Brand Protection

Spring 2021

Your brand
protection solution,
powered by our
expertise.

GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 1

Contents Bringing Authenticity to Life

4
INTRODUCTION
Bringing Authenticity to Life
Andrew Clint

ALIGNING GIANTS
A Humanitarian Partnership Against Counterfeit
Introduction
Sherri Erickson

8 UNBOXING AUTHENTICITY
Over recent months we have had to adapt to the ‘new normal’. The impact
The Missed Opportunity A NDR EW CLINT
on all aspects of our lives over the course of the last year, beginning with
Lucie Wells M A NAGING DIR ECTOR
AUTHENTICATION the first signs of the Coronavirus outbreak in December 2019 and the
subsequent global spread of COVID-19, has starkly illustrated the effects
12 PRODUCT FOCUS
of globalisation on our modern world.
Authentication Labels

COVID-19 has accelerated the move of business online, with over twice as
18 THE ENDURING RELEVANCE OF HOLOGRAPHY
many people choosing to purchase via eCommerce rather than traditional
A security feature platform
shops and markets.1 Now more than ever brands need to ensure that they
Dr. Brian Holmes
can engage with their consumers to help drive brand loyalty, through genuine
products and a positive brand experience. Likewise, consumers need to
23 KINGPEN
protect themselves from the risk of buying potentially dangerous counterfeit
Customer Case Study
products. 40% of all electronics sold on a well-known eCommerce platform
have been found to be counterfeit and therefore not subject to appropriate
26 WHITE PAPER
safety checks. The need for overt security is becoming more important than
Authentication and traceability of Vaporizers, E-cigarettes and
ever in today’s brand protection space. There is a counterfeit crisis with
other Electronic Nicotine Delivery Systems
illicit trade valued at $2.2 trillion,2 with at least $0.5 trillion of that due to
counterfeiting.3 With the increasing volume of goods sold online, and more
34 Q&A
than 50% of consumers saying they were shopping more online with even
Brand Protection
more rapid adoption of eCommerce in emerging economies,4 it is critical that
Sherri Erickson
brands today can protect their genuine products through overt security,
consumer engagement and robust track and trace software.
36 UPCOMING EVENTS

Counterfeiters did not go into lockdown and the porosity of supply chains to
37 DE LA RUE NEWS
diversion and introduction of counterfeits was exposed.5 Whilst many customs
and consumer standards organisations reduced physical checks through
38 CHECKERS OR CHESS
social distancing measures, counterfeit increased. The economic impact of
Sherri Erickson
COVID on national balance sheets will likely see reductions in public services
such as Trading Standards in the UK that enforce laws in regard to counterfeit
goods. With a potentially reduced role for government enforcement, the brand
owners and their consumers must be given the tools to build a strong
trusting relationship and to work together against the counterfeiters.

Our focus over the last few months has been to share best practice and
¹ oberlo.com/blog/online-shopping-statistics help brands to address the impact that both COVID-19 and the increased
counterfeit crisis has had on their business. This new publication provides
2
weforum.org/agenda/2019/07/illicit-trade-sdgs-
thought leadership articles and opinion pieces on what should and can
environment-global-danger/
be done to help protect revenues and reputations for brands worldwide
3
oecd.org/newsroom/trade-in-fake-goods-is-now- to combat the effects of COVID-19 and counterfeit activity. There are also
33-of-world-trade-and-rising.htm insightful whitepapers on new product segments like Vaping and e-cigarettes,
as well as an update and overview on the latest optical security technologies
4
unctad.org/news/covid-19-has-changed-online-
and digital software solutions available to protect your brands.
shopping-forever-survey-shows

5
europol.europa.eu/newsroom/news/viral- We hope that you enjoy this publication and if you would like any additional
marketing-counterfeits-in-time-of-pandemic information please do not hesitate to contact us.

2 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 3

A humanitarian partnership A FEW EXAMPLES INCLUDE:
against counterfeit

Aligning Customs and law

enforcement officials
seized more than 37,000
counterfeit medical
 FakeSpot identified
counterfeit masks, gloves,
hand sanitizer and test kits
distributed on Amazon by
 Interpol made 121
arrests worldwide seizing
potentially dangerous
pharmaceuticals worth
Interpol Operation Pangea
targets counterfeit
medications, but it also
intercepted fake test kits

Giants
devices, of which third-party resellers. In
34,000 were masks1. March 2020 alone, Amazon
had taken down 1 million
counterfeit ‘COVID-19’
related products.2
more than $14 million.3 and masks, distributed
through 2,000 online links
advertising items related
to COVID-19.3

SHER R I ER ICKSON
With second waves still looming large in many parts of the world, De La Rue
K EY ACCOU NT DIR ECTOR
AUTHENTICATION
see an opportunity for giants of industry to come together in a shared
humanitarian effort to continue to prevent counterfeit COVID-19 solutions.

Such an initiative would bring together four key vectors in a single, collective
approach, to:
With parts of the world gradually getting used to a
‘new normal’, as a global leader in counterfeit protection,

1
Enable legitimate brands, that manufacture COVID-19
De La Rue recognizes the need, now more than ever solutions, to designate their product as genuine, monitor
to protect consumers and frontline workers from bad where it is going, and empower end users to confidently
authenticate whether it is genuine or not.
actors who have been taking advantage of COVID-19
to produce and distribute counterfeit products.

2
Empower enforcement and customs agencies, whose
Over the course of this year, many legitimate brands have had to quickly job it is to stop the proliferation of counterfeit COVID-19
step up to provide COVID-19 solutions outside their normal area of expertise. solutions, to quickly authenticate the legitimacy of the
Industries that have never been compromised by counterfeit in the past had product, obtain evidence against bad actors, and track
no infrastructure in place to deal with the sudden onslaught they were facing. where risks are emerging.

Who could have ever predicted that hand sanitizer, gloves, or medical

test kits would be worth counterfeiting? Businesses emerging with their
innovative solutions may not have the business models, resources, or
expertise to know how to authenticate their product and protect end users.
Tesla were manufacturing and distributing face masks; tiny research
1
laboratories were making and allocating test kits; distilleries were producing
and shipping hand sanitizer; and most of the CDC-approved suppliers of N95
3
Proactively protect end users, who are searching
for COVID-19 solutions, by broadly promoting genuine
solutions and directing end users to legitimate brands
and genuine product before they’re ever put at risk by
safemedicines.org/2020/03/counterfeit-surgical-
purchasing counterfeit.
masks-seized-during-operation-pangea-fake-

face masks did not have authentication solutions in place.
But the new and deadly focus of the long-standing problem of counterfeit is
real. It’s big, it’s pervasive, and it will grow. Counterfeit medications, test kits,
hand sanitizer and N95 masks had been appearing in alarming volumes
through raids and have been found on Amazon and eBay.
4
covid-19-test-kits-seized-by-cbp.html
Enlighten governments and health agencies, that need
2
horecastop.com/post/so-you-think-your-masks-
to understand where risks of infection may be higher to
gloves-sanitizers-and-ppe-kits-are-safe-enough-
better allocate limited resources, with COVID-19 solution
to-fight-covid-19
distribution statistics and heat maps, through the aggregation
³ interpol.int/Crimes/Illicit-goods/Pharmaceutical-

and analysis of massive data that would be captured.
crime-operations

4 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 5

WHO MIGHT THE LIKELY
CANDIDATES BE TO ALIGN
ON THESE KEY VECTORS?
I imagine there are many qualified industry leaders who
could help, but if I were to craft the dream team, their
attributes would be:

— An industry giant with deep expertise in counterfeit protection

technologies and with an understanding of the complexities of global
supply chain distribution, revenue and brand protection, customs and
enforcement requirements, and at-scale end-user engagement.

—An industry giant with enormous capabilities and a business model to

engage brands at scale, ranging from local independent stores to global
enterprise organizations, and enable the sale and global distribution of
their legitimate products to end-users. (Might help if the founder is the
world’s richest man who’s already given $100 million to the COVID-19
Response Fund.)

—An industry giant with unparalleled capacity to process 40,000 search

queries a second that could help end users around the world find the
legitimate COVID-19 solutions they’re looking for online, in seconds.
(Especially if they’d already partnered with the local government to
build a website to help educate consumers on COVID-19.)

— An industry mega-giant who could put the outputs of data on

COVID-19 solution distribution, that they currently have zero visibility
of, to excellent use toward the world’s betterment. (One that we’re
all grateful to have informing us all how to protect ourselves from
COVID-19.)

Why do these giants need to come together, instead

of every individual industry, brand, and product
figuring out its own independent solution to the
explosion of counterfeit?

Simple: It’s one problem, COVID-19 proliferation exacerbated by counterfeit.

Not so simple: There are multiple industries, dozens and dozens of

companies, and hundreds of legitimate COVID-19 solutions, which have
already been produced and distributed in the tens of millions every week
over the last few months.

Logical: Aligning global giants with leadership positions and expertise in the
four key vectors on a universal solution would accelerate its delivery,
optimize scarce resources, accomplish it at scale, and simplify life-saving
authentication by giving end users and enforcement agencies one thing they
know to look for. “ONE” SAID JACK PALANCE
Not so logical: Hoping everyone, out-for-themselves, on their own, can figure
it out in time.
AS CURLY IN CITY SLICKERS.
CHOOSE ONE THING. DO IT TO
THE BEST OF YOUR ABILITY.
6 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 7
“STEVE [JOBS] AND I SPENT A LOT OF
TIME ON THE PACKAGING. I LOVE THE
PROCESS OF UNPACKING SOMETHING.
YOU DESIGN A RITUAL OF UNPACKING
TO MAKE THE PRODUCT FEEL SPECIAL.
PACKAGING CAN BE THEATRE,
IT CAN CREATE A STORY.”
8 GEN U I N E A RTICLE   SPR I NG 2021
The Missed Opportunity
Unboxing
Authenticity
— Walter Isaacson, Steve Jobs
LUCIE W ELLS
HEA D OF PRODUCT M A R K ETING
AUTHENTICATION
The experience of unwrapping a gift is as much about
anticipation as discovering what is inside – a beautifully
wrapped gift creates the sense of excitement for a
recipient, and also has the potential of both enhancing
and protecting a product’s Brand.
Unboxing is THE trend taking the Brand Market by
storm whilst also becoming a powerful eCommerce
marketing tool. The process of unpacking a product is
captured on video and uploaded to the Internet, offering
viewers a step-by-step journey through the experience,
and providing reassurance in the authenticity of the
product they are looking to purchase.
DE L A RU E BR A N D PROTECTION 9
SOME KEY FACTS AND FIGURES
2014 The year unboxing
90,000 Youtube searches for
became a phenomenon ‘unboxing’ every month 1
ORIGINS AND OUTLOOK
Unboxing really took off in 2014 when companies and brands started to
upload their own unboxing videos or sponsored influencers to share
products online on their YouTube channels. Second only to Google as a
search engine worldwide, YouTube can boast more than a billion monthly
users, with over 90,000 people type ‘unboxing’ into YouTube every month.
The most successful videos can have over 10 million views - making Unboxing
a genuine phenomenon of our time.1
Growth of unboxing is predicted to continue its upwards trend; by 2025
approximately half of all luxury purchases will be digitally enabled as a result
of new technologies along the value chain, and nearly all luxury purchases
will be influenced by online interactions.2
WHY IS UNBOXING GROWING IN POPULARITY
Younger demographics are being influenced more and more by the channels
they watch online; content is easily accessible, and children often look to
YouTube to choose their Christmas presents rather than TV adverts or
catalogues. They watch other child influencers and their reviews of toys,
encouraging them to add the toys to their own lists.
For adults, part of the process of purchasing online is being able to
carry out ‘market research’ and preview what you are planning to buy,
creating confidence in the authenticity of a product. Unboxing videos
provide the element of ‘seeing is believing’, enabling consumers to
understand more about the product and how the packaging portrays a
strong brand and value proposition.
THE UNTAPPED OPPORTUNITY
Increasingly consumers are choosing to shop online, with eCommerce
growing three times faster than traditional ‘bricks and mortar’ retail. This has
become even more prevalent throughout the COVID-19 pandemic. One figure
packhelp.com/unboxing-phenomenon-why-
1
suggests, online sales in June 2020 were up 76% year over year compared
people-watch-unpacking-videos/ with June 2019.3 Next generations including millennials and Gen X who
4
already prefer to shop online are likely to continue this trend.
2
bain.com/insights/luxury-goods-
worldwide-market-study-fall-winter-2018/
In markets such as electronic gadgets, luxury goods and children’s toys,
5
³ freightpros.com/blog/online-shopping-vs-

there is a need to ensure that the item being purchased is a genuine product,
in-store-shopping/ that the consumer is receiving true value for money and being protected
10
17.8m Subscribers to the Youtube
channel ‘Unbox Therapy’4
youtube.com/user/unboxtherapy
(Accessed on 14 January 2021)
adweek.com/brand-marketing/counterfeit-
goods-are-a-460-billion-industry-and-most-
are-bought-and-sold-online/
76%
Year over year increase in
online sales between June
2019 and June 2020 3
from the risk of purchasing a counterfeit product. Unboxing videos can
provide a means of developing a brand narrative and strengthening brand
credibility, helping to promote genuine products over and above cheaper
‘knock off’ versions.
A potential buyer who experiences ‘unboxing’ can use the experience to
validate confidence in a product. Brands therefore need to think carefully
about their packaging and creating a special and memorable unboxing
experience. If a product is going to be featured in an influencer’s unboxing
video with a potential audience of tens of thousands, full consideration
should be given to how brand credibility can be maximized.1
Unboxers have a huge global audience. This presents an untapped
opportunity for Brands to reach their end users and consumers and provides
a platform to communicate the ‘How to tell’ message so they can verify
whether their product is genuine. Brands can enhance their own brand
protection through the addition of security features, perhaps incorporated in
the packaging or as an additional applied holographic label. This can go a
step further with the added ability to authenticate through the De La Rue
Traceology® mobile application.
THE IDEAL SOLUTION
Through the eyes of a security service provider, it’s astounding that there
remains a counterfeit goods market valued as a $460 billion industry, and
most of these goods are bought and sold online.5 If influencers can be
persuaded to encourage consumers to check their purchases more closely,
a huge potential brand protection opportunity can be unlocked.
We looked at some 10–20 unboxing videos and in not one of them did the
influencer talk about whether the product was genuine or how you could tell.
The authenticity of the product was just assumed; however, the provenance
of the product is an uncertain factor in the ecommerce market, indeed there
have been cases of high profile trusted online markets selling counterfeit
products unknowingly.
Ultimately unboxing is a great opportunity to help authentication of any of the
products mentioned, all of which hold huge value for a Brand and its
reputation. De La Rue can provide support and help strengthen the brand
reputation, building trust and brand equity; we offer a range of solutions
combining the world’s most secure, serialized tokens designed to integrate
with your brand alongside digital capabilities that enable tracking, tracing
and mobile applications.
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De La Rue Expands Embossed Holography Lippmann/Volume Holography
PURE™ IZON®

Brand
GARNET PAPER LABEL IZON® STRIP IN LABEL

Protection ZIRCON PET LABEL IZON® BOX SEAL

Solutions
ONYX PATCH LABEL IZON® 3D LABEL

De La Rue recently unveiled an expansion of its brand

protection solutions with the launch of a new range of
surface relief holographic labels branded as PURE™,
which complement IZON® – the company’s differentiated
photopolymer holographic brand protection labels.
QUARTZ LABEL WITH QR CODE IZON® 3D LABEL WITH QR CODE
De La Rue has been creating brand protection solutions for over 30
years and has a long history in the use of secure optical technologies
dating back to the earliest days of security holograms.

Since then the company has grown its brand protection business and
built long-standing business partnerships with some of the world’s leading
brands, such as Microsoft, Macallan, Brother and many others to ensure
products and revenues are secured with the latest optical solutions to protect
them from the threat of counterfeiting.

However, today’s brand protection market is rapidly changing with the BESPOKE BESPOKE
requirement for very different business models than a few years ago.
Brand protection solutions now need to be responsive and not only
protect products, consumers and brand reputations but also create
trusted engaging interactive consumer experiences that go beyond
the point of sale and reach into, and monitor, supply chains.

Today’s solutions also need to be a combination of physical and digital

to enable authentication, tracking and tracing by a variety of users and
with the immediacy of results which we have all become accustomed to.

12 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 13

 OUR APPROACH
“AN END-TO-END JOURNEY THAT De La Rue offers a wide variety of security features and
complementary effects to protect and enhance brands
ENHANCES THE CONSUMER’S and products that can be off the shelf or made bespoke
and integrated with existing brands and infrastructures.
BRAND EXPERIENCE” Its brand protection authentication strategy is built on
three key principles:

Engage

Protect

Enhance Enforce

1
ENGAGE — Intuitive, high-impact holographic effects,
which attract and invite end users to actively engage with
the holographic label, rotating and tilting it to discover hidden
features; whilst verification through the scanning of the QR
code on the label acts as a secondary product verification
method and provides a simple platform for brands to interact
and engage with their customers.

2
ENHANCE — Holographic authentication labels provide a means
of quickly and easily verifying whether a product is genuine
or not. Whilst the label needs to stand out for ease of public
authentication, it must also be integrated as a brand feature to
reinforce brand trust and visually complement the packaging
in a way that aligns with the brand’s overall aesthetic.

When coupled with the De La Rue Traceology® digital platform,

the labels create an end-to-end journey that enhances the
consumer’s brand experience.

3
ENFORCE — Each authentication label carries a unique
serial number which enables tracking throughout its
lifecycle. The Traceology platform gives brand owners
complete visibility and control from source to consumption.
DLR Validate, meanwhile, enables field enforcement agents
If you would like to find to quickly and easily identify whether a label is genuine or
out more, please email not using a mobile platform, which can verify the featured
authentication@delarue.com hologram’s authenticity in under 10 seconds.

14 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 15

 HOLOGRAPHY AND EVOLVING CAPABILITY DE LA RUE HAS BEEN CREATING
De La Rue believe holography remains a key element of any brand
protection solution due to the versatility of effects the technology offers – BRAND PROTECTION SOLUTIONS
FOR OVER 30 YEARS AND HAS
from vivid iridescent colours to achromatic white, 2D/3D depth effects to
parallax Fresnel imagery, and multichannel kinetic animation effects to
stereograms.

The ability to combine these effects across both metallised holograms

A LONG HISTORY IN THE USE OF
and high refractive index (transparent holograms) ensures the feature can
be easily authenticated by the end user and extremely challenging for a SECURE OPTICAL TECHNOLOGIES
DATING BACK TO THE EARLIEST
counterfeiter to replicate.

Since the early 1990s De La Rue has been a leading provider and proponent
of advanced classical holography and, during this time, has evolved its
capabilities and processes to meet the changing needs of the market.
DAYS OF SECURITY HOLOGRAMS.
More recently we expanded our origination and design capabilities with
the incorporation and development of a direct write micro-lithographic
imaging platform to create bold and distinctive effects which are particularly
well suited for the brand protection market.

In addition to embossed holographic techniques and products, we also

offer our differentiated photopolymer volume holography platform (IZON®),
acquired from DuPont in 2016 and which provides uniquely secure, full
parallax 3D effects.

THE DEVELOPMENT OF PURE™ HOLOGRAMS

De La Rue undertook an extensive consumer research program to establish
which optical effects appeal most to the consumer, what grabbed their
attention and encouraged them to actively engage with the holographic
label – to tilt, rotate and examine, to better understand the effects.

During the first lockdown De La Rue completed production trials and

marketing materials and launched to market PURE™ holographic labels. The
labels were developed to have an ‘always on’ appearance, so that visibility is
possible in every environment and from every angle whether tilted from east/
west or north/south, with the consumer always seeing a different effect.

PURE™ holographic labels incorporate a range of interactive holographic

effects, to thwart attempts by counterfeiters to create simulations.

MANUFACTURING
De La Rue designs, originates and manufactures all holographic labels
(for a range of substrates with tamper evidence options) and hot stamping
foils for use in brand protection under strict protocols and security
procedures – the company is accredited to the following ISO Standards:

— ISO 14298 – Management of Security Printing Processes (Central Bank Level),

— ISO 9001 – Quality Management Systems for the provision of products,

services and solutions for product authentication solutions

— ISO 14001 – Environment Management System for design, holography

and security printing

Bespoke or off-the-shelf features, effects and formats for each brand

protection application are possible, whilst integration into existing supply
chains and stakeholder management is also part of the company’s brand
protection program solution.

16 17 GEN
BR A ND U I N E A RTICLE   SPR I NG 2021
PROTECTION DE L A RU E BR A N D PROTECTION 17
 The purpose of my presentation was to firstly analyze why such a view
was gaining traction, factors such as:

The enduring
— The growing proliferation of dot-matrix origination technology,
making the image generating aspects of the technology less
proprietary and therefore controlled,

— The use of term ‘holography’ as an umbrella name for all devices

or products showing some form of diffractive iridescence, including

relevance of
of course decorative packaging foil,

— Finally, the complex graphical composition form and optically variability

that typified Holograms and DOVID’s of that period – seen as a defense
against re-origination and simulation by more commercial ‘holography’.

holography as a
Secondly, was to identify a new approach to design of high security
holograms which:

— Sought to balance the needs of technical sophistication with

public recognition,

security feature
— Sought to place greater emphasis on distinct overt features
(greater effect centricity)

— Sought to utilize other proprietary capabilities downstream of the

origination or mastering process.

platform
Over 17 years have elapsed since this conference and contrary to the
expectations of many pundits, the use of holograms and DOVID’s as
security features has continued to grow in most of the relevant market
sectors and indeed within the domain of product authentication it
remains the predominant security component.

Whilst I would like to think that my presentation helped catalyze a seed

change in industry thinking as regards design and imaging philosophy –
important as this is, it would not be sufficient on its own to maintain the
continued relevance of holography for a further two decades given the
competitive pressure of more recent disruptive technologies based on
DR . BR I A N HOLMES, micro-lens or micro-mirror arrays. Instead the continued growth in the
CHIEF SCIENTIST use of holography as a security feature component points to a deeper
underlying value proposition which is the inherent versatility across
several performance vectors.

Back in 2003, I gave a presentation at the Holography

industries annual conference (formerly known as
Holo-pack) entitled ‘New approaches to security
Holography’. The theme of the conference sought
to address an emerging concern that as holograms
and more generally other forms of diffractive OVD’s
(DOVID’s), entered their third decade of exploitation
as security devices, that they may struggle to maintain
future credibility as a form of highly secure public
recognition technology.

18 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 19

1 3
The first of these versatility vectors, derives from the inherent
compatibility of holography with the graphic arts, in that virtually
any artwork shape or size that can be created in vector or bitmap
drawing packages or alternatively rendered as a 3D model or object
can indeed be recorded as a holographic image.
Since we seek to create or provide optically variable images with a high
degree of public appeal, whether that be national icons or emblems that
might feature in a Currency hologram or the trademarked artwork that
expresses a customer brand in an authentication hologram, then it’s
clear why graphical versatility is such an important vector.
2 4
A second vector of versatility relates to the variety or range of optically
variable effects that holographic or diffractive microstructures can generate.
If we were to list the various types of optical variable effects such as 3D
parallax movement, graphical surface animation, graphical image switching,
graphical image morphing, iridescence, color switching etc. then holographic
or diffractive micro-structures are arguably the only current OVD technology
platform capable of expressing the majority of these optical effects.
The combination of an almost limitless artwork versatility with a wide pallet
of effects makes holography uniquely suited to marrying the needs of strong
visual or aesthetic appeal (i.e. public engagement), with provision of secure
easily recognized optical image effects (i.e. ergonomic visual perception and
authentication) across the different market sectors.
20
A third vector of versatility relates to application and product type. This
derives in part from the typically sub-micron relief amplitude of holographic
and diffractive microstructures, which allows them to be incorporated into
thin frangible thermoplastic layers which are a necessary aspect of thermal
and cold transfer foils, including those whose adhesion and patterning is
mediated by digital printing such as UV inkjet or toner transfer.
Alongside this we can add thicker product formats such as labels, laminates
(full face patch or stripes) and threads. Finally, we can dispense with a
polymeric carrier film and instead directly form the microstructures onto a
host document or substrate via UV cast cure replication - this is sometimes
referred as hologram printing, though this description is more for analogy
than semantic accuracy.
We are most familiar with embossed holograms and DOVID’s used within the
authentication and decorative domains, being opaque silver metallic due to
the application of a reflective coating comprising a few tens of nanometers
of vapor deposited Aluminum (within a vacuum chamber), however an
important fourth vector of versatility derives from the fact that diffractive
micro-structures indeed require only a small difference in refractive index
at their relief interface of ≥ 0.5 to provide a readily visible image in reflection.
Such a small index difference can be provided by sub micro coatings of highly
transparent materials such as Zinc Sulphide or Titanium Di-Oxide with an index
≥ 2.0 (i.e. HRI coatings), thereby allowing surface relief holograms and DOVID’s
to be used as transparent overlays to protect variable data and imagery from
alteration or substitution – well known examples being in passport bio data
pages and ID cards.
Further product versatility derives from the fact that the inclusion of an
opaque metallic or transparent metal-oxide layers allows the diffractive
micro-structures to be either embedded between or over-coated with
transparent organic materials.
21 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 21
 Case Study

5
A final fifth vector of versatility relates to cost – the replication or embossing of
holographic or diffractive microstructures and the physical vapor deposition
of Aluminum are inherently economic processes, such that the simplest hot-
stamping or label based products can have a very low unit cost (e.g. sub 1 US

Award-winning
cent), however in order to provide a higher level of security more specialized
manufacturing methods such as high resolution registered de-metallization,
laser ablated serialization, the incorporation of one or more luminescent
materials, dual sided embossing and finally its combination with other more

Kingpen cannabis
specialized surface relief structures.

This versatility of cost profile is an attribute which has allowed holography

and DOVID’s in their various forms to span commercial applications such
as brand enhancement through to the highest security applications in the

brand launches
Identity and Currency domains.

counterfeit prevention
In summary I have identified 5 vectors of versatility which I believe
condition the applicability and relevance of any category of OVD
technology to different product, customer and market channels – in
other words, the aggregate growth potential or scalability of any particular

program using IZON®

OVD technology. I have outlined why embossed holograms and DOVID’s
favorably address each of these 5 vectors and furthermore it is not
difficult to conclude from the explanation provided that in aggregate
terms they will be bitter fit to these 5 vectors than any other category
of OVD technology currently available.

When we then combine this inherent versatility with the engineering

capability that has been developed within the industry over the past
3 decades to support the cost-effective replication and application of
security seals
holograms and DOVID’s, then there is a logical basis for presuming that
the use of holography as a form of security feature technology will
continue to grow and flourish in those markets where a premium
overt security feature is required for many years to come.

Loudpack is a leading cannabis consumer products

company licensed and based in California. Since its
inception in 2017, the vertically integrated operation has
cultivated, manufactured and distributed some of the
most sought-after brands in the US recreational market.

The award-winning brand, Kingpen, is credited for being one of the first
high quality and high potency vape cartridges, earning recognition in
the CA market for premium cannabis products as a result.

The Centre for Disease Control (CDC) has reported that impurities found

THERE IS A LOGICAL BASIS FOR in counterfeit vape products, such as Vitamin E acetate, have been linked
to a serious outbreak of lung illness. Kingpen’s proprietary distillation
technique does not require the use of any additives and works to provide
PRESUMING THAT THE USE OF customer assurance in the form of testing results available at dispensaries.

HOLOGRAPHY AS A FORM OF By innovating the science and engineering behind the manufacturing
process of cannabis oil, Kingpen continues to raise the bar for the

SECURITY FEATURE TECHNOLOGY WILL cannabis industry in California and beyond.

CONTINUE TO GROW AND FLOURISH

22 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 23
 IZON® COUNTERFEIT PREVENTION “KINGPEN BUILT A NAME FOR ITSELF
With accelerated growth in the vaping market, it is little wonder that
vaping products such as Kingpen are prime targets for counterfeit attack
ON AWARD-WINNING FLAVORS AND
and illicit trade.When faced with this growing challenge, Loudpack
embarked on a campaign of action against companies and individuals UNPARALLELED OIL QUALITY. AS WITH ALL
GREAT PRODUCTS, THE ILLICIT MARKET
selling, advertising or distributing counterfeit Kingpen products and
partnered with De La Rue for a solution.

Through the introduction of De La Rue’s IZON® tamper evident label consumers

can be confident they have purchased an authentic Kingpen product.
TOOK NOTICE AND WE’VE BEEN DEALING
WITH THE FALLOUT EVER SINCE.
THE KINGPEN EXPERIENCE: COUNTERFEIT
PROTECTION AND CUSTOMER LOYALTY
Counterfeit products pose a serious threat to consumer safety and to
 E ARE EXCITED TO PARTNER WITH
W
global brand reputation. The Kingpen IZON® holographic tamper seal is
easy to recognize and validate, reassuring consumers that they are
DE LA RUE TO CREATE A SOLUTION THAT
purchasing a genuine product.
ADDRESSES THE COUNTERFEIT ISSUE
WHILE REWARDING OUR LOYAL CUSTOMERS
IN THE LEGAL, RECREATION MARKET.”
Kingpen customers can instantly
validate their products online by
accessing www.KPVALID.com and — Danny Corral, VP of Sales, Loudpack
checking 3 security features on
the IZON® holographic tamper seal:

Vanishing King Image

Multi-angle text visible when viewed at

90° left or right

Scratch-off code

IZON® 3D IMAGE TECHNOLOGY

De La Rue IZON® anti-counterfeit technology enables fast,
overt product authentication using unique 3D holograms,
custom designed for simple and intuitive visual verification.

— True 3D imagery for ultimate security providing multiple

layers of authentication

— Complete overt security solution – no special equipment

or training required

24 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 25

Whitepaper
NEW TOBACCO PRODUCTS SUMMARY
The rapidly rising use of Vaporizers, E-Cigarettes, and other Electronic

Authentication
Nicotine Delivery Systems in the United States is leading to an increasing
trend of nicotine addiction in a new generation of young people. Uncertainty
over health risks of these products and the exploitation by criminals of this
new product makes regulation and control of supply chains vital, requiring
the same approach to regulation, marking and traceability as the conventional

and traceability
tobacco supply line.

As an expert in brand and government revenue and reputational protection,

De La Rue has observed the growth of the market and developed this white

of Vaporizers,
paper with recommendations on how administrations might better regulate
and protect legitimate suppliers and consumers.

Legislators, legitimate manufacturers and all supply chain actors

E-Cigarettes, and
including retailers have an interest in ensuring this market is well regulated
and that regulations are enforced. Enforcement can be enabled through a
combination of secure authentication marking and item level serialization
to enable supply chain track and traceability underpinned by Federal-wide

other Electronic
data interoperability.

Key questions that need to be addressed include:

Nicotine Delivery
— How can suppliers secure their supply chain?

— How do we identify the source of products targeted at minors?

Systems
— How can retailers ensure they are selling compliant product?

— How can we protect citizens from buying counterfeit products?

— How can governments (State/Fed) collect tax revenues?

In this paper we set out why a combination of physical marking and

digital track and trace is the best approach to protect future generations
of American citizens.

The paper also gives examples of how solutions are operating in other
parts of the world for tobacco products and challenges how national
and regional solutions from Europe and the Middle East can provide real
world blueprints for the USA.

MARKET OVERVIEW
Authentication and regulation solutions being introduced today
by many nations across the world are traditionally based around the
traditional tobacco products that are dominant: cigarettes, loose tobacco,
shisha, cigars, etc.

The world is changing, however, with the introduction of so-called ‘reduced

harm products’ and the subsequent growth in e-cigarettes and ‘heat-not-
burn’ (HNB) products.

26 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 27

 GROWTH AND PROJECTION OF THE MARKET
The global e-cigarette and vaping market size is projected to reach
USD 47.11 billion by 2025, according to a new study by Grand View Research,
Inc., expanding at a CAGR of 23.8% during the forecast period.¹ Burgeoning
popularity of these products among the younger generation is expected
to drive the market over the forecast period.
Modular devices are expected to be the fastest growing segment, rising at
a CAGR of 24.9% over the forecast period.¹ Modular devices allow their users
to adjust vapor output according to their preference. E-liquid is expected
to exhibit the highest CAGR of 26.7%.¹ Growing popularity of DIY e-liquid is
anticipated to contribute to the growth of the segment.
Global and national regulators are struggling to decide how best to classify
and control these new products. Criminals on the other hand clearly see a
potential opportunity as there is already evidence of counterfeiting and the
illicit trade of reduced harm products in the market. Not only does this affect
legitimate brands, it is also putting consumers at risk.
Faced with this new challenge, governments and regulators can learn from
the success of solutions used for traditional tobacco products. The principle
of having physical authentication which enables officials and consumers to
quickly and simply verify a genuine product, linked with a track and trace
solution securing the supply chain, remains the most successful way to
control and secure all forms of illicit trade.

DISTRIBUTION CHANNEL TO SUPPORT GROWTH

Online platforms are emerging as a popular medium for sales of vapor
products. Vendors are using social media applications such as Instagram, Case Study
WhatsApp, and Facebook to promote their vaping devices.

Where is the growth happening? North America accounted for the

United Arab
largest share in the market in terms of revenue and is estimated to
reach USD 20.49 billion by 2025.¹

KEY PLAYERS IN THE MARKET

Emirates (UAE)
Key industry participants are also traditional tobacco manufacturers,
which include Altria Group, Inc., British American Tobacco, Imperial Brands,
International Vapor Group, Japan Tobacco International, NicQuid, Philip
Morris International Inc., R.J. Reynolds Vapor Company, Shenzhen IVPS
Technology Co., Ltd., and Shenzhen KangerTech Technology Co. Ltd.¹

The rapid growth in alternative tobacco products undoubtedly places

significant pressure on regulators to react to the challenges this new fast
evolving market brings, with some countries banning products, some
unsure what to do and others embracing them as a less harmful alternative
to traditional tobacco products.
In partnership with the Federal Tax Authority (FTA)
of the United Arab Emirates (UAE), De La Rue is
GROWING NEED TO SECURE ALTERNATIVE delivering a Digital Tax Stamp (DTS) solution to track
TOBACCO PRODUCTS and trace tobacco products carrying both a physical tax
The uncertainty that prevails is highlighted by the latest reports in the USA,
stamp and a digital code printed on their packaging.
where figures suggest that up to 19 vapers have died from significant lung
injuries and more than 1000 e-cigarette users are thought to have been
The DTS system, running on the DLR Certify™ system, receives orders for
adversely affected.² In addition, the Centre for Disease Control and Prevention
tax stamps and digital codes which are being supplied to manufacturers
(CDC) has stated that the chemical components in these products remain
through existing systems implemented in their production locations.
unidentified, with Mayo Clinic in Minnesota stating that the lung injuries
resemble chemical burns.
UAE Customs Authorities have been fully trained and equipped to
inspect, accept and approve all shipments which are being tracked
More worryingly, there are reports that e-cigarettes are being used to vape
from manufacturer through importer and into the supply chain in the
Tetrahydrocannabinol (THC) products and that whilst medical cannabis is
UAE. The solution also ensures that the UAE complies with the World
now legalised in 33 US states, much of the THC vaping involves illegal black-
www.grandviewresearch.com/press-release/
1
Health Organisation (WHO) Framework Convention for Tobacco Control
market products that are uncontrolled and where concerning ingredients
global-e-cigarette-vaping-market (FCTC), designed to minimise illicit trade in tobacco-based products.
may be present.
2
www.cdc.gov/tobacco/basic_information/
e-cigarettes/severe-lung-disease.html

28 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 29

 Lessons can also be learnt from other market sectors such as the manufacture
and supply of ink cartridges. In this market the leading manufacturers are
Lexmark, Brother and HP; they all have sophisticated, highly secure and highly
visible authentication labels on every product they sell.

The labels are also serialised and linked to a traceability solution that enables
the identification of products by scanning the code and engaging further
with consumer engagement programmes.

Case Study

Brother
Industries
It is estimated that global counterfeiting of imaging
supplies costs the industry $3.5billion per year. The
impact is felt by both brand owners and consumers, who
are unable to distinguish between genuine and counterfeit
product. To fix the problem, Brother Industries Ltd
collaborated with De La Rue Authentication to build a
strong consumer protection programme with IZON®
holographic labels (an easy-to-identify overt validation
technology) and Traceology® eVerification digital
traceability to support immediate on-site authentication.
This has resulted in a renewed customer confidence and
reduced reputation damage for the brand owner.

30 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 31

 HOW DE LA RUE CAN HELP WE PROVIDE THE ACTIONABLE
Our approach wherever possible is to incorporate the benefits of existing
systems and software platforms into a bespoke solution to meet your
EVIDENCE YOU NEED IN THE
individual set of challenges. This means working with all industry players
to ensure we meet their needs, while also providing control and visibility FIGHT AGAINST ILLICIT TRADE,
of regulation for the authorities. By working in this way, we can implement
a flexible, modular and open-source model quickly and at low risk. COUNTERFEIT AND FRAUD.
Product authentication and track-and-trace solutions supplied by De La Rue
can help address the challenges of illicit trading in cigarettes and new tobacco
products and, once established, Federal Tax Authorities can use the solutions
on other products such as alcohol and sugary drinks.

The introduction of track-and-trace schemes will help governments to

comply with global guidelines, diversify revenue sources and help to raise tax
revenues, which in turn can enable greater investment in public services and
infrastructure and thereby help to reduce health risks and increase levels of
trust amongst citizens. Whilst not compulsory, potential loss of revenue and
increasing pressure from the WHO play a significant role in highlighting the
potential benefits such schemes could bring.

The WHO FCTC (Framework Convention for Tobacco Control) has been a
key influencing factor for the Tobacco industry. This international treaty
aims to eliminate all forms of illicit trade in tobacco products and is a call
for countries to cooperate to create a global solution to a global problem.

This White paper describes a solution that includes a secure physical

authentication marker combined with a digital code for data management,
supply chain control and full track-and-trace from source to consumption.
This has been proven to help in controlling volumes, improving tax collection,
and detecting illicit products being counterfeit or smuggled.

We know that to fight such an epidemic requires effective product

authentication ­— the controlled movement, tracking and verification of
genuine products from source to consumption — enabling governments
to collect the correct tax revenues and consumers to make safe purchases.

As global specialists in product authentication and traceability, De La Rue

is the partner you can trust to deliver the right solution for you. Combating
illicit trade, protecting revenues and protecting consumers. We work with
all stakeholders to develop cost-effective product authentication and
traceability solutions, and we provide the actionable evidence you need
in the fight against illicit trade, counterfeit and fraud.

32 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 33


Q&A
We recently spoke with Sherri Erickson, Key
Account Director at De La Rue Authentication
to discuss her thoughts on the impact of
COVID-19 on the Brand Protection market
and her involvement with AGMA.
How do you feel Brand Protection has changed recently?
COVID-19 has impacted everything in many ways. It has had its tentacles
reaching into multiple different areas which has suddenly had an impact on
the need for brand protection against Counterfeit, grey market and market
fraud etc.
One thing that’s very specific is an increase in online counterfeit activity,
where brands are seeing counterfeiters take advantage of people choosing
to purchase online, thus the bad actors are trying to use that platform more
broadly and at scale to sell counterfeit. This applies to all products, but of
course also the new medical COVID related products – hand sanitizer,
face masks, test kits etc.
These are products nobody would have ever thought to fake in the past, and
sadly counterfeiters are always finding new products and new markets to
target. Due to local restrictions and borders being shut down COVID has also
had a big impact on a brands ability to enforce its IP because its online and
authorities cannot easily travel to do in-person investigations for example.
Which market verticals have been most affected?
The medical industry is the newest and latest target due to COVID-19, but
more broadly it is anyone who sells in an online marketplace. Almost every
business can sell through Amazon or eBay these days, as well as their own
websites. It becomes more complex with multi-channel distribution and is
increasingly difficult for the consumer to verify when they are buying online
because they don’t have the product in their hand to physically touch and
inspect it in person.
34
How should brands combat this surge?
Brands need to be thinking about ‘physical to digital solutions’ in order
to become more focused on protecting their brand and products. If they
have a physical label on it to make it easy for a customer to verify its genuine,
that’s great, but that’s only step one. Brands need to educate and inform
customers ‘how to tell’ with an online purchase – i.e. using a barcode, QR
code or serialization that consumer can valid via a brand owned system.
The brand is also able to see greater line of sight and visibility of how their
product is being distributed through their own track and trace network.
How do you think this will change the relationship of
consumers with brands, particularly online?
There is a universal legacy challenge around the brands engaging with
their customers and getting them to care and engage with product
authentication. The solution needs to make it more compelling and easier for
the end user to engage with the product to take part. Consumers will want to
be rewarded for their time, so loyalty schemes often work well, in which the
consumer can earn ‘points’ and thus be redeemed against future product
purchases or even merchandise for example.
The end user is empowered to get the information to confirm that the product
they are purchasing is what they think it is, or even the reseller they are
buying from is legitimate. By having an engagement mechanism that includes
overt features and also an online platform to confirm ‘Yes this was produced
by brand ABC’ and can be assured I am getting the real thing, so the
customer can be confident before making the purchase.
How did the relationship with AGMA (Alliance
for Gray Market and Counterfeit Abatement) come
about and how do they help brands globally?
De La Rue are a new member of AGMA and are the first ‘secure print vendor’
to join the organization. AGMA has been around for decades but has a
relatively small group of major brands who have brand protection programs
in place (addressing counterfeit, grey market, fraud, supply chain security
etc.). The organization is a great opportunity for these businesses to share
insights and facilitate conversations, share best practices around what is /
what is not working and emerging trends, new technologies in the industry
etc. and identify areas for more research and conversations.
De La Rue recently joined AGMA and FiveBy Solutions to create a new
whitepaper examining the evolving challenges posed by counterfeit
and illicit trade.
To access this industry whitepaper, please visit:
www.delarue.com/authentication/thought-leaderships
GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 35
Brand
Protection
Webinars 2021
This year we will be running a series of Brand Protection webinars, focused
on key market verticals, offering advice and consultation on the latest
counterfeit trends and how to combat these.
We understand the success of any Brand Protection/ Consumer Protection
program, will go further than the interaction at point of sale, and reach into
the supply chain and keep working in the circular economy. We will highlight
a range of modular solutions combining the world’s most secure, serialised
tokens designed to integrate and enhance your brand alongside digital
capabilities that enable the tracking and tracing of products, mobile
applications and data analytics for brand managers.
So, if you are fighting counterfeit challenges in the supply chain or looking to
create a great brand experience for your consumers, we will have a webinar
that applies to your needs.
Please also keep an eye out on our website and
LinkedIn for upcoming De La Rue Webinars
36
De La Rue
News
De La Rue, uninterrupted supply of security documents
Homeworking, skype calls and media team meetings are not new to
De La Rue. Pre COVID, we used these tools in our everyday working lives
but for many in De La Rue this way of working is the new norm. So how is
it working? We shouldn’t be surprised to hear it is working exceptionally
well. What more could we possibly expect when our business thrives
on innovation and creativity.
Our manufacturing sites have continued with great success throughout
the current COVID pandemic, the uninterrupted supply of security labels
and documents has been a huge achievement for our Malta site who are
approaching a full year of delivering 100% on time in full against a backdrop
of significant demand increase as our customers created BCP stocks.
De La Rue continues to serve our customers through this challenging time.
We would like to thank our employees who continue to meet the ongoing
needs of the market, whether at home, in the office or factory-based.
The level of resilience, innovation and dedication that our employees have
shown in recent weeks and months has been inspirational. We could not
be prouder of our staff.
De La Rue is honoured to provide a high security hologram to protect
the Lenovo Brand and a new model of PC launch in January 2021
Lenovo, the Chinese technology company, designs, develops, manufactures
and sells personal computers (PC) for brands like ThinkPad, ThinkBook,
IdeaPad and Yoga which represent circa. 25% of the worldwide production of PCs.
With worldwide shipments for PCs in 2019 amounting to approximately 63
million units for Lenovo,1 De La Re is excited to support their brand protection
1
statista.com/topics/3861/lenovo/ program with a holographic image from January 2021.
GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 37
What is your next — You move your piece forward, they take your piece, you make another
move forward, and so on. If your anti-counterfeit measures aren’t robust
anti-counterfeit move? enough, the bad actor can take out numerous products across multiple
channels of distribution in one move.

— Whilst two-dimensional markers such as QR Codes can block a single

move, they are easily replicated and are not effective in stopping
counterfeit in a multi-channel distribution model such as they
love to exploit.

Checkers
— And, if those products have no anti-counterfeiting protection at
all, well, let’s just say you can’t win if you don’t play.

Global brands have been fighting these bad actors for decades, by
continuously employing increasingly sophisticated anti-piracy technologies
to enhance the strength of their anti-counterfeit solutions. Time-proven

or Chess
embossed holograms and Lippmann Holography are among some of the most
effective of these technologies available today; and combining overt, covert
and forensic features can result in strikingly strong anti-counterfeit
measures.

All this makes it more challenging, expensive, and time-consuming for bad
actors to steal your highly advanced physical game piece, but eventually,
they will, when everyone is playing checkers.

Counterfeiters have been ruthlessly attacking industries, brands and

products intended to help fight the global COVID-19 pandemic. Many of
these products have never had a reason (aka: profit motive) to be targeted
by counterfeiters before, so they’re among the easiest prey, having no anti-
SHER R I ER ICKSON,
counterfeiting protection at all. Unfortunately, it’s unwitting consumers that
K EY ACCOU NT DIR ECTOR
will ultimately pay, literally and figuratively, for these newly besieged products,
AUTHENTICATION
because there’s simply no mechanism, sophisticated or not, for them to
ensure it’s genuine.

If you were to imagine which game a counterfeiter

is better at, based on their “business model,” would
it be checkers, or chess?

How clever are counterfeiters, really? They’re

persistent, I’ll give them that, and unscrupulous, for
sure. But when what they’re doing is stealing someone
else’s idea and trying to trick people into buying their
imitation product by simulating in-market physical
anti-counterfeit tokens, it smells more like checkers-
level strategy to me.

IT’S REALLY, REALLY, REALLY

TIME TO CHANGE THE GAME.

38 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 39

 So, what does everyone care about? To develop an The physical authentication device is the central starting
effective strategy, it’s important to first look at the PHYSICAL point for a comprehensive anti-counterfeit strategy that

priorities of all the players in the game. Then we can
enable their dormant powers for the greater good of all,
but to the detriment of the bad actors. Let’s look at the
game board and then discuss what the best moves 1, 2,
3, 4 or 5, or 6, might be.
TOKENS stops multi-channel distribution of counterfeit products
dead in its tracks. Typically, this is a security label with
vigorous innovative technologies, such as mentioned
above, and includes overt, covert and forensic features,
along with serialization and a QR Code.
Consumers primarily use overt authentication to
determine legitimacy of a product, so this is a very
important power to address.

DIGITAL Consumers need a way to easily verify whether the

product they purchased in the Marketplace is verified, and
VERIFICATION a Marketplace or Brand offering of an E-verification solution
can quickly determine whether a counterfeiter has breached
the Marketplace. This engagement mechanism also provides
Player Marketplace Brands Channel Bad Actors Consumers the consumer a level of confidence and control when the
Enablers / Sellers Marketplace accepts returns of any product not verified
as authentic. Verification does not, however, authenticate
Move Marketplace growth Confidence brand Sales of Ability to sell All brands are a product is not counterfeit if it was distributed through
other parts of the channel.

1
and revenue is authenticated and distribute safe to buy in the
protected (1) Brand products counterfeit (-1) Marketplace (1)

TRACEOLOGY Brands require greater transparency of how their products

are distributed throughout a multi-channel distribution
system, not just through a Marketplace, and not just for
counterfeit. Are products intended for one market being

2
Multi-channel Channel Control Channel freedom Multi-channel sales All Marketplace diverted to another? How many are resold, and in which
distribution (3) (6) and flexibility to and distribution of Channels are safe geographies do mis-channeled products show up?
sell Brand counterfeit or to buy from (2)
mischannelled The combination of a physical token along with a QR Code
product (-3) enable Traceology systems to provide the Brand with a
complete picture of the product’s journey throughout
the supply chain.

3
Stop counterfeit Stop diversion and Enables sales Gaps to exploit All Brands are
in Marketplace counterfeit across
all Channels (3) (6)
of authenticated
Brand product
in solution to stop
counterfeit (-3)
safe to buy on
Marketplace (1)
DIGITAL Connecting consumer behavior, such as purchase of
validated products, with a rewards program enables the

PASSPORT Brand to continuously engage the customer and offer ongoing

targeted promotions and offers of legitimate products.

The Marketplace, Brands, the Channel, Consumers, Brand

4
Single, universal
solution for all types
Flexible solution
meets my multiple
Solution doesn’t
inhibit sales
Solution doesn’t
inhibit counterfeit
All Brands are safe
to buy in Marketplace
DIGITAL inspectors, enforcement agents and customs officials alike,
all need a simple, easy way to quickly validate that a product
of brands business needs in all channels, (1) (4) VALIDATION is indeed genuine. This is where digital validation comes into
at once (3) nor inhibit grey play. DLR Validate is a white-label smart-phone app that
market diverted delivers on-demand assurance of receipt of genuine product.
or mischannelled This technology-agnostic platform allows Brands to choose
sales (-1) (3) which Physical Token technology best meets their needs.

5
Scalability within Scalability per se (5) Scalability (5) Scalability (-5) All Brands and
Marketplace and Channels are Data collected through the Traceology system and DLR
fulfilment centers safe (5) VALIDATION Validate app is aggregated in a central database and
delivered to Brands through a Dashboard that provides
(5)
DASHBOARD at-a-glance visibility to their products’ journeys throughout
the supply and distribution chain. This level of transparency
provides measures for governance and control.

40 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 41

 Thinking ahead to where your business is going and
“STOP MAKING IT EASY building a strategy that incorporates solutions across
FOR BAD ACTORS, START all the vectors of attack enhances the collective power
of the game. Stop making it easy for bad actors, start
MAKING IT IMPOSSIBLE” making it impossible, and keep well ahead of those who
try to impede your success.

Checkers, or chess?
What is your next anti-counterfeit move?

To learn more about the thinking behind the scope and

structure of a multi-dimensional strategy with holistic
solutions such as described, contact us.

42 GEN U I N E A RTICLE   SPR I NG 2021 DE L A RU E BR A N D PROTECTION 43

Safeguarding revenue and reputations demands
authentication and traceability solutions that are robust,
adaptable and can be quickly deployed.

De La Rue provides comprehensive modular software

solutions, physical security labels and documents for a wide
variety of industries.

With over 200 years’ experience, in currency and security

products, De La Rue helps to protect against counterfeit and
illicit trade, securing revenue and safeguarding reputation.

For more information visit delarue.com/authentication or follow us on LinkedIn.

44