Taggants for Brand Protection: What It Is and Why It’s Not Fool-Proof

Counterfeiting affects every industry from pharmaceuticals to luxury goods, and from electronics to consumer goods. Traditionally, companies have relied on taggants for brand protection—special markings embedded into products to verify their authenticity—as a line of defense against counterfeiters. However, they come with high costs and the potential for replication.

Today, they are so easily replicable that they provide a false sense of security to brands and consumers. Incorporating them still leaves brands at a risk of getting counterfeited, while assuming they’ve done enough for security.

What’s more, they require specific consumables that must be securely stored, adding complexity and cost to the supply chain. As your production increases, the need for taggant material increases proportionally. This becomes problematic, especially for high-volume productions.

The global trade in counterfeit goods is estimated to be worth over $500 billion annually. This means a substantial revenue loss to legitimate companies along with reputation damages that can’t be quantified in a mere dollar amount.

With the advancement of technology, you can now leverage more cost-effective and fool-proof methods.

What are Taggants for Brand Protection?

Taggants are tiny markers or identifiers, embedded or printed into a product or packaging to verify its authenticity and prevent counterfeiting. It could be made of unique materials or substances like UV inks. Think of a taggant as tiny “tags” that can be seen or detected to prove that a product is genuine.

They are used in a wide range of products and industries and can be used in the item or its packaging.

They are mainly of three types:

1. Overt: These are visible to the naked eye and provide an immediate visual indication of authenticity. This includes features like color-changing inks.
2. Covert: These are hidden from the naked eye and require special detection equipment. Examples include fluorescent ink and UV ink, which can only be seen under special light conditions like UV light or infrared light (depending on the type of ink). These could be used on various materials including plastics, labels, official documents, and more to add a hidden layer of security. For example, many banknotes use fluorescence mixed into inks. When exposed to UV light, certain areas will fluoresce, revealing patterns or images that help confirm authenticity.
3. Forensic: These are chemical markers that require laboratory analysis to identify. They offer the highest level of security but are also the most complex and costly to implement. These are used in valuable items with higher security needs. For instance, certain pharmaceuticals might include these markers to trace and verify their origin.

Examples of Taggants

• Credit Cards: Use overt makings like color-changing inks.
• Currency: A taggant like fluorescent ink is applied on a paper material like banknotes.
• Explosives and ammunition: Forensic ones are used in industrial explosives to identify the source of any material in the event of illegal use or a crime.

These can be incorporated during manufacturing or packaging processes. For example, the taggant material is mixed into inks used to print a packaging label. The methods to embed them vary, depending on the type of taggant and the product being protected.

How Taggants Work in Brand Protection

Each type of taggant works differently:

1. Overt Taggants

Consumers and inspecting officials can easily view and identify overt markings, like color-shifting inks. These provide visual confirmation of authenticity, without having to use any extra device.

However, the visible nature of them is also what makes them more vulnerable to replication. Counterfeiters can easily create convincing replicas of color-shifting labels.

2. Covert Taggants

These are invisible to the naked eye and require a special detector. These include UV inks, and UV light as the detector.

Their hidden nature adds an extra layer of security, though sophisticated counterfeiters could still find ways to replicate them. For example, they are used in pharmaceuticals, where hidden signs can be detected using handheld scanners to confirm authenticity.

The biggest drawback of using taggants is the requirement to store specific consumables (special markers or substances used for the marking) to prevent theft or misuse. This management can be a logistical challenge.

Plus, the storage and security add to the cost. As the production scales up, the amount of taggant needed increases, leading to higher costs. This makes taggant-based solutions potentially expensive, particularly for large-scale production.

3. Forensic Taggants

This involves unique chemical markers for authenticity. They offer incredible security as they can’t be replicated easily.

While they are effective, their complexity and cost is a huge barrier for many. Analyzing these takes time and resources, which isn’t feasible for all types of goods.

Benefits of Using Taggants

This type of marking offers several benefits for brands:

• Reduced Counterfeits: They make it more difficult for counterfeiters to replicate goods. By using unique and hard-to-reproduce tags, brands can protect them from being faked.
• Increased Reputation: Effective markings ensure only genuine products reach your customers. Along with that, using advanced technology will also position your company as the leader in the industry, increasing your overall reputation.
• Consumer Trust: Using a taggant sends the message to your consumers about your commitment to quality and their safety. As a result, they are more likely to trust and remain loyal to you.
• Legal Compliance: Depending on the industry, they can help brands comply with such legal regulations and standards.

On top of the existing benefits, consumers also get peace of mind knowing that a company uses sophisticated anti-counterfeiting measures.

What’s more, consumers are more likely to make informed purchasing decisions when they know that a product has additional authenticity verification. This transparency helps consumers choose brands that prioritize their safety and satisfaction.

Disadvantages and Considerations of Using Taggants

Despite their benefits, they have some drawbacks:

1. Cost: Implementing and integrating some taggant solutions can be expensive. This is especially true for small and medium-sized enterprises. The cost of integration increases linearly with the protected product volume. This would be a significant financial burden, especially for large-scale manufacturers like pharmaceuticals or tobacco companies.
2. Integration Complexity: Some types of markings require alteration in production lines or packaging processes. This leads to added operational costs and disruptions in production. Companies might need to invest in new machinery or modify existing processes to accommodate taggant technologies.
3. Potential for Replication: Despite all your efforts, counterfeiters might still develop methods to replicate some markings. As technology advances, even covert and forensic ones can become vulnerable. For instance, counterfeiters have successfully replicated UV inks.
4. Repercussions of False Positives: This happens when a counterfeit product is mistakenly flagged as genuine. This could result in consumers thinking that the company sells fake goods, or even result in them being removed from the shelves. It could also cause potential legal issues.
5. Taggant Stock Theft: Taggants themselves can be stolen and misused. If their materials are intercepted during transit or storage, they can be used to create fake goods. This issue is particularly concerning for high-value ones, such as forensic markers.

Introducing AlpVision’s Advanced Brand Protection Solutions

AlpVision is a leading provider of cutting-edge innovative solutions, offering advanced technologies that bypass the limitations of traditional taggants. Two key technologies are AlpVision Cryptoglyph and AlpVision Fingerprint.

AlpVision Cryptoglyph: Superior Protection with Standard Ink

Cryptoglyph applies unique invisible micro-defects directly onto existing packaging, which helps in authentication. The technology uses standard printing processes. This solution triumphs over all the disadvantages of traditional strategies:

• Cost-effective: Uses standard inks and printing processes, eliminating the need for expensive special substances for markings.
• Invisible: Patterns are invisible to the naked eye, making them difficult for counterfeiters to detect and replicate.
• Easy Integration: No need for significant changes to existing production processes, making it a seamless addition to your strategies.

AlpVision Fingerprint: Invisible Protection for Physical Products

AlpVision Fingerprint utilizes manufactured goods’ inherent microscopic surface irregularities for authentication. Like the Cryptoglyph, this technology offers several benefits:

• Covert and Secure: Leverages existing product features without adding additional elements, making it secure and difficult to replicate.
• Easy to Implement: Requires minimal changes in production processes, ensuring that it can be quickly and efficiently integrated.
• Scalable Solution: Ideal for high-volume production of molded or stamped products, making it suitable for a wide range of industries and applications.

Applications of Brand Protection Solutions

AlpVision’s technology can benefit various industries and item categories, including:

• Pharmaceuticals: Ensuring the authenticity of medicines and medical devices.
• Luxury Goods: Protecting expensive goods such as watches, jewelry, pens, and fashion items from counterfeiters.
• Fast Moving Consumer Goods (FMCG): Safeguarding everyday items such as cosmetics, food, and beverages from counterfeiters.
• Automotive: Verifying the authenticity of auto parts and accessories, ensuring safety and reliability.

The versatility of Cryptoglyph and Fingerprint makes them suitable for diverse applications, offering robust security across different sectors.

The Future of Brand Protection

Advancements in technology, such as Cryptoglyph and Fingerprint, represent the future of anti-counterfeiting measures. These are cost-effective, covert, and easy to implement, providing a significant shift away from traditional taggant-based methods.

As technology advances, security for brands shouldn’t be seen as an optional expense. This can only happen with cost-effective offers that are also easily implemented.

Choosing the Right Anti-Counterfeiting Strategy

While taggants have been used for a long time, they can’t keep up with the growing sophistication of counterfeiters. What’s more, they come with limitations, including cost, complexity, and the risk of replication and theft.

AlpVision’s Cryptoglyph and Fingerprint technologies offer superior alternatives, providing advanced, cost-effective, and easily implementable solutions to protect your company.

If you’re in doubt about what type of strategy would suit your company the best, contact us today. We can tailor the best solution based on your custom needs and industry requirements to help you maintain your reputation and consumer trust.

 

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