Ht issue 14 201106
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The document discusses strategies for combating counterfeit drugs in the pharmaceutical industry. It mentions that the global sale of counterfeit drugs was estimated at $75 billion in 2010, a 92% increase over 5 years. Various government and industry initiatives to tackle the problem are discussed, such as using holographic labels, mobile authentication services, and barcodes. However, the document argues that more still needs to be done, and that combating counterfeits should be a key part of brand strategy and planning for pharmaceutical companies.
Ht issue 14 201106
- 1. June 2011 | Volume 5 | Issue 14 www.homai.org The Holography Times An endeavour to protect products and people Regulatory control The Holography Times is a quarterly newsletter published by Hologram Manufacturers Association of India (HoMAI) Pharmaceutical industry needs an effective strategy to combat counterfeiting Pharma company initiative Anti-counterfeiting strategy Usage of anti-counterfeiting technology Consumer education & retailer recognition www.homai.org 1
- 2. VISIONFOIL 104 H The Holography Times News Bytes The real thing The VISIONFOIL 104 Hologram from BOBST gives you and your customers the strategic advantage needed to win the war against product and brand piracy, delivering ultra precise application of every size and type of hologram currently in the market, plus many that are not yet commonplace. From banknotes to visas, and from tickets to packaging, the VISIONFOIL 104 H handles them all effortlessly. After all, it’s the real thing. 2 www.homai.org B O B S T G R O U P . C O M
- 3. The Holography Times Viewpoint Pharmaceutical industry needs an effective strategy to combat counterfeiting In 2010, the global sale of counterfeit drugs was estimated US $75 billion*. That’s a 92 percent increase in just fi ve years, according to estimates from the Centre for Medicines in the Public Interest (CMPI). This is a major issue for drug companies and an even bigger problem for patients those live may depend on these medications. Globally, governments and drug companies are implementing various efforts to tackle this problem for example; - in 2005, Malaysian government started usage of holographic label on all its registered medicines; - in 2009, the EFPIA announced the pilot of its coding and identifi cation solution in Sweden; - in July 2010, the National Agency for Food and Drug Administration and Control (NAFDAC) started using Mobile Authentication Services (MAS) and an RFID system; - and recently the Drug Controller General of India (DCGI) is going to implement bar-codes for pharma exports in India from July 2011. Although these initiative are welcome, still there is a need to do lot more. The negative impact of counterfeiting can be diminished to a great level if it becomes a part of every brand strategy – plan and review process with the accountability of the brand owners towards its most valuable assets- for example Brand. C S Jeena Editor 1US $ = ` 45 (3 month average) In this issue 4-7 News Bytes 8 Pharmaceutical Industry Needs an effective strategy to combat counterfeiting Global Trends 11 Hologram providing effective combination of authentication features Expert Insight 13 Enterprise risk assessment & management Tender Updates 15 Industry Trends 16 Global Patents 17 Industry Updates 18 Upcoming Event, 2011 19 www.homai.org 3
- 4. The Holography Times News Bytes Holograms may be included in trademark law It follows news from Taiwan where government authorities have introduced a bill to expand the types of representation protected by trademark law by including holograms, 3D shapes and movements for the fi rst time. The idea is that anything that serves to ‘identify’ something, whether in the form of words, patterns, graphics, colors, holograms or sounds, could be submitted for trademark protection in Taiwan. The International Hologram Manufacturers Association (IHMA) says that this will boost the protection of the intellectual property rights of holograms and will be a boon for brand owners looking to protect their products and market share. Holograms have to date been deemed to be covered by copyright law (as covered in the Berne Conventions) and the European Community Design Rights, but they have not been specifi cally mentioned in any national legislation on trademark or copyright. The Taiwanese move is therefore a step forward for the ‘normalisation’ of holograms as a protected item. Wang Mei-Hua, Director-General of Taiwan’s Ministry of Economic Affairs’ Intellectual Property Offi ce (IPO), said that if the revised law is passed, animation and holograms that appear on mobile phones could also receive trademark protection. She said the Nokia Corp image that appears when its cell phones are turned on has already been registered as a trademark in several countries and the fi rm could also apply for protection in Taiwan if the draft bill is passed. The Trademark Act amendment approved by the Legislative Economic Committee will add animations (movement), laser logo (hologram) and three-dimensional shapes to the current legal recognition of a trademark as a word, fi gure, symbol, color, sound, three-dimensional shape or a combination thereof’. Glenn Wood, US media representative for the IHMA, welcomed the news, adding: “This has got to be seen as a step in the right direction as holograms play a vital part in the battle to stem the fl ood of counterfeit goods emanating from Taiwan and other parts of the world. It should help all involved in anti-counterfeiting and brand protection and could pave the way for similar moves around the world, which has to come eventually.” ■ Source: www.ihma.org “The International Hologram Manufacturers Association (IHMA) has welcomed a move which could lead to holograms being specifi cally covered under a national trademark law for the fi rst time” Alpha Lasertek installed Optodigital KINEMAX Alpha Lasertek India one of the most trusted anti-counterfeit hologram manufacturers in India has installed an optodigital KINEMAX hologram mastering system from Polish Holographic System, Poland. The system comprises HiSec type of origination and litho type origination with a resolution of 120,000 dpi*. The company has already commissioned this system and is pleased with its performance. Founded in 1991, Alpha Lasertek is focusing on to develop the most effective overt technology to help Indian consumer in identifi cation of fake products. According to Urvinder Singh, Director Alpha Lasertek “The system will help in providing cutting-edge technology to our esteemed customer’s, as with this we can provide highly secured hologram including ‘Grey color’ hologram”. The quality and features of this system are very close to e-beam master but available at 10% of the price of e-beam master”. ■ For more information contact at +91.9717499005 or e-mail urvinder@alt.co.in * DPI stand for dots per inch, a measure of printing resolution 4 www.homai.org
- 5. The Holography Times News Bytes Contraband cigarette market estimated at ` 1,700 cr (USD 425 million) Hologram seals to prevent spurious N EW DELHI: ‘Extremely high’ liquor excise duty on cigarettes in India has increased the incentives for contraband trade in the country, estimated at ` 1,700 crore (USD 425 million), according to a Euromonitor International Study. The illicit cigarette market in terms of volumes has grown by 57.7 per cent during 2004 to 2009 in India, as per the study commissioned by industry body ASSOCHAM. Commenting on the fi ndings, Tobacco Institute of India Director Udayan Lal said, “The extremely high excise duty rates on cigarettes provide a very lucrative opportunity for evasion.” According to him, the clandestine activity has gained momentum, after the central government cummulatively increased the excise duty on cigarettes by 42 per cent. The forecast is that illicit consumption will continue to rise over the next fi ve years. Illicit cigarettes consist of not only smuggled international brands, but also duty-evaded cigarettes manufactured domestically by small, unscrupulous manufacturing units. “The Institute seeks tax stability on cigarettes, coupled with a widening of the tax base through reduction in the large tax differential between cigarettes and other tobacco products,” Lal said. In the list of top 15 countries with high consumption of illicit cigarettes, India is at the fi fth position in terms of growth rate between 2004-2009 in volumes, followed by Malasiya, Romania, Pakistan and France, respectively. “In 2008, the per pack price gap between tax paid and contraband widened across all price segments. For example, a premium brand pack of 20 sticks of India Kings retailed at ` 100, while its smuggled competitors such as Marlboro and Rothmans were available at a steep discount, selling for ` 80-85,” according to the report. Globally, the world’s top 15 countries account for some 79 per cent of global illicit cigarette consumption with China the largest (36.2 per cent), despite a 19.4 per cent fall in illicit cigarette consumption over 2004-09. “The BRIC countries accounted for around 50 per cent of all illicit trade in 2009,” it added. ■ Source: Euromonitor Hyderabad, Andhra Pradesh, India: The state government of Andhra Pradesh in India is contemplating introduction of hologram seal with bar coding to check sale of spurious liquor and also to improve the revenue generation. The excise department has fi xed a target of ` 9000 crore (USD 2 billion) as revenue from excise for 2011-12. According to offi cial sources, the paper seals being put on the liquor bottles are easily tampered with. Hologram seal with bar coding would help in preventing the sale of spurious liquor as well as identifying the distillery where the liquor has been manufactured and the date of manufacture and other such details. The sources said the government proposes to introduce holograms of three different colours. Two different colours for exports and imports and another for those manufactured and sold within the state. ■ Source: www. articles.timesofi ndia. indiatimes.com Table 1: The 10 biggest market for illicit trade in 2007 Ranking Country Illicit trade (bns of cigarettes) 1 China 214 2 Russian Federation 76 3 United States 62 4 EU 58 5 Brazil 38 6 Phillippines 19 7 India 18 8 Indonesia 14 9 Pakistan 13 10 Turkey 12 www.homai.org 5
- 6. The Holography Times News Bytes ` 500 crore (USD 125 million) for high-security number plates Gujarat, India: The state government has initiated the process to implement the ` 500-crore (USD 125 million) High Security Registration Plates (HSRP) project for all types of vehicles across Gujarat. The project is aimed at preventing duplication of the registration plates, thereby preventing crimes. The city has about 17.69 lakh (1.7 million) vehicles, including two, three and four-wheelers. The system has security features to prevent counterfeiting and duplication of such registration number plates. The specifi cations of plates on different type of vehicles have already been laid down in order to ensure uniformity in size, colour and specifi cations of the registration plates across the country. As per the guidelines of the Union Ministry of Road Transport, the State Transport Department has started the work of establishing technical network for the project. The government has recently invited tenders for the project, which will be implemented on the build, own and operate (BOO) basis. According to the State Transport Commissioner, J P Gupta, “After the implementation of this project, all new vehicles will use HSRP, while the older vehicles will have to replace their old number plates with HSRP. The government will appoint authorised vendors at all the Regional Transport Offi ces (RTOs) from where vehicle owners can get HSRPs.” The plates will be highly secure with “lock, hologram and unique numbers”. “At present, there is no standard number plate system in the state,” he said, adding that the project will cover the entire state within a year. The department is also working on digitisation of all the vehicle data and is likely to introduce chip-based driving license and vehicle registration book, said Gupta. ■ Source: www.articles.timesofi ndia.indiatimes.com 6 www.homai.org
- 7. The Holography Times News Bytes Schreiner MediPharm unveils specialty labels for autoinjectors Schreiner MediPharm, a Germany-based provider of specialty pharmaceutical labelling products, has launched a new multi-functional label for self-medicating autoinjectors and pens. The new label is equipped with a tamper-evident feature in the form of a perforation that provides assurance the autoinjector or pen was not previously opened and that it contains the correct drug. The position of the perforation also ensures that once it has been opened, the cap cannot be closed again undetected. Additionally, there is a transparent window in the label that enables the user to visually check the fi ll level of the contents within. Holograms to safeguard handicraft products To prevent the user’s hand from slipping during the injection, the label has a non-slip texture for improved grip and safe handling. Due to the special material properties the label snugly fi ts the shape of the autoinjector and reliably adheres to the plastic surface. ‘With a focus on safety and comfort, we have created a unique solution that can be customized to suit various injection systems,’ said Gene Dul, President of Schreiner MediPharm. ‘The self-medication market is growing rapidly and this product will help improve patient safety on several levels.’ ■ Source:www.schreiner-medipharm. com Ufl ex to set up US polyester-fi lm plant Raipur, Chhattisgarh, India: In an attempt to preserve the traditional art of Chhattisgarh, the government has decided to use holograms on every handicraft produced in the state. The Chhattisgarh Handicraft Development Board is developing hologram for the purpose. Now, the buyers will get guarantee cards with every handicraft item that they purchase. The authorities believe this step will curb the duplication and theft of the traditional art and craft of the region. Till now, the authorities have managed to get only bimetal patented. This has encouraged the fraudsters to duplicate other items or steal these items and sell them at higher prices in the international market. ■ Source: www.cghandicraft.com India-based substrate provider Ufl ex Ltd. will set up a polyester-fi lms plant in the US. The project represents a USD 80-85 million investment, which will be made through a 100% subsidiary of the company, reports Equity Bulls. Ufl ex has expanded its plastic-fi lms production operations across the globe over the past few years. It recently opened a new site in Egypt and added capacity to its Mexico plant. The US site will be the company’s sixth facility. In February, Ufl ex announced a USD80 million investment to construct a new plant in Wrzesnia, Poland. That facility is said to begin operations in June 2012. ■ Source: www. ufl exltd.com www.homai.org 7
- 8. The Holography Times Indian pharmaceutical industry Needs an effective strategy to combat counterfeiting Counterfeit pharmaceuticals are an ongoing problem worldwide and the labelling industry has been heavily regulated as a result. Different geographies can sometimes be at a higher risk than others, and in recent months, India has been cited as a source of counterfeits. The recent decision of Government of India of fi nalization of implementing bar code attract the attention of the industry. This comes on the heels of a discovery of “Made in India” labels on fake pharmaceutical products produced in China. To combat this, all Indian pharmaceutical exports will carry a barcode as of July 1, 2011 on primary, secondary and tertiary packaging. Missing Element - No protection from fakes or tampering The better-late-than-never rule will allow medicine to be traced and tracked to its source of origin. Bar code is a good solution for tracking and tracing of goods, but a problem will always remain if the product is counterfeit during the supply chain. As when the code is simply printed onto the packaging, it does not protect Cover Story the pack against counterfeiting or tampering. i. Traceability features are not immune against foregery and require additional anti-counterfeiting feature to ensure their own authenticity as well as the authenticity of the product they are attached to. ii. The codes can simply be copied and printed on to illegal produced packaging, or the original product can be removed from the original pack and replaced by fake. iii. The consumer is obvious to this if the produce pack itself is not properly protected. One needs to understand that product identifi cation technologies such as barcode and DMS1 tracking should be used to facilitate the overt, covert and other forensic technology, not to compete with these proven technologies. Example: EFPIA2 product and verifi cation project (Figure 1) In May 2009, the EFPIA announced the pilot of its coding and identifi cation solution in Sweden. The EFPIA “One needs to understand that product identifi cation technologies such as barcode and DMS tracking should be used to facilitate the overt, covert and other forensic technology, not to compete with these proven technologies” 8 www.homai.org
- 9. The Holography Times Cover Story Table1 : Overview of some security options Manufacturer Distribution Regional Pharmacist / End User Holograms Minimal cost Easy to check Easy to check Easy to check Easily Micro-printing Minimal cost Easy to check Easy to check Easy to check Education is Taggants Moderate to Special reader Special reader Special reader Manufacturer high cost required required required would need to Color shifting Moderate to Easy visual Easy visual Easy to see / would need to inks / Digital high cost inspection / inspection / manufacturer Brand watermarks reader required reader required authenticate differentiation Frangible and Minimal to Easy to detect Easy to detect Easy to detect Easy visual to other security moderate cost tampering / tampering / tampering / detect stocks reader required reader required reader required tampering Serialisation Moderate to Special equipment Special equipment Special equipment Possible human high cost needed, track- needed, track- needed, track- code available RFID Moderate to Special equipment Special equipment Special equipment Manufacturer high cost needed, track- needed, track- needed, track- would need to solution does not provide for verifi cation by the patient, as it is the Pharmacists who will check a unique identifi cation code on each individual pack when it is dispensed to patient. These codes are generated and applied by manufacturers using a simple 2D Data Matrix Barcode, which contain a unique serial number. The scan revealed any duplication of data on packs and triggers the system to immediately alert the pharmacist to the possibility of a counterfeit product. This solution presumes that all data collected in a central location in a timely fashion and can be queries against at anytime from almost anywhere. This opens up a list of question; i. Who is going to be responsible for storing and managing this data? ii. Who will pay for it? Cycle Distribution Hospitals Centre with proper with proper with proper important equipment equipment equipment and-trace and-trace and-trace and-trace and-trace and-trace authenticate iii. Are pharmaceuticals fi rms willing to share their data with everyone else in the supply chain? iv. Most pharmaceutical products pass through many hands along the supply chain before they reach their fi nial destination, which increases the chances of product counterfeiting, especially in European market, where distribution involves many countries and languages. The long supply chain increases the risk of products being repackaged or exchanged at the temporary storage facilities. With this solution, a pharmaceutical company still loses, because you cannot tell which product is the counterfeit, so if the fake product was dispensed fi rst, then you are going to end up holding back the genuine product when you get a duplicate hit. recognized security authenticate EFPIA had himself acknowledges that the system check the code, not the product, so it does not necessarily authenticate that the medicines is genuine, but it will identify that the code is genuine. (see, Pharma Anti-counterfeiting news, Issue no1, August 2009). Anti-Counterfeiting is a multi-layered approach Counterfeiters can quickly identifi ed and duplicate many drugs and drug safety measures. This is why a multi-layered approach to counterfeiting is essential for opting drug security. Printers should provide both overt and covert anti-counterfeiting solution. EFPIA and OPPI3 (India) both have specifi ed various safety elements for every drug unit. As per EFPIA, fi rst, products should have a tamper-evident container closure system with overt and or covert authentication features, second, packaging should contain www.homai.org 9
- 10. The Holography Times An effective strategy Malaysia Meditag Introduction: The Malaysian Government considers healthcare a priority and has introduced a number of schemes in past to help boost the sector. The most notable, and benefi cial to OTC, was been the launch of “Meditag” holographic authentication sticker. It was introduced in 2005 by Malaysian Ministry of Health to confi rm the authenticity of medicines registered with the Ministry. a randomized 2D barcode on each unit, and lastly, the supply chain should be transparent. Further, the choice of technique should be depends on how the drug manufacturer intends to use security features, for example, a mandatory in favor of an individual technology, can backfi re, once it fails. Need of multi-layered security In selecting a security feature, various tradeoffs are necessary between security and usability. It is possible to secure a document or product almost absolutely by applying layer after layer of complex security features, but to fully authenticate would require far What is Meditag? The self-adhesive holographic Meditag measures 8mm x16mm and contains three levels of security. For unaided visual security, the label employs Hologram Industries (HI) proprietary diagram technique. A second level of security can be established through the use of a handheld instrument, and a third level for machine readability is also provided for forensics testing. more equipment and resources that is really feasable or necessary. The most effective brand protection is a multi-layered solution, with suffi cient barriers to deter criminal activity, ideally combing both overt and covert approaches. This strategy will go a long way towards, protecting patient safety, as well as country reputation and revenues of pharma companies. References i. HoMAI report on pharma counterfeiting and hologram ii. How to select a security feature “ The Document Security Alliance (DSA) and The North American Security Products Organisation (NASPO)” www. documentsecurityalliance.org / www. naspo.org Cover Story Result: Since the Ministry of health introduced meditag in 2005 instances of un-registered medicines (which are often counterfeit) on the market has fallen by up to one-third. Source: Paper presented by Ministry of Health at Global Forum on Pharmaceutical Anti-Counterfeiting held in Washington, DC, June 2008 and by Mediharta at Holopack-Holoprint, November 2010. iii. Solutions in the fi ght against drug counterfeiters “Schreiner MediPharm” www.schreiner-medipharm.com iv. Anti-Counterfeiting – A multi layered approach “Eric Caro of Catalent Pharma Solutions” www.samedanltd. com / www.catalent.com v. DuPont anti-counterfeiting solutions / www.authentication.dupont.com vi. European Federations of Pharmceutical Industries and Association (EFPIA) white paper “The Anti-Counterfeiting of Medicines” Bibliography 1. DMS- Digital Mass Serialization 2. EFPIA- European Federations of Pharmceutical Industries and Association 3. OPPI- Organization of Pharmaceuitical Producers of India 10 www.homai.org
- 11. The Holography Times Global Trends Pharmaceutical anti-counterfeiting Hologram providing effective combination of authentication features by Ian Lancaster & Glenn Wood, IHMA “Holograms can now combine authentication overt features with covert elements and forensic and track and trace elements to provide a highly effective weapon in the fi ght against illicit products” Counterfeit concerns A joint survey by the International Pharmaceutical Federation (FIP) and Pfi zer revealed that pharmacists are concerned over the global problem of counterfeit medicines. The survey, conducted by APCO Insight, was reported at the FIP Congress, Lisbon, Portugal. Consequently, Ian Lancaster, general secretary of the International Hologram Manufacturers Association (IHMA), believes that the pharmaceutical industry can do more to combat counterfeit pharmaceuticals. Lancaster cites survey results that almost two thirds (63 per cent) of 2000 community, retail, and hospital pharmacists surveyed in Europe, the United States, and Australia believe current policies and technology are insuffi cient to deal with counterfeit medicines. In addition, 61per cent of those surveyed also said that the prevalence of counterfeit medication is a serious issue in their country. “Pharmacists feel more has to be done about tackling the counterfeiters and ensuring patients receive safe, effective, and bona fi de medicines,” says Lancaster. “So one of the key challenges is for manufacturers and producers to stay ahead of the counterfeiters.” Role of packaging Packaging-based solutions may begin to play a more frequent role in such programs now that the European Parliament voted for the “EU Falsifi ed Medicines Directive” in February 2011. The directive seeks to develop packaging and labeling measures that can help the marketplace distinguish falsifi ed medicinal products from other illegal products as well as from infringements of intellectual property rights. (For more details on the legislation, please see “EU Moves toward Pan-European Law.”) Glenn Wood, U.S. media representative for the IHMA, said “Any move to tackle the global rise in pharmaceutical counterfeiting has to be seen as positive. This is a critical time for those involved in tackling counterfeit pharmaceuticals. Counterfeits are on the increase with confi scation at borders or during enforcement raids on the rise not only in developing countries but also in the United States and in other developed nations.” Wood calls the EU Falsifi ed Medicines Directive a welcome move. “Along with other global initiatives, the directive will undoubtedly play a vital part in the constant battle to stem the fl ood of counterfeit drugs and help producers stay one step ahead of the criminals.” Hologram authentication as solution Lancaster and Wood suggest that holograms can play a key role in combating criminal activity. “Holograms work best where the packaging remains with the unit dose—almost everywhere except the United States—and when they are regionalized for a specifi c market,” says Lancaster. “In the www.homai.org 11
- 12. The Holography Times “The evolving anti-counterfeiting role of holograms lies in their ability to combine authentication with detection,” United States, pharmacists don’t usually have access to the original unit-dose packaging and the bulk packs they purchase almost never have holograms.” Hologram providing three layered security Holograms can now combine authentication overt features with covert elements and forensic and track and trace elements to provide a highly effective weapon in the fi ght against illicit products, says Wood. And they can be used as seals, labels, or as the foil in a blister pack. Lancaster adds that there are examples of how holograms provide a successful and vital detection function in pharmaceutical anti-counterfeiting strategies. A few years ago Malaysia introduced its Meditag serialized hologram label to be found on all registered medicines—traditional and western—which has helped the Global Trends Ministry of Health inspectors to detect unauthorized and counterfeit product. “The evolving anti-counterfeiting role of holograms lies in their ability to combine authentication with detection,” says Lancaster. “And sometimes pack enhancement, as Rodotex GmbH has shown with its packaging for Vitamin C+Kollagen in Indonesia. This is why the more enlightened pharmaceutical companies and enforcement agencies continue to make them an integral part of modern anti-counterfeiting strategies.” Sources: The International Hologram Manufacturers Association (IHMA), which is made up of over 80 leading producers and converters of holograms for banknote security, anti-counterfeiting, brand protection, packaging, graphics and other commercial applications around the world. For more information, go to www.ihma.org. 12 www.homai.org
- 13. The Holography Times Expert Insight Enterprise risk assessment & management Mr. Pradip Shroff is the President of HOMAI, Board Member of IHMA, and Vice-chairman of PRS Permacel Pvt. Ltd. He is a B.Tech from IIT Mumbai, M.S. from Case Western Reserve University, USA, and accredited by Coaching Foundation India Ltd as a CEO coach. He has worked with Johnson & Johnson India for almost 25 years and has been involved in developing solutions for brand protection for over 35 years. Security & Exchange Board of India (SEBI), to protect interest of investors, has made risk assessment and management as an important aspect for all listed companies under its Clasue 49 –IV (c) of listing. Following activities are mandatory for all listed companies: i. Procedures to inform Board about risk assessment and minimization; ii. Periodic review of procedures to ensure that executive management; iii. Controls risk through a properly defi ned framework; iv. Risk management report to be submitted to the Board for review. The intent of SEBI is to protect interest of investors. It is a good management practice that every company, listed or unlisted, ‘for profi t’ or ‘not for profi t’, can benefi t by practicing in true spirit. The ERM will help protect long term sustainability of any organization. Enterprise Risk Assessment & Management (ERM) should be on agenda of every management meeting and every board meetings. The simple steps to follow in risk managements are: i. Identify the sources of risk. ii. Assess the likely damage that can be caused by each risk identifi ed. iii. Determine probability of the risk becoming a reality. iv. Calculate expected loss due to each risk = damage x probability v. Develop a strategy based on expected loss and cost of mitigating the risk. vi. Implement the strategy vii. Review the impact of the strategy and make changes if required. viii. Establish an ongoing process of review and corrections. Let us now review risk for various assets of an enterprise. These risks can be classifi ed as under: • Risks to physical properties • Risks to information • Risks to brands Risks to physical properties Physical properties like offi ces, plant and machinery are subject to various types of risks such as Theft, Fire, Earthquake, etc. There are several established strategies, “The ERM will help protect long term sustainability of any organization. ERM should be on agenda of every management meeting and every board meetings.” www.homai.org 13
- 14. The Holography Times Cover Story (Managing Director, Risk Coordinator, Principal Risk Owners (PROs) Supply chain HR & Administration approaches and solutions available for risk mitigation against theft - such as providing doors & windows with locks, video camera etc. The mitigation strategy against risk of fi re is also well known. There are experts available to carry out a complete risk profi le. The best way to fi ght fi re is to prevent it by carefully handling all possible sources, by providing training at all levels. In case of a fi re there are still several well established tools and technologies available to fi ght – Smoke detectors, fi re extinguishers, sprinklers etc. Well managed companies have a safety manager, a safety management plan and review systems. Risks to information Information is power and clearly a company has to have plans to protect its confi dential and important information. The need and awareness has increased in recent past due to extensive use of IT technology. There are several strategies and tools available to manage this risk. Use of fi re walls and spam control are very common. The high tech companies Board of Directors / Audit Committee ERM Steering Committee Risk-coordinator is usually the company secretary Sub committee with risk operatives Legal and Secretariat Production Finance Marketing Risk Management Organization Structure involved in sensitive information adhere to international standards (ISO 27001). Risks to brands It takes many years and consistent efforts to build a brand. Brand represents the emotional bond that the stake holders have. Brand is intangible but it is the most valuable asset for a company. Consumers buy products of a known brand as she feels confi dent about the consistency in the promise delivered by the brand. Global brand names like Johnson & Johnson, Coke, and Toyota have values which run in billions of dollars. Indian brands like Tata, TVs, and Bajaj are well known. An attack on brand can cause a signifi cant blow and lead to huge loss of consumer base, loss of market share and loss of profi t. The cost of rebuilding a damaged brand is huge and requires very intense efforts. The brand attack can be by pilferage in transit, by adulteration, infringement of spurious products etc. Brand risk management is a new concept and needs to be on the agenda of every management team and every board of directors. There are various options available to develop a customize strategy for Brand risk management. One can draw inspiration from good management practices adopted in known areas like - health, safety, environment, quality. Enterprises can form a brand risk management team with CEO as a leader and possibly with the help of an external expert the team can prepare itself to mitigate risk to a brand. Summary Risk mitigation strategies are a necessity of the modern times. Every company listed or unlisted needs to pay a serious attention to this important and critical aspect for long term sustainability. Among various sources of risks, brand risk management requires highest attention. Companies must develop a risk profi le and continuously review plan, action and performance. 14 www.homai.org
- 15. The Holography Times Industry Updates Tender Updates Organisation Date State (Country) Details Jaipur Vidyut Vitran Nigam Limited February 2011 Rajasthan, Supply of tamper evident India polycarbonate seals Maharashtra State Board of Secondary & February 2011 Maharashtra, Printing of hologram & laminated Higher Secondary Education India statement of marks sheet and certifi cates Directorate of Geology and Mining February 2011 Uttar Pradesh, India Supply of multicolored security hologram Central Tobacco Research Institute February 2011 Andhra Pradesh, Supply of holograms of 24 microns India thickness with self adhesive and in sheet form Government of Tamilnadu, February 2011 Tamilnadu, India Production and supply of polyester Excise Department hologram excise lables Government of Goa, Excise Department February 2011 Goa, India Supply of security hologram stickers Sukhmani Society for Citizen Services February 2011 Punjab, India Supply of high security holograms. Centre for Development of March 2011 Kerala, Supply & installation of rack 2U server Imaging Technology India & high speed hologram hot stamping machine Government of Orissa, March 2011 Bhubaneswar Printing, production & supply of Excise Department Orissa, India polyester hologram excise labels Government of Uttarakhand March 2011 Uttrakhand, India Supply of EALs (excise adhesive labels) Excise Department Dakshinanchal Vidyut April 2011 Uttar Pradesh, India Supply of hologram seal Vitran Nigam Limited Izpalnitelna Agentsiya April 2011 Bulgaria Holographic products and designs “Avtomobilna Administratsiya Madhya Pradesh Agricultural April 2011 Madhya Pradesh, Work of hologram printing Marketing Board India Gulbarga University April 2011 Karnataka, Supply of holograms India United Nations Development Programme April 2011 Afghanistan ID card plastic lamination ribbons with (UNDP) UN hologram best suitable for NISCA PR 5302 laminator Offi ce Of The Director of April 2011 United States Pre-Qualifi cations are invited for National Intelligence proposers~ day announcement for the IARPA synthetic holographic observation (SHO) program To get the latest tender, subscription and information email at info@homai.org www.homai.org 15
- 16. The Holography Times Industry Updates Industry Trends Consolidated 2009 (million) 2010 (million) Change sales revenue Hologram Industries, € 28.3 € 31.9 France +13% Identity Document 14.3 45% Vehicle Identifi cation 9.1 29% Brand Protection 3.9 12% Fiduciary documents 3.2 10% Other 1.5 4% Total 32.0 100% Oberthur technologies, € 904.6 € 978.8 +8.2% Germany Card Systems 712.9 72.8% Security Printing 145.7 14.9% Identity 101.6 10.4% Cash Protection 17.8 1.8% Total 978.8 100.0% G&D, € 1684 € 1688 +0.2% Germany Card & services 705 41.76% Banknote 753 44.60% Govt solutions 210 12.44% New Business 20 1.8% Total 1688 100.0% API, £ 93.4 £ 86.4 -9.5% United Kingdom Shiner International, China USD 34.5 USD 58.2 +68.5% Source: www.bloomberg.com Indian Hologram Industry increasing with 19% growth New Delhi: Hologram Manufacturers Association of India (HOMAI), the industry body deal in promotion of holography in India has released its 2nd Financial Study of hologram industry in India. According to the report the hologram market in India is constantly increasing with an average growth rate of 19 per cent per annum in last fi ve years. Indian market overview The hologram market in India, currently estimated at ` 2.4 billion, is further projected to grow at 15 per cent CAGR for the next fi ve years as there is a huge demand of holographic features in sectors such as Identity Documents, Tobacco and Brand Protection. According to HOMAI, the increasing need for enhanced security and protection of consumers from counterfeiting products as well as quality services, reasonable price, increases in export are the reason behind this constantly growth. Research Method The report has been done on the basis of primary data based on reported fi gures of 21 HOMAI member companies. The report consists of 3 sections covering i) Financial highlights of industry 2005-2010 ii) Analysis of key rations 2005-2010 and iii) conclusions and trend analysis. It comprises of fi gures and statistics on capital employed, net fi xed assets, current assets, current liabilities, sales, sales to fi xed assets, credit period, inventory, raw material to sales, profi t etc. The report comprises 20 pages and costs USD 675. The report will be useful for industry researchers, hologram manufacturers, manufacturers of branded and security sensitive products, advisory fi rms in the sector, global investors looking at India in terms of future investments in this industry ■ For more information contact at info@homai.org 16 www.homai.org
- 17. The Holography Times Industry Updates Global Patents Publication Title Int. Application Applicant Date Class Number 05.05.11 (WO 2011/053087) Solar cell and H01L 31/042 PCT/KR2010/00764 LG Innotek Co., Ltd manufacturing method thereof 05.05.11 (WO 2011/052405) Optical communication G02F 1/31 PCT/JP2010/068158 National University system Corporation Hokkaido University 21.04.11 (WO 2011/046822) Hologram and G03H 1/00 PCT/US2010/051973 E.I. Du Pont de Nemours associated methods of fabrication and Company thereof and use in security/authentication applications 21.04.11 (WO 2011/046420) Forgery-proof vehicle No IPC found PCT/MX2010/000111 DIAZ LOPEZ, Eduardo identifi cation plate with a stamped/ encapsulated hologram 21.04.11 (WO 2011/045972) Image displaying B42D 15/10 PCT/JP2010/063326 Toppan Printing Co., medium, labeled article, and method of Ltd. manufacture thereof 21.04.11 (WO 2011/045543) Method and device for G07D 7/12 PCT/FR2010/052180 Hologram Industries checking a secured document 14.04.11 WO 2011/044464) System, method and G03H 1/04 PCT/US2010/051981 Massahussetts Institute apparatus for wavelength-coded of Technology multi-focal microscopy 14.04.11 (WO 2011/043525) Method for transposing B29C 45/14 PCT/KR2010/002615 Janghan Inpla Co., Ltd. hologram into molded material by using micro unevenness hologram 14.04.11 (WO 2011/043208) Optical element, G02B 5/30 PCT/JP2010/066651 Nec Corporation light source device, and projection-type display device 10.03.11 (WO 2011/027514) Authenticity G03H 1/26 PCT/JP2010/005233 Dai Nippon Printing determination hologram and fabrication Co., Ltd. method therefor 10.03.11 (WO 2011/027472) Optical information G03H 1/02 PCT/JP2009/065594 Kabushiki Kaisha recording medium Toshiba 10.03.11 (WO 2011/026794) Vivarium comprising A01K 63/00 PCT/EP2010/062563 GEYER, Daniel a hologram 03.03.11 (WO 2011/025210) An apparatus and a G03H 1/22 PCT/KR2010/005621 LG Electronics Inc. method for reconstructing a hologram 20.01.2011 (WO 2011/006929) Method and device for G03H 1/02 PCT/EP2010/060141 MANN+HUMMEL marking objects, particularly components GMBH of a motor vehicle, with an embossed hologram and objects marked in this way For more information, visit www.wipo.int - Gateway to Patent Scope – Database Search – PCT Applications International Applications (PCT) This search tool allows you to search around published International Patent Applications and to view the latest information and documents available to the International Bureau. This facility features: full-text search in Descriptions and Claims; search using unlimited keywords; bibliographic search; Boolean operators; and graphical results www.homai.org 17
- 18. The Holography Times Industry Updates Anti-counterfeiting technology patent round-up Microsoft has been awarded a US patent (No. 7,878,398) on its techniques to create counterfeit- and tamper-resistant labels using randomly-occurring features. These may be inherent to the label itself or added to it, for example by applying fi bre optic strands. “This pattern is unique to each label and may not be exactly duplicated at a reasonable cost,” says the patent. AlpVision has been granted patents in India (No. 243454) and Indonesia (ID P0025514B) for its Cryptoglyph invisible marking technology which can be applied to carton boxes, blister packs, labels and other pharmaceutical packaging materials. The process prevents counterfeiting through incorporation of a signature in form of an invisible mark in parts of or over the entire packaging or label. The company said it now has Cryptoglyph patents in force in all major countries around the world. US company Axsun Technologies has been granted a US patent (No.7,875,457) for a product authentication system. It is based on machine-readable taggants that can be detected using Raman spectroscopy. The taggant information is used to “identify, validate, and distinguish the origin of the source” of an item and after scanning is rendered unreadable by chemical modifi cation, “thereby controlling the taggants’ lifecycle,” says the patent. Axsun is best known in pharma circles for its near infrared (NIR) spectrometer range. AuthentiForm Technologies (now CertiRx Corp) has been awarded a US patent (No. 7,874,489) for its product authentication technology. The new patent which claims priority over an earlier dossier (No. 692,225), covers methods, reagents and apparatus for authenticating product using a ‘signature array’ of microparticles, printed symbols or other entities. “Methods of the invention are easy to implement and can be covert, but are diffi cult to replicate, simulate, alter, or transpose, and resist tampering and inadvertent or intentional alteration,” it claims. Swiss fi rm CSEM SA (Centre Suisse d’Electronique et de Microtechnique) has been granted a US patent (No. 7,864,424) covering the use of so-called zero-order diffractive pigments (ZOPs) which can be used to add “very pronounced” colour effects on products which thanks to their material properties are diffi cult to copy and cost-effective to mass produce. The iridescent optical effect varies as the image is tilted or rotated, says the patent. Document Security Systems, Inc. has been awarded seventeen new patents in the last 12 months for technologies in counterfeit prevention, product authentication and brand protection. The new patents include: i) AuthentiGuard™ Prism - A covert brand protection and authentication technology where a hidden image is revealed with a proprietary lens. The hidden image disappears on copies and scans. ii) AuthentiGuard™ VeriGlow - An invisible image system which can be seen by passport scanners currently installed around the world. This multi-layered, covert authentication technology is used for high security documents for government as well as labels and packages for the pharmaceutical industry. iii) AuthentiGuard™ Pantograph 5000 - The “warning word” overt counterfeit deterrent technology designed to protect checks, coupons, documents, labels and packaging from today’s sophisticated scanning and copying systems used by modern counterfeiters. 18 www.homai.org
- 19. The Holography Times Industry Updates Upcoming Events HOMAI Annual General Meeting 2011 July 9, 2011, The Claridges, Surajkund, Delhi/NCR, Faridabad, India The 3rd Tax Stamp Forum Sep 13-14, 2011, Washington DC, USA For more details contact: Tel: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790 Email: info@reconnaissance-intl.com; Web: www.taxstampforum.com Label Expo Europe 2011 Sep 28 - Oct 01, 2011, Brussels, Belgium For more details contact: Web: www.labelexpo-europe.com Holo-pack. Holo-print 2011 Nov 9-11, 2011, Las Vegas, USA For more details contact: Tel.: +44 (0)1932 785 680 ; Fax: +44 (0)1932 780 790 E-mail: info@reconnaissance-intl.com , Web: www.holopack-holoprint.com Label Expo Asia Nov 29 - Dec 02, 2011, Shanghai / PRC For more details contact: Web: www.labelexpo-asia.com Pack Plus 2011 Dec 7-10, 2011, New Delhi, India For more details contact: Tel.: +91 22 27812093 E-mail: info@packplus.in, Web: www.packplus.in The Hologram Manufacturers Association of India (HOMAI) is a non-profi t organization established in 1998 to represents and promotes the interest of hologram industry in India as well as to fi ght against counterfeiting. Affi liated with International Hologram Manufacturers Association (IHMA), UK it is the only second body of its type in world. It encourage adoption of current technologies and standards for high security so as to stay ahead of the counterfeiters. For more details please visit us at www.homai.org Published by: Hologram Manufacturer Association of India (HoMAI) Issue Editor: C S Jeena The Holography Times is a quarterly newsletter published by Hologram Manufacturers Association of India (HOMAI) with an aim to provide latest developments, research, articles, patents and industry news to a wide audience related to Holography in Indian and World. The editorial team welcomes your news, contributions and comments. Please send your product updates, press releases, conference announcements or other contributions to HoMAI: 21-Ground Floor, Devika Tower 6 Nehru Place, New Delhi 110019, India Telfax: +91 (11) 41617369 Email: info@homai.org Website: www.homai.org Designed and Printed by EYEDEA Advertising E-439/9, SDV, Charmwood Village, Faridabad, Haryana (INDIA) E-mail: eyedeaadvertising@gmail.com on behalf of HoMAI Disclaimer: The data used here are from various published and electronically available primary and secondary sources. Despite due diligence the source data may contain occasional errors. In such instances, HoMAI would not be responsible for such errors. A MUST REQUIRED 2nd Indian financial study 2010 An analysis of Indian Hologram Industry by HOMAI You need it; if you are a Hologram manufacturer Supplier to industry Hologram strategist Anti-counterfeit consultant Converters of holographic materials Financial broker and analyst tracking Anti-counterfeiting solutions providers E-mail: cjhomai@gmail.com | Web: www.homai.org www.homai.org 19
- 20. The Holography Times 20 www.homai.org