Anti-Counterfeiting Technologies for Packaging

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Anti-Counterfeiting Technologies for Packaging Jim Reiman, Director of Sales, Brand Protection 28 September 2015

Some Facts Unauthorized products are rampant and growing Global estimates range to $700 billion annually but no one really knows Brand Owners are keenly interested in Brand Protection They often need help and guidance Counterfei*ng Diversion Tampering Adultera*on Gray Market Fakes Warranty Fraud Health Risks Diminished Equity Revenue Loss Consumer Confidence 2

Brand Protection Solutions Will safeguard consumers and brand equity Are generally selected/paid by Brand Owners Can be difficult to navigate Can be difficult to implement 3

Easier Said Than Done What to Buy? Hundreds of suppliers Many flavors of similar science and technologies False claims and vaporware 4

Many Technology Choices The vast majority are print-based Overt, Semi-Covert, Covert On Package or On/In Product Ink, Taggant, Art Design, Other Simple Authentication or Serialization Layered effects for maximum protection and deterrence 5

The Holy Grail 3 Criteria OVERT Embossed Holograms AFFORDABLE Holy Grail (Does Not Yet Exist) Taggant- Reader Systems Hidden Image Technology Photopolymer Holograms Special Effect Inks SECURE 6

Red 1030-127 Green 1022-073 Blue 1022-121 Covert Hidden Images Covert IR Taggant Inks Proprietary Covert IR Authentication Covert UV Fluorescing Inks Semi-Covert Metachromic Inks Overt Color Shifting inks Holograms/Foils Covert Forensic Authentication 7

Taggant-Reader Systems

High-Level, Covert, Machine Readable Conventional printing Offset Gravure Pad Printing Flexography Screen Wide range of ink curing systems Variable printing Continuous inkjet Drop on demand Other 9

How it Works 10

Taggant Reader Systems Lower-Level Screening Tool Green 1022-073 Red 1030-127 Blue 1022-121 Verify invisible covert feature with infrared laser or key fob device EffecQve and simple but less secure CompaQble with a variety of print processes Choose from 3 colored responses 11

How it Works Audible solid tone and green light authenticate item 12

Forensic Taggant Forensic chemical analysis for liqgaqon support No visual or performance impact Lab analysis required for authenqcaqon 13

Smart Sensor Technology

Interactive Authentication and Identification Device integrated Sensor-Taggant system for Cartridges and Refills Integrated, miniaturized footprint to fit your designs Helps protect product Quality & Safety Custom and cost effective Fraction of the cost of competing technologies SunTag Customization & Implementation Easy interface with unique code Expertise in taggants, printing, sensors & software Engineering design collaboration Smart Sensor Technology 15

Special Effect Inks

Color Shifting Inks Perceived color changes with view angle Proven overt technology protects consumers instant authenqcaqon Secure alone or as a layer coupled with taggants MulQple color shixs available 17

How it Works Vase on right appears pearlescent green or purple, depending on view angle 18

Metachromic Inks Fluorescent light Incandescent light Semi- Covert security Light source causes unambiguous color change Best when screen printed Unique and easy to see 2 for 1 color change AND Taggant- Reader signal 19

Hidden Image Technology

Hidden Image Technology High security features with customized messaging Hidden images imbedded in original artwork once easy implementaqon Simple lens reveals hidden images (opqcal) Smartphone reveals hidden images (digital) No special print processes, inks or techniques required Printed, embossed or injecqon molded

Hidden Indicia - How it Works How it Works Place Rotate decoder over 90 packaging to reveal additional design to reveal Hidden Hidden Image Image Place Rotate different decoder 90 decoder to reveal over additional inkjet patch variable to reveal content variable (Lot Number) content (Serial Number) Use transparent viewfinder Decoded Hidden template in smartphone Image in the app varnish to capture layer is image shown for decode 22

Summary Most security elements discussed are suitable for on-package and on-product solutions (regulatory exceptions) True protection requires global implementation for multinational brands Recommendations Find your strength Display your knowledge Become a valued resource 23

Jim Reiman Director of Sales +1 860-491-0042 james.reiman@sunchemical.com www.sunchemical.com/anticounterfeiting Visit Us: South Upper Hall Booth 7476 24