Protecting expensive consumer- and industrial products has become paramount today given that total worldwide losses from forgery, counterfeiting, and retail theft may reach $450 billion this year. As a result, converters and end-user customers are looking to digital printing that incorporates security features to help prevent losses from rising even higher.

"Adding security features into a printing design is a compelling solution for many organizations," says Marco Boer, consulting partner at Hanover, Mass.-based IT Strategies. "Product packaging, printed documents and financial cards are three distinct areas where fraud is a problem, but they are also areas where digitally-printed security features may reduce the problem."

Packaging can perhaps most benefit from security-printing advances, because unlike plastic cards and paper documents, it can never be replaced by electronic means. With more goods being produced worldwide, the need for security printing in packaging will increase proportionally.

To reduce product substitution/tampering from a package, a mix of security features including design, inks and holographic images can provide appropriate security enhancements to packaging. However, setting standards must be universally accepted and instituted to insure compliance. (See "Are your customers' products secure?" March 01, page 116-122.)

One key player addressing security printing is Barco Graphics, which specializes in specific high-tech applications. Barco has leveraged its knowledge in document security toward package security via the.factory, an inkjet-based digital press. The press, under co-development with St. Louis-based Mark Andy, prints variable data on typical packaging substrates, making it possible to "personalize" or "mark" individual packages. A prototype of the factory was introduced at last fall's Labelexpo USA show.

"Like most other industries, it is just a matter of time before digital makes an impact in the security printing market," says Patti Williams, consulting partner at IT Strategies. "However, there are some fundamental issues that need to be addressed before digital will alter the face of security printing."

1. Perception is the first issue. Persuading traditional printers to change the way they have offset- and flexo-printed since inception and move to digital printing is a tremendous challenge, in part because it will require convincing the clients of security printing, and these printers are unwilling to disclose their client lists.
2. Penetration is the second issue, because it is very difficult to obtain information about this market. Because this is such a highly sensitive market, new, untried or unproven methods are suspect.
3. Fear is the last issue. If it can be created digitally, it can be easily reproduced digitally. However, while traditional providers of security printing have been fearful of digital technology, there are a number of technologies that will add value beyond traditional security printing.

According to IT Strategies, electronic packaging—the addition of semiconductors to packages that use either RFID or conductive ink as an antenna—is becoming popular. When RIFD transmitters are added to a package, the package can be traced via satellite, or when electronics are added, the package "comes alive" with blinking lights or sounds. Economics will be the key to success or failure of these electronic technologies.

More info: www.it-strategies.com