HID Global Fights Counterfeiting via the Internet of Things

Brazil loses US$34.2 billion annually due to counterfeit products, according to the National Forum Against Piracy and Illegality.
Published: December 5, 2018

HID Global, a provider of identity solutions, has expanded the capabilities of its HID Trusted Tag platform to meet the demand for brand-protection solutions. The system, based on the Internet of Things (IoT), increases the level of verification and authentication of products at the points of production, distribution and sale, ensuring greater safety for consumers and reducing the risks of piracy and trademark counterfeiting.

Counterfeiting and piracy, major bottlenecks facing the growth of Brazilian industry, are advancing exponentially. Such problems harm the consumer experience, while generating enormous losses for companies. According to Brazil’s National Forum Against Piracy and Illegality, the nation loses 130 billion Brazilian real (US$34.2 billion) ever year due to product smuggling.

Edson Yano

In addition to being a tool to combat illegal product copying, the HID Trusted Tag platform also facilitates a one-touch authentication process on smartphones or tablets, powered by Near Field Communication (NFC) technology embedded in a cloud-based authentication platform. Trusted Tag services combine authentication in the HID cloud with its NFC tags, which can accommodate multiple form factors and sizes of products that require brand authentication.

HID’s NFC tags can be inserted into each product during the manufacturing process, and can be easily read via an NFC smartphone (Android or iOS v11). The advanced encryption capabilities of built-in tags make cloning or copying impossible, HID claims, while its cloud-based services enable brand authentication to ensure privacy and consumer interaction in a closed, trusted environment.

These features provide a more seamless authentication experience using a solution that makes IoT applications more efficient and dynamic, according to Edson Yano, HID Global’s sales manager for Latin America. “As a pioneer of brand protection,” he says, “HID is able to drive mass adoption of brand-protection services to prevent consumers from being misled by counterfeit goods. Our goal goes beyond adding confidence to the supply chain. We want to open a secure channel for a customer loyalty strategy. “

Several large companies have begun to adopt RFID and other technologies to deal with the advancement of counterfeiting. In the United States, for example, Blue Bite has launched an authentication package that utilizes HID Trusted Tag services for major European brands, in partnership with Italian company Temera.

“Trademarks are embracing the authentication of their products to protect themselves against the negative effects of counterfeiting,” says Mikhail Damiani, Blue Bite’s CEO. “We have developed a highly secure and scalable authentication solution that uses NFC technology to help brands and customers cope with a growing problem every day.”

One of HID Global’s partners is Skute, a U.K.-based company that specializes in helping brands engage with their customers. Skute is using the HID Trusted Tag platform to leverage personalized, real-time experiences so as to increase engagement.

“Our platform is changing the relationship with customers,” says Dan Lewis, Skute’s CEO, “by offering them secure, authentic and direct access to their favorite artists, athletes, teams and brands, in order to promote unique, direct marketing experiences.” This exclusivity is focused on the younger market, especially in the games, toys and music segments. “Skute gives parents the peace of mind that their kids can safely get involved in multiple channels with an IoT ecosystem.”