Product liability – authentication
even in the event of damage
A small component can play a big part. How well depends on whether it is an original or a forgery. Whether they are on a plane, a chairlift, in an elevator or on a rollercoaster, people put their trust in complex technologies every day – relinquishing control over their own safety. The same is true for industrial buyers of machines and equipment, such as workshops or power plant operators. They too place their trust in the brand quality of the manufacturer or service provider.
For product manufacturers that are at risk from counterfeiters, the loss in sales and the resultant lack of profit margin for product development and qualification is of major importance. But we cannot ignore another key issue: product liability. Poor-quality counterfeits can lead to third-party claims against the original manufacturer in the event of damage. It is even more important to have a reliable authentication label if the counterfeits responsible have been destroyed by the damage they caused. Giesecke & Devrient uses labeling procedures that survive even after being burnt.
Product pirates have already identified the German machine and plant construction industry as a lucrative counterfeiting market. According to a recent study by the VDMA (German Engineering Federation) on product and brand piracy, almost two-thirds of these companies are affected by product counterfeiting. The damage of 6.4 billion euros generated in 2009 would secure almost 40,000 jobs in the sector if they were transformed into sales. Preventing product piracy is therefore crucial – for protecting people’s health, for business continuity, and for the protection of jobs.
According to a study by the Fraunhofer Institute, a few years ago most companies potentially affected by counterfeits still relied on the courts rather than new technologies to protect their brands. They did concede, however, that these technologies showed the most potential for the future.
As a provider of security technologies in the banknote and credit card sector, Giesecke & Devrient has decades of expertise in the protection of valuable objects. However, for security reasons, a fundamental principle of our company is that security procedures are not just “borrowed” or transferred from other application fields. Our product protection solutions are always new developments or redevelopments, which do not interfere with existing established applications, but do benefit from their know-how.
According to the latest studies (for example by the VDMA), in recent years it is not only whole machines that are being copied, but individual components and spare parts are also being counterfeited with increasing frequency. This fact indicates an additional problem in product protection: fighting counterfeiting no longer focuses exclusively on the actual product at the end of a value chain; all production and distribution channels surrounding the product, i.e. the whole supply chain, need to be safeguarded as well. Only a comprehensive product protection system can provide a solution for this situation: a multi-level security system that is characterized by good process compatibility within production and distribution. Product protection can only be truly sustainable if all routes from the procurement of individual components to the product and from the product to the customer are completely secure.
A major pharmaceutical corporation
If products are equipped with G&D security technologies, the brand manufacturer will always be one step ahead of counterfeiters.
Highly secure technologies are also extremely popular in the protection of medicines: The Bayer group, for example, equips some of its medicines with G&D's PEAK seal of originality.Read more
The new packaging design from Bionorica phytopharmaceuticals is equipped with three-dimensional and optically variable embossing that certifies the authenticity of the medicine.