Ukraine, Lviv region
Market: Trade, Another, Blockchain
Stage of the project: Prototype or product is ready

Date of last change: 11.12.2017
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$ 50.000
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UATAG (unique authentication tag) — it is patented solution for product originality verification and counterfeit protection based on a two-level authentication technology:
Physical — the uniqueness of the broken glass cracks,
Digital — blockchain.
Current Status
UATAG technology was founded in 2016. It took one year to get a patent for this invention. After that, UATAG team started to work on the product development (set-up and maintain IT system, website, social media, tags prototype, market researches, promo materials preparation).

Today, UATAG applied for the international PCT patent and the team is working towards the search for the first customers, investor, and preparation for tags production.

Additionally, the team is working on obtaining a scientific confirmation of the uniqueness of the broken glass cracks, its efficiency and scientific proof that it is not possible to duplicate cracks on the glass and its visual identification.
Problem or Opportunity
Industry world-wide loses billions of dollars every year to counterfeiters. First of all, industries which find themselves in direct competition with counterfeiters suffer a direct loss in sales. Indeed, some markets are even dominated by counterfeiters, creating barriers of entry for the producers of the genuine product.

Damage from counterfeiting:

-Poor product quality
-Deterioration of the brand
-Concern for consumer safety
-Decrease in company’s revenue

Frontier Economic reports that the total global economic value of counterfeit and pirated goods worth as much as $653.77 Billion in 2016 and accounts for up to 7% of the global world trade annually. The report estimates that these costs could reach $4.2 trillion by 2022.
The worldwide losses to counterfeiting, based upon the most counterfeit products in 88 countries, calculates:

Counterfeit Toys — $34 Billion
Fake Shoes — $12 Billion
Counterfeit Clothing — $12 Billion
Counterfeit Sporting Goods — $6.5 Billion
Counterfeit Cosmetics — $3 Billion
Counterfeit Watches — $1 Billion

Big brands from various categories face the problem of counterfeiting. These are some of the most counterfeited brands at premium, super premium and ultra high end segment across the world:

-Patek Philippe
-Harry Winston
-Dolche and Gabbana

And that is just naming a few of the top brands!

Counterfeits not only costs millions of dollars and jobs to industries, but they also pose a threat to consumers who, in some cases, don’t even know they’re buying fake products. By taking advantage of the fidelity people show towards brands, counterfeiters put profit over safety and sell potentially dangerous items. We are talking about counterfeiters who produce fake cosmetics and parfumery — buying such items clearly poses a health risk.

Anti-Counterfeit packaging market size in 2016 worth as much as $299.7 Billion. And this number keeps growing. Brands find themselves in direct competition with counterfeiters, sooner or later, ponders over the solution that will protect his products from forgery.

Solution (product or service)
To protect the global market from the forgery and counterfeit we have invented and patented UATAG (unique authentication tag) - solution for product originality verification and counterfeit protection based on a two-level authentication technology:
-Physical — the uniqueness of the broken glass cracks, that play the role of product fingerprint,
-Digital — blockchain technology.

How it works

1. Each tag is photographed and entered into a database under its own serial number.
2. Then tags are packaged and delivered to the manufacturer.
3. The manufacturer attaches the tags to each product item and ships it to the stores.

The authentic origin of the product is verified by visually comparing the unique crack pattern of the product identifier with its electronic representation obtained from the database on the screen of customer's smartphone.

4. Customer scans UATAG’s QR code that is attached to the product and sees the image of this particular tag from the secure database.
5. Compares electronic reproduction of the glass pattern with the one that is attached to the product, if they match — the product is original!

Unique physical properties of the glass

The technology is based on the unique cracks in material, which becomes visible due to the destruction of material and optical refraction of light. Due to the unique physical properties of glass, the position, shape, and size of the glass cracks are completely unpredictable and non-reproducible. Glass always has internal tensions occurring in the process of glass production. When a plate of glass is mechanically damaged, the cracks that form in it will follow the vectors of the compression and stretching tensions. This allows to create a unique crack pattern, that can not be replicated. Never!
Thus, each UATAG product identifier can protect genuine product with the highest level of security.

Visual authentication

The resolution of the human eye is about 3000 dpi. For comparison, computer screens have resolutions between 72 dpi and 105 dpi. Therefore, in distinguishing small parts of the image details (the cracks), the human eye wins to scanners and other devices. So, it is easy to verify the authenticity of origin of the product without any specialized equipment or software.


Additionally, our solution is protected by the blockchain technology. It is highly protected against tampering and processing, and reliably supports a growing number of digital records. Working with blockchain, we get the most stable digital registry, reliable data synchronization and protection against substitution of data as a result of attacks.
The number of anti-counterfeiting solutions is growing as quickly as market demands. There are hundreds of companies that provide more or less effective technologies which can prove the originality of products:

• Coding technologies. High destiny 2D / Matrix barcodes and other coding technologies, including mass serialization and surface feature authentication. (Certiligo protects Versace, Moschino, Just Cavalli, Lanvin).
• Security Holographic. Devices including Holographic, Threads and Photopolymer devices. (NovaVision
• Security Incs & Coatings. Security Materials / Subsrates - Papers / Security Polarizing Films /Hiden Image Technolodgy / Digital Watermarking. (AlpVision
• Security Tags & Labels. Chemical and Molecular Coding, Nano-technologies.
Advantages or differentiators
What sets UATAG apart from among others?

• Solutions offered by competitors’ position themselves as cost-effective methods for mass-produced goods protection. We mean they sold big parties at a low price (from $0.01). We have chosen premium, super premium and ultrahigh-end segment. UATAG’s price will start from $3 to $5 per one tag and:
1) Will depend on UATAG’s material,
2) Will include maintenance of the database.

• Existing protection methods are mostly designed for manufacturers, not for buyers. They require specialized devices, mobile applications, or specific knowledge, on the basis of which, the originality can be proven.

• Unlike most anti-counterfeit technologies available on the market today, UATAG do not require any adapted devices or applications. It can be detected using a smartphone equipped with a standard QR scanner before the purchase, with a naked eye.

• Most of the technologies are really difficult to fake, but nevertheless, it's real. UATAG is 100% non-reproducible.

• Apart from its main function - protection against counterfeiting, UATAG can also play a role of a stylish product’s accessory.

UATAG gives 100% protection guarantee against product forgery and counterfeit and is designed for brand owners who care about customers that value originality.
Our goal is to take a niche at premium, super premium and ultrahigh-end segment. UATAG’s price will start from $3 to $5 per one tag and:

1) Will depend on UATAG’s material,
2) Will include maintenance of the database.
Invested in previous rounds, $
Business model
Money will be spent on
Purpose of the investment:

1. Global promo campaign (sales, marketing, advertising, professional memberships, conferences, representative cost).
2. Tags manufacturing preparation efforts.

Offer for investor
Mentors & Advisors
Lead investor
Our Challenges:

• Developing relationships with strong industry influences.
• Opening Markets.
• Cost due to scale.
• Production pipeline.

We strongly believe that our invention can revolutionize the market completely and allow the companies to protect their brand, products, and customers using our unique authentication technology.
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Patent №114778 was awarded on July 25, 2017
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Current Status
Problem or Opportunity
Solution (product or service)
Advantages or differentiators
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Mentors & Advisors
Lead investor
Incubation/Acceleration programs accomplishment
Won the competition and other awards
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