UATAG (unique authentication tag) – a solution for product originality verification and counterfeit protection based on a two-level authentication technology: Physical — the uniqueness of the broken glass shards; Digital — based on the blockchain ledger and data records.
Current development stage of the innovation: up-to-day we have developed a mechanism of creating cracks in the glass, patented the method and device in Ukraine (№114778, July 2017) and applied for a PCT patent (application PCT/UA2017/000082, September 14, 2017). Besides, recently we have created first prototypes of tags and few designs of finishing for tags (aluminum and plastic). Today, UATAG team is working towards the search for the first customers, investor, and preparation for tags production.
Anti-Counterfeit packaging market size in 2016 was worth as much as $299.7 Billion (World Bank, WHO, Interpol, ICC). It is expected to witness growth over 10% from 2016 to 2025 on account of: • growing number of counterfeiters and counterfeit products due to the globalization and technology development. • increasing concerns regarding the dilution of brand identity by the leading manufacturers across the globe. • rising consumer awareness regarding the harmful effects of the usage of counterfeit products.
Problem or Opportunity
Industry worldwide 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 to entry for the producers of the genuine product.
Damage from counterfeiting:
-Poor product quality -Deterioration of the brand -Concern for consumer safety -The 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, calculate:
Big brands from various categories face the problem of counterfeiting. These are some of the most counterfeited brands at a premium, super premium and ultra high-end segment across the world:
-Burberry -Patek Philippe -Harry Winston -Ray-Ban -Dolce and Gabbana -Prada -Cartier -Montblanc
And that is just naming a few of the top brands!
Counterfeits not only cost 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 perfumery — buying such items clearly poses a health risk.
Anti-Counterfeit packaging market size in 2016 was worth as much as $299.7 Billion (World Bank, WHO, Interpol, ICC). It is expected to witness growth over 10% from 2016 to 2025 on account of: • growing number of counterfeiters and counterfeit products due to the globalization and technology development. • increasing concerns regarding the dilution of a brand identity by the leading manufacturers across the globe. • rising consumer awareness regarding the harmful effects of the usage of counterfeit products.
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.
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 http://brands.certilogo.com protects Versace, Moschino, Just Cavalli, Lanvin). • Security Holographic. Devices including Holographic, Threads and Photopolymer devices. (NovaVision http://www.novavision.com). • Security Incs & Coatings. Security Materials / Subsrates - Papers / Security Polarizing Films /Hiden Image Technolodgy / Digital Watermarking. (AlpVision http://www.alpvision.com). • 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.
The revenue model is simple; UATAG makes money by selling the tags. Customers (large multinationals whose products are often counterfeit) order the tags in volumes. We are planning to sell the tags at $2.00 per tag with the cost of production of $0.30 and declining with the rise in the production quantities. According to our very conservative calculations in one year UATAG should be partnering with 60 big companies and over 500K tags will be attached to the products. Our main target are the products with the price tag of $200 and up per unit. The price of the tag should not exceed 1% of the sale price of that product.
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.
• 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.