to combat fake agro-inputs products in the supply chain. The proven adoption of these technologies by countries like Tanzania and Uganda can be treated as case studies. These authentication solutions have multiple benefit as they provide a) tamper proof packaging; b) product authentication and c) tracking and tracing of product Proposed solutions for India (see figure 1) In India, farmers do not have any tool/medium to differentiate genuine pesticides from fake ones at the time of purchase. Due to lack of awareness and illiteracy, they rely on the visual appeal and can only check the quality of products with the marking of ISI/AGMARK. However, with the advancement in digital technology, it has become easy for unethical manufacturers to produce fake ISI/AGMARK products as well. Farmers only come to know about counterfeit pesticides after there has been a lossofcroporfield.However,until Figure1: Authentication solution to identify fake pesticides (high security holographic label with track and trace solution) Via text message The ID code can be verified with a mobile phone. Via missed call Farmers can check the authenticity of pesticides by giving a missed call at 1800 180 1551 (Toll free) At the Point-of Sale via mobile app Consumers can check the originality of a product with a smartphone directly at the POS. For that they have to scan the QR code and follow the instructions of the website they are directed to. Via Internet The product label can also be checked via website which can be open with every browser. Via Extranet Customs / enforcement authorities can log in the secure extranet server and check the hidden security features, which are only visible with magnifying glasses or special reading devices. At the Point-of Sale Consumers can check the originality of a product with a smartphone directly at the POS. For that they have to scan the QR code and follow the instructions of the website they are directed to. to the website to verify the originality of the product. Via Extranet Experts or customs agents can log in the tesa connect & check extranet® and check the hidden security features, which are only visible with magnifying glasses or special reading devices. Via Internet The tesa connect & check website® can be opened with every browser via PC, notebook or mobile phone and the security features of the label can be checked. Via text message The ID code can be veri ed with a mobile phone. At the Point-of Sale Consumers can check the originality of a product with a smartphone directly at the POS. For that they have to scan the QR code and follow the instructions of the website they are directed to. Via Mobile Web The printed QR code on the label can be captured with a smartphone. The ID code as well as the website for authentication are integrated in the QR code. The user is therefore directly forwarded to the website to verify the originality of the product. Via Extranet Experts or customs agents can log in the tesa connect & check extranet® and check the hidden security features, which are only visible with magnifying glasses or special reading devices. Via Internet The tesa connect & check website® can be opened with every browser via PC, notebook or mobile phone and the security features of the label can be checked. Via text message The ID code can be veri ed with a mobile phone. At the Point-of Sale Consumers can check the originality of a product with a smartphone directly at the POS. For that they have to scan the QR code and follow the instructions of the website they are directed to. Via Mobile Web The printed QR code on the label can be captured with a smartphone. The ID code as well as the website for authentication are integrated in the QR code. The user is therefore directly forwarded to the website to verify the originality of the product. Via Extranet Experts or customs agents can log in the tesa connect & check extranet® and check the hidden security features, which are only visible with magnifying glasses or special reading devices. Via Internet The tesa connect & check website® can be opened with every browser via PC, notebook or mobile phone and the security features of the label can be checked. 1800 180 1551 Proven adoption of authentication technologies by countries like Tanzania and Uganda can be treated as case studies
  • 13. www.aspaglobal.com 13 The Authentication Times Issue 28 Cover Story that happens, there is no way to analyse the contaminants in the fakeproductsasthefarmersapply the in all of their crops, or use up the packing materials. Therefore, there remains a constant need to spread awareness on ‘How to identify genuine pesticides from the fake ones?’ The usage of authentication technologies on pesticides products can be of great help to the farmers and authorities, not only in identifying the fake products but in identifying the counterfeiters involved in the fake pesticides’ business as well. Further, the government authorities can use anti-counterfeiting devices comprising of overt, covert and forensic security features. Examples of such tools are security hologram seal and labels, tamper evident security film, low cost transponder tags, and light sensitive ink designs. Integrated with track and trace technologies, these solutions can help farmers and enforcement authorities in identification of genuine and fake pesticides. All these anti-counterfeiting solutions (label) can be linked with the database of our Indian Government Kisan Call Centre. According to the Indian Government, nearly 70 lakh farmers across the country are registered with the KISAN SMS Portal. The farmers can easily check the originality of pesticides by giving a missed call or SMS at the toll free number 1800- 180-1551. A message is then sent to each farmer in his preferred language and contains information about the pesticide’s batch number, expiry date and originality. Conclusion Adopting authentication solutions is a win-win situation for all the stakeholders; as the brand owner and the authorities enjoytherevenuesandtax/duties respectively and the consumer has an access to the original product. These authentication solutions also help the end consumer to identify a genuine product in turn winning his loyalty and boosting the brand value. References and Sources: • Federation of Indian Chambers of Commerce and Industry (FICCI) in association with Tata Strategic Management Group (TSMG), Study on Sub-Standard Spurious / Counterfeit Pesticides in India 2015- Report • http://www.tsmg.com/resources/ reports.html • Tribune News Service, Agri chief held in pesticide scam, • http://www.tribuneindia.com/news/ punjab/agri-chief-held-in-pesticide- scam/141746.html • The Dollar Business, Agri Exports worth $ 27billion at stake due to fake pesticides says study, • https://www.thedollarbusiness.com/ agri-exports-worth-27-billion-at-stake- due-to-fake-pesticides-says-study/ • DNA India, Fake pesticides may cause rejection of soybean, • http://www.dnaindia.com/india/report- fake-pesticides-may-cause-rejection-of- soybean-1890611 • Press Trust of India, Use of genuine agrochemicals can raise pulses output by 25% • http://indiatoday.intoday.in/story/use- of-genuine-agrochemicals-can-raise- pulses-output-by-25per cent/1/533972. html • Tesa Scribos Solutions for Chemical Industry, tesa PrioSpot® and tesa VeoMark® • http://www.tesa-scribos.com/eng/ markets/chemical_industry • Combating Fake Agro-Inputs Products in Tanzania using Mobile Phones, International Journal of Computer Applications (0975 – 8887) Volume 97– No.17, July 2014 • Frederick M. Fishel, UF/IFAS Extension, University of Florida, PI-174, The Global increase in Counterfeit Pesticides • https://edis.ifas.ufl.edu/pi210 • CropLife International, Anti- Counterfeiting. • https://croplife.org/crop-protection/ anti-counterfeiting/ The farmers can easily check the originality of pesticides by giving a missed call or SMS at toll free number 1800- 180-1551. The message can be provided to each farmer’s in his preferred language and contain information about the pesticides batch number, expiry date and originality
  • 14. www.aspaglobal.com 14 The Authentication Times Issue 28 Event review The Holography ConferenceTM Shanghai, China, 2-4 December 2015 T he 25th International Holography Conference organised by Reconnaissance International was held on December 2-4, 2015 at Shanghai, China. Holography ConferenceTM is a major event for hologram manufacturers across the globe to discuss the latest developments in holography industry. The event saw active participation of approximately 140 delegates from 80 organisations and 24 countries. The Conference was supoorted by ASPA as their media and association partner and well sponsored by companies across the globe. Some of the sponsors included China Banknote Printing and Minting Corporation (CBPM) as Platinum Sponsors, DiArts, Giriraj Foils, Optaglio, Sanjan Packing Machinery, Wood & Associates International as Silver Sponsors, IHMA and China Trade Association for Anti- Counterfeiting as Association. The companies exhibited at this forum included; • Combustion Ingenieros • Computer Holography Centre • Demax Holograms • Krypten • Optrace • Polish Holographic Systems • DiArts • Giriraj Foils • Optaglio • Sanjan Packing Machinery • Wood & Associates International • International Hologram Manufacturers Association (IHMA) • China Trade Association for Anti-Counterfeiting as Association. • Zhongchao special security technology co. Like every year, the event also organised the International Hologram Manufacturers Association’s (IHMA) Annual General Meeting (AGM) along- with this conference. The AGM came across as a fruitful event with Mr. Rohit Mistry and Mr. Manoj Kochar were selected as the IHMA Governing Body Members, Holostik bagged the Holography Excellence Commended Award for Best Applied Security Product and ASPA Secretariat presented paper on Hologram in India. Further, Giriraj Foils also exhibited on Enhancing Indian Companies’ Commitment to Quality and Ethics at the conference. Holography Excellence Awards 2015 At the forum, the Excellence for Holography Awards were awarded to organisations for their outstanding contribution in holographic projects for the year. Sponsored by the industry newsletter Holography NewsTM , these awards and commendations were presented on December 3, 2015 at the Gala Dinner and were sponsored by IHMA. The award nominations were submitted for five categories: Innovation in Holographic Technology, Best Origination, Best Applied Security Product and Best Applied Decorative/ Packaging Product. In addition to this, the IHMA Board’s judges also picked one project as the ‘Best of Year’ and selected the recipient of the Brian Monaghan Award for Business Innovation. Giriraj Foils exhibiting at conference Colour DanceTM
  • 15. www.aspaglobal.com 15 The Authentication Times Issue 28 Event review Wayne Tompkin Best applied security product Best OriginationAfzal Inner The winners and commendations for 2015 are: Winner of this year’s Innovation in Holographic Technology award was China’s Zhongchao Special Security Technology Co Ltd, a division of China Banknote Printing & Minting Corporation, with its ColorDance™ product, designed for banknote security stripes. This new type of optical anti-counterfeiting technology differs greatly from traditional holography by containing special optical micro-nanostructures showing novel optical effects such as dynamic image with full parallax and steady colour. Also commended was Bowater Holographics for Bowater Polycopier, CSEM SA for ‘Holograms & DOE’s Structured in Hardened Steel’ and Morphotonix S.a.r.l./Kyburz & Cie S.A for ‘Decoration and Security in One for Swiss Watch Dials’. Combustion Ingenieros S.A.S. Technological of Colombia was awarded as the Best Origination winner for its Nobel Prize Tribute hologram honoring the memory of Colombian writer and Nobel Prize winning author Gabriel García Márquez. Each view of the hologram shows a multiplicity of characters, landscapes and elements depending on illumination source position. Combustion Ingenieros was also commended for their ‘Powerful Chinese Dragon’ metal-embedded hologram. Also commended in this category were Hologram Industries, now called as Surys, for its design for the security laminate on the national passport of The Sultanate of Oman. The winner of this year’s Best Applied Security Product was the Bank of Israel in association with Leonhard Kurz Stiftung & Co. KG, for the first of four new denomination Series C banknotes released into circulation. The banknotes carry Kurz’s KINEGRAM® VOLUME®foilstripefeaturingvibrantlycolouredbold designs from the KINEGRAM® origination process, which are combined with physical principles and materials entirely different from typical holographic foils. Also commended was Holostick India Ltd for the ‘Afzal Inner’ hologram for export tobacco pouches. Two entries were commended for the Best Applied Decorative/Packaging Product award. Firstly, a three- company alliance between NovaVision Inc, Royal Canadian Mint and Pacific Holographs produced the 2015 Fine Silver Hologram Coin featuring ‘Lustrous Maple Leafs’ embedded into one of the coin faces. Optaglio Ltd was also commended for their Fine Silver Coin to commemorate the 25th Anniversary of the Canadian Space Agency. The Hellenic Institute of Holography was awarded ‘Best of Year’ for the Bowater Collection of Fabergé OptoClones™, which are remarkably accurate full colour holographic reproductions of the famous ornaments now housed in the Fabergé Museum in St. Petersburg, Russia. The proud recipient of the Brian Monaghan Award for Business Innovation was Wayne Tompkin Ph.D, Head of Optical Technology for OVD Kinegram Corp. After a career in holography spanning over 25 years, Wayne is responsible for the development and origination of many of OVD’s KINEGRAM® projects for the protection of banknotes, ID documents, and brand protection. Wayne has also authored more than 25 papers, and his technical expertise has been recognized in over 400 patents worldwide. For more information visit: https://www.reconnaissance. net/holography-conference/
  • 16. www.aspaglobal.com 16 The Authentication Times Issue 28 TAT - Please brief us a bit about Pantec. Pantec GS Systems AG provides efficient, high quality print refining solutions for label, packaging and security printing industries. Sophisticated high performance rotary and flatbed hot foil stamping & embossing, high frequency vacuum foil saving and precision high speed hologram placement are the key focus areas of Pantec GS Systems. Leading printers in all sectors, as well as worldwide operating groups, rely on Pantec GS Systems products for efficiency refining and differentiation. TAT - What solutions does Pantec offer for authentication and packaging sector? The SWIFT is a unit to save expensive foil and place registered patches and hologram with rotary hot foil stamping units. The Pantec Vacuum foil system allows frequencies up to 20/sec on each stream (200,000 per hour with 3 streams). SWIFT is designed to be movable on any printing station on the rail of narrow web printing systems. SWIFT is quick and simple to setup with click-in vacuum walls for up to 9 foil saving and 6 holograms streams. SWIFT is used by bay security printing customers for technical labels and tax stamp applications as well as firms in body care and cosmetics for foil saving and prestigious patch placement. CHEETAH is mainly used in the packaging sector today. Tobacco industries in China are moving from sheet fed to roll fed placing holograms and saving foil up to 120 m/min. Also, CHEETAH is usedinlineinrotogravurepresses as well, where overprinting is a requirement. Philipp Morris Parliament packs are using overprinted holograms, stamped with Pantec inline in Komori presses. RHINO is the worldwide proven flatbed inline foil embossing system series that revolutionized the wine and spirit label market. Its robustness, reliability and payback for specialists in these markets as a surprise at first. Dozens of systems run integrated Mr. Peter Frei is CEO of Pantec GS Systems, Kradolf, Switzerland. During his recent visit to India, Peter, in an interaction with Authentication Times, talks about the company’s ambitious plans for India and some of the challenging projects undertaken to maintain the company’s growth trajectory. Pantec SWIFT RHINO - Multicolor Registered Hologram RHINO II Face to face
  • 17. www.aspaglobal.com 17 The Authentication Times Issue 28 Face to face in more than ten different printing presses in all major globally-active firms and local specialist houses. The RHINO II series accommodates one or two foil stepping servo levels for independent patterns. With 7 strokes per sec, small, short, cost- effective tools produce at high speed. RHINO II is an athletically fast, agile and robust runner. TAT - How are Pantec solutions different or unique from other players in the market? Pantec solutions are integrating In-line. They are faster than offline systems, with stronger and more robust and quick change. Pantec process control is very precise. For instance, hologram placement precision allows highest prestigious designs to make use of concentric accuracies of 0.15 mm. The unique vacuum foil buffering system allows more than double the performance compared to mechanical systems. Pantec is efficient, high quality refining: best in performance and quality. TAT - What factors make your company successful? Apart from the above-mentioned performance, robustness, quick change and stamping quality, it’s our service. Pantec RHINO has been installed in all wine and spirit areas, from Australia, Russia, California to South America. Global firms in labels and packaging rely on our Swiss quality, our service hotline and quick reaction of skilled staff. TAT - What kind of challenges your company faced in initial stages and what the scenario now? Initially, some press manufacturers doubted about the feasibility to integrate into servo presses, especially the flat bed RHINO. They were also cautious about reliability and change time, as these factors go into efficiency. Now, because of the word of mouth from our happy customers, we have contented clients all around the globe. It puts these questions out of question for Pantec systems. TAT - What are the key factors which make Pantec enter the Indian market? How do you see this market? India has a strong spirit label industry, where foil and embossing for differentiation is very important. These areas have the same potential line as international wines and spirits that picked up unique multi-foil and embossing design for shelf attraction. Similar to Philipp Morris, we see that prestigious branding with brilliant and holographic effects is important in India. Such customers often need to protect their brands as well. Having the opportunity to place hologram at up to 150 m/min and still at a precision of 0.15 mm allow them to protect while increasing sales with shelf attractiveness, just like Philipp Morris does with the Parliament. TAT - Kindly let us know about the company expansion plan across the globe and kind of investment company planning to do in India in 2016-17? Pantec has tripled its staff and output in the last five years. Globally, both packaging and label refining keeps growing for us like in the past, we assume. After a pilot customer phase in India we expect to grow fast as we globally did in the wine and spirit industry. Moreover, we believe that security printing and brand protection combined with prestigious patches attractiveness has high potential in India, where Pantec has the systems that can cope with Indian mass production. For more information, contact peter.frei@pantec.com Pantec RHINO - fine structures with the power of a rhino Pantec RHINO - extreme relief on label stock Multistep - 4 color - structure Debossing - relief embossing - Magnesium tool 1
  • 18. www.aspaglobal.com 18 The Authentication Times Issue 28 Can you please brief us about yourself and Arkansas Tobacco Control ? I have worked for the State of Arkansas since 1994 and currently I am an Auditor / Investigator with Arkansas Tobacco Control (ATC). Previously, I was an Acting and Interim Director of ATC and also a Cigarette and Other Tobacco Products Auditor with the Revenue Division of the Arkansas Department of Finance and Administration from 1994 to 1997. I also served in the US Army and US Army Reserve from 1982 to 2004 finishing my Army career at the rank of Major. I served in numerous countries to include: United States, Panama, Germany, Saudi Arabia, Kuwait, Iraq and Turkey. ATC is a governmental agency under the state government of the State of Arkansas. ATC is a law enforcement agency established in 1997 to regulate the manufacture, distribution and sale of tobacco products in Arkansas. Primary duties of ATC include: Sales-to-Minors Enforcement, Untaxed Tobacco Enforcement, issuance of Tobacco Products permits and licenses, Unfair Cigarette sales act enforcement and Food and Drug Administration Tobacco Products enforcement. Please brief us about Arkansas Cigarette Stamps, when they were introduced, types of tax stamps, forms of tax stamps, how they are applied, implemented etc.? Arkansasstartedtaxingcigarettes in 1925 at a rate of 4 cents per package of 20 cigarettes. Tax stamps for the payment of cigarette taxes have been used since the beginning. The current rate is $1.15 per package of 20 cigarettes. The cigarette stamps are manufactured by SICPA/Meyercord and are heat- transferred i.e., they are ironed on the packages by cigarette stamping machines. The Regular Arkansas Stamp rate is $1.15/stamp, the Oklahoma Border Zone Stamp rate is $1.06/ stamp, the Tennessee Border Zone Stamp rate is $ 0.65/stamp and the Louisiana Border Zone Stamp rate is $ 0.89/stamp (see figure 1). Arkansas does sell a separate stamp for cigarettes with 25 cigarettes per package. Below is a picture of 25’s stamp for the various border zones. The Regular Arkansas 25’s Stamp is similar but orange in colour (see figure below). The only cigarettes I know that uses these stamps are Marlboro 25’s. The cigarette tax is paid when Arkansas Cigarette Wholesalers with the appropriate license/permit purchase the stamps from the Arkansas Department of Finance and Administration. Cigarette wholesalers must pay for them immediately or if they have a surety bond with the Arkansas Department of Finance and Administration, they can charge them against their surety bond for a limited time. The Regular Arkansas Stamps (20’s) come on rolls of 30,000 each and have a net cost to the wholesaler of $33,465.00. The various Border Zone Stamps (20’s) come in rolls of 9,000. The Regular Arkansas (25’s) Stamps come in rolls of 2,000 and 4,800. The various Border Zone (25’s) Stamps come in rolls of 2,000. Each stamp on a particular cigarette roll has the same number on them. Of Maurice T Gilmore Expert speaks Regular Arkansas Stamp Arkansas- Oklahoma Border Zone Stamp Border Zone Cities: Bonanza Fort Smith Siloam Springs Van Buren Arkansas-Tennessee Border Zone Stamp Border Zone Cities: Marion West Memphis Arkansas- Missouri and Louisiana Border Zone Stamp Missouri Border Zone Cities: Bella Vista Blue Eye Garfield Gateway Holiday Island Mammoth Sprint Oak Grove Omaha Pea Ridge Louisiana Border Zone City Junction City Figure 1: Tax stamps using by Arkansas.
  • 19. www.aspaglobal.com 19 The Authentication Times Issue 28 Expert speaks note, cigarette wholesalers get a 3% discount when they buy the stamps. Here is the full chronology the Arkansas Cigarette Stamp (20’s) Rates: 4-6¢ 3/9/51; 6-8¢ 3/5/65; 8-12.25¢ 4/21/69; 12.25-12.75¢ 7/1/70; 12.75- 17.75¢3/22/71; 17.75-21¢ 3/18/83; 21-22¢ 7/1/91; 22-34.5¢ 2/1/93; 34.5- 31.5¢ 7/1/93; 31.5- 34¢7/1/01; 34-59¢6/1/03;59¢-$1.153/1/09 What are the challenges you faced for implementation of Arkansas Tax Stamps and why Arkansas adopted Cigarette Tax Stamps? I assume Arkansas started using tax stamps in 1925 on cigarettes primarily to ensure greater compliance by the cigarette wholesalers in paying the cigarette tax and to allow easy verification by state investigators and agents that the cigarette has been paid. The usual problems with our stamp system are: quality of the tax stamp, stamping machine operator error and stamping machine error. Based on what I have seen, tax stamp quality has been good in the last few years. Errors caused by the stamping machine themselves are usually that the cigarette wholesaler is using an old machine that is not functioning correctly, i.e., falls out of alignment, doesn’t iron on the entire stamp, breaks down frequently, etc. Operator errors typically are: not adjusting the machine to the different size packs/cartons, being lazy and not stamping certain cartons and not applying the whole stamp on packs that have to be stamped without a machine. How successful do you think these tax stamps are in curbing the illicit trade, increasing Govt. revenueandhelpforenforcement people in authentication? Tax stamps on cigarettes have been very successful in curbing the illicit trade in cigarettes in Arkansas as well as increasing revenue for the State of Arkansas. Throughout the history of ATC, confiscations of cigarettes without any tax stamp or ones from another jurisdiction have been few and small quantities of cigarettes have been confiscated for each case. Agents and investigators do store inspections statewide on a consistent basis so the cigarette retailers know ATC is checking the cigarettes constantly. Agents and investigators can quickly check that a store’s cigarettes have the appropriate tax paid because of the tax stamp affixed to the packs. Also, consumers and retailers generally contact us immediately when they see cigarettes without or with another jurisdiction’s tax stamps on them.
  • 20. www.aspaglobal.com 20 The Authentication Times Issue 28 Market Report Counterfeit copies of top selling games such as Pie Face or Shopkins are costing toy firms up to €1.4 billion across the EU each year. A new report from the Office of Harmonisation in the Internal Market (OHIM) has revealed that across the territory, 12.3 per cent of toys and games sales are being lost due to fake goods. The UK is the second worst hit by counterfeiters, with 11.6 per cent of the toy and game’s sector sales lost to fake products annually. However, it is the German market that emerges as the most affected, with the presence of counterfeit toys and games costing €327 million a year, 10.9 per cent of the value of production. The latest finding also suggests that across Europe, the loss translates into 6,150 jobs, as the report discovered that legitimate manufacturers employ fewer people than they would have done in the absence of counterfeiting. Released by OHIM acting through the European Observatory on Infringements of Intellectual Property Rights, covers the manufacture of dolls, action figures, stuffed animals, board games, toy musical instruments, model trains and puzzles. “We are completing a picture of the economic impact of counterfeiting in a dozen economic sectors across the EU,” said Antonio Campinos, president of OHIM. The report shows us the extent to which the toys and games sector is impacted by the presence of counterfeits in the market.” The report itself emerges as discount retailer B&M finds itself at the centre of the latest counterfeit goods scandal, as mid December 2015 saw Hasbro order the outlet to remove its stock of fake copies of the hit family game, Pie Face from its shelves. Hasbro’s action highlights it’s no tolerance approach towards handling reports of counterfeit products, an issue that is costing up to €370 in government revenue across the EU in lost VAT, income tax, social security contributionsandtaxoncompany profits. “Through our report, we aim to help policy makers in their work by providing data and evidence-based studies, and help consumers make more informed choices,” continued Campinos. Source: www.oami.europa.eu EU toy industry loses €1.4bn a year to fake goods Country Annual Loss Germany € 327 million UK £ 174 Million Spain € 167 Million Italy € 201 Million France € 168 Million
  • 21. www.aspaglobal.com 21 The Authentication Times Issue 28 Industry updates www.connectidexpo.com One global exhibition Three focused conferences Countless opportunities Exploring next-generation identity technologies and solutions I Three dedicated conferences – biometric ID:HUB; secure ID:HUB; and mobile ID:HUB. Follow one HUB or mix and match tracks. I In-depth, non-commercial presentations, case studies and discussions by carefully selected expert speakers. I Conference discounts for early bookers, government and selected end users. Walter E. Washington Convention Center, Washington, DC, USA Conference: March 14–16, 2016 · Exhibition: March 15–16, 2016 2016 I 75 industry leaders exhibiting an impressive array of identity technology, services and solutions. I The extensive exhibition is free to visit. I Network with 1000+ international attendees from governments, industry, NGOs, and professional service providers. Event powered by mobile HUB Expo secure HUB biometric HUB One global exhibition Three focused conferences Countless opportunities mobile HUB secure HUBHUB mobilemobile One global exhibitionOne global exhibition Three focused conferencesThree focused conferences Expo
  • 22. www.aspaglobal.com 22 The Authentication Times Issue 28 Industry updates Publication Title Int. Application Applicant / Inventor DD.MM.YYYY Class Number 29.10.2015 WO/2015/163788 multilayered b42d 25/21 Pct/ru2015/000208 Federalnoe product containing carrier with gosudarstvennoe protective markings, and unitarnoe predpriyatie method for determining “goznak” (fgup authenticity of product “goznak”) / trachuk, arkadiy vladimirovich Brief Abstract: The invention relates to the field of protecting products against counterfeiting and is intended for using an instrument for determining the authenticity of printed products to be protected, such as banknotes and securities forms, labels, excise stamps and postage stamps, payment and identification documents, and also passports and travel documents. The aim and technical solution of the proposed invention consist in creating a product containing a carrier with hidden security markings applied to the surface thereof, wherein the markings are carried out using a luminescent inorganic compound having a crystalline structure based on rare earth elements, characterized in being capable of Stokes or Anti-Stokes luminescence outside of the visible range of the optical spectrum, carried out under the influence of an excitation radiation which is within a first spectral range, and under a second influence on said luminescence by a stimulating radiation which is within a second spectral range, and characterized in that the intensity of the luminescence can change without changing the spectral composition thereof. The proposed technical solutions and methods for controlling authenticity provide for a high level of counterfeiting protection for a valuable document. 29.10.2015 WO/2015/161496 commodity G06Q 30/00 PCT/CN2014/076182 KANG, Chia-Ming anti-counterfeiting verification system Brief Abstract: Provided is a commodity anti-counterfeiting verification system, wherein a commodity manufactured by a manufacture end is provided with a verification information group, the manufacture end is provided with an information processing unit, the manufacture end provides the commodity to an authorized sale end, the authorized sale end is provided with an information display unit, a customer end acquires the commodity from the authorized sale end, the customer end passes the verification information group to an information processing unit of the manufacture end via a feedback unit, after comparing, the information processing unit makes an arithmetical unit create comparison verification information randomly or not randomly and transmits same to an information display unit of the authorized saleendandafeedbackunitofthecustomerend,anditisverifiedthattheauthorizedsaleendisauthorizedsalerecognized by the manufacture end by confirming that the comparison verification information received by the feedback unit of the customer end and the comparison verification information received by the information display unit of the authorized sale end are consistent. It enables a customer to verify whether a purchasing source is a seller legally authorized by a manufacturer when purchasing a commodity. 28.10.2015 2936409 method and system for G06Q 30/00 13815501 SICPA HOLDING SA / marking an item, an item so marked SETO MYRON and a method and system for authenticating a marked item Brief Abstract: A method of marking and authenticating a manufactured item, comprising providing the manufactured item with a visible anti-counterfeiting indicium, marking with marking means the manufactured item with a visible alphanumeric string, marking with marking means the manufactured item with visible marking time data, and transmitting with data transmission and control means marking time data marked on the manufactured item and the alphanumeric string marked on the manufactured item. The method further comprises with computer database control means, receiving the transmitted marking time data and the transmitted alphanumeric string and storing in association in a database marking time information corresponding with the received marking time data marked on the manufactured item and alphanumeric information corresponding with the received alphanumeric string marked on the manufactured item. The method further comprises checking authenticity of the anti-counterfeiting indicium provided on the manufactured item, interrogating the database with the alphanumeric string read from the manufactured item to obtain marking time information for the manufactured item, and comparing the marking time information with marking time data read from the manufactured item to determine if they match. The method comprises determining the manufactured item as authentic if criteria are met, the criteria including that the checking step reveals an authentic anti- counterfeiting indicium and the comparing step determines a match. Global patents
  • 23. www.aspaglobal.com 23 The Authentication Times Issue 28 Upcoming events Published by Authentication Solution Providers’ Assciation (ASPA) Editorial Team Issue Editor : C S Jeena Designed & : EYEDEA Advertising Printed by 1250/13, Govindpuri, Kalkaji, New Delhi-19 (India) eyedeaadvertising@gmail.com www.artworxindia.in The Authentication Times is a quarterly newsletter published by ASPA with an aim to provide latest developments, research, articles, patents and industry news to a wide audience related to Authenticatoni in India and World. The editorial team welcomes your news, contributions and comments. Please send your product updates, press releases, conference announcements or other contributions to ASPA: 21-Ground Floor, Devika Tower 6 Nehru Place, New Delhi 110019, India Telfax: +91 (11) 41617369 Email: info@aspaglobal.com Website: www.aspaglobal.com 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, ASPA would not be responsible for such errors. ASPA is the Authentication Solution Providers’ Association formerly known as Hologram Manufacturers Association of India (HoMAI). Founded in 1998 as HoMAI it has now been re-launched in 2014 as ASPA with a mission to provide a platform where authentication solution providers can converge and collaborate to develop customised cutting edge authentication solutions for their customers. For more details, please visit: www.aspaglobal.com Diverse technologies, common goal. * ASPA participating events. Meet us at these event’s to know more about us. Industry updates Date Event Name / Place / Website 15-16 January 2016* FICCI International Conference on ‘Illicit Trade - Threat to National Security and Economy’ New Delhi, India, www.ficcicascade.com 19-20 January 2016 Access to Safe Medicines London, UK, www.reconnaissance.net 10-12 February 2016 Optical Document Security San Francisco, USA, www.reconnaissance.net 14-16 March 2016 High Security Printing Europe Bucharest, Romania, www.reconnaissance.net 27-29 April, 2016* Pharma Pro & Pack Expo Mumbai, India, www.pharmapropack.com 10-12 May, 2016, Security Document World London, UK, www.sdw2016.com 24-26 May, 2016 The Annual Forum and Expo on Electronic Identity in Africa Kigali, Rwanda, www.id4africaforum.com 1-3 June 2016 World Custom Organization (WCO) IT Conference & Exhibition Dakar, Senegal, www.wcoomd.org 20-22 June 2016 High Security Printing Latin America Mexico City, Mexico, www.reconnaissance.net 19-21 October, 2016* Smart Card Expo New Delhi, India, www.smartcardsexpo.com 17-20 November, 2016* Label Expo New Delhi, India, www.labelexpo-india.com 30 Nov–2 Dec 2016 The Holography Conference Warsaw, Poland 15-17 December, 2016* International Pack Tech India Mumbai, India, www.packtech-india.com 28-31 December, 2016* Wine and Spirit Show 2016 Hotel Taj Bengal, Kolkatta. Email: knowledgeunbiased@gmail.com Cartoon Corner