Periodic Reporting for period 1 - Microguard (A neural network based counterfeit detection system to verify the authenticity of products)
Berichtszeitraum: 2018-05-01 bis 2018-09-30
Counterfeiting and piracy represent a huge problem for the European economy. It is estimated that the EU loses €83 billion annually in sales, and the crisis is worsening due to the emergence of e-commerce activities. The economic detriment is compounded by the substantial risks to public health and safety caused by consumer exposure to counterfeit goods, which will not have undergone the rigorous safety testing expected of genuine products. Microguard is an innovative authentication label devised to protect consumers and brands from the detrimental effects of counterfeiting. The label combines unique identifiers with an artificial intelligence recognition system to deliver the most secure labelling solution available. Microguard can be applied directly to packaging or products and the label can be read using a standard smartphone. It is anticipated that Microguard will be used to protect goods across entire supply chains in addition to products at point of sale or delivery. The objectives of the feasibility study were to evaluate the technical requirements for delivery of the new label to the European market and to identify the optimum market segments for initial roll out. Cypheme’s overall objectives are to become the foremost global supplier of anti-counterfeit solutions, leading the fight against increasingly sophisticated and dangerous counterfeiting activity.
Cypheme completed a full analysis of the technical and business potential of the new labelling system and initially identified a minimum viable product for the European market based on regional drivers. It was established that the best way to commercialise the labels was through direct sales for small-medium volumes and pursuing a licensing strategy for larger annual volumes. Cypheme also analysed their current pipeline of potential customers and calculated detailed five year financial projections should commercialization be achieved. Cypheme formulated a robust industrialisation strategy and addressed risks and regulations which could impede the process of bringing the labels to market. The necessary technical steps required to release a viable solution in the European market were analysed and a scale-up plan was outlined.
The expected outcome is to optimize manufacturing and software components such that market readiness will be achieved by the end of the Phase 2 project. The Microguard label will offer the most secure solution on the market at a cost lower than even the most basic of competitors. This will deliver a significant economic impact to customers in terms of brand protection and increased consumer confidence. The labelling solution will reduce consumer exposure to dangerous counterfeit products and also minimise knock-on effects to society, such as job losses, caused by the counterfeiting industry.