Counterfeiting has had an adverse impact on all corners of the CPG market, ranging from high-end items like Rolexes and electronic equipment to far less costly products such as CDs and DVDs. But they are all tied together by one common thread: Knock-offs create an enormous drain on the economy, particularly when they insidiously make their way into the mainstream marketplace.
According to the Washington Anti-Counterfeiting Coalition, counterfeiting costs North American businesses $300 billion annually. Worldwide, the problem carries a $1 trillion annual tag. A new technology offered by Philadelphia-based Sure Trace Security Corporation has the company positioned to become a leading global provider of security systems, services and products.
One of the largest areas for the origination of counterfeit goods is Asia. Sure Trace has recently concentrated its efforts on working with the Chinese government to ensure that the products manufactured and imported from the world’s largest market are, in fact, authentic.
According to Michael Cimino, president and vice chairman of the company, the willingness of the Chinese to actively join the struggle against the counterfeiters is directly proportionate to their desire to join the World Trade Organization.
While a stroll down virtually any street in Manhattan – or a visit to most flea markets in Anytown, USA – will turn up dozens, if not hundreds, of knock-off items. One of the more publicized events occurred in 2000, when Adidas filed suit against Wal-Mart, alleging that the world’s largest retailer had been selling knock-off Adidas and Nike t-shirts at its Sam's Club stores. Similar claims had been made by other designer brands such as Tommy Hilfiger, Polo (by Ralph Lauren) and Nautica.
In order to protect against the scourge of knock-offs, Sure Trace and its wholly owned subsidiary, I.D.ology Laboratories Inc., have developed a process of tagging items with a specialized ink that contains codes able to trace the product each step of the way in the production and distribution chain.
The process, which results in a product called "SDNA" (synthetic DNA), was originally developed to track plutonium rods in the nuclear industry. It creates ink that not only contains coding unique to that product, it also is as indestructible as kryptonite.
The development of SDNA involves the application of a combination of inorganic elements, which penetrate the surface of an object (except for diamonds or cut glass) to form a molecular bond which is impossible to remove. The method of application can vary, depending on the item to be marked. The coded elements may be placed on an object using a colorless carrier rendering them invisible to the human eye, or can include a fluorescent element so they glow under ultraviolet light. SDNA can be applied to industrial parts, garments and apparel, VCRs and other electronic products, jewelry, CDs and DVDs, sporting goods, and many more products.
With the 2008 Summer Olympics coming to Beijing, Sure Trace may have an effective and high profile test with applications including marking the tickets as well as all the other "official" Olympic merchandise.
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