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These
news pages are provided by the Product & Image Security Foundation
Product & Image Security Foundation
For full details of news items, articles and features please refer to the current isssue.
| December 2005 |
Not drinking water
Food Standards Agency warns the Muslim community about the fraudulent sale of Zam Zam water which may contain high levels of arsenicThe U.K. Food Standards Agency is advising consumers to be aware of the fraudulent sale of Zam Zam water that may pose a food safety risk. Zam Zam water, which is sacred to Muslims, comes from a specific source in Saudi Arabia and cannot legally be exported from the country for commercial sale. This issue was first brought to the Agency’s attention by leaders within the Muslim community.
A brand of Zam Zam formally sampled by the London Borough of Westminster has been found to contain almost three times the permitted level of arsenic, which could contribute to increasing people’s risk of cancer. The local authority has taken action to prevent further sale of the product from the outlet. In addition they have contacted the importer of the water to ensure that they cease to import the product. No other outlets are known to have stocked this product.
Other brands of Zam Zam water are thought to be on sale in the UK and could be similarly contaminated. As genuine Zam Zam water cannot be legally exported from Saudi Arabia for commercial sale, any product found in the shops would have an uncertain provenance and possible safety risk. The FSA is therefore advising people not to buy or drink commercially available brands of Zam Zam water and to inform their Local Authority Environmental Health or Trading Standards Department if they come across Zam Zam water on sale.
“Given that the demand for Zam Zam water is likely to increase during the month of Ramadan, the FSA has written to all Heads of Environmental Departments and Directors of Trading Standards asking local authorities to take appropriate enforcement action where the fraudulent sale of Zam Zam water is suspected”. A spokesperson said during the October investigation.
This advice does not relate to the genuine Zam Zam water being brought into UK by returning pilgrims, as an accompanied or unaccompanied ‘personal import’.
| November 2005 |
Document Security Systems Wins Anti-counterfeiting Custom Form Order from Commonwealth of Kentucky
Additional government contract orders recently awarded to the Company include the States of New York, Alabama and Colorado, Kuwait and the U.S. Virgin IslandsDocument Security Systems, Inc. a leader in developing custom designed optical anti-scanning, anti-counterfeiting forms and documents, announced recently that the Commonwealth of Kentucky has awarded it a sole supplier contract for specially-designed security forms. The unique technology and custom form design, which prevents images of the form being replicated in the form of copies, scans, or digital photography, will be used in confidential applications on a state-wide basis.
Patrick White, Chief Executive Officer and President of Document Security Systems, Inc., stated that, "We were selected by Kentucky to provide our document security technology because of its advanced capabilities to prevent fraud. Strategically, we are finding that having shifted from a licensor of our technology to selling custom designed printing directly to end users has improved our opportunities to win orders. Because of the significant advantages our technology offers, once demonstrated to the end user, we often are awarded the contract. Ultimately, we also see that manufacturing in house will give our company a strategic advantage."
In addition to the Commonwealth of Kentucky, Document Security Systems was selected to design and print custom security forms for the States of New York, Alabama and Colorado, as well as the country of Kuwait and the U.S. Virgin Islands.
Mr. White added, "We custom design products for each of our customers, enabling us to be well informed as to their needs and to continue to provide them with our unique products and technology. Going forward, given our strategic shift to direct sales and manufacturing, we anticipate that revenue can grow measurably over the next year."
Document Security Systems, Inc. is a leader in optical anti- scanning, anti-counterfeiting technologies. The Company develops and manufacturers advanced anti-counterfeiting and verification technologies and products for homeland security, governments, law enforcement agencies, brand packaging protection, and businesses concerned with enhancing security, reducing identity theft and protecting critical financial instruments and vital records. Its various anti-scanning technologies are used on currency, vital records, packaging, labels, tickets, ID Cards, passports and gift certificates.
Its strategy is to become the world's leading producer of leading edge security technologies for printed products.
| November 2005 |
A grey day for Kyocera
Company stops counterfeits only to find that they re-enter the market as grey goodsKyocera Wireless Corp., a leading global manufacturer of CDMA wireless phones and devices, announced last year (2004) a ‘voluntary and precautionary recall’ of potentially fraudulent batteries in its KE/KX 400 Series, 3200 Series and Slider Series phones. This recall was limited solely to cell phone batteries, as there were no defects with the Kyocera phones.
According to a statement on the company’s website (Nov 9th 2005)_ Kyocera Wireless Corp.'s (KWC's) stringent ongoing quality control processes have revealed that a battery supplier, since terminated, intentionally provided KWC with batteries containing unapproved battery cells, the internal power sources within the batteries. The supplier's deceit resulted in fraudulent batteries shipping with Kyocera phones and being sold as accessories. Upon deeper investigation, KWC discovered that despite terminating the supplier's services, the supplier continued to make the fraudulent batteries and sold them into the grey (after) market. These counterfeits feature Kyocera's logo and are designed to look identical to legitimate Kyocera-approved batteries.
Since the supplier is headquartered in the U.S., KWC is actively working with the United States Federal Bureau of Investigations (FBI) and Consumer Product Safety Commission (CPSC) to locate these counterfeit batteries, prosecute those involved and ensure they do not reach consumers.
"Launching this proactive recall is the responsible action to take, of course, as nothing is more important than the safety of consumers and quality of our products," said Tsuyoshi Mano, president of Kyocera Wireless Corp. "People who buy our phones instil their trust in Kyocera and we will act in their best interests. We are working closely with all of our carrier partners to identify those who may be affected and replace their batteries as quickly and conveniently as possible."
The recall is focused only on batteries from this particular supplier and only affects the aforementioned phone models. The affected batteries are easily identified by product numbers and serial codes found on the battery label. It is not known what percentage of batteries from the supplier in question contained fraudulent battery cells, as they can only be identified by disassembling the batteries. While the vast majority of batteries that will be removed from the market are likely to contain safe, reputable cells, the best way to ensure removal of all fraudulently manufactured and counterfeit batteries from the market is to recall all batteries manufactured by this supplier - good or bad.
Kyocera Wireless has been coordinating with all carrier partners to contact affected customers directly and alert them of the replacement program procedures. Many customers have already been notified and have received new batteries. Kyocera has also been working with each carrier partner to ensure that all impacted batteries have been removed from their inventories and that all retail locations contain approved batteries for each Kyocera phone model.
"This program will create a logistical and financial hardship for Kyocera Wireless Corp., but we know it is the responsible thing to do," said Mano.
Kyocera has completely changed its battery supply chain and has strongly enhanced its battery quality processes. KWC has hired a widely renowned leader for its battery engineering team, has formalized a strict, ongoing third-party testing program and has doubled its own internal testing of batteries, among other enhancements. KWC is confident that the batteries currently being shipped in its phones are among the best in the business and the highest quality batteries that the company has ever sold.
“Kyocera Wireless is absolutely committed to the safety of its customers. It has come to Kyocera's attention that a portion of batteries shipped to our carrier customers with some Kyocera phones may be counterfeit. Kyocera has screened our customers' distribution channels and removed all affected batteries”.
| January 2006 |
400 billion reasons to stop Piracy
New 4IPR website launchedLosses through counterfeiting, product piracy and brand diversion are estimated to now account for as much as 6-7% of world trade and to be costing society as a whole 1,000 billion Euro's in lost revenue annually – and much of that from organised crime activities worldwide. Crime which is global and knows no boundaries, and which is becoming even easier to perpetuate and organise through, and on, the Internet.
Add losses through retail theft and tampering and these figures rise even more dramatically. Even within the EU, losses through counterfeiting and piracy alone are estimated to be Euro 400 billion in the Single Market. This enormous figure was identified by Laszlo Kovacs, The European Commissioner in charge of taxation and customs union in a speech he made in February 2005. He recorded that the rise in seizures of counterfeit goods at market borders had risen some 400% over the last four years!
Not unsurprisingly, the European Commission has announced in recent years a series of measures aimed at both combating and further stepping up the fight against counterfeiting and piracy. These measures have included proposals to strengthen the means of enforcing intellectual property rights, examining mechanisms for administrative co-operation among Member States to combat the problem, and the need to put forward proposals for harmonising the minimum thresholds of sanctions and criminal proceedings and extending Europol's powers.
A study was also commissioned by the E.C. to define a methodology for collecting, analysing and comparing data on counterfeiting and piracy, while recommendations are being made for making better use of existing information systems and for strengthening co-operation and the exchange of information between the private and public authorities.
Additionally, the Directorate-General Research of the European Commission has funded a research project (in 2001) designated as 4IPR (for Intellectual Property Respect) to assist Brand Owners in identifying sources of authentication and security devices to protect their products. This project, now completed, will deliver an information resource in the form of a website designed to provide every stakeholder with the data needed to effect a solution to the problem of counterfeiting and piracy
One part of the website (www.4ipr.info) also acts as a public information resource so that citizens and the media are able to access important data on the effects and risks related to consumption of pirate products. Within the website, a password only accessible resource has the aim of identifying information and technology resources concerned with anti-counterfeiting and intellectual property abuse.
Members of Product & Image Security Foundation are listed within the resource so that they can be identified as suitable suppliers of security and authentication devices by Brand Owners and other potential users of such technology.
A further, and highly secure part of the site will enable Brand Owners, Customs and Enforcement Agencies to post and share data on attacks so that previously disparate intelligence can be linked and ensure that a clear picture can be obtained from activity reports logged by operators across Europe.
The end result of the 4IPR project is to make data available across this multi-level secure network, enabling everyone in the anti-counterfeiting and crime prevention chain to become more effective in the fight against this type of crime.
Working closely with various departments within the Commission the partners in 4IPR have developed a system that will provide Brand Owners and law enforcement with an effective tool that can measure, respond and control the increasing threats from this crime.
The partners in 4IPR are:
Risk Force
World Wide Security Exchange / Product & Image Security Foundation
REACT (UK)
Euratex (representing the textile industries)
I.P.F.I. (representing the entertainment industries)
Legal Advisor:
Dr. Pius Alexander Benczek
www.4ipr.info (Public Site)
www.4ipr.net (Commercial Site)
| February 2006 |
Abercrombie & Fitch Expands Anti-Counterfeiting Program
New Global Brand Protection Team Led By Former FBI Intellectual Property ExpertAbercrombie & Fitch announced in February that it is significantly expanding its commitment to combat the counterfeiting of its products on a global scale by launching a new anti-counterfeiting program, which will be known as the Abercrombie & Fitch Brand Protection team. The team will be led by newly-appointed Shane Berry, formerly of the Federal Bureau of Investigation's (FBI) Intellectual Property Rights Program.
Berry, a 13-year veteran of law enforcement, joined Abercrombie & Fitch in November of 2005 after seven years as Supervisory Special Agent for the FBI. Prior to his role with the FBI he served as a Special Agent with the Florida Department of Law Enforcement.
This new program will improve current practices and strategies by focusing on eliminating the supply of illicit Abercrombie & Fitch products. The counterfeit items, which include products from the Abercrombie & Fitch, Hollister and RUEHL brands, undermine the Company's 114-year legacy of consistently providing high-quality products. The Company is committed to protecting its loyal customers, customers who have come to expect top quality and craftsmanship from Abercrombie & Fitch products.
In addition to its core initiatives, the Brand Protection team will cast a wider net around the counterfeiters by increasing staff throughout Europe and Southeast Asia, with a particular focus on covering locations such as Taiwan, China, Hong Kong, Japan and Korea. The Brand Protection unit will interact with investigators, customs officials and law enforcement entities throughout the world. Abercrombie & Fitch will employ the fullest extent of civil and criminal law to stop the counterfeiting of its goods.
| March 2006 |
Sun Helps Fight Drug Counterfeiting with RFID-Technology
New RFID Solution Enables Pharmaceutical Companies to Track and Verify Drug Packages and Helps Prevent Diverting and Counterfeiting of ProductsSun Microsystems, Inc. recently announced the availability of the Sun RFID Industry Solution for Drug Authentication, a combination of software, hardware and services to address the specific requirements of the pharmaceutical industry.
The Sun RFID Industry Solution for Drug Authentication helps to combat drug counterfeiting by verifying and certifying the authenticity of drugs using Electronic Product Codes (EPC) or electronic pedigrees across the supply chain.
Drug counterfeiting and diverting (fraudulently obtaining prescription drugs and reselling them) introduces inefficiencies into the supply chain, dilutes company brand names, represents enormous costs to pharmaceutical manufacturers and most of all, exposes consumers to health risks via counterfeit dispensing. Unlike packaged goods, pharmaceutical drugs have high market values, unique storage requirements and small unit sizes that make it necessary to track individual bottles or even individual doses.
Pharmaceutical companies can use the Sun RFID Drug Authentication Solution to verify a drug package's validity and authenticity as it moves through the supply chain, from the manufacturer to the hands of the consumer at the point-of-sale.
“Introducing the Sun RFID Industry Solution for Drug Authentication demonstrates Sun's continued commitment to delivering RFID solutions that address the specific requirements of vertical industries. For the pharmaceutical industry, using bar codes to secure the drug supply chain is impractical and inefficient because bar codes have limitations around item level identification and require manual intervention,” said Vivek Khandelwal, principal RFID solutions manager for Sun's RFID Business Unit. “Sun is leveraging our RFID-technology expertise, along with that of third-party companies, to bring drug manufacturers and distributors a solution that helps distinguish legitimate products from counterfeit and helps our customers prevent loss in revenue and maintain drug integrity.”
The Sun RFID Industry Solution for Drug Authentication uses a scalable architecture that helps companies to start with EPC-based drug authentication for initial pilots and then evolve to more complex, pedigree-based drug authentication solutions.
The EPC Authentication verifies point-of-sale EPC information, stored in an RFID tag, against a repository of valid codes. The Pedigree Authentication is more secure and complex and requires verification and authentication of each drug item at every step of the drug supply chain.