Brand protection is in its infancy but Security Printing is a growth opportunity for Package Printers

By Chris Mc Loone

Piracy protection for folding cartons

Every year around the world, product privacy costs companies around $300 billion. How can folding cartons containing valuable products or pharmaceuticals be protected against product piracy? There are many different options, from the use of special fibers to the application of nanoparticles.

In partnership with Saueressig Security International (SSI), Heidelberg has developed numerous security solutions to protect folding cartons against piracy. Hidden images are one option already established on the market. Examples include images that can be made visible only with the help of a special optical decoder, revealing whether an expensive branded product is genuine or a fake.

The same technology also protects the product itself with a hidden image on the product label. This not only enables both the end product and its packaging to be reliably checked for authenticity, but also makes life difficult for counterfeiters. In advanced applications, a hidden image can even be printed with special coatings or pearlescent inks, adding another layer of security. Other covert techniques include the use of special screenings with a special dot form, in addition to different types of inks, varnishes, or coatings that are only visible under unique viewing or lighting circumstances, such as black (UV) light.

Eventually, it may also be possible to combine embossed and printed hidden images in a single pass. This will create security features that counterfeiters will find impossible or prohibitively expensive to reproduce. Examples include hidden images embossed into protective coatings and a combination of decorative and security embossing. The approach adopted by Heidelberg is to apply as many of the security features as possible in-line.

The decoders—normally transparent, plastic, wallet-sized cards based on the principle of lenticular lenses or light-emitting devices—are matched to the frequency of the hidden image. The selected screen of the security image determines the frequency of the decoder. Depending on the technology employed, such decoders are inexpensive to produce, as well as easy to carry and use.

The pharmaceuticals industry, in particular, faces the challenge of having to include an ever-increasing amount of information and security features on folding cartons or blister packs. Heidelberg is currently developing such a solution under the name Linoprotect.

The security technology is based on two key components: a pattern randomly generated from copper threads and a related data matrix code printed onto the packaging next to the label using a digital Linoprint drop-on-demand inkjet system. The combination of the two components on the actual product or its packaging helps ensure protection against counterfeiting. A software package specifically developed for this technology allows the authenticity of the labeled products to be verified using a cell phone camera, PDA, or scanner.

The development of new security elements remains a constant challenge for the future. There is competition among a number of different technologies—special hologram-like systems, nanotaggents similar to DNA, and combinations of the two with established security inks or paper. Depending on how chip prices develop, RFID may also play an important role in protecting packaging against counterfeiting. Ultimately, users will decide which system offers the most effective protection.

If you're a package printer, you need to be keeping an eye on brand protection technologies. Slowly but surely, brand owners are realizing how important protecting their brands has become. Some discover this after they've suffered loss of revenue after a counterfeiter compromises the integrity of the brand. Others have taken more proactive approaches. Whatever route the brand owner follows to securing its brand, package printers will be a big part of the brand's protection strategy.

The market is there

Pira International recently released, "The Future of Anti-Counterfeiting, Brand Protection and Security Packaging V," which breaks down the market by technologies, end-use segment, and geographic markets with five-year forecasts to 2014. Buoyed by innovations in RFID, security printing, and 2D bar code technology, Pira predicts the global market for brand protection to reach a value of more than $11.4 billion by 2014, with a compound annual growth rate (CAGR) of 11.1 percent. Impressive growth, but the market still has not fully matured. "In terms of its product/market life cycle, I would suggest that the brand security/protection market is still in its infancy or introduction phase," says Corey Reardon, president and CEO of AWA Alexander Watson Associates B.V. "Unfortunately, it will take either a directive from government to impose brand security/protection more broadly causing a tipping point, or a catastrophic event that either threatens public health or safety, or affects it." If the latter occurs, Reardon asserts that it may be too late, depending on the scope and seriousness of the event. "But, it will cause a tipping point, driving growth and implementation of brand security/protection across a wider spectrum," he says.

Bob Spiller, president and CEO of Sekuworks, adds, "Most companies are in various states of denial. Most of them will go through some sort of epiphany. It may be a legal issue, it may be that a consumer gets hurt, or they discover some counterfeits," he says. "And, then they will begin grabbing at various technologies."

Also worthy of note is that RFID, which has seen a drop off in publicity of late, is expected to lead the technology sectors with a CAGR of 26.9 percent during the period leading to 2014. The CAGR for security printing is expected to be 14.6 percent. Together with substrates, inks, and coatings, this is expected to account for 60 percent of the market. For package printers, the market is rife with opportunity.

The technological expanse

According to Reardon, the opportunity to be a solutions provider and deliver value-added packaging is the largest opportunity that exists for package printers. He states that the number and flexibility of technology solutions or combinations of solutions run into the thousands, and many of these can be incorporated by package printers. "Being positioned as a credible and knowledgeable supplier of brand security/protection will provide future competitive advantage," he says.

More specifically, Spiller runs down some of the opportunities by technology. There are three categories of technologies that relate to brand protection, according to Spiller: overt; covert and forensic; and the third, which has to do with information linkage (i.e. solutions that might involve a human-readable code that requires some sort of verification).

"Clearly, variable information printing is capable of being deployed by most packaging companies in one form or another," notes Spiller. "It could be variable info that is printed on a package prior to it leaving a packaging supplier, or it could be placed on the product at the site of fill."

Forensic markers and taggants can also be easily introduced into the packaging supply chain, according to Spiller, through the use of inks and varnishes. "They may be even placed into the base components of materials such as extruded films, or formed paper, or paperboard," he says. "So, there are various stages in which you could include these types of hidden features."

Spiller says that the most complex category of brand protection is actually overt. "The reason is that a lot of things that are out there that pretend to be meaningful and secure overts are not," he asserts. He explains that if an unscrupulous manufacturer produces a product, there's enormous profit potential if it misrepresents it as a brand name product. Spiller cites shoe polish as an example.

"Something as simple as shoe polish, which is wax and ink—you'd say, 'who would want to counterfeit that?' But if you, as a manufacturer, have the capability to produce something as simple as shoe polish, you will have a huge incentive to have KIWI stamped on that product."

Positioning the printer

Providing brand protection solutions is not as easy as adding taggants to ink. "In order for package printers to become brand security solutions providers to their existing customers, more consultative selling will be required, along with a comprehensive understanding of the technologies available and the issues being faced in the market," says Reardon.

Spiller does not advocate specializing in one technology, but rather being aware of what technologies are out there. "They should be willing to support their existing customer base with those technologies. But the end result is primarily going to be that they'll incorporate some covert features that the brand owner might want to introduce."

Caveats for implementation

Beyond familiarity with various brand protection technologies, security printing requires many measures similar to printing for pharmaceutical markets. "People think they can easily introduce security features that will help shore up a supply chain, but the reality is that most printers don't have their own house secure enough to really deploy a meaningful type of brand protection program," claims Spiller. For example, printers must be able to track where scrap goes when it leaves the shop floor. If the printer employs taggants, it must ensure that 100 percent are accounted for at all times.

"There's a level of security [to which you must ascend] to really be meaningfully into brand protection," relates Spiller. "You need to shore up the supply chain; otherwise, you're introducing the weakest link. You may introduce a special taggant into a product, but if you haven't secured the operations where the taggant is being introduced and really understand how the products are flowing through the supply chain from that single point, systems could get compromised very easily."

Patience required

Caveats aside, brand security presents a new market for package printers to broach. Attending forums covering this area, such as the Product Authentication & Brand Security (PABS) Conference and becoming members of the CACP (Coalition Against Counterfeiting and Piracy) are good starting points on the journey to offering brand protection solutions, according to Reardon. Printers also need to realize that the decision makers and influencers within companies who decide on brand security solutions may be different than ordinary channels. But, the opportunity is there.

"Certainly brand security/protection is a future growth area, and the need for it will only increase," Reardon says. "It is one of the key opportunity areas for the package-printing industry, but often patience and a different value proposition will be necessary to succeed." pP

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