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Protect Your Brand -- Right Partner, Right Solution, Right Time Whitepaper What You Need to Know When Selecting and Working with a Brand Protection Authentication Partner www.authentix.com

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Protect Your Brand -- Right Partner, Right Solution, Right Time

Whitepaper

What You Need to Know When Selecting and Working with a Brand Protection Authentication Partner

www.authentix.com

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[email protected] | Copyright © 2019. Authentix, Inc. All rights reserved.

Selecting the Right Authentication Partner

The implementation and purchase of brand protection and anti-counterfeiting technology solutions differs greatly from the purchase of common commodities and requires a change in mindset for those involved. A successful brand protection program will always include: i) purchasing both technology and services as an integrated system, and ii) customization of the solution to best suit your needs and situation. For this article, let’s assume you’ve already detected a counterfeiting or diversion problem, assessed the reality of those occurrences as high risk but you want to quantify and better understand the problem and are determined to deploy a physical brand protection (or authentication) technology as a countermeasure. The next important step is to formulate a brand protection strategy.

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[email protected] | Copyright © 2019. Authentix, Inc. All rights reserved.

Selecting the Right Authentication Partner

Whether new to brand protection or a seasoned professional, here are some general guidelines to consider when selecting and working with a Brand Protection Authentication Partner.

1. The solution must respond to the threats the customer is facing. The Brand Protection Authentication Partner must have a comprehensive understanding of the types of product compromise encountered in the brand’s markets and the specific threats occurring (e.g., counterfeiting, smuggling across borders, tampering, theft, diversion/grey marketing, look-alikes/mimics or re-filling).

2. The security and brand protection solution should consider where and how the product will be

authenticated or tracked. The solutions will vary depending on whether a feature is checked by the public, a pharmacist, a customs agent, an investigative team, or as part of a digital online web-based system. Also, the technology should be capable of being implemented within the confines of the existing manufacturing process or with minimal impact on the existing product delivery structure in place. Most brand security technologies can be broadly categorized as follows:

a. Overt security (holograms, specialty inks) b. Covert security (ultraviolet (UV) or infrared (IR) emitting or absorbing particle-based inks) c. Forensic security (molecular markers) d. Digital security (this requires a digital collection technique and encompasses smartphones, track

and trace, and usually internet-based access to an application)

3. A multi-layered approach typically provides the best security. This means that a product, package or label may have one or more security features included:

a. Overt feature, such as a hologram or a specialty ink that enables the public or a trained inspector to quickly authenticate the product without special devices or aids.

b. Covert features, such as a UV or IR emitting or absorbing ink, that will allow inspectors to carry out a more in-depth examination including proprietary, machine readable features.

c. Forensic features such as indelible molecular markers may also be included (these do not necessarily add a great deal of expense and provide indisputable legal evidence when needed).

4. Durable solution that lasts throughout the product life cycle. Tracking for authentication is only useful if

supported by an appropriate inspection and field sampling protocol, which provides the insights needed to monitor the supply chain and act accordingly. Using a technology that has a very long shelf life can enhance the solution’s usability including monitoring expiration dates and returns.

5. Determine the level of security required to mitigate the counterfeiting risk. Determining the level of

security required, whether it be high, medium or low, requires a thorough assessment of the risk facing the brand owner, the nature of product distribution, partners in the supply chain, and the goals for the branded product(s).

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6. Technology training for key stakeholders. If the solution under consideration involves proprietary

equipment such as detectors, viewers, or readers, the Brand Authentication Partner should be willing to demonstrate, train, and allow the client to experience using these devices and how to interpret the results or data generated. If there is software involved, this should also be demonstrated and in some cases where a mobile application is involved, provided a ‘sample instance’ on a limited trial basis.

7. Ability to customize the solution. Off-the-shelf solutions are typically not as secure as something

customized to fit the at-risk product. High-security solutions need to be customized and formulated with a thorough knowledge of product volume and issue complexity. Pricing (as a proposal) should only follow a full assessment of the clients’ needs.

8. Print trials and support are essential. Prior to purchase of any authentication technology, it is important

to conduct a print trial with the provider. Insist that your contract includes help with installation and after-sales services. Doing it right on the front side for the long haul means the development of a long-term, mutually beneficial and sustainable partnership. Regular meetings should be held between the brand-owning client and the Brand Protection Authentication Partner to monitor progress, address any issues that arise, and modify the program when necessary as conditions change. These meetings may or may not include other firms in the delivery process such as printing and packaging companies. Your product and the inclusion of other parties in the process will depend on the manufacturing, packaging, printing, and delivery partners involved. The Brand Protection Authentication Partner should also have an upgrade or alternative technology pathway available in the event a future compromise of security is suspected.

9. Training. The Brand Protection Authentication Partner technical and commercial team involved in the

brand protection process should have the appropriate level of expertise required to authoritatively advise on the features of their technology and its implementation to your product. In addition, the technology supplier should be stable, reliable, referenceable, and knowledgeable of your market. In the case of a global brand, the Brand Protection Authentication Partner should also have “global reach” and experience. This includes the delivery, servicing, technical support, and customs/regulatory expertise to deal with regional and country-based compliance issues.

10. Confidentiality is of major importance. In the brand protection and anti-counterfeiting industry, all

customer and product information, samples, features deployed, and any other information about your brand protection program should remain confidential. If a Brand Protection Authentication Partner asks you for authorization to publicly release any of the above information such as client names, product names, methods of security deployment, etc. – you must strongly consider whether you want that information being published. In some cases, showing that you are being proactive can be positive but in other cases, even small product compromise issues can be interpreted incorrectly by some. In the event Brand Protection Authentication Partner wishes to publish a generic case study that leaves out customer names, product names, and other specific information, this is often an easier way to accomplish the task so long as the customer reviews and approves such information prior to its release.

11. Printer certification. All manufacturing of security materials need to be produced in a secure facility under

full chain of custody. A security audit is the best way to determine this. The brand owner must be confident that appropriate physical security and auditing procedures are maintained in the Brand Protection Authentication Partner’s facility. It is important to only work with a partner that has quality accreditations that are appropriate for the subject matter and technologies involved.

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12. Be prepared to provide answers to key application/technical questions. These will vary based on the

type of application and your firm's program goals. By way of example, for a “taggant reader application,”

13. The Brand Protection Authentication Partner would need the following information:

a. Overall Program Needs: the goals and a description of who will, in the end, be doing the evaluations, such as security teams, customs, consumers, etc.

b. Printing Methods: the printing process (offset, flexo, inkjet) used by your printers and packaging converters

c. Curing Parameters: used and provided by those converters d. Specifications: for gloss, adhesion, regulatory, substrate e. Commercial information: volume, number of converters involved (which can range from one to

50+) f. Trialing Needs: how much material will be initially needed? where to ship? when required?

14. Beware of single platform technology companies and start-ups. While emerging technologies can be

alluring and interesting to see, most companies pushing a single platform technology should be looked at very closely – as one size rarely fits all situations. In some cases, these companies are either trying to commercialize or have just recently done so using early adopters at specially induced pricing. It is important to complete due diligence to see if these companies have the viability to support the provided technology long term. Questions to consider in this situation are:

a. Do they have a full implementation team? b. Can they manufacture at scale and supply the volumes needed now and in the future? c. Do they have global reach in terms of deployment and delivery? d. Are they financially capable of delivering (check to see if the company is public or inquire as to

the financial solvency by getting a recent balance sheet). e. Do they have redundancy and contingency plans? f. Are they accredited under the needed quality programs? g. Do they have product liability insurance? If they indemnify your company, can they back it up if

something goes wrong? h. Is the IP behind the technology licensed from a third party or their own? Is the IP currently in

dispute with a third party?

All these risks should be analyzed so your newly deployed authentication solution doesn’t fall short post deployment and you don’t become part of a legal proceeding down the road.

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[email protected] | Copyright © 2019. Authentix, Inc. All rights reserved.

Summary Finding the brand protection solutions and Brand Protection Authentication Partner best suited to your challenges is worthy of an in-depth search. Don’t be surprised if your first contact does not have all the information you may be looking for and may require a technical or field specialist in a secondary meeting. An effective brand protection collaboration between brand owners and your Authentication Partner is based on the understanding of the role each can play and the skill sets, experience, resources, and expectations each brings to the table. As in all things, the now-famous adage “Trust but Verify” holds when working with an Authentication Partner. However, do not underestimate the value these firms can provide. Depending on their size, with chemists, physicists, programmers, technical service personnel, and regulatory experts working for you, your brands benefit from years of experience that can be utilized to customize a high security program that best suits your needs, minimize implementation risks and provides ongoing reliable service—often at little to no additional cost above standard offerings from single platform technologies. In addition, unfortunately, the benefits of seeking an external supplier and related expertise are often discounted since some customers believe no one can have a better or unique insight into their industries than they can. While this will always be the case, remember that many Brand Protection Authentication Partners have years of experience supplying authentication solutions for many other companies in multiple industries and can also provide you with unique insight that is transferrable. This is especially true with companies just starting out and haven’t developed a large, internal infrastructure of resources to combat product compromise. Staying ahead of counterfeiters requires the right tools, strategies, and access to a range of available options. Selecting the best Brand Protection Authentication Partner for your needs is a combination of many key decision points. Make sure to have a range of considerations and remember there are many variables here, but in the end, technology alone is only a part of the total solution.

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[email protected] | Copyright © 2019. Authentix, Inc. All rights reserved.

Is your company in need of a fresh perspective on

how to protect your complex supply and distribution chain?

If so, we can help. Contact us at

[email protected]

UNITED STATES (Corporate) 4355 Excel Parkway

Suite 100 Addison, TX 75001

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ABOUT AUTHENTIX As the authority in authentication solutions, Authentix helps customers thrive in supply and distribution chain complexity. We provide advanced authentication solutions for governments, central banks and commercial products, ensuring local economies grow, banknote security remains intact and commercial products have robust market opportunities. Our partnership approach and proven sector expertise inspires proactive innovation, helping customers mitigate risks to promote revenue growth and gain competitive advantage.

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