The Holography Times, October 2012, Volume 6, Issue no 19

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The Holography TimesVol. 6, Issue 19The Holography Times

October 2012 | Volume 6 | Issue 19

Endeavour to protect products and people

SECURITYHOLOGRAM

WORKSContinued to dominate the authentication space in India

Document Protection

Brand Protection

Excise Revenue ProtectionIN

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HoMAI quarterly newsletterwww.homai.org

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The Holography TimesVol. 6, Issue 19 News Bytes

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The Holography TimesVol. 6, Issue 19

Dear Readers,

Welcome to the 19th issue of The Holography Times.

Since the early 1980’s, security hologram has grown in popularity as an authentication device. Starting with the fi rst image on credit cards in 1983, its application expanded rapidly into document protection, branded goods authentication, fi scal stamps, and currency all over the world. In fact, the security hologram is now the reference device against which other security devices are compared. Globally, over 50 percent of all documents or products are protected by this technology.

In India, the usage of security hologram started in 1990-91. Today more than 10,000 brands are using it as an important authentication tool to combat counterfeiting.

This issue brings our cover story on “Security hologram works: Continued to dominate the authentication space in India”. It will update you on this technology. Apart from this, the issue also covers, industry updates including news, patents, fi nancial analysis and much more.

Do send us your feedback / critics [email protected].

With Regards, Editor

In this issue

6

12

15

Viewpoint

News Bytes 4

Industry UpdatesCompany Analysis 19

Corporate Scoreboard 20

Counterfeit Seizure Report 21

Global Patents 22

Upcoming Events 23

Security hologram works Continued to dominate the authentication space in IndiaBy C S Jeena

Interview : Shobhit Arora, Giriraj Foils

Technology: E-beam origination

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IHMA welcomes new authentication standardsThe Internation Hologram Manufacturer Association (IHMA) trade body representing the global hologram industry has welcomed the �irst international standard to provide guidance for businesses on protecting their products from counterfeits.

ISO 12931 covers ‘Performance criteria for authentication solutions used to combat counterfeiting of material goods’ and will bring signi�icant bene�its to the hologram industry, says the IHMA.

The IHMA, which was involved from an early stage in developing the standard, says ISO 12931 offers new and objective guidance for brand owners and other rights holders on how to proceed when it comes to protecting their products

from counterfeiters using security devices like holograms.

Although speci�ically not referenced, ‘holography’ or a ‘hologram’ meets the only two types of authentication solutions identi�ied by the standard - overt and covert. Ian M Lancaster, IHMA General Secretary, was a member of the ISO committee that produced ISO 12931.

He says that prior to the Standard, brand owners and other rights holders relied on authentication device providers to guide them through the requirements for the protection of their material goods, which was less than ideal.

“Now, Brand owners will be equipped with an objective guide to how to proceed, which

will encourage more to take counterfeiting seriously and look at developing effective strategies to protect against it.”

He adds that ISO 12931 will promote the use of authentication solutions, particularly encouraging the use of overt and covert solutions – functional categories which can be combined in one hologram. “The new standard is a signi�icant step forward and will bring welcome bene�its to the hologram industry. “It is now up to secure hologram suppliers to build compliance with ISO 12931 in to their marketing materials and training.”

ISO 12931 is available to download from www.iso.org/iso/home/store and will also be available from national standards agencies.Source: www.ihma.org

MILPITAS, CA; JDSU announced that it has

completed the sale of its holographic security business to OpSec Security, Inc. JDSU announced its agreement with OpSec on September 19, 2012.

JDSU is strategically focused on serving the anti-counterfeiting market primarily through advanced security pigments, thread substrates and printed features for the currency, pharmaceutical and

consumer electronic segments. The holographic security product line acquired by OpSec primarily addresses the transaction card market segment and generates revenue of approximately $5 million per quarter.

Accordingly, the revenue and

operating results from the holographic security product line for JDSU’s �iscal quarter ended September 29, 2012 will be categorized as discontinued operations, and not included in JDSU’s quarterly results from continuing operations for the quarter ended September 29, 2012 when JDSU’s operating results for the �iscal quarter are released.

Source: www.jdsu.com

JDSU completes sale of hologram business to OpSec

News Bytes

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Kerala, India: In order to check the use of plastic carry bags

and to improve the monitoring mechanism, the city Corporation of Kerala have started using hologram stickers on all plastic carry bags in Kerala.

The hologram stickers have been produced by the Centre for Development of Imaging Technology (C-DIT) for the city Corporation. According to Corporation of�icials, this is the �irst of its kind initiative in the State. Along with the project, there would be an increase in the cost of the carry bags, which would now cost anywhere above ` 8 (US 2 cents) , said Health Of�icer, D. Sreekumar.

“One of the main reasons why a lot of people have been hesitant to switch to cloth bags is that they

are under the impression that cloth bags costs more. The higher price of plastic carry bags should, however, prompt many to either reuse the bags or resort to the alternatives,” he said, adding that the scheme would make a dent in the overwhelming use of plastic carry bags.

Soon, all plastic bags would bear an emblem in gold and silver colour. The Health Department would continue with their fortnightly monitoring exercises even after the enforcement of the hologram rule to ensure that retail and wholesale dealers, including textile shops, complied with this effort to curb the use of plastic.

The Corporation had associated with the C-DIT to produce the holograms, which the dealers

could obtain from the Corporation of�ice. Health standing committee chairperson S. Pushpalatha said each hologram emblem had a serial number. “If we �ind that marks have been imprinted upon plastic carry bags of less than 40 micron thickness, it will be easier to trace the erring shop owners.” She also added that after a brief noti�ication period, strict enforcement of this rule would be followed this month.

Dr. Sreekumar said the project was being implemented at a cost of ` 27 crore* (US $ 6 million). He said around one crore(10 million) hologram stickers had been printed for single retail stores and one lakh for wholesale dealers.

Source: www.hindu.com* (1 US $ = 45 INR)

Kerala to have hologram on plastic bags

Indian drug makers are spending up to 10 per cent

of production costs on anti-counterfeiting technology, executives say. The need to tackle counterfeits has seen Indian pharmaceutical companies turn to technological solutions, with some reportedly spending 10 per cent of production costs on stopping fakes. In these extreme cases the investment is deemed worthwhile to protect a leading drug product.

“While every company’s attempt is to protect all their products from counterfeiting, most of them would at least implement such technologies and premier packaging in their top brands,” Alok Saxena, Joint Managing Director of Elder Pharma, told the Business Standard newspaper.

Examples of anti-counterfeiting technologies used by Indian �irms include colour coded caps and holograms. For instance, Glenmark

has added these to its portfolio to help patients and prescribers identify genuine products. Companies must continue to invest though, according to the report. “It is imperative that regulators and companies work together to ensure they set up systems and processes and adopt technologies that would ensure that authentic drugs reach the consumer,” said Shakti Chakraborty, Lupin Laboratories’ Group President for India.

Indian pharma �irms ramp up anti-counterfeiting spending

News Bytes

Source: www.securingpharma.com

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Security hologram worksContinued to dominate the authentication space in India

Since the early 1980’s, the security hologram has grown in popularity as an authentication device. Starting with the fi rst image on credit cards in 1983, its application expanded rapidly into document protection, branded goods authentication, fi scal stamps, and currency all over the world. In fact, the security hologram is now the reference device against which other security devices are compared. Globally, over 50 percent of all documents or products are protected by this technology.

In India, the usage of security hologram started in 1990-91 and today it has been used by more than 10,000 brands as an authentication tool to combat counterfeiting.

This article highlights how this technology introduced in India and continues to dominate the authentication space.

1990’s saw boom in the stock market post liberalisation and there was great demand for securing the share certi�icates because of the prevalance of share certi�icate frauds that were constantly being discovered.

It was the period, when few new generation entrepreuner in India started exploring business opportunity in security printing technology and started exporting this technology from USA.

Despite numerous challenges like unavailability of quality raw material in India, heavy import duty and missing critical converting technology they started delivering holograms through innovating manufacturing process and developing raw material in India.

Recollecting the memories, Mr. U K Gupta, Founder Member & Past President of HoMAI, stated, “Holography started in India in 1991. In initial phase we have various challenges as the basic information related to technology was limited to few people abroad, and they were simply exploiting our ignorance. We realised the problem

and it was in 1994-95 hologram manufacturing companies started talking to each other in trying to sort out the dif�iculties being faced in forms of technology, machine and input material. As an industry we innovate the manufacturing process, indigenously developed various machinery, raw materials in order to compete with foreign hologram manufacturers. That is the reason hologram as an industry groom in India.

Mr. Rohitt D Mistry, another Founder Member of HoMAI & CMD of Holographic Security Marking Systems, stated “We developed the �irst hot stampable hologram in India. Many companies such as Reliance, Bank of India, Bank of Baroda, Dena Bank, Llotds, and many others had their share certi�icates hot stamped on the share certi�icates, previoulsly some companies had resorted to using self adhesive holograms but they proved to be too costly due to manual application. The hot stampable hologram increased the security at much reduced costs. This was further developed for a label for a well established pharmaceutical liquid formulation “Phensedyl”.

Cover Story

“As an industry we innovate

the manufacturing process,

indigenously developed

various machinery, raw

materials in order to compete

with foreign hologram

manufacturers. That is the

reason hologram as an

industry groom in India”

- U K Gupta Founder Member &

Past President (HOMAI)CMD, Holostik India Ltd.

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Cover Story

Security hologram in document protection: Over the period brand owner’s started considering security this technology for brand protection purpose; although, the key application which gives recognition to security hologram in India was Election Photo Identity Card (EPIC). It was in 1991, when Mr. T N Seshan (Former Election Commissioner of India) introduced security hologram on voter identity card in India across the country to stop or avoid duplication.

The project becomes a landmark for Indian Hologram Industry and today, all 28 States and 7 Union Territory in India uses security hologram on voter identity card. According to Mr. Luv D Shriram, General Secretary & Treasurer (HoMAI), said “Security hologram was used in document protection because it provides the best visual authentication. Electronic authentication is not possible everywhere especially in remote areas so it generate a requirement of an instant visual authentication like a security hologram with advanced levels of security features for

authentication (One such example is Visa / MasterCard which is continuously using security hologram as overt feature since 1983).

Security hologram in excise revenue protection; landmark to industry: The second big project which take this industry to new height was the introduction of holographic excise adhesive label (HEAL) in excise sector. As revenue from liquor contribute highest revenue for State’s in India, HEAL were introduced by State Excise Department to keep an eye on revenue from liquor production in their States.

The revolution of �irst HEAL was introduced by Tamilnadu Government in 1999-2000 (supplied by Holostik India), which was followed by Uttar Pradesh in 2001 (supplied by Holostik India) & Kerala (supplied by CDIT) in 2002. Today, more than 17 States in India are using approximately 10.3 billion holographic excise adhesive labels annually (See Table 1).

“The initial

application which

gives recognition

to security

hologram in India

was its use on

Voter Identity Card

in 1991”

“Our fi rst project was with Bausch & Lomb in December 1991 the makers of famous Ray-Ban range of Sunglasses. Despite numerous challenges like unavailability of quality raw material in India, 130% import duty and missing critical converting technology we delivered on this project through innovating the manufacturing process and sourcing basic raw material from South Korea. The project was a huge success for Ray-Ban and for us”

- G S DhillonFounder member and Past President (HoMAI),

MD, Alpha Lasertek India Ltd

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Cover Story

Table 1: State and UT using security hologram on liquor with annual capacity on liquor (in 2011)

State/Union Territory Year of Introduction* Annual Volume (million)

Tamil Nadu* 1999 3000

Uttar Pradesh* 2001 1800

Delhi* 2009 360

Chattisgarh* 2005 720

Pondicherry* 2006 120

Madhya Pradesh* 2007 720

Uttrakhand* NA 120

Rajasthan* 2007 720

Punjab# 2010 500

Orissa* 2007 480

Himachal Pradesh# 2010 70

Haryana# 2010 900

Sikkim* 2010 NA

Karnataka# 2002 NA

Meghalaya* 2009 NA

Kerala# 2002 700

Andhra Pradesh** 1996 / 2012 2,640

Jammu & Kashmir* 2012 720

Chandigarh 2012 NA

* State using full polyester holographic excise adhesive label (HEAL)

** State using paper label since 1996, in process to fi nalized HEAL from 2012

# State using paper based excise adhesive label (EAL) with hologram as key component feature

NA Not Available

Security hologram in brand protection: In the late 90’s unique hologram based security aluminium foil was developed for pharmaceuitcal products, as it was and it still is a sector that is affected by duplicators and counterfeitors. Holographic Security Marking Systems developed aluminium foils and PVC used for blister packing of medicines with hologram making it the �irst application of hologram stripe on pharmaceutical product packaging in the world. In same period hologram manufacturers teamed together and Hologram Manufacturers Association of India came into existence in 1998.

The association was formed with an aim to promote holography in India and to protect consumer and brand from menace of counterfeiting.

Today, more than 10,000 brands in India are using security holographic solutions made by HoMAI members. They reached to public in various forms in various applications and they accepted it as a mark of authentication. They have been used in various forms catering almost various sectors / application in India. The �lexibility of forms in which the hologram can be delivered, on many different types of products, is huge.

According to Mr. Pradip Shroff, immediate past President of HoMAI and an expert in brand protection solutions: “Security holograms are ideal 3-in-1 solution. A security hologram can be used as one technology for all three levels of security – identi�ication, veri�ication and authentication. A Security hologram can also be incorporated in a device with other authentication technologies to develop even a more robust solution.”

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Cover Story

The each level of security hologram is designed for a speci�ic purpose. Level one feature can be Overt (Veri�ication by human eye) and can be used for identi�ication and veri�ication by consumer. Level two, covert (Veri�ication by a predetermined device or a tool) can be used by manufacturer or their channel partner for an advanced level of authentication and veri�ication. The third level is highly sophisticated and can be used by forensic experts and can be useful to law enforcement and for evidence in case of litigation.

Why hologram continue to dominate the authentication space in India? It’s almost 22 years since security holograms have been used in India. The reasons are many, but, it would not be possible without the combined effort of its industry professionals, association and its users. The reasons are many, but, mainly because;

Security hologram works at various levels: No competing technology works at so many levels (overt, covert and forensic) or combines decorative, kinetic, and bright additive color effects in one single space. (See table 2)

Continuous R&D:Hologram usage for authentication is increasing, and the technology is not standing still. Researchers are now working at the sub-micron level to produce novel, overt effects once impossible to achieve.

Development of standards: HoMAI has developed “TUV-HoMAI Hologram Safety & Security Management Systems (HSSMS)” standards along with TUV Rheinland, a �irst in the world, security and safety standards to upgrade hologram suppliers’ facilities / process. HoMAI members companies will now work with TUVR and audit their activities against these standards. This new initiative

Table 2: Comparison of some anti-counterfeiting technologies

Overt Covert Forensic Tamper Digital Easiness of Cost Effective End User Facility check

Hologram X X X X Easy Minimal Easily visual Cost recognised inspection / security reader required

Micro-printing X X Easy to check Minimal Cost Education is with proper important equipment

Taggants X X Special Moderate to Manufacturer reader high cost would need to required authenticate

Color Shifting or X X Easy visual Moderate to Easily Optical variable inspection / high cost recognised Ink reader security required

Track and Trace X Special Moderate to Manufacturer Systems reader high cost would need to (Bar Code / required authenticate RFID)

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Cover Story

has been evolved to provide an independent assessment of the security system to enable customer select the best partner in developing and supplying solutions against counterfeiting.

Regulated industry: The industry works under the strict guidelines and code of conduct of its industry body, Hologram Manufacturers’ Association of India (HoMAI). Formed in 1998, HoMAI is working on advancement of holography technology and encouraging its members to adopt best practices, standards and usage of advance technology in providing cost effective solution against counterfeiting.

Hologram image registration: HoMAI has now made arrangement with CIB London (Counterfeit Intelligence Bureau a specialized division of The international Chamber of Commerce-Commercial Crime Services) so that each HoMAI member can register their security holograms with CIB.

Educating stakeholders and consumer: (see �igure 1)In order to promote awareness and educate the end customer, hologram manufacturing companies have been adopting different methods in this regard. For example, in liquor sector date calendar are displayed at retail vendors. In these calendars

Figure 1: An example of date calender displayed at liquor vendor shops in Madhya Pradesh. The calender described overt features of hologram in an enlarged view in local language. This type of calender and posters are used to create awareness to the end consumer, so that they can distinguish between the original and fake product.

Courtesy:Holofl ex Limited

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Cover Story

overt features of hologram are described in an enlarged view in local language. This method has proved highly successful and greatly helped the end customer in distinguishing between the original and fake product effectively. Moreover from time to time, hologram manufacturing companies conduct seminars for brand owners / Government authorities to educate and impart training to their staff so they have full understanding of all the security features and effects contained within security holograms.

Security hologram enhances the value of digital technology There are new non holographic technologies now available. Each one of them provides typically one level of authentication with their own unique method. Interestingly holograms and all such technologies can work together in developing a stronger dif�icult to copy, multi tech robust authentication solution.

Mr. Manoj Kochar, President of HoMAI, said “The menace of product counterfeiting has become very widespread and it is important to take a proactive approach to tackle this menace head-on. The International Standards Organisation (ISO) has taken the lead in this direction and has recently formulated

a new standard ISO 12931 titled ‘Performance Criteria for Authentication of Material Goods’. These standards lay down the guidelines for brand owners to undertake effective protection of their brands and products. Ours is one industry that provides a multi-level security solution as proposed by these standards. While the hologram remains the foremost weapon in the armoury of brand owners, it actually complements and easily integrates with other technologies like Security printing, Track and Trace etc. Such integration provides the brand owners to select the right mix of the various technologies for adopting the optimal solution and keep the counterfeiters at bay.

The future looks goodSecurity hologram usage to �ight against the counterfeiters will increase further. Hologram industry is continuously developing new technology and new variants of features for all three levels – identi�ication, veri�ication and authentication. New developments will provide more exotic and dif�icult to stimulate optical effects. Researchers are now working at the sub-micron level to produce novel, overt effects once impossible to achieve. A multi technology device incorporating security holograms will be the most preferred solution for years to come.

“Holographic fi lm started with the idea to secure packaged products in automobile parts & tobacco industry from getting duplicated. Gradually, it became an “X-factor” in packaging of products. Innovative holographic security packaging, today, can go a long way in enhancing the visual appeal as well as secure the brand. Such innovative & creative customised holographic image with overt features integrates different packaging form for organised manufacturing industry & protects their Profi t. Holographic image integration is the future for packaging products in India.”

- R D Surana Founder member (HoMAI)

MD, Everest Holovision Ltd.

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Face to Face

THT: How was GFPL established and what are the problems faced in initial stages?

SA: GFPL was my dream project. In 1993 label manufacturers were importing stamping foil from outside India and they had to pay very high import duty. This encouraged us and we established GFPL in 1993 to produce stamping Foil in India.

Within a short span of time we were able to provide our customers good quality of raw materials at reasonable price. The availability of good quality polyester in India also played a crucial role init.From 1993 to 1998, I was approached by few holographers to do similar developments for Hologram Industry inIndia. But at that time user group were not well-established, since everyone had different speci�ications of embossing machines. We took this is as a challengeand in 1998,

started producing tamper evident �ilms for hologrammanufacturers. We continuously work on the theme “Bring us the problem, we customize the solution”

THT: Please specify, various kind of product you manufacturers for various industries / Global market?

SA: We produce:A) For Hologram

manufacturers (Domestic as well as Global)

1) Tamper & Non-tamper �ilms in silver, gold & about 25 other bold colors.

2) Stamping Foils.3) HRI (Transparent) �ilms &

foils.4) Selective release general

pattern �ilms & Customised �ilms.

5) UV viewable selective release pattern �ilms.

6) Color changing �ilms.

B) For Packaging Industry1) Stamping foil for various

Giriraj Foils Pvt Ltd (GFPL) established in 1993 as Stamping Foil Company. Later in 1998, they started producing tamper evident fi lm for hologram manufacturers in India. In a decade of its emergence, GFPL has captured three fourth of the market share of the hologram Industry in India.

From last two years the company is focusing on huge expansion and come up with an revamped new factory with an annual capacity of production 3000 tons per annum. They have recently procure a new metallizer (TOPMET) from Applied Materials, Germany, in order to fulfi l the requirement of industry globally.

THT team visited his plant and in one to one interview talks with Shobhit Arora, Managing Director (GFPL) about this expansion and future plan.

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Face to Face

applications such as paper, plastic, mouldings, textile, glass etc.

2) Metalized PET, BOPP, CPP, LDPE & HDPE.

3) Metalized PAPER.4) Films for Label stock.5) Continuous transfer �ilms

meant especially for Pharmaceutical packing.

6) Flexible laminates for surgical packing.

THT: It’s being more than 20 years in this business? Kindly share the trends and development going in foil industry globally and what you are doing to keep yourself in competition?

SA: We have observed that globally the market for normal foils is stagnant but the market for Special features within the �ilm & Customised patterns is going to increase leaps & bound. The track & trace technology is the “IN” thing & we have to be on our toes to develop, offer & maintain these new trends in our product range so as to keep growing.

New Security features (Customized patterns), track & trace technology supported by Information technology are the latest trend in the market, domestic as well as globally. We have developed selective release general & customized pattern �ilms & are looking for good business in times to come. New developments are

going on & we are hopeful to offer our clientele these new developed �ilms very shortly.

THT: You have recently come up with a new Applied Metalizer? How would it will differentiate GFPL from other security foil manufacturer?

SA: We are very much focusing on quality and customer satisfaction. With the new premises we plan to spend USD 1 million in the current �iscal on our R&D activities. In last 2 years, we have installed One 4 head coating machine & One two head customized coating machine, 2 slitting machines with web cleaning, UPS systems from AROS (Italy), Air Handling System for a total dust free manufacturing area.

GFPL is an ISO 9001:2008, certi�ied from TUV, ROHS. Our CRISIL SME rating is 1B. With an dedicated team of 100 employees with an annual production capacity of 3000 tons p.a. we believe & practice Transparency, Commitment & ful�illing Customers requirements in prede�ined manner.

This practice keeps us apart. It’s our customers business which keeps us growing & we have to ensure that business of our Customers/Patrons is bene�itted in all terms with our Customised & quality products backed up by

true professional & dependable services.

THT: Kindly share your marketing strategy and plan for next 5 years?

SA: We are focusing for the next 5 years to consolidate our position in the domestic as well as in the International market. We believe all our customers as our “Business Partners” and we are strengthening our marketing team to enhance relationship with our existing and future business partners. It will help us in provide an exceptional customer experience, but also to facilitate product improvement, new trends, and new products.

We intend to market our new products in much speci�ied market segments such as Packaging majors. We have identi�ied some new products which can go in large volume within our existing Customer group as well as few trials are going at various levels with few major International business houses engaged in Security business.

Further, we are in process to have good pacts/tie-ups with these groups to develop these high end products which can be marketed globally on pro�it sharing basis. We are looking to give a shape to this new module of business by the year end.

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IntroductionOptical technologies are currently widely used to protect banknotes, plastic cards, and brands. One of the �irst pilot projects involving the use of optical security features - holograms – was the Visa card project, which continues to use a 3D dove image. The project started more than 20 years ago, and the origination technologies of optical security elements has changed dramatically since then. Optically recorded features whose originals are synthesized using e-beam technology are in fact not holograms, but rather computer-synthesized �lat nano-optical elements.

Origination technologies play a crucial role in protecting the optical elements, because it is the stage of origination that lays down the foundation of most of the security features. In this sense, electron-beam technology holds a special place. It is a knowledge-intensive and very rare technology.

In this paper we try to answer the following question: Q: Can electron-beam origination technology be used to create security features for visual and instrument control that would be impossible to imitate using optical origination techniques?

Optical origination technologiesWe have already mentioned the possibility of optical recording of 3D and 2D/3D holograms by means of laser radiation and optical tables. This technology, which was developed over 20 years ago, has since then been

modernized and is still in use to this day. However, the so-called dot-matrix technology has become the optical origination technology of choice in the last ten years. The technology uses optical (laser) radiation to record the master hologram. The image is subdivided into circular or rectangular pixels and gratings are recorded into these pixels using interference of laser beams. Figure 1 shows a typical image pattern that can be seen through a microscope when looking at high magni�ication at a hologram originated using dot-matrix technology. Figure 2 shows a magni�ied image of optical elements originated using modern dot-matrix technology. The typical size of round pixels for dot-matrix technology is about 25 microns, which corresponds to a resolution of 1000 dpi. There have been reports about the development of dot-matrix technologies that can achieve resolutions as high

E-beam origination technology: Current state and development prospects. -by A. A. Goncharsky and S. R. DurlevichMoscow State University, Computer Holography Centre Ltd.

Figiure 1

Technology

Abstract

We compare origination

technologies of optical

security elements. Electron-

beam technology, albeit the

youngest among them, has

already moved to the fore in

origination business. Optical

security features made

using e-beam technology are

secured against fraud and

are widely used to protect

documents, banknotes, plastic

cards, and brands.

Figiure 2

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as 10000 dpi. The typical size of a rectangular pixel for modern dot-matrix technology is 8 microns. The minimum size of a dot that can be synthesized using this technology is 2 microns.

The �irst impression of Figs. 1 and 2 is that dot-matrix technology has a very limited potential as far as the generation of security features is concerned. However, this is not the case. These technologies have been progressing for over a decade and are now capable of synthesizing a large number of security features for visual inspection. These features include switch effects for 2D images, synthesis of 2D/3D and even 3D images.

As for expert control, optical security technologies make it possible to produce microtexts and even covert images that can be visualized using laser radiation and that are symmetric with respect to the zero order.

In addition to dot-matrix there are other optical technologies, such as pixelgrams, direct exposure through masks, etc. Figure 3 shows schematically the synthesis of images using this technology. By changing the position of the optical element the observer sees kinematic effects of the motion of image fragments. All the above origination technologies use optical radiation and, like dot-matrix technique, have limited capabilities in terms of the synthesis of micro-relief compared with e-beam origination technology.

Despite the abundance of various optical origination systems, the technologies of the synthesis of hologram originals can be subdivided in two groups

according to the physical nature of the radiation used. The �irst group includes dot-matrix, pixelgrams, exposure through masks, other similar techniques, which use optical radiation. The techniques of the second group use electron-beam technology to synthesize hologram originals.

Electron-beam technology has greater capabilities for the formation of micro-relief, and not only owing to its super high resolution. Optical origination methods can produce only image fragments with symmetric micro-relief. Unlike optical technologies, electron-beam technology allows creating optical elements with asymmetric micro-relief.

Electron-beam origination technology for the synthesis of optical security features.

Electron-beam technology of the formation of micro-relief was originally developed for microelectronics, where it had to constantly compete with similar optical technologies. The resolution of optical technologies is limited by the wavelength of radiation used. To increase the resolution, the technology has to move to ever shorter wavelengths – to the ultraviolet and even soft X-ray domain of electromagnetic spectrum. Electron-beam technology differs fundamentally from optical technologies because it uses electron beam, which can be very accurately focused with

electromagnetic lenses. Electron-beam lithography has a resolution of 50-100 nm (0.05-0.1 microns). Modern e-beam lithography systems for microelectronics can even achieve a resolution of 10 nm (0.01 micron), which far exceeds any requirements in tasks involving the synthesis of optical elements.

Despite the abundance of various electron-beam lithographers, electron beam origination technology can be subdivided into two groups – Gaussian beam and shaped-beam lithographs. Gaussian beam systems use electron beam shaped in a round spot area, whereas shaped-beam systems can produce images made up of variously sized rectangles. These lithographers allow exposure time to be reduced substantially and are more complex than Gaussian beam systems. Figure 4 shows the appearance of a shaped-beam lithographer.

Electron-beam lithography systems are very complex devices. The technology of the formation of micro-relief is very knowledge intensive. Modern lithographers cost several million Euros, depending on the con�iguration. The high cost of equipment and the knowledge-intensive nature is a disadvantage for most of the technologies. However, in the case of security technologies this disadvantage is offset by their very limited use and the capability to offer secure protection against counterfeiting.

Nano-opticsElectron-beam technology has stimulated the development of a new branch in optics - nanophotonics. Fresnel proposed �lat optical elements as early as two hundred years ago. An optical element is called �lat if the wavefront transformation in it occurs at micro-relief depths on the order of the wavelength. The high resolution of electron-beam Figiure 4

Technology

Figiure 3

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lithography and its capabilities in the domain of precision formation of micro-relief contributed to the breakthrough in it. New optical elements produced using electron-beam lithography have been called nano-optical elements, because their micro-relief can be made with an accuracy of a few tens of nanometers. Figures 5 and 6 show the micro-relief of optical elements made using electron-beam technology. The elements have a complex micro-relief. Micro-relief is made with an accuracy of about 10 nm. The images of nano-optical elements shown in Figs. 5 and 6 are published with the permission of the Fraunhofer Institute (Germany).

Electron beam lithography made it possible to turn a new page in the origination of security holograms. Originals made using electron-beam lithography, in

fact, have nothing to do with holography. These are computer-synthesized nano-optical elements, which are in principle impossible to imitate by means of optical origination technologies. Figure 7 shows a fragment of the micro-relief of nano-optical security element made with the e-beam lithography system of Computer Holography Centre Ltd. The accuracy of micro-relief reproduction is of about 20 nm. Optical elements made using electron beam lithography are now widely used for the synthesis of both visual security features and for instrument control. Let us now consider in more detail the opportunities offered by the electron-beam lithography for visual inspection.

Electron-beam lithography for the synthesis of visual featuresElectron-beam technology offers a wide range of features for visual inspection, which can not be simulated by means of optical hologram recording. Let us consider some of the features used in visual control:

Vertical true-color switch effectThe observer can see two different true-color images just by changing the position of the optical element. The vertical true-color switch-effect is used to protect banknotes of Sweden

(Fig. 8). This effect it is dif�icult to forge or imitate by means of optical technologies.

Switch-effect of 3D and 2D imagesWhen the optical element is in normal position the observer sees a three-dimensional image. If the element is turned by 900 a different, two-dimensional image appears instead (Fig. 9).

Switch-effect that appears when the element is turned by 1800This switch-effect is fundamentally impossible to reproduce using optical origination technologies. Images originated using optical technologies do not change when the element is turned by 1800. Electron-beam technology makes it possible to create visual features where the image turned by 1800 does not match the image at 00. This feature can be exempli�ied by Decolor-effect (Fig. 10). In the normal position the observer sees the saturated color and contrast image, which, when turned by 1800, loses its color, becomes gray and disappears.

Figiure 5

Figiure 6

Figiure 7

Figiure 9

Figiure 8

Technology

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Bas-relief

A new imaging technology, which gives the observer the impression of bas-relief, allows creating extra protection levels, such as an image that is visible in the second channel (Fig. 11).

Kinetic effect of motion. Letter-lens effect

Various kinetic motion effects are currently commonly used to protect documents. Electron-beam technology offers similar visual effects. One of them is the Letterlens effect (Fig. 12).The observer sees at a point source inside the lens, which is actually a �lat optical element, a letter or a symbol, which moves when the view angle of the optical element is changed. When the observer inclines the optical element full parallax motion effect is observed: the symbol or letter can shift both left/right and up/down directions.

Electron-beam technology for the synthesis of evidence for expert controlElectron-beam technology offers a wide range of features for expert control, which are impossible to reproduce by means of an

optical hologram origination. Let us consider some of the features used for expert control.

Nanotexts and micro-imagesThe high resolution of electron-beam technology makes it possible to produce variously sized micro- and nanotexts with letters or symbols heights up to about 4 microns (Fig. 13). Another secure feature for expert control are true-color images with the sizes of 100-200 microns (Fig. 14):

Shaped pixel technologyElectron-beam technology can be used to synthesize image made up of pixels of special shape, such as hexagons, as shown in Fig. 15. The pixel size in Fig. 15 is about 15 microns. This feature is easy to control and impossible to imitate with optical origination systems.

Covert laser readable images (CLR)CLR images have become an integral part of instrumental control. For more than a decade, the industry used the technology of the synthesis of symmetric CLR-images visualized by

laser radiation. Electron-beam technology makes it possible to asymmetric micro-reliefs. When applied to CLR-images, this technology is called Multilevel CLR-image technology. In this case, the observer sees on the screen of the device for CLR image control two different images at once (Fig. 16). The micro-relief of Multilevel CLR-images can be synthesized with an accuracy of 15 nm. Such images are impossible to forge or imitate using optical origination technologies.

ConclusionsE-beam technology offers a wide range of security features for visual and expert control and is well is protected against forgery. Mass replication of optical security features can be made with standard equipment for the reproduction of holograms.

The disadvantages of e-beam technology are its knowledge-intensive nature and the high cost of equipment. However, these disadvantages become an advantage when it comes to the production of security features. Very few companies in the world have the equipment and technology needed for e-beam, and one specializes in the production of top-level security hologram originals to order. Our customers include many Indian companies and we are always open for cooperation in the �ield of security technology.

Figiure 12

Figiure 13

Figiure 14

Figiure 15

Figiure 16

Technology

Figiure 10

Figiure 11

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Op Sec Security Group PLC, 2012

About the Company

GBP 38.29 million -1.86 million --- 278Revenue as on Mar 31, 2012 Net income in GBP Employees

Industry Security Systems & Services

LocationOpSec Security Group PLC40 Phoenix Road, CrowtherWASHINGTON NE38 0ADUnited KingdomGBR

Websitewww.opsecsecurity.com

Mergers and Acquisitions

Acquired Company Deal Status Date OSG:LSE since announced Transaction value

Delta Labelling Ltd Completed 16 April 2012 +1.10% GBP 13.7 million

JDSU Holography Unit Completed 16 October 2012 GBP 9.5 million

OpSec Security Group plc (OpSec) is an investment holding company. The Company is engaged in the supply of anti-counterfeiting technologies and services. The Company provides solutions to its customers to counterfeiting and the related problems of diversion, grey marketing, online brand abuse and fraud. The Company operates in three operating segments: American operations, the United Kingdom operations and German operations. OpSec’s customers include governments and other companies. OpSec supplies technologies and solutions into three markets: Banknote and High Security Documents, Brand Protection and ID Solutions. OpSec’s customers are served from the Company facilities in the United States, the United Kingdom, Germany, Hong Kong and through a network of over 40 agents worldwide. On May 24, 2011, the Company acquired Marohu Investments S.L.R and Advantics Corporation.

Declining revenue Year on year OpSec Security Group PLC’s revenues fell 5.13% from 40.36m to 38.29m. This along with an increase in the cost of goods sold expense has contributed to a reduction in net income from a gain of 1.36m to a loss of 1.86m

Key accomplishments 2012• Financial performance of the

Group has been impacted by the timing of certain Government orders;

• Group revenue decreased by 5% to £38.3 million:

• Major loss of sale in Bank Note and High Security Document business as sector

fell by 30% to GBP 7.0 million (2011 GBP 10.0 million)

• Brand Protection Sector recorded revenue up by 8% to GBP 27.2 million (2011: GBP 25.1 million)

• ID Solutions business decreased by 22% to GBP 4.1 million (2011:GBP 5.3 million)

• Group adjusted operating pro�its down 39% to £2.3 million;

• Acquisition of small ID business based in the Caribbean completed on 24th May 2011;

• Cash offer for the business from Investcorp closed on 31st August 2011;

• Acquisition of Delta Labelling

and new placing completed on 16th April 2012.

Future outlookThe Group will continue to make acquistions that �it its core market strategy or enhance its technology portfolio. The company new “SecureTAG”products in USA have been strong during the year as have sales to a major Eastern European Government. The company announced that it has signed a partnership agreement with Xerox to pursue opportunities in the American Tax Stamp Market. The group continues to see growth in its online monitoring business.

Source: Company / HOMAI Research / Thomson Reuters / Bloomberg / MarketsFt.com

Financial Analysis

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Industry Updates

Full Year Latest Quarter TTM

Company Name Equity FV BV RONW Sales NP CPS EPS Sales NP EPS NP Rs. Cr. % Rs. Cr. Rs. Cr. Rs. Rs. Rs. Cr. RS. RS. Var%

AMD Industries 19.17 10 58.20 5.3 176.4 5.0* 6.6 2.6 52.1 4.3 0.5 -90

Bilcare 23.54 10 405.6 10.4 752.6 74.8 47.0 31.8 181.7 7.6 27.4 -25

Cosmo Films 19.44 10 184.3 10.9 923.1 37.7* 34.1 18.6 282.8 12.2 20.3 -14

Emmbi Polymers 16.49 10 30.1 5.8 102.1 3.3 3.0 2.0 28.2 0.5 1.8 8

EsselPropack 31.32 2 42.4 7.5 496.6 49.2 4.9 3.0 134.4 11.3 3.5 47

Ester Industries 31.45 5 41.1 -5.2 699.6 -13.8 2.0 - 220.7 -1.7 - PL

Everest Kanto 21.43 2 47.4 -2.4 311.3 -12.2 1.1 - 49.7 -20.4 - PL

Flexituff Intl. 21.75 10 122.3 22.1 621.0 34.4 23.2 15.8 171.8 9.8 17.6 -

Garware Polyester 23.31 10 176.7 9.0 788.4 33.3* 31.9 14.0 194.7 0.5 5.1 -94

Hindustan Tin Works 10.40 10 85.8 14.1 246.6 5.7 9.6 5.5 90.2 3.3 5.6 -42

Jindal Poly Films 43.02 10 399.9 11.2 2364.4 188.2 63.8 43.4 593.5 28.3 37.1 -71

Kaira can 0.92 10 233.0 14.7 109.0 3.0 43.6 32.6 36.8 1.2 38.8 59

Kanpur Plastipa. 7.96 10 36.8 40.8 183.6 10.4 15.9 12.5 50.6 4.0 15.6 178

Karur KCP Pack 11.25 10 140.4 6.3 416.0 2.2* 11.6 1.9 114.5 2.6 3.6 -9

KCCL Plastic 10.53 2 1.9 - 0.7 - 0.0 - 0.1 - - PL

Manjushree Tech. 13.55 10 74.1 22.5 309.8 20.6 29.3 15.0 93.0 7.1 14.0 4

Max India 53.07 2 108.2 -0.6 747.0 -15.3 0.3 - 198.4 -0.6 - 52

Mold. TekTechnol 4.69 10 45.7 4.2 25.9 1.0* 7.6 2.0 8.2 1.2 2.5 30

Neo Corp Intern 38.02 10 35.2 18.6 284.0 16.6 5.3 4.4 87.0 4.8 4.5 4

Oricon Enter 20.51 2 44.7 2.5 50.1 11.9 1.2 1.0 13.9 2.2 1.0 33

Paper Products 12.54 2 52.0 17.1 821.3 48.4* 12.5 7.3 236.8 13.4 7.2 -8

Polyplex Corporation 31.98 10 118.6 21.8 897.2 74.9* 45.8 22.8 218.4 17.2 19.5 -8

Rollatainers 10.01 10 -55.6 - 48.9 -10.5 - - 12.5 -0.9 - 18

Sh. Rama Multi. 31.73 5 -21.5 - 72.2 0.4 1.2 0.1 18.6 -2.3 - PL

Signet Industries 29.19 10 12.0 17.3 510.0 3.9 2.9 1.3 139.1 3.4 1.4 -44

TPL Plastech 7.80 10 36.4 32.3 128.6 5.9 11.4 7.5 39.0 1.3 7.3 -17

Ufl ex 72.21 10 189.3 11.5 3078.9 152.6 37.9 20.8 834.9 41.2 22.3 -44

* Latest quarter �igure as on September 30, 2012

Note: TTM = Trailing Twelve Month, FV= Face Value, BV= Book Value, RONW= Return on Net Worth, NP= Net Pro�it, CPS = and EPS = Earning Per Share.

Source: www.capitalmarket.com

Corporate ScoreboardKey �igure of packaging companies in India

www.homai.org 21


Industry Updates

D/M/Y News Title Sector Region Reported in Media

07/07/2012 Fake cosmetics worth Rs 50 lakh seized from Pharmaceutical New Delhi Hindustan Times

Sadar Bazar, two held

13/07/2012 Five arrested, fake cosmetics seized Cosmetics Patna (Bihar) NaiDuniya

16/07/2012 Fake stamp paper: A Business in demand Financial Document Kolkatta Statesman

(West Bengal)

16/07/2012 Fake bank executive held Financial Document New Delhi Deccan Herald

16/07/2012 One held for issuing fake offer letter Document New Delhi Times of India

19/07/2012 Factory seized making Hindustan Lever, Cosmetics Kundli Punjab Kesari

Product seized worth Rs 5 crore (Haryana)

21/07/2012 Government takes note of fake health certi�icates Document UP, Punjab & Tribune

Gujarat

24/07/2012 Six held for manufacturing illicit liquor Liquor Thirukalimedu Hindu

(Tamilnadu)

25/07/2012 Fake poverty certi�icates reveal systemic failures Document New Delhi Mail Today

26/07/2012 Fake currency seized, two held Currency Mujjaffarpur Hindu

(Uttar Pradesh)

03/08/2012 DRI seized fake mobile part worth Rs 60 lakh Electronics New Delhi Political & Business Daily

06/08/2012 Hindustan Unilever fake product seized Cosmetics New Delhi Jansatta

06/08/2012 Fake notes worth Rs 10 lakh seized in virudhunagar Currency Tamilnadu New Indian Express

12/08/2012 Fake stamp paper gang arrested Financial Document New Delhi Amar Ujala

20/08/2012 Fake desi ghee seized Food Kanpur DainikJagran

(Uttar Pradesh)

21/08/2012 Conmen held for selling fake gold Jewellery Beauty Ornaments New Delhi Deccan herald

21/08/2012 Capital emerges as hub of fake note market Currency New Delhi Times of India

21/08/2012 Cops bust fake drug racket Pharmaceutical Madurai New Indian Express

(Tamilnadu)

25/08/2012 Three held for making duplicate spare parts Automotive New Delhi Deccan Herald

Component

30/08/2012 Two arrested for making fake marksheets Document Kanpur Dainik Jagran

(Uttar Pradesh)

03/09/2012 3 held for selling fake branded garments Garments New Delhi Pioneer

06/09/2012 Fake currency racket busted, 3 arrested Currency New Delhi Hindu

08/09/2012 3 held for VISA fraud Card New Delhi Statesman

12/09/2012 Fake printer cartridges found, 3 held Electronics New Delhi Times of India

13/09/2012 Man held with Rs 6 lakh fake notes Currency New Delhi Hindustan Times

16/09/2012 Fake Phone and tablet seized Electronics Chennai Hindu

(Tamilnadu)

18/09/2012 Fake Mustard oil factory seized Food Item Bareily Jansatta

(Uttar Pradesh)

19/09/2012 Fake currency seized worth Rs 1.42 lakh Currency New Delhi Dainik Jagran

Counterfeit Seizure ReportThe HOMAI counterfeit report displays all of the counterfeiting seizures reported in Indian newspaper for period July – October 2012.

For detailed, subscribe to HoMAI press monitor or e-mail at [email protected]

www.homai.org22


Industry Updates

Publication Title Int. Application Applicant / InventorDD.MM.YYYY Class Number

22.08.2012 2488920 - Hologram and Associated G03H 1/00 10768135 Du Pont / Methods of Fabrication thereof and Use Nelson Brett Ronald in Security/Authentication Applications

Brief Abstract: A hologram (and related hologram element) contains and exhibits a holographic image when illuminated and viewed on angle and with the holographic image gradually fading when viewed increasingly off angle in 1st-3rd directions. This hologram also contains and exhibits a monochrome wash surface that obscures (partially or totally) the holographic image when viewed in a 4th direction as the hologram is increasingly rotated off angle in a 4th direction through a range of angles. The hologram can be fabricated with a variety of color choices for the monochrome wash surface. The hologram is useful in security and authentication applications and is used in a method provided herein for authentication of an article

22.08.2012 2489016 - Method and Device for G07D 7/12 10782661 Hologram Ind / Checking a Secured Document Souparis Hugues

Brief Abstract: The present invention relates to a device (1) for checking a secured object (10) provided with at least one security element (11) for generating sequential or dynamic optical effects according to the orientation thereof and/or the movements applied thereto, comprising a display screen (2), a position and/or motion sensor (3) and a means for generating and displaying on the screen (2) a simulation (4) of the nominal security element associated with the secured object (10), the display depending on the orientation of the device (1) as determined by the position and/or motion sensor (3), so as to be able to compare the security element (11) of the object (10) to be checked and the simulation (4) according to the respective orientations or movements thereof. The present invention also relates to a method for checking the secured object (10) by means of such a device (1).

02.08.2012 WO/2012/100466 - Anti-Counterfeit G09F 3/00 PCT/CN2011/073244 YANG, Chaoyin Method and Product Thereof

Brief Abstract: An anti-counterfeit method and product thereof is provided. The method is putting a banknote in the product packaging. The banknote has a unique serial number and the unique serial number is published by mediums and so on. The invention uses the banknote with a unique serial number, banknote photo or banknote hologram as an anti-counterfeit label, and compares the unique serial number of the banknote with a published serial number to identify genuine or fake goods. The method is low cost, effectively anti-counterfeit, and suitable for a variety of anti-counterfeit products.

19.07.2012 WO/2012/095803 - New Fluorescent C07D PCT/IB2012/050142 BASF SE / Compounds 265/22 Eberius, Karin

Brief Abstract: Disclosed are �luorescent compounds with large Stokes-shift and a process for their preparation. More particularly, disclosed are �luorescent compounds that are colourless. The compounds can be used in compositions for inks, paints and plastics, especially in a wide variety of printing systems and are particularly well-suited for security applications.

For more visit at www.wipo.int/patentscope/search

Global Patents - Authentication

www.homai.org 23


Industry Updates

Upcoming Events

Date Event Name / Place / Website

28-30 Oct, 2012 Holopack-Holoprint Vienna, Austria, www.holopack-holoprint.com

28-31 Oct, 2012 Pack Expo Chicago, USA

29 Oct - Nov 1, 2012 Label Expo India 2012 New Delhi, India, www.labelexpo-india.com

6-8 Nov, 2012 Cartes 2012 Paris, France, www.cartes.com

27-30 November 2012, Pharma Anti-Counterfeiting & Brand Protection Asia Singapore, www.pharmabrandprotection-asia.com

27-29 Nov 2012 Global Forum on Pharmaceutical Anti-Counterfeiting Washington DC, USA, www.pharma-anticounterfeiting.com

07-10 Dec 2012 Pack Plus 2012 Greater Noida, India, www.packplus.in

10-13 Dec 2012 Bank Note 2012 Washington DC, USA, www.banknoteconference.com

28-31 Jan, 2013 IndiaPack Mumbai, India, www.iip-in.com

27-28 Mar, 2013 Cartes Asia 2013 Hong Kong, www.cartes-asia.com

21-23 May, 2013 SDW 2013 London, UK, www.sdw2012.com

Published by:Hologram Manufacturer Association of India

(HoMAI)

Issue Editor:C S Jeena

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audience related to Holography in Indian and World.

The editorial team welcomes your news, contributions and comments. Please send your product updates, press releases, conference announcements or other

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Cover: Cover graphics show features of hologram technology.

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The Holography Times, October 2012, Volume 6, Issue no 19

Technology

Transcript of The Holography Times, October 2012, Volume 6, Issue no 19