Applied DNA Sciences, Inc. (OTCBB: APDN), a provider of patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion, has developed sustainable, "green" and affordable layered security solutions for protecting packaging from counterfeiting, piracy and fraud. At the Summit held by the Institute of Packaging Professionals (IOPP) in Chicago on May 19-20, APDN presented and met with packaging professionals from Fortune 500 companies and a range of contract manufacturers. APDN addressed the importance of a layered security approach that protects the entire supply chain. This approach requires a comprehensive plan that protects not only the packaging around the product, but the product itself.
Ken Goetze, Brand Protection Alliance (BPA) President, stated, "Secure packaging is one of the best defenses against counterfeiting. Without secure packaging, brands and consumers are not protected from the potential risks associated with poorly controlled supply chains. Applied DNA Sciences and other BPA members provide the ultimate security tools required to assist the packaging professional."
Critical topics discussed at the Summit included how packaging professionals can get the most value for their packaging dollars, the importance of sustainable, new technology and how secure packaging can help to stimulate product sales and reinforce brand loyalty. Along with the need for green solutions comes the need for genuine products.
"Better technology allows for cost-efficient packaging solutions, and DNA is a perfect example of a sustainable, green, and affordable solution which is created from natural plant sources. This technology can be used to trace and audit the movement of goods from inception to packing, shipping and ultimately to the retail consumer," stated MeiLin Wan, APDN Director of Project Management.
SigNature® DNA markers are botanically derived and have been applied in packaging materials, including but not limited to, a wide range of inks, coatings, laminates, adhesives and substrates. Compared to other synthetically derived taggants, SigNature DNA offers a truly forensic, and highly stable, patented system that is compatible with conventional printing and manufacturing processes.
At the meeting, APDN also discussed the economic impact and consequences of unsecured packaging. Every product category is at risk: from pharmaceuticals to toys, to clothing, to electronics and even the product warranties and manuals supplied with the counterfeit product. The ability for consumers to distinguish the difference between genuine and fake items is nearly impossible. Holograms, 2D barcodes and even RFIDs, are all vulnerable to sophisticated counterfeit operations, however, when these are layered with DNA, they cannot be copied.
Global counterfeiting is a growing problem, which poses significant health and safety concerns for consumers, and creates significant financial, legal and intellectual property problems for legitimate businesses worldwide. Government and law enforcement agencies are also affected and need an indisputable evidentiary trail that can only be provided by DNA authentication.
For the drug and food industries, the combined US market for verification technologies in the packaging industry was over $68 billion in 2006 and is forecasted to grow to $86 billion by 2012 (BCC Research).
- U.S. sales of anti-counterfeiting packaging technologies amounted to almost $34 billion in 2006 and is projected to reach $43 billion by 2012.
- U.S. sales of authentication packaging technologies amounted to almost $10 billion in 2006 and is projected to grow to $17 billion by 2012.
- U.S. sales of track and trace packaging technologies amounted to $24 billion in 2006 and is projected to grow to $26 billion by 2012.
"Security measures are a necessary cost of doing business in a world overrun with counterfeits, accounting for 7% to 10% of global trade. Sophisticated replication techniques have made counterfeiting and fraud a serious threat to every person on the planet. That is why DNA is so compelling, because it can be used immediately to protect virtually any unsecured product in the market," continued MeiLin Wan.