VOLUME 27 – NO 7 / JULY 2021
SPARK® – the Innovation Journey Continues to FLOW SPARK® has proved to be one of the most successful and widely used anticounterfeiting features for banknotes since its launch in 2006. But nothing stands still in security, and SICPA has continued to enhance SPARK, recently unveiling the third generation of the optically variable effect ink technology – SPARK Flow®.
the wavelength of light that is selectively reflected towards the observer, and hence the perceived colour. The principle is one of colour pairs, ie. a progressive colour change between two distinctly different colours for a given pigment type as the angle of incidence changes by tilting the note. The deposited film structure is removed from the carrier film and then converted into small pigment particles. These are, in turn, incorporated into a versatile range of ink formulations of specific drying chemistries required for security printing, in particular intaglio and silkscreen printing.
SPARK – the early days
SICPA’s next iteration of OVI came in 2006 with the launch of SPARK technology, created from a colour-shifting ink produced in the same manner as OVI but with the addition of a magnetic layer forming the central reflective layer. The colour-shifting magnetic ink is generically known as OVMI® and the pigments as OVMP®.
Examples of SICPA's SPARK Flow PRIME.
The precursor to SPARK was OVI®, a colour-shifting ink feature developed by SICPA to prevent the counterfeiting of banknotes by colour copiers. OVI is produced by coating several thin layers of materials onto a carrier film by vapour deposition. The resulting multi-layer structure produces colour by the physical phenomenon of interference – the core layer is fully reflective just like a mirror, the layers on either side are identical and partially reflective and are separated from the reflective layer by a transparent material. The thickness of the layers determines
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The magnetic layer enables the OVMP in the ink to be oriented by strategically placed magnetic assemblies as the ink is silkscreen printed and then immediately UV cured. This uses a module developed by Koenig & Bauer Banknote Solutions for its NotaScreen press. By varying the respective position, shape and strength of the magnets, different dynamic effects are obtained. SPARK Origin® was the first version of this optical security feature. It was quickly adopted by central banks, with some of its first applications being on the Kazakhstani 5,000 tenge commemorative note and the Chinese 10 yuan Olympic commemorative note, whose rolling-bar effect has to date been the most adopted SPARK Origin dynamic feature. Continued on page 6 >
3D-Printed Shark Fins that Bite Back at Illegal Trade The task of identifying protected shark species purely from their fins – especially those that are caught and smuggled illegally – is an enormously challenging one for enforcement authorities, says TRAFFIC, a global NGO devoted to ensuring that trade in wild plants and animals is not a threat to the conservation of nature. Although different tools and training methods have been developed to assist in the identification of shark fins – some of which involve the use of real dried fins collected from customs seizures – the vast majority of enforcement agencies have not been trained using real shark fins. This limits their ability to identify fins that are on the endangered species list and that cannot be traded without a permit. Given that one of the main ways to trade sharks illegally is by mis-declaring particular species on customs permits, it is crucial for inspectors to be able to differentiate between the species, including between the different fins. ‘Law enforcement officials around the world face the massive challenge of identifying shark fins in international trade, to a species level, in order to effectively enforce CITES (which stands for Convention on International Trade in Endangered Species of Wild Fauna and Flora). As if that was not difficult enough, they must correctly identify wildlife such as this alongside all the other contraband they’re looking out for,’ said TRAFFIC’s Fisheries Trade Expert Markus Burgener. Continued on page 6 >
Inside this Issue 1 SPARK® – the Innovation Journey Continues to FLOW 1 3D-Printed Shark Fins that Bite Back at Illegal Trade 2 Jean-Philippe Gaudin Joins SICPA 2 A Guide to Assuring the Integrity of Passports 3 News In Brief 4 OriginAll and Authentic Vision Announce Collaboration 4 Toppan Launches Product ID Authentication Platform in China 5 Multilevel Digital Solutions Take Centre Stage at AntiCounterfeiting Conference 7 OECD Says Fakes Make Up 2.5% of Global Trade 7 ZEISER Acquires Track and Trace Technology 8 Is the Clock Ticking for Paper and Plastic? 8 Upcoming Events
Jean-Philippe Gaudin Joins SICPA Philippe Amon, Chairman and CEO of SICPA recently announced the arrival of Jean-Philippe Gaudin, former Director of the Swiss Federal Intelligence Service (FIS), as Strategic Affairs Director for the group. As Strategic Affairs Director, Mr Gaudin will be responsible for ensuring that SICPA's solutions anticipate the strategic security and sovereignty needs of governments. SICPA will be best known to the readers of Authentication News® for its inks and special features that protect the majority of the world’s banknotes, security and value documents. The appointment of Mr Gaudin, with his experience in security risk assessment and prevention, indicates the broadening of SICPA’s ability to confront today’s and tomorrow’s threats, whether physical or digital, says the company.
2 AUTHENTICATION NEWS | IN THE NEWS
A Guide to Assuring the Integrity of Passports A new in-depth guide to help tackle passport booklet fraud has been published by the Secure Identity Alliance (SIA). The report, entitled ‘Passport Fraud Trends and Ways to Combat Them’, argues that document fraud is a serious crime, one that has implications that stretch from personal identity theft all the way through to national security. Founded in 2013, SIA is a non-profit organisation that brings together public, private and non-government organisations to foster international collaboration on the issues of legal identity, to help shape policy and to provide technical and implementation guidance for national and international ID systems. Authored by the eDocuments Working Group, SIA’s cross-industry task force responsible for guiding the design, manufacturing, issuance and verification of secure documents, the report provides an overall analysis of the document fraud landscape alongside useful guidelines and recommendations on how to strengthen a passport against attack. The guide was created with assistance from organisations including France’s National Document and Identity Fraud Office and Interpol’s Counterfeit Currency & Security Documents Branch. Covering issues such as how passports are made and the different types, techniques and objectives of document fraud, the guide goes on to make general recommendations and suggest additional measures to help combat threats to the integrity of secure documents. These recommendations include: The best protection comes from a combination of different security features, where the key is to balance defensive measures with data page readability, in particular. Examples of such combinations could be: offset rainbow printing combined with visible and invisible landmarks, in register; intaglio printing with an optical variable ink (eg. for the inside front cover); watermarks, which are easier to view if every inner page uses a blank area as a kind of window; laminates (for paper data pages) or lamination plates that integrate multiple security elements; optically variable embossing. Use the most secure materials, printing and manufacturing techniques, and personnel as your budget allows for, and ensure that there is balance between all involved factors.
While the combination of multiple security features is advised, too many can make verification unintuitive. In the field, only a few security features (some experts say four to five) are needed to verify the authenticity of a passport booklet and the integrity of the main portrait image. Make the most of every security feature by optimising the way it is embedded in the overall passport design. For example, tactile features should be embedded where the fingers will naturally hold the document. When it comes to the distribution of security features across the three security levels, issuing authorities should focus on level 1 features, as they represent more than 90% of first line controls. In addition, a few level 2 features, such as microtext and UV rainbow printing, should be embedded in the booklet in order to ease second line inspections. Level 3 security features, meanwhile, should be used sparingly; one or two is generally enough, as these will only be used in very special cases and require specific tooling to validate. Some of the key data in the passport, such as the expiry date or passport number, should be duplicated and embedded using special features, such as an MLI (multiple laser image) lens or with tactile laser engraving. Documents should be designed for checking both by humans and the machines that assist them. As much as possible, the same main security features and components should be embedded in all passports in order to make life easier for controllers. Blank passport booklets should never leave the production facility without a unique number, and security features should be applied only after personalisation.
Two versions
As you might expect, to maximise security, two versions of the report are available. The public version, which avoids discussing detailed examples of the most advanced techniques that might be of greatest interest to forgers and counterfeiters, is available for download at https://secureidentityalliance. org/utilities/news-en/entry/passport. The restricted, more comprehensive version of the guide, is limited to law enforcement agencies and authorities. It is accessible on the web page of the INTERPOL Travel and ID Documents Reference Centre, access to which is governed by strict rules and regulations.
News In Brief New Features Sought for US Currency
Bringing Farm-to-Fork Ecoystem into Digital Age
The US Bureau of Engraving and Printing (BEP) has started the search for new covert machine-readable features to detect and deter counterfeiting that will be used in the next generation of US currency. To this end, it has recently issued an RFI (Request for Information).
A new consortium has been launched in the UK to bring technology to the fore in the farm-to-fork ecosystem.
According to the RFI, the BEP wants novel and innovative systems incorporated in or applied to a banknote that not only are hard to identify even by subject matter experts, but also difficult to explain. Any feature, once incorporated into the currency, should be readable only by a sensitive, standalone detection system and be resistant to simulation or duplication. The BEP says it will only consider technologies, materials and detection systems that have already been demonstrated (as proofs of concept or lab prototypes, for example), but will not consider features or systems that are already commercially available. Responses are due by 31 August. The full RFI can be found sam.gov/opp/774c8a61dd fa4b218caf40eb7ec8d1e7/view.
Award for SICPA’s Latest Handheld Detection Solution SICPA’s latest generation of handheld detection solutions, SICPAGUARD® HDSense – which is used for checking product authenticity in the field – has been recognised with a 2021 Red Dot Design Award. The Red Dot Award is an international design competition for products, communications and concepts, which is recognised in relevant circles as one of the best design awards in the world. Launched in 2019, SICPAGUARD HDSense is the result of a collaboration with Studio Volpi, a global leading partner for strategic design projects. SICPAGUARD is a machine-readable solution comprising a security marker integrated into inks or other carriers, and a handheld detection device (HDSense), which enables on-the-spot authentication by end-users. The device can be linked to a digital detection platform through a secured wireless connection with a smartphone, allowing in-depth inspection monitoring and data analytics. Since 2019, SICPAGUARD HDSense has been implemented within security audits and tax stamp programmes for luxury goods, food and beverages, textiles, electronics, plastics and pharmaceuticals.
The initiative, known as SecQuAL (Secure Quality Assured Logistics for Digital Food Ecosystems), will initially focus on the application of smart labels in pork production, using PragmatIC’s flexible integrated circuits (FlexICs) to reduce food waste and increase consumer confidence in the food they purchase. Unique digital IDs will be attached to everyday food packaging, allowing it to be traced, tracked, and monitored in real-time. PragmaticIC will also be integrating freshness sensors that can detect the condition of the food and communicate that to consumers. The technology can be applied to provide information on food provenance, monitor cold chain conditions, more accurately predict shelf-life, and even enable direct feedback from consumers to producers. The SecQuAL consortium draws together experts across technology, software and systems, food production and supply chain regulation and assurance. The 11 members include Lloyd’s Register Group, the IBM Food Trust, Cranswick Foods and the Food Standards Authority, along with secure label specialists CCL Design and the Centre for Process Innovation, among others.
£1.1 Million Investment in Eluceda Eluceda, the authentication and detection solutions company formerly known as Brandwatch Technologies, has completed a £1.1 million institutional fundraising. The new funds will be used to build the company’s management and technical staff, enabling Eluceda to accelerate its growth plan. Eluceda’s portfolio includes proprietary taggants and inks as well as its eSens™ platform. This offers what it terms fast, affordable, simple to use ‘lab in your hand disruption’, providing lab quality results in the field in near real-time, with customers able to upload results into databases for subsequent action and analysis. The technology is used for the anticounterfeiting and bacterial detection industries in markets such as food and beverages.
Authentix Moves into Online Protection Global authentication and information services provider Authentix has announced the acquisition of Asia’s leading online brand and content rights protection provider, Strategic IP Information Pte Ltd (SIPI).
Singapore-based SIPI enables brand owners to track unauthorised channels for counterfeit products and manufacturers through its proprietary online tools and services, which include physical enforcement and taking down pirated listings. It presently serves over 200 global brands and is partnered with a number of major global law firms along with its own teams in New Delhi, Shenzhen, Paris, New York, and Geneva. ‘This strategic acquisition expands our portfolio of digital security technologies to include online anti-counterfeiting and content rights solutions and increases the scope of offerings for our brand protection clients,’ stated Kevin McKenna, CEO of Authentix, adding that ‘a key element of our growth plan includes the integration of both online investigation and copyright protection services and SIPI is a high-quality organisation that fits perfectly with Authentix’ capabilities and strategic direction’. SIPI will remain a stand-alone operating entity retaining its respective brands, with a plan to integrate within the Authentix group of companies to leverage the larger Authentix sales platform in the market.
G+D Expands in Internet of Things Giesecke+Devrient (G+D), has announced the acquisition of the UK-based Pod Group, an Enterprise Network Operator (ENO) specialising in scalable Internet of Things (IoT) connectivity solutions, with access to 600+ networks in 185 countries. According to G+D, the acquisition complements its offering of trusted connectivity enablement for IoT, and is another step in its strategic development towards becoming a solution provider in the IoT business. The company states that ‘with billions of IoT devices generating data, authenticity, privacy, and security are fundamental to make IoT successful and beneficial for its users. Pod and their products complement the G+D eSIM portfolio, and provide the ability to connect, manage, bill and secure devices via a seamless and cost-effective approach. The combined portfolio will significantly reduce barriers to IoT adoption and make it easier for buyers to fulfil their requirements with a single partner’. Other recent G+D investments in the development of new digital business fields include the acquisition, in 2020, of stakes in the Swiss software company Netcetera and the crypto-asset company Metaco. The company has also recent acquired an interest in UK-based FNA (Financial Network Analytics), a deep technology firm specialising in advanced network analytics and simulations.
NEWS IN BRIEF | VOLUME 27 – NO 7 | JULY 2021
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OriginAll and Authentic Vision Announce Collaboration OriginAll and Authentic Vision have announced a collaboration that will make Authentic Vision amongst the first organisations to join OriginAll’s platform to support government authorities in their initiatives to ensure public safety, reassure consumers of the authenticity of purchased products, and protect brand revenue and reputation.
Toppan Launches Product ID Authentication Platform in China
Concept for Toppan’s new China-based ID authentication platform (© Toppan Printing Co Ltd).
OriginAll develops aggregation platforms that allow users to verify the authenticity of a product, regardless of the solution adopted by a brand, while Authentic Vision’s patented Holographic Fingerprint™ label, mobile authentication app and real-time analytics capabilities protect physical assets from counterfeiting and alert brand and product owners to potentially fraudulent activity.
A recent article in ‘Printed Electronics Now’ describes how Toppan Printing has launched a cloud-based ID authentication platform in China that uses unique IDs to link real-world products to the digital world.
services, while the dashboard function displays and enables analysis of collected data. This can be used for traceability management, detection of grey market diversion, and other elements of supply chain visualisation.
The ubiquity of smartphones, tablets, and other digital devices has prompted diversification of customer touchpoints and increased opportunities for businesses to be connected with consumers.
The collaboration will link Authentic Vision’s Holographic Fingerprint label (see AN’s sister publication Holography News® January 2020) and anti-counterfeiting solutions with the OriginAll digital platform solution.
By fusing its ID device technology with NFC-enabled ID authentication system infrastructure from Selinko SA, Toppan has established a cloud-based ID authentication platform in China that creates customer touchpoints and facilitates supply chain management through safe and secure authentication of unique IDs assigned to individual products.
A high level of versatility and usability is provided by a built-in application programming interface (API) that makes data linkup with other software and applications possible. Toppan’s ID authentication functions can be incorporated into the client’s service platforms to create a safe service environment.
Earlier this year, the Secretariat of the African Continental Free Trade Area (AfCFTA), the Future Investment Initiative Institute (FII-Institute) and OriginAll, signed an agreement to fight against counterfeiting and illicit trade. The agreement will ultimately benefit over 1.2 billion people and protect the national interests of all AfCFTA member states, they said. In the agreement, OriginAll will serve as the bridge to harness the highly fragmented environment and provide a single window for business, government, and consumers to identify and verify the authenticity and conformity of any product sold within the AfCFTA. Starting with the integration of existing traceability solutions, regardless of whether they are imposed by nations or adopted by brands, the ‘OriginAll Africa’ team will work with AfCFTA leadership to develop a roadmap in harmony with the various industry sectors to ensure a smooth implementation.
4 AUTHENTICATION NEWS | TECHNOLOGY
Businesses adopting the platform will not only be able to enhance customer engagement and provide a range of services directly, but also visualise and manage the supply chain through traceability and detection of grey market diversion. In addition to dedicated scanning equipment at manufacturing plants and logistics warehouses, consumers’ smartphones can be used to scan QR codes, NFC tags, UHF-band RFID, and other ID devices, enabling companies to provide product information and authenticity verification, run digital promotions and other services, and use data collected to enhance and optimise customer experiences. The platform provides secure ID authentication infrastructure that supports the latest security technologies. These include authentication methods employing cloud-based verification of encryption algorithms that differ between IC chips and computation results, changing each time something is scanned. This eliminates the need for companies to create and continually update their platforms. The ID authentication function can be used to provide a wide range of customer
Toppan offers functional devices that enable tampering detection, prevention of reuse, temperature management, as well as smart packaging with integrated ID devices. Diverse client needs can be addressed by combining these devices with the ID authentication functions of the new platform. The platform has been established on a server located in China and operated by Toppan for central management of unique ID data. Extensive assistance for services centred on ID authentication is ensured, with a comprehensive support structure in China covering system management and operation, ID device manufacture, and data encoding. This means that client companies can manage the ID authentication system safely and securely in China and provide stable customer services. ‘This new platform provides robust security, versatility, and multiple possibilities for consumer engagement and supply chain management,’ said Takamitsu Nakabayashi, Senior R&D Manager in Toppan’s security business. ‘We will be expanding sales of ID authentication services employing the platform to a range of sectors, including wine and spirits, cosmetics, pharmaceuticals, and fastmoving consumer goods, where we are confident that it will be a perfect match for our clients’ needs and help drive their digital transformation.’
Multilevel Digital Solutions Take Centre Stage at Anti-Counterfeiting Conference During the 3rd Virtual Anti-Counterfeiting & Brand Protection Conference, organised in July by Asias Security Group of Malaysia, the two main technical papers of the conference focused on digitally printed solutions with multiple layers of security, for the combined purpose of product authentication, serialisation and track and trace. While one paper described a solution that integrated material-based security with variable coding and digital printing methods, the other presented a purely digital solution, both in terms of security features and printing. However, a common message in both papers was that 2D barcodes alone were not an effective barrier against product counterfeiting and smuggling.
VerifyMe combines rare earth pigment with digital technology
The first paper was presented by Paul Vitali of VerifyMe. Paul is Vice President Business Development for EMEA and Asia Pacific Japan. VerifyMe is a Nasdaq-listed company that uses physical, digital and online technology to create customised authentication, track and trace and customer engagement solutions. At the core of VerifyMe’s solution is a patented, organic, rare earth pigment with a unique and specific IR frequency. The pigment can be incorporated on (or even in) a product or its packaging in the form of an invisible marker, the presence (or absence) of which is detected by the company’s taggant scanner. Alternatively, the pigment can take the form of an invisible, serialised 2D barcode, which is revealed by a special calibrated laser device capable of fluorescing, decoding and verifying the code. Whatever form it takes, when the rare earth pigment is used together with a visible, unsecured barcode, it provides assurance that the barcode is genuine. VerifyMe has partnered with HP Indigo for the development of an invisible IR security ink containing the rare earth pigment, for use with HP Indigo’s digital security print presses and smartphone-enabled authentication devices. This development allows invisible variable codes to be printed in a single pass, at high speed and in vast quantities. As well as pre-printed labels, the codes can be printed on heat stamp labels for direct transfer to fabric, apparel, leather and plastic. Furthermore, the invisible codes can be applied directly onto products by means of continuous inkjet printing, which, according to VerifyMe, is a unique solution for the industry.
Another VerifyMe partnership is with SmartGlyph Ltd, a UK-based digital solutions provider, with the aim of the partnership being to integrate the two companies’ respective technologies. As described by Paul Vitali, the patented SmartGlyph™ technology adds another degree of security and consumer engagement to the VerifyMe offering. A SmartGlyph is an action code, in the same way that QR codes and simple barcodes are also action codes. But whereas barcodes store their data in the code itself, and QR codes carry a URL that is visible to everybody and therefore unsecure, SmartGlyphs store no data. Instead, they provide a vector (pointer) to a cluster of data situated within a closed, secure network. This indirect addressing mode allows the data to be virtually infinite – compared to QR codes, which have very small data payloads. But what is really unique about SmartGlyph and its app technology, advised Paul, is that it can transform any existing code on a product (in the form of a barcode, QR code, datamatrix, logo, NFC, RFID or serial number) into an intelligent, personalised, two-way, real-time, communication channel. From video streaming to verbal instructions in any language, real-time progress reports and troubleshooting guidelines, the content that can be delivered by SmartGlyph is unlimited and linked to a user’s habits, interactions and relationship with a brand. All the user needs to do is scan the existing code on a product with their smart device. SmartGlyph then encrypts that code and assigns a unique digital ID to it. Once the code has been checked and subsequently decrypted, the unique ID allows the user to access and interact with data clusters associated with that ID.
Multilevel security in the digital age The second paper at the Anti-Counterfeiting & Brand Protection Conference was presented by Andreas Mehlhaff, Director Global Account & Product Management of U-NICA, a Swiss company operating globally from several locations. U-NICA focuses on digital, non-invasive brand protection and supply chain visibility solutions and maintains only a very specific heritage business in physical product security. Andreas presented the company’s latest development, known as Digital Security Label® (DSL), which is based on purely digital authentication and identification technologies.
Digital Security Label® (© U-NICA).
DSL carries multilevel visible and invisible security technologies which both experts and consumers can verify with a smartphone app. These technologies are: U-NICA’s scryptoTRACE® invisible secure code, detected with a smartphone app. A unique serial number in the form of a visible QR or datamatrix code. U-NICA’s new Pixel Cloud® overt security feature, launched at the end of 2020. The feature uses a special algorithm to create a robust anti-copy solution. The smartphone app is able to identify and validate each of these security elements, including the anti-copy feature, and will only confirm the genuineness of a DSL if all elements are valid. Only one app is needed to verify all the elements. Both online and offline verification is possible. In the case of offline verification, the results are stored locally on the smartphone until they can be uploaded to U-NICA’s web-based label management system. The system offers real-time data analytics and market monitoring with regard to all verifications carried out by the different users. The company is a firm supporter of the multi-level security concept traditionally associated with physical security features, and has adapted this security concept to the purely digital environment. Within this environment, the public verification of overt features that used to require the human senses can now be carried out with a smartphone. Similarly, the expert verification of covert features that used to require additional devices can now also be performed on a smartphone, using the same app as the one available to consumers. At the forensic level, meanwhile, the analytical tools available on a webserver have ‘replaced’ the forensic analysis of physical covert features in a laboratory.
CONFERENCES | VOLUME 27 – NO 7 | JULY 2021
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SPARK – Innovation Journey Continues (continued) By 2014, eight years after its release, SPARK Origin was protecting more than 60 denominations in over 40 countries.
SPARK Live®
In 2014, SICPA introduced the second generation – SPARK Live®. Based on the SPARK technology, it uses finer nickel-free pigments and a modified magnetisation module, which enable a wider range of high-definition effects and design opportunities. SPARK Live was initially launched with four families of effects, namely: Rolling bar – with a bright bar crossing the motif vertically or horizontally. Sandune® – which captures the feel of rippling sand. Truspin® – with three-dimensional effects around a focal point.
And now – SPARK Flow®
Building on this success is the third iteration of the technology – SPARK Flow. According to SICPA, SPARK Flow marks the beginning of a new level of technological maturity where the feature brightness is increased, dynamic effects are expanded, and highly complex combined effects become industrially viable. SPARK Flow is powered by a number of technological breakthroughs. First is SPARK Flow® PRIME. It is the core innovation of SPARK Flow, producing heightened brilliance, colour saturation, contrast and sharpness. The prime attribute is unparalleled visibility obtained through an innovative pigment-orientation process – a biaxial pre-alignment magnetic module.
SPARK Live works very well as a standalone feature, but it was, and still is, often used in combination with other security features, when its effects of both colour change and movement synchronise with them.
Second is SPARK Flow® DIMENSION, which exhibits dynamic optical features with an augmented 3D visual impact, adding the dimension of volume to a broad variety of shapes, forms and patterns. This is achieved by a new biaxial simultaneousalignment magnetic module positioned on top of the magnetic cylinder prior to UV curing, together with the latest customisable magnetic assemblies.
In the 15 or so years following its introduction, SPARK in one form or another has been incorporated into 300+ denominations of both circulating and commemorative banknotes.
And SICPA has also announced a next promising step, which will be available from 2022 onwards: SPARK Flow® CONFLUENCE. It is created in one single pass through successive magnetisation
Openform® – personalised forms, shapes and patterns.
modules and selective, sequential curing, to generate dynamic optical features with combined effects in contrast, fusion and sequence. The printing modules for SPARK Flow were co-developed by SICPA and Koenig & Bauer Banknote Solutions, and are implemented by the latter. SICPA envisages that SPARK Live and SPARK Flow will co-exist in the coming years as central banks and security printers continue to use the technologies to develop high security, unique features.
The second iteration of SPARK Flow – namely, SPARK Flow DIMENSION.
3D-Printed Shark Fins (continued) With this in mind, TRAFFIC has created a set of 3D-printed and painted replica shark fins, to assist customs and enforcement officers in their identification task. The printed fins represent 12 regularly traded species, 11 of which are CITES-listed, which means that they are classified as endangered. The replica fins are created from 3D laser scans of real dried fins, which produce a digital representation of each fin. The digital images then undergo a process known as retopology, where their topography is simplified in order to produce an optimally printed product. The retopologised files are then 3D printed using a selective laser sintering process, using nylon as the main material. Sintered nylon provides a slightly rough sandpaper-like texture similar to real dried shark fins. The fins then need to be painted with markings and colouration that are distinctive to each species and that are therefore crucial for accurate identification.
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A second set of fins have been developed primarily for use by frontline enforcement officials for fin identification, rather than for training purposes. They have been adapted so that each fin printed from a scan file carries the common name of the shark and the type of fin (eg. Oceanic Whitetip – dorsal), debossed along the leading edge of the fin. It also includes a small flat square section on the fin to which a QR code can be applied. Unique QR codes have been created for each type of fin. When scanned with a QR code scanner from a mobile phone, a link is made to a webpage on the TRAFFIC website that provides information on the key identifying features for each species. The QR codes for all the fins can be downloaded from the TRAFFIC website. Once downloaded, the codes can be printed onto a variety of materials, such as thin plastic, or laser-engraved onto TroLase Foil, and then attached with a strong adhesive onto the special raised sections of the replica fins.
TRAFFIC has posted its shark fin files, painting guidelines, QR codes, as well as step-by-step instructions on its website, so that enforcement authorities around the world can accurately replicate the fin sets and therefore benefit from this initiative. Sharks have been targeted for many centuries, mainly for their meat and fins; however, the fins are the most valuable part of many sharks and it is estimated that between 26 and 73 million sharks (worth $400-500 million) are traded each year. The high economic incentives associated with the shark fin trade, combined with the demand for shark fin as a status food item and the poor enforcement at many points in the supply chain, are the main factors driving the illegal trade. The fins of some species are of higher value, and the associated demand has contributed to unsustainable fishing pressure on the populations of these species. As a result, over 40 shark and ray species have been listed in CITES.
OECD Says Fakes Make Up 2.5% of Global Trade One of the most often-cited figures among those tracking the market for counterfeit and pirated goods comes from the OECD – and the organisation has just updated its estimate, reports securingindustry.com. In its latest study*, which is mainly based on 2019 customs seizure data, the OECD says illicit trade amounts to as much as $464 billion – equivalent to 2.5% of total world trade – which is in the same ballpark as earlier studies carried out in 2013 and 2016. The latest figure is actually a slight decrease on the 2016 figures of $509 billion and 3.3%, but given the difficulty in estimating criminal activity – which is by its very nature surreptitious – it is not possible to ascribe a trend to the decline. As the OECD, and partner organisation EUIPO, remark in the study: ‘in absolute terms and in terms of its share in total trade, the volume of trade in fakes has remained significant’ – and roughly equivalent to the gross domestic product of an advanced national economy such as Austria or Belgium. While the numbers change, many of the prevailing themes remain constant. China remains the primary economy of origin, and fake goods continue to follow complex trading routes, passing through a set of intermediary transit points such as Hong Kong, Singapore and the UAE, en route to their final destination. Several East Asian economies – including India, Thailand and Malaysia – have been identified as important producers in some sectors, while Turkey seems to be a relatively important producer of fake leather goods and cosmetics shipped to the EU. Small parcels delivered by post are still the most common form of delivery, posing a significant challenge to enforcement agencies. However, in value terms counterfeits transported by container ship still dominate, accounting for more than a half of the global value of counterfeit seizures in 2019. The top eight product categories most subject to counterfeiting and piracy remained the same from 2011-2019, namely footwear, clothing, leather goods, electrical machinery/electronics, perfumery/ cosmetics, toys/games, watches, and jewellery. However, in 2019, fake electrical machinery and electronics were less frequently seized by customs than in 2016, while counterfeit toys, games, perfumery and cosmetics were more often reported.
As long as a given product is protected with a trademark, patent, design right or copyright, it is likely that it will be counterfeited and pirated, claims the study. The scope of counterfeiting and piracy is broad and covers almost all products that are protected by these four IP rights. Existing statistics report on seizures of such wide-ranging counterfeit products (ie. trademark infringing) as fresh strawberries, breathing apparatus and artificial grass, just as in 2016 examples of counterfeit goods included coconut oil, guitars and construction materials. This proves that counterfeiters use aggressive strategies, looking for all kinds of opportunities to make a profit. The study also highlights the large number of IP-infringing packaging and labels seized by customs in 2019, including 6,000 counterfeit labels, which represents a 20% increase on 2016. This re-confirms findings in a 2015 study by OHIM-Europol regarding the domestic assembly of counterfeit and pirated products from imported materials. The OECD study also provides an indepth assessment of the situation in the EU, estimating that imports of counterfeit and pirated products into the bloc amounted to as much as €119 billion ($134 billion), representing up to 5.8% of total EU imports. While the COVID-19 pandemic didn't get established globally until 2020, the study also covers some trends that have emerged during the crisis. These included a swift pivot by criminal organisations to tap into sought-after products like pharmaceuticals, medical supplies, fast-moving consumer goods and sectors such as tobacco or alcohol during lockdowns. ‘The main trend was the intense misuse of the online environment,’ says the study. ‘Under confinement, consumers turn to online markets to fulfil their needs, driving significant growth in the online supply of a wide range of counterfeits.’ Future work should focus on the relationship between the volumes of fakes entering a given economy and its socioeconomic profile, as well as the ‘quality of governance and the integrity of the public sector,’ according to the study. The new data could also be used to ‘develop a more effective set of enforcement and governance responses for both transit points and producing economies,’ it concludes.
ZEISER Acquires Track and Trace Technology The German company ZEISER, which provides impact and nonimpact serialisation solutions and services to the security printing industry, has acquired the track and trace software solutions of Inspectron, a global technology provider of document inspection and track and trace systems for security printers. Furthermore, in the USA, ZEISER is taking over the branch of Inspectron that specialises in the service business. The acquisition puts ZEISER, which is owned by the Swiss banknote and security printer Orell Füssli, in a strong position to capture a substantial share of the growing market for track and trace solutions for security documents. The parties have agreed not to disclose the purchase price. The core product acquired by ZEISER is Inspectron’s real-time tracking, reporting and auditing system that is used both on individual machines and entire production lines. Due to its high modularity, the software, which will be marketed under the product name HARMONY, can be easily adapted to customer-specific processes. Customers of the system include government agencies and printers involved with the production and issuance of passports and ID documents, banknotes, tax stamps, security bags, lottery tickets and other security printed products. Commenting on the acquisition, Thorsten Tritschler, Managing Director of ZEISER, said: ‘we see a growing demand for real-time tracking technologies in our end markets. The acquisition represents an expansion of our portfolio and is an ideal fit with ZEISER’s existing business. In addition to micromechanical products, it will allow us to increasingly offer software and services’.
*OECD/EUIPO (2021), Global Trade in Fakes: A Worrying Threat, Illicit Trade, OECD Publishing, Paris, https://doi. org/10.1787/74c81154-en.
VOLUME 27 – NO 7 | JULY 2021
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Is the Clock Ticking for Paper and Plastic? A panel of digital identity experts from the private sector met at a recent UN Legal Identity Agenda Task Force roundtable to discuss the future of paper and plastic identity credentials. One of the sessions, entitled ‘Is the clock ticking for paper and plastic?’ went to the heart of the matter by posing the question: ‘does the private sector think that UN member states will still be issuing paper and plastic identity documents in 10 years’ time?’ The general sentiment of the roundtable was that, while it was inevitable that digital identity would become the industry norm, there would still be a significant role for paper and plastic documents in 2031. An article by tech reporter Frank Hersey for biometricupdate.com captured the key points raised by the panellists on this subject: ‘In terms of the systems that are being designed and rolled out, I think they need to cater for the possible eventual elimination of the paper, the physical card,’ said Lyle Charles Laxton, Founder and CEO, Laxton Group, a biometrics provider. ‘The ultimate reason for that is the cost of these consumables as well as the logistical element for governance.’
Laxton believed that as paper credentials exist for offline verification, they could be replaced with a digital credential that functions offline, such as on a smartphone or 2G feature phone. This would make any paper or plastic documents necessary only for backup purposes.
said that as with many changes, there was always a long tail of dragging adoption – paper and plastic documents would still be issued, but as a smaller fraction. One complication could be trust, due to what she described as a ‘lack of trust in the state as an arbiter of legal identity’.
‘We should go for far more cost-effective physical documents than what is required because ultimately it will become a backup certificate to the digital certificates as well as the central record,’ said Laxton.
Lyle Charles Laxton believed that blockchain was probably the strongest tool for identity going digital in terms of trust, but that this would not be a transition for the short- to medium-term. He said governments could use the technology at a national level, creating a ‘strong, clean’ record of IDs.
According to Kenichi Nakamura from the Technology Liaison Department of Panasonic Corporation’s Innovation Strategy Office, things will not be able to move that quickly. As a developer of mobile passports and mobile driving licences, he pointed out that international conventions take around five years to change. For passports there was the 1944 Chicago Convention and for driving licences the 1968 Vienna Convention. If one added to this the need for people to actually update their credentials, the next 10 years would still very much be a migration period. Despite an unclear timeline, panellists agreed that digital identity would become the norm but it might not be a smooth ride. Natalie Smolenski, Senior Vice President, Business Development, Hyland Credentials
‘Effectively it’s moving your primary token into the digital ecosystem versus your primary token being your physical paper or card. Transitioning that nuance is effectively what digital ID is,’ said Laxton, adding that the digital record held centrally would take primacy over digital copies held on a physical device, or paper or plastic cards. But ultimately it would be an issue of interoperability of systems rather than the hierarchy of formats. Natalie Smolenski said that digital identity would have to be ‘platform agnostic’ as it would have to exist on physical items such as phones.
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