Innovative anti-counterfeit solution for safety, brand protection and beyond
The original article published on 27.08.2020, we updated it on
02.08.2023 with new information for better overview of the topic.
A Production of products imitating the brand origin of a manufacturer with
misleading labels & packaging, with misleading conscious marketing of those
imitation products as originals undermines the legitimacy of a market as such,
affects not only the pockets of the original manufacturers, but also often fail
to meet the quality and safety standards of the regulated industry.
This is an industry that is too large to confidently aim to remove, however,
one thing counterfeiting shouldn’t be is ignored. It is estimated that each
year, deaths caused by counterfeit products among the G20 economies bear an
economic cost of over $18 billion U.S. dollars, with an
additional $125 million dollars spent on treating counterfeit product-related
injuries. The health and safety threat posed by counterfeit products is real. It
is particularly worrying that these parts appear to easily find their way into
the supply chain of industries, products of which are in daily use
The industries most affected by counterfeiting
Healthcare industry: According to the WHO estimations, 50% of the drugs for
sale on the Internet are fake. Especially now, when criminals are trying to cash
in on the coronavirus – according to Interpol, the
authorities seized around 4.4 million units of illicit pharmaceuticals
worldwide. In 2010 WHO reported 8% of all the medical devices in the market to
be fake(the actual volume is expected to be even higher). Today, EU conformity
certificates aren’t safe either, according to OLAF millions of
substandard medical products have been caught in multiple Member States. This
just makes the point stronger that the problem cannot be ignored.
According to Fujitsu, the most common
counterfeited automotive parts are brake shoes, brake pads, steering linkages,
air filters, spark plugs, wipers, airbags and other interior accessories.
Moreover, businesses in the sector are continuously being penalized for
illegally marketing and selling refrigerant hydrocarbon products
(i.e., ES 22a as a replacement for R-22), as well. According to the EPA, the use
of ES 22a – a refrigerant meant for window air conditioning units –
creates the potential for explosion and fires, it is a serious risk to human
health and the environment. Safety is definitely
compromised with the low quality of such fakes.
Aerospace and defense products are generally designed to serve in longer life
cycles than most similar productions(i.e. automotive). The B-52 aircraft, for
example, has an anticipated retirement date as 2040, even though it is in
service since February 1955: Therefore, sometimes to service aerospace and
defense products, there are used parts that may no longer be
available (authorized aftermarket manufacturer, distributors or resellers no
longer hold those parts). This creates a rabbit hole, from which the
counterfeiter takes advantage of. Surely, it is not as widely spread as for
example, counterfeiting in the industry of clothing, but the human safety toll
is much higher.
Other industries and products with high potential of health risks:
Counterfeit lithium-ion laptop batteries -extreme heat, self-igniting, and
Counterfeit helmets and baby carriers – breaking easily,
Counterfeit cosmetics – severe skin reactions,
And surely the plastic toys – Customs officers from four EU frontier
countries checked 2.26 million Chinese, blocked 722,598 from entering Europe
after discovering illegal levels of
phthalates and destroyed 31,590
Not only does counterfeiting include health risks, but also it contains
severe economic damage from end-users all the way to the whole industry. The
ICC, for example, has estimated the global economic value of counterfeiting to
reach $4.2 trillion and put
5.4 million jobs at risk by 2022.
The intellectual property, of course, is known as one of the main targets of the
counterfeiters – the high-end luxury goods market came up to US$ 236 billion
in 2009. The steady market growth over the last 20 years, no direct harm to
health, and of course the growth of counterfeiting solutions – makes it
easier and easier to fake the luxury goods, stretching the annual loss from
these products to US$ 12 billion.
Anti-counterfeit solutions in 2020
For centuries there have been various regulations set in the justice systems
of different local and global economic territories in the world to fight
counterfeit. The private sector, too, tried to get one step ahead by coming up
with different anti-counterfeiting technologies and innovative solutions
throughout the years. Most of those technologies, unfortunately, have become outdated or outsmarted in
Holograms – do not capture any data, cannot be tracked,
fairly easy to fake.
Digital Watermarks – one of the most advanced solutions,
however not very affordable or effective for many industries and goods(i.e.,
luxury goods, refrigerants, etc.), cannot be tracked
Optically Variable Device/Features – not completely
immune to being copied(i.g. Counterfeit currencies), cannot be tracked, not
entirely efficient for most end-use products.
RFID – one of the most progressive technologies
available for anti-counterfeit packaging today. The RFID technology truly solves
a lot of the problems the market was facing and has many added values over
multiple other technologies, however, with all the pros this technology too has
some strong cons.
Security: Unfortunately, to hack the system is not a big obstacle for the
Privacy: too much tracking can never be safe, the technology has the risk to
compromise consumer privacy
Fragile: rather easy to damage the tag, and once damaged – cannot be
Data accuracy: the nature of the technology can bring up
environmentally-caused issues(i.e. The ability of some RFID tags to be read can
be affected by proximity to some metals or liquids, which can lead to missed
Reputation: the above mentioned and other potential hazards have damaged the
reputation of RFID technology.
The market is exigent on an innovative solution that would include the
benefits the current technologies give, at the same time solving the
shortcomings of those.
RVmagnetics introduces unique Identification Tags (ID tags):
A MicroWire of specially designed and identified chemical composition,
length and positioning on a Product or a Part will be detected and IDed with a
sensing system also designed and developed by RVagnetics. RVmagnetics is the
sole-manufacturer of these MicroWire sensors, thus a certain ID tag will be
unique and exclusive for a certain Product or Part. To ID a part which is
equipped with a MicroWire can have the following applications:
Tooling: choosing the correct tools, the correct components
for the tools (r.g. Tooling Head) is a crucial starting point, which, if failed,
not only can cause reduced efficiency and doing the same work in more time –
but also might damage highly important materials, and thus also whole
manufacturing processes. Thi is true for the Aerospace, Automotive, Oil&
Gas, Medical Devices, Electronics, Construction & Woodworking, Mining &
Heavy machinery Industries.
Wear & Tear: often it can be necessary to Identify not
only if the MicroWire is on / in the material, but also whether the MicroWire
has been damaged, or completely destroyed. In fact one sensing head of
RVmagnetics can detect few MicroWires at once, and as the manufacturing cost of
ID-specific MicroWires is fairly inexpensive, an application can “afford” to
have on or more MicroWires being damaged or destroyed due to wearing – and
once a contactless sensing head of RVmagnetics stops receiving a binary readout
from the damaged wire – we can immediately identify the “first layer of
wearing” on a material (more on this topic soon; contact us for
Sorting / Packaging: having a certain type of MicroWire
customized for a certain version of a product can save valuable time and
resources for warehousing, retail, shipping and other logistical operations.
Even though there are existing solutions for this (e.g. RFIDs), a MicroWire
sensor is lighter, resistant to harsh environmental conditions, and due to the
unique data captured from a wire – it can help explore the printless /
label-free logistics of packages even more. Moreover, a MicroWire ID tag can add
an additional feature of lightweight, contactless detection of packaging damage
(bending, position changes, shocks) on packages of high importance.
Moreover, a combination of multiple MicroWire sensors of
arbitrary quantity, lengths, order, and metallic composition, diameters which
creates a Matrix of independent unique codes, thus, the hardware is
fundamentally impossible to copy or hack. In other words, the ID tags are
completely unique subjects,
Inducing different frequencies in the vicinity of the tag results in a
different response (code) from the tag, that can be read with a
The ID tags distinguish between original and false products. They can be
embedded into almost any material – textile, paper, plastic, etc. they can be
directly incorporated into goods, their labels, or in the coatings during the
do not cause any materials defects and do not require any electrical power
supply nor add any weight
the tags are fairly inexpensive. Unknown to the counterfeit market. In terms
of software, the storage of the codes involves a blockchain technology that is
responsible for the software security.
This is essentially applicable for products, parts and materials of luxury
sectors, exceptional exclusivity and quality.
The fight against counterfeit products is a global challenge with companies
across industries implementing tools to create a robust supply chain. Yet,
everyday counterfeit goods worth millions of dollars enter the supply chain and
reach. This not only leads to risking basic human safety and loss of revenue,
but it also ends up hurting the brand image from stealing intellectual property.
Our goal is to ensure end-user safety and help our clients fight counterfeit
With a B2B sales & marketing background in INGO & Foreign Investments in government sectors, Tigran is now responsible for extensive industry research in RVmagnetics focused on marketing the company both in R&D and Business spaces. Tigran is up to date with trends in deep tech, sensors, and innovative startups in need of niche growth. He shares the knowledge with RVmagnetics communities via blogs, publications, and news releases, while also using his experience to Manage RVmagnetics' Key Partners' accounts.