RFID Technology & Smart Labels

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Zebra Technologies Corporation RFID Technology & Smart Labels Application White-paper September 14, 1999 All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 1

Zebra Technologies Corporation Smart Labels: The Next Generation of AIDC Zebra s strategy is to create innovative products that serve the needs of current and future customers by leveraging our core competencies. To do this, Zebra is committed to being worldclass at conceiving new and innovative products that deliver value, such as printer/encoders. Bar coding is well established as an automatic identification and data capture (AIDC) technology. However, once printed, bar code labels cannot be changed and must be in the line of sight of the scanner to be read. To complement the limitations of traditional bar coding, enter the new generation of "smart labels" equipped with RFID technology. It is smart due to the added capability of an integrated circuit embedded in the label which can contain digital memory that can be programmed or re-programmed using radio signals. Smart labels offer several benefits over traditional, static, bar code labels in applications where scanning and reading efficiencies are valued and where it is not possible to achieve line of sight between the labels and the scanner. Additionally, RFID technology permits the scanning of transponder data through containers and packaging. Also unlike a static bar code label, users can alter the data in an RFID transponder any time during the label s life. For example, during sortation, users can redirect a package or pallet, on the fly, by locating and changing the data in the attached RFID transponder. Embedding an RFID transponder within a consumable label, ticket or tag, and encoding the data within it by radio during label printing adds a new dimension to AIDC technology and is in parallel with one of Zebra s core competencies - bar code label printing. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 2

Zebra Technologies Corporation What is RFID? RFID denotes Radio-Frequency Identification. Radio Frequency Identification Technology provides a quick, flexible and reliable way to electronically detect, track and control a variety of items. Transponder (Tag) How Does It Work? Reader/ Antenna (Interrogator) Computer RFID systems use radio transmissions to send energy to a transponder (or RFID Tag) which in turn emits a unique identification code back to a data collection reader (or Interrogator) linked to an information management system. RFID systems effectively utilize two separate antennas - one on the transponder, and one on the reader - to accomplish the task of data transfer by radio signals back to the data management system. The data collected from the transponder can be sent either directly to a host computer through standard interfaces, or it can be stored in a portable reader and up-loaded later to a computer for data processing. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 3

RFID Transponder Types & Functionality An RFID transponder is a combination of a radio and data memory on an integrated circuit chip attached to an antenna. Transponders have varying read and write functionality, power sources and operating frequencies that govern their performance capability. Transponder Functional Types include: 1. Read Only (R/O): consisting of factory programmed memory with permanently stored information, such as a unique serial number. This can be read multiple times. 2. Write Once Read Many (WORM): consisting of user-programmable memory with multiple read capability but can only be written to once, and 3. Read/Write (R/W): consisting of user-programmable memory with multiple read and write capability. Transponder Power Sources include: 2. Active Transponder- which are equipped with a battery power source with a finite life span. They cost more than passive transponders, but have the benefit of a greater range of signal transmission. 3. Passive Transponder- by comparison, are powered solely by the RF energy emitted from the reader or interrogator. They are smaller, lighter and less expensive than active transponders and have virtually an unlimited life span. Their range of signal transmission is also shorter, limited by the RF energy from the reader available to power up the transponder. Transponder Operating Frequencies include: 1. Low Frequency operate at 125kHz with typically a 4 (10cm) read range. 2. High Frequency operate at 13.56MHz with a 1 3 ft (0.3 1m) read range. 3. Ultra High Frequency operate within the range of 433-915MHz and 2.45GHz with a typical 3 10ft (1 3m) read range under US FCC regulations. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 4

There are multiple types of transponders and many different uses. The following is a partial matrix of potential applications versus frequency and read/write capability. Note that there are multiple sources of transponders in nearly every square. Frequency 125 khz 13.56 MHz 900 MHz 10 cm (4 ) read range 1m (3 ) read range 3m (10 ) read range Transponder Type Read Only (R/O) Pet implants Libraries Libraries (Serialized transpondersfarm animals Farm Animals Wildlife tracking or factory programmed)auto immobilizers Gasoline dispensing Write Once (WORM) POS retail Supply chain tracking Pallets and reusable plastic (Including EAS Rental equipment POS retail including EAS Containers function as appr.) Hazardous waste drums Blood bags Toll collection Petrochemicals Parking control Paper & cloth bulk rolls Utility meters Access control Controlled drugs tracking Patient identification Wildlife tracking Security cards & badges Airline baggage tags Garment & uniform rentalpostal bulk containers Document/file tracking Document security Capital asset labeling Personnel tracking WIP tracking Access control Airline baggage tags Trade show badges Air cargo tracking Parcel tracking Transportation passes Read/Write (R/W) POS retail, including POS retail, including Airline cargo tracking price mgmt and post-sale price mgmt and post-sale with dynamic rerouting warranty tracking warranty tracking Libraries (book, film, tape, Chemical drums Parcel tracking CD, X-ray film and legal including partial use including rerouting medical & insurance files) tracking Libraries (book, film, includes post check out and tape, CD, X-ray film usage tracking and legal medical & insurance files) As can be seen above, at the heart of the market are the 13.56 MHz and 900 MHz WORM and read/write transponders. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 5

How & Why is It Used? The primary benefit of an RFID based AIDC system is that it provides a wireless link that automatically connects people and objects with a variety of powerful information systems that speed commerce, track and protect property and promote overall end-user convenience. Applications for RFID are continually expanding. Some common examples of RFID systems in abundant use today are: Toll-way Pass Systems more and more states are adapting these systems, whereby, a battery operated (active) transponder emits an RF signal directly from your vehicle as you approach the toll-way gate. The RF signal is then intercepted by a reader antenna near the gate enabling you to pass through the toll-way without stopping. Your account is also, simultaneously, debited in the amount of the toll charge, all in a matter of seconds, making your commute more convenient and seamless. Automatic Retail Refueling Systems a prime example of this form of RFID technology is a gasoline retailer promoting a SpeedPass. The pass can be either a specialized (passive) transponder attached to your key ring or a battery-powered active transponder attached to your car window. Both emit an RF signal to a reader in the pump. The pass contains a unique identification code that identifies your charge account and cannot be duplicated or tampered with. The pump is then activated and automatically debits your gas purchase from your credit card account, promoting quicker service while maintaining complete account number confidentiality. Access Control Systems are yet another popular RFID technology used to promote employee safety and security of corporate property. RFID transponders embedded in employee personnel ID tags provide hands-free access to secured buildings and a tamperproof form of identification ensuring that only authorized personnel are admitted. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 6

RFID & Zebra RFID technology adds an entirely new dimension and dynamic to the realm of automatic identification, which today is dominated by traditional bar code labeling. Consider the following shipping and receiving application scenario: A pallet is labeled with a bar coded receiving label to track and identify it for the recipient at its point of destination. Once in Receiving, the label is scanned using a line-of-site scanner. (Line-of-site implying that the bar code label must be within view of the scanner for it to be able to read and decode the bar codes appearing on the receiving label). The line-ofsite scanner further enables the content of the shipment and the total quantity received to be recorded and uploaded via a portable data terminal (PDT) to the company s mainframe computer system for inventory tracking. The shipment is then split with a portion of the pallet contents being re-packaged in preparation for shipment to a customer with the remaining portion being stocked into inventory. New bar code labels must be generated for both the customer shipment portion as well as the portion of the pallet to be stocked in inventory to maintain item traceability. In this traditional bar code label example, the information on the labels is static, with definitive life spans, each being created for specific, one-time usage within the constraints of their specific applications e.g. a shipping label versus inventory tracking label. The data contained on each label is not alterable unless it is reprinted. Furthermore, traditional bar coding is limited to sequential (one object at a time), lineof-site scanning and environmental conditions (such as solvents, dirt and smudges) which can reduce overall bar code print quality and inhibit scanner read rate reliability. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 7

Transponder Antenna Silicon Chip Transponder To complement the limitations of traditional bar coding, enter the new generation of smart labels using transponders from manufacturers such as Texas Instruments and Philips Semiconductors equipped with RFID technology. This new generation of smart label, ticket or tag utilizes an ultra-thin, battery free, passive transponder designed to be easily laminated between varying size, layers of paper or plastic. It is a smart label due to the read/write capability of the silicon chip embedded in the transponder which can be programmed or reprogrammed on-the-fly, as needed, enabling the same label to be re-used to serve multiple needs in a given application. Hence, the label is no longer static in nature, like a bar code label but rather dynamic in its performance capability when equipped with RFID. Smart label RFID systems, furthermore, overcome many of the limitations of traditional automatic bar code data capture systems in that they: Provide error-free, wireless data transmission that is battery-free and maintenance-free; Do not require the use of line-of-site scanners for operation; Allow stored data to be altered during sortation or to capture workflow process information; Work effectively even in harsh environments with excessive dirt, dust, moisture or temperature extremes; and Offer excellent read ranges, for unparalleled accuracy, and exceptional value and quality. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 8

How Does RFID Fit with Zebra s Bar code Print Technology? Smart labels provide a reliable, cost-effective and accurate means of automatically conveying variable, discrete information about an object. Embedding an RFID transponder within a consumable label, ticket or tag provides an inexpensive way to implement this new AIDC technology in parallel with one of Zebra s core competencies - bar code label printing. The R-140 is Zebra s first RFID smart label printer/encoder capable of printing and encoding smart labels embedded with 13.56MHz RFID transponders in a single pass. Based on the 140XiII, the most popular thermal transfer bar code printer in Zebra s Xi Series, the R-140 offers many of the same rugged construction and standard feature capabilities as the 140XiII designed to make smart label encoding as easy as traditional bar code labeling. In addition, our ZPL II Programming Language has been enhanced to include RFID extensions allowing users to format the transponder data just as they would the data for a bar code label. The R-140 also has the ability to verify encoded information prior to printing to ensure that the label can be voided in the rare occurrence that the transponder malfunctions. Though applications for RFID technology, presently, tend to be more costly and specialized in nature and not as widely accepted as traditional bar coding methods, it has the future potential to greatly expand our traditional labeling applications in many exciting and innovative new ways. By partnering with RFID technology companies and smart label suppliers, Zebra has positioned itself at the forefront of AIDC technology offering the latest in product innovation to meet the developing needs of this unique, growing market. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 9

1. Why RFID and Smart Labels? RFID technology in the form of smart labels, tickets and tags expand the capabilities and life span of traditional bar code label from one-time, static use to multiple, dynamic uses that improve customer efficiency and versatility. Frequently Asked Questions 2. Will RFID replace bar coding? NO RFID will co-exist and complement our traditional bar coding methods. As it is a new and emerging technology, its acceptance and compliance infrastructure are not as established as that of traditional bar coding and will need sufficient time to become more widely acknowledged and used. Increased acceptance will likely occur slowly as applications for RFID become more prevalent and economical for more companies to implement. Also, at this time, the typical cost of a smart label is between $1 - $2 versus $.03 - $.10 for a bar code label. 3. When would I use RFID over bar coding? The benefits of traditional bar coding are adequate for many users with fixed data labeling applications. RFID, however, expands the capabilities of traditional bar coding with its read/write and scanning capability outside the realm of direct line-of-site. Deciding when to use RFID over a traditional bar code label is entirely dependent on the application and the calculated value of the functions provided by it. 4. Is RFID cost-effective to implement? YES & NO Depending on a user s application, RFID may be a feasible solution to consider, especially if it adds substantial value over a traditional bar coding application. The initial implementation cost for RFID may be higher, but so long as the overall benefit and return on investment (ROI) of the RFID system incrementally outweighs these costs than its implementation may well be justified. 5. How will RFID affect print speed? Printing to an RFID transponder using a Zebra printer is possible on the R-140 due to the RFID extensions that have been added to Zebra s Programming Language. Since the RFID transponder is encoded and verified prior to printing, total time to print is slower than on a traditional bar code label, but print speeds are still well within the range of 4-6 ips used in a great majority of print applications. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 10

6. How long is the life of an RFID transponder? The life of a passive transponder is unlimited compared to that of an active transponder where the longevity is dependent on the life of the battery in its active power source. Frequently Asked Questions 7. How many times can I write new data to an RFID transponder? Different chips on the market have different write capabilities based on the specifications of the manufacturer. Some transponder memories can be written to an unlimited number of times or incrementally until the memory is full, while others can be re-written at will, effectively replacing the old data with new information. 8. Can the transponder chip become damaged by passing through the printer, or hurt the printhead? Zebra s preliminary print testing using properly-designed Texas Instruments and Philips Semiconductor based transponders has shown no significant damage being incurred to either the printhead or the transponder when it passes under the printhead. 9. Does the transponder chip impact print quality? YES, it can. The printing of bar codes directly over the transponder is not recommended as its uneven surface can effect print quality. However, you can print directly over the antenna with a slight modification to the darkness setting. 10. Will Zebra manufacture the smart labels for the R-140? NO. Zebra will partner with transponder and label manufacturers who specialize in the manufacture of smart labels to ensure transponder integrity and quality manufacture. 11. How does RFID read/write distance vary? RFID read/write distance is dependent upon numerous variables, including but not limited to transponder type antenna size, signal frequency and environmental issues such as humidity and rain. 12. How durable is a smart label? Smart labels are very durable since they are designed to work in harsh environments grease, dirt etc. However, as with any paper label, it has limitations. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 11

Frequently Asked Questions 13. Can RFID be read through metal? Generally NO. Smart labels using 13.56MHz transponders are blocked by metal objects or when placed within metal containers. However, low frequency transponders, specially mounted, are used for tracking beer kegs and compressed gas cylinders. 14. Will ZPL and BAR-ONE be enhanced to accommodate RFID? YES. RFID extensions to ZPL II programming language were created to make it easy for users to format transponder data much like they would for a bar code label. BAR-ONE will support RFID in a future version. 15. Who will supply readers? Zebra has partnered with Symbol Technologies and others to ensure their read/interrogator systems are designed to work with the smart labels used in Zebra printer/encoders. 16. How is RF/DC different from RFID? RF/DC and RFID technology both incorporate radio frequency waves ( RF ) as a means of wireless communication without the presence of cables or wires. RF/DC (or RF Data Capture ) is using a conventional data capture device, like a scanner or portable data terminal with an RF data link to its host computer. RFID (or RF Identification ) is the process of wireless communication with a transponder on an object to read back stored information about that object. 17. What are the new ZPL commands for RFID printing? Some of the new commands include: ^WT Write Transponder Data ^RT Read Transponder Data ^RF RFID Status ^RE RFID Error String 18. What s the difference between Tag-it and I Code? Tag-it transponders are low-cost high range frequency (13.56MHz) devices with medium size memory capacity, 256 bits. I Code transponders are also 13.56 MHz devices but have 512 bits of storage capacity and a greater read range. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 12

Frequently Asked Questions 19. Will Zebra offer support for ultra high frequency (UHF) transponders in the future? YES. Because Zebra has historically been on the cutting-edge of technology, we are poised to entertain the development of a 900 MHz RFID encoder option in the future. 20. What is the US List Price of the R-140? $5,690USD. All product and brand names are trademarks of their respective companies. P/N 11315L Rev. 1 Page 13