Counterfeiting: what is and how to fight it
Counterfeiting, according to the Ministry of Economy and Finance, is an economic crime that damages the global economy and severely endangers customers’ health and safety.1
In this article, we will explore what it is, analyse which sectors are the most affected and the figures generated by this illicit market. Then, we will understand the reasons why technologies such as RFID and variable data are the key to tackle this phenomenon.
Worldwide, counterfeiting creates an economic damage between $1.7 and $4.5 trillion2 and represents a huge source of unfair competition on a global scale. For this reason, companies must face not only fair competition, but also the one created by counterfeiters who illegally bring fake products in the market. This leads to a significant reduction of revenues for legitimate companies, as sales of authentic products decrease in favour of cheap imitations.
The sale of fake products is constantly increasing and widespread, causing severe economic losses in several sectors. Here are the most affected:
According to a joint report carried out by EUIPO3 and the EU for 2022, around 86 million of counterfeit articles with a value of more than EUR 2 billion were seized in the EU, an increase of around 3% compared to the previous year.4
Another interesting statistic shows that across Europe, in 2022, the 96% of the total counterfeit products were seized in these 10 countries only: Italy, France, the Netherlands, Bulgaria, Germany, Lithuania, Spain, Hungary, Greece and Portugal.4
È chiaro come l’implementazione di soluzioni di identificazione digitale rappresenti un passo importante verso un futuro farmaceutico più avanzato, sicuro ed efficace. Il loro utilizzo, infatti, può evitare una serie di problemi, inclusi errori umani, sfide legate alla conformità normativa, rischi per la sicurezza dei pazienti e inefficienze operative. Le modalità in cui dimostrano di poter fornire valore al settore sanitario possono essere così riassunte:
The pharmaceutical sector is among the most affected by this phenomenon and covers all types of high-value medicines, both generic and branded5. In 2023, the value of this market amounted to USD 64 million, in Europe only.6
Clearly, the greatest risk is related to taking drugs that could not only contain no active ingredients, but also be composed of dangerous ingredients which compromise patients’ safety.
Between April and October 2023, Europol coordinated the fourth edition of Operation SHIELD IV6 in which they intercepted:
The distribution of counterfeit and illicit cigarettes is a steadily increasing phenomenon. This is stated in the reports carried out by KPMG (a global accounting firm)7 and Eurispes on illicit cigarette consumption in the EU, UK, Norway, Switzerland, Moldova and Ukraine.
This activity keeps having economic consequences as it deprives governments of a considerable amount of tax revenue, undermining tobacco control policies.
According to the KPMG 2022 report, in fact, 35.8 billion illicit cigarettes were consumed in the EU only, causing a loss of approximately EUR 11.3 billion to governments, 8.5% more than in 20211.8
Among the countries involved, France is the largest market in terms of fake products consumption (32%), followed by Ireland (24%) and Greece (21%).9
According to Euipo’s research, between 2018 and 2021, the fashion industry experienced an annual drop of EUR 12 billion and 160,000 fewer people were employed each year because of fake products entering the market 10
Moreover, this study showed that among the UE countries, Italy is one of the most affected countries in the clothing sector, with EUR 1.7 billion in lost sales per year.11
These figures are also steadily growing because of its widespread on the digital world, developed considerably in recent years, especially since the beginning of the pandemic.
In fact, a study carried out by Amazon in cooperation with the Ministry of the Interior shows that in 2023 only, Amazon intercepted and seized more than 7 million counterfeit products worldwide.12
Cosmetics counterfeiting is a flourishing market that amounts to EUR 3 billion in annual losses in Europe only, mainly for certain product categories such as perfume and toothpaste.
Among the most affected European markets, we find France with EUR 800 million in lost sales per year, followed by Germany with EUR 724 million and Spain with EUR 398 million.13
Also in this sector, the sale of counterfeit cosmetics is widespread on digital channels such as e-commerce where, through the advertising of branded products, non-original goods are sold without the consumer’s awareness.
Recently, to fight this phenomenon, the global anti-counterfeiting market has developed simultaneously, reaching USD 34.05 billion in 2020, with a global growth forecast projecting the market to reach USD 68.24 billion by 2025.14
Today, this market can rely on digital technologies such as RFID and variable data to track goods along the supply chain and guarantee the quality of products with reliability and accuracy.
A QR code (Quick Response Code) is a type of bidimensional barcode containing information which are readable by a barcode scanner. Generally, the QR code addresses the user to a specific URL, chosen by the barcode creator or it memorizes information and data sequences that are unique and associable to a product.
One of the most frequent applications to fight counterfeitingat low cost is a brand protection system based on variable QR codes. This is commonly characterized by:
This system provides the consumer with the chance to verify the authenticity of the product via their smartphone, by scanning and reading the QR code, as today all smartphones can scan a QR code directly from the ‘camera’ application.
In other words, each individual product is associated with a variable QR code that certifies its authenticity. The level of security that variable QR codes offer is very high, given that the cloning operation of each individual code becomes extremely complex compared to that of a fixed QR code.
A RFID (Radio Frequency Identification) is a type of wireless technology that uses radio waves to identify and track objects by positioning a RFID chip on the items. It allows to identify and track objects contactless and without line of sight, even at long distances, representing a huge advantage for many companies.
Alternatively, RFID technology offers a further solution with a higher level of security than QR codes. RFID tags store information in a label and transfer it wirelessly to nearby readers, allowing the authenticity of the product to be verified. The RFID tag can be read either by the consumer via HF or NFC technology, or by inspectors by reading UHF tags.
Compared to barcodes, RFID has the advantage of being a discrete and often a hidden mode of authentication, making it much more difficult to identify and to replicate or tamper with. As each RFID tag contains a unique serial identifier, it provides greater protection against counterfeiting. Managers at each stage of the supply chain can instantly verify the authenticity of the item and identify other key information such as the country of origin and country of sale. The use of secure cryptography also makes RFID tags unique and difficult to duplicate, creating an additional barrier for counterfeiters. Finally, RFID requires little labour and is therefore a low-cost, high-value option for product authentication.
To learn more about the difference between these two technologies and understand the most suitable for your needs, visit Qr Code Vs RFID
Graphimecc: your partner for
anti-counterfeiting
For almost 40 years, we have specialised in variable data printing and the RFID tag application to enable advanced anti-counterfeiting measures.
Up to now, our machines have already produced over 90 billion unique products in a fully automated way, guaranteeing the highest quality necessary to quickly and unequivocally detect counterfeit goods on the market.
The goal of Graphimecc together with the companies is to create specific projects to fight this phenomenon on a day-to-day basis to ensure a future where the safety of people and the revenues of companies will no longer be fiercely threatened by counterfeiting.
Riferimenti bibliografici:
(1) Agenzia delle Dogane e dei Monopoli – Lotta alla contraffazione Fonte
(2) The global impact Of Counterfeiting and solutions to stop it Fonte
(3) Ufficio dell’Unione Europea per la proprietà intellettuale Fonte
(4) 86 milioni di articoli contraffatti per un valore di oltre 2 miliardi di EUR sequestrati nell’UE nel 2022 Fonte
(5) Contrasto al crimine farmaceutico Fonte
(6) Fake medicines worth EUR 64 million off EU markets Fonte
(7) KPMG report, Illicit cigarette consumption in the EU, UK, Norway, Switzerland, Moldova and Ukraine Fonte
(8) Philip Morris International, Nuovo rapporto KPMG: aumentano le sigarette illecite nell’Unione Europea in Francia quasi la metà del consumo illecito, l’Italia si conferma ‘best practice’ Fonte
(9) Euripes, Risultati del 2° Rapporto sul commercio illecito nel settore tabacco e E-cig Fonte
(10) Impatto economico della contraffazione nei settori dell’abbigliamento, dei cosmetici e dei giocattoli nell’UE Fonte
(11) Contraffazione, EUIPO: in Europa 16 miliardi di euro e quasi 200mila posti di lavoro persi Fonte
(12) La contraffazione online – Analisi del fenomeno, modi operandi e attività di contrasto Fonte
(13) Cosmetici, in Europa la contraffazione brucia 3 miliardi di euro di vendite all’anno Fonte
(14) What is the best anti-counterfeit technology in 2024? Fonte
Non-conforming product marking or reconciliation
We integrate Videojet 1280/ VJ1580+
The unit has been fully integrated into the machine control panel what enables a wide range of benefits
For the operator:
Possibility of having a single panel where every machining parameter can be configured
For net plant productivity:
Reduction of setup time and guarantee of constant and correct functioning of the unit
Non-conforming Product Marking Functionality
The machine process automatically handles the marking of non-conforming products by integrating it within the error management process chosen for production.
Functionality of printing on the back of the material
The machine process automatically manages the printing of variable data on the back of the material (liner) for each reconciliation requirement by integrating their management within the error management process chosen for production.
Ability to integrate other third-party CIJ systems
Other third-party CIJ printing systems can be integrated upon development of the command-and-control interface.
Thermal transfer printing
We integrate Videojet Dataflex 6530
The unit has been fully integrated into the machine control panel what allows a wide range of advantages
Ability to integrate other third-party TTO systems
Other third-party TTO printing systems can be integrated upon development of the command-and-control interface.
Spark Cam™
Vision inspection system
What is SPARK CAM?
SPARK CAM™ is a high-performance vision inspection system fully designed and built by our R&D department to control print quality during production.
The system reliability is also the result of more than two decades of direct market experience with some of the most popular inspection systems including: Decosystem and Lake image.
System fully integrated into the machine control panel
The system is fully integrated into the machine control panel which enables a wide range of benefits
Single system to manage the Print Ǫuality of graphics and Variable
Single system where two control macro areas can be activated with different libraries related to specific production needs:
Print Ǫuality Inspection:
Libraries for the inspection of security elements, scratches, smears, streaks, stains, ink splashes, ghost effects, torn material, creases, color deviation, …
Thanks to our vision engineering department, it is, in addition, possible to directly develop customized control features.
Print Ǫuality inspection of Variable Data:
Libraries for OCR control (with a full range of fonts/special characters), machine readable codes also with grading features according to international standards:
With a wide range of codes and encoding protocols including: ǪRcode, Data Matrix, … and with GS1 coding standards, ….
Wide range of available templates
Due to the fact that we make our inspection systems in-house, Graphimecc can meet any production requirement.
Available are:
both black-and-white or color systems, and with a wide range of resolutions to fit every inspection specification.
Spark Jet™
Inkjet printer
What is SPARK JET?
SPARK Jet™, is an inkjet printing system completely designed and built by our R&D department to go beyond the frequent limitations of traditional printing systems.
The system reliability is also the result of more than two decades of direct market experience with some of the manufacturers of the most popular inkjet printing systems such as: Domino, Videojet, REA JET.
System fully integrated into the machine control panel
The system is fully integrated into the machine control panel which enables a wide range of advantages:
High performance and print quality
SPARK JET™ offers different print resolutions depending on the production speed. Thus, you can get a high-quality product (600x600dpi) or lose definition slightly to increase production speed.
Modular print height
Each printing module has a printing height of 54mm.
The SPARK JET printing system is fully modular and can be composed to achieve the desired print height without any limitation.
Wide range of inks that can be used
SPARK JET™ can be configured to print with different base inks:
This flexibility allows adaptation to the widest range of materials, managing every production requirement.
Single-color, multi-color system
SPARK JET™ is available in two versions:
Automatic cleaning system
To maximise the durability of SPARK JET™ print heads, we have developed an automatic cleaning system that is fully managed via the machine’s central panel. This system cleans the heads every X hours of printing (with X being a parameter that can be adjusted according to the characteristics of the print and substrate) and positions them so that they rest in a way that protects them from ink drying inside the nozzles.
Furthermore, as it is fully motorised, it allows for easy and precise adjustment of the print head’s height and transverse position relative to the material.
High-precision adjustment holder
Each SPARK JET™ system is equipped, as a basic feature, with a high-precision adjustment system that, in the absence of the automatic cleaning system, allows the adjustment of the printer position both in height (distance from the substrate) and in transverse position with respect to the material.
With this option, the head cleaning and resting activities are manual.
Spark RFID™
RFID antenna and reader
What is Spark RFID?
Spark RFID™ is a system completely designed and built by our R&D department and allows to control and encode any RFID TAG (UHF, HF, NFC, BLE and RF, …), ensuring maximum reliability and efficiency.
The system reliability is also the result of continuous collaboration with chip and Inlay manufacturers such as:
Modular system that can be configured according to individual needs
Due to its modular structure SPARK RFID can be configured in different modes to allow the best productivity according to production needs and the type of RFID to be processed.
Easy encoding, even for inexperienced operators
Thanks to our fully graphical GMG RFID Memory Map™ editor, the creation of any type of encoding finally becomes intuitive and accessible to everyone.
Ǫuick and intuitive setup, even for inexperienced operators
Setting up RFID production becomes quick and accessible to every operator; thanks to the high level of automation, our machines can be operated autonomously by any finishing operator without requiring specific knowledge of electronics or telecommunications.
System fully integrated into the machine control panel
The system is fully integrated into the machine control panel allowing a wide range of advantages
100% compliant with regulatory standards
Certified CE Marking
CE marking plays an increasingly important role in protecting operators and the enterprise.
For Graphimecc this is an indispensable value.
Advanced levels of automation
Integration with external software
The machine is natively integrable either directly or with the GM ENTERPRISE™ CMS with any ERP and enterprise database ensuring secure, real-time data exchange.
Usable by any operator
Fully graphical interface
Designed to be usable by any operator regardless of experience level.
Advanced operator login
Integration with user management via corporate Active Directory for machine access in compliance with internal security policies.
To certify the quality of production
Automatic production reports
The machine generates various production reports fully automatically and with customisable content.
Automatically eliminates all production errors
ZERO™: the technology that enables you to produce a 100% error free finished
Developed since 1999, it is now in its 5th generation and is the most advanced technology for:
ZERO™ represents the next generation of quality finishing in that it allows:
ZERO™: the technology that guarantees the highest productivity
ZERO™ enables productivity levels up to 10 times higher than other solutions available on the market.
ZERO™ enables productivity levels up to 10 times higher than other solutions available on the market.
ZERO™ allows you to choose between 21 different error management processes to meet every production need.
Detects all errors with absolute precision
Inspection of Variable data
You can manage the control of any type of variable data: OCR, Linear Barcode (1D and 2D), 2D Matrix Barcodes with different encoding types (Industrial, GS1, …).
Inspection of printing defects of the graphic products
You can manage the inspection of various printing defects typically related to the graphics part such as: scratches, smudges, streaks, spots, ink splashes, ghost effects, torn material, creases, color deviation, …
Modular control features
With our fully graphical GMG Layout EditorTM, configuration of each control feature becomes intuitive and accessible to everyone.
Ability to customize the vision system to your specific needs
Machine configuration also allows you to choose the vision system best suited to your production needs:
Our specialty since 1999
Print every type of variable data
You can manage the printing of any type of variable data: OCR, Linear Barcode (1D and 2D), 2D Matrix Barcodes with different encoding types (Industrial, GS1, …).
OCR
Linear barcodes 1D
Matrix barcodes 2D
Advanced Variable Data Printing Functionality
Thanks to our fully graphical GMG Layout Editor™, creating any type of variable data printout becomes intuitive and accessible to everyone.
Ability to manage any type of protocol and sequence
Variable data printing can be configured by choosing from a wide range of fonts and codes to which sequences of all types can be linked, being able to meet every production need.
Possibility to integrate a wide range of printing systems
The machine can be configured by integrating different printing units to best meet production needs and investment budget.
