Billions Lost to Counterfeiters

According to a current study by the VDMA, product pirates and counterfeiters cost the German economy billions of Euros every year. Almost all sectors of the economy are affected by the problem. Counterfeiters have set their sights on popular brand products, automotive or machine parts, other technical components, premium fashions and fashion accessories, perfumes, drugs, labels, logos, revenue stamps – the list seems endless. In many cases, telling the real from the fake is virtually impossible to laymen.

The damage cause by counterfeits and illicit copies has many dimensions:

Financial Cost of Counterfeits

  • Counterfeiters steal revenue and profit from legitimate businesses. Jobs are placed at risk, and often lost (as happened in the solar power industry).
  • Product lifecycles are getting shorter and shorter, as companies are forced to respond to the flood of counterfeits with ever faster new developments and product updates. This is taking the cost for research and development to stratospheric heights.

Unwarranted or even criminal warranty claims or claims for damages can threated the very existence of many companies.

  • Counterfeits bring more intangible costs as well, as consumers lose trust in products, companies’ images suffer, and brands lose their value. Consumers trust brands, because they expect certain properties and quality from the branded product. Bugs, breakdowns, and malfunctions hurt that trust. Once such stories hit the news, the damage to the company’s image is obvious, and the brand goes down in value.

Technical Product Protection / Anti-Counterfeiting

Watch the video to find out how to protect yourself effectively against counterfeiters:

Learn more about how the anti-counterfeiting solution Tailor-Safe® works:

Combined Forces for Reliable Product Protections

Companies are fighting hard to protect their innovations from illicit copying and brazen counterfeiters. They can put their trust in legal means to assert their intellectual property rights. This often proves too little, too late to protect themselves effectively against the threat of product pirates. Depending on the market, asserting one’s legal rights can be a slow and uncertain process.

Companies have come to rely on many types of visible markers to protect their products, including

  • Labels
  • RFIDs
  • QR codes
  • Serial numbers,
  • Security labels
  • Holograms
  • Engravings

or any other of around 300 visible ways to mark products.

Visible product markers have the obvious advantage of simplicity on their side. However, visible markers represent no obstacle for a committed counterfeiter: Fake products are easily given often near-perfect fake markers – again blurring the distinction between what is real and what is fake.

Invisible markers represent the next level in security. Current solutions include

  • Artificial DNA
  • Chemical markers
  • Coating particles
  • Microstructure particles
  • Infrared or UV pigments

Invisible product markers have the great advantage of being hidden from sight. Many established marking solutions are, however, exceedingly difficult to implement, making valid authentication a complex and costly process. Very few invisible product markets currently available in the market are genuinely safe from forgery.

We are specialists for intelligent light solutions. Many years of science and research have gone into an anti-counterfeiting solution without equal in the world market. Invisible, tamperproof, machine-readable, and forensically valid product protection has a new name: Tailor-Safe® .