Brand Protection through Nanotechnology Sun Innovation’s Anti-Counterfeiting Product Authentication

Presentation Contents Introduction to Brand Protection Counterfeiting 101 Anti-counterfeiting methodologies Means of Product Authentication Common Authentication Technologies BrandAuthen anti-counterfeiting –Readily incorporates into manufacturing processes –Extremely secure technology –Point of Sale UV light provides overt authentication –UV penlight provides covert authentication –Forensipen version for forensic-level authentication –How to launch a BrandAuthen anti-counterfeiting program

An Introduction to Brand Protection Brand protection involves many features, such as trademarks, copyrights, and patents. The objective of protecting one’s brand is to ensure it doesn’t lose value. It can lose value in the eyes of the customer, in the eyes of the stock market, or by being counterfeited. One aspect of protecting brand value is preventing counterfeiters from selling their products under your brand name, which erodes sales revenue and can further damage the brand if the fake product performs poorly for the customer or worse, injures people.

Counterfeiting 101 An estimated 7-10% of all goods sold worldwide in 2007 were counterfeit, a figure of some $600 billion. Industry segments for which counterfeits are a significant problem include: pharmaceuticals, airplane parts, auto parts, and designer clothing, among others. Counterfeit products reduce revenues for to the companies who invested in them, reducing R&D into new drugs and products to help society. Also, counterfeit pharmaceuticals kill thousands of people every year. (Council of Europe-2007) Counterfeiters have in the past been able to copy most anti- counterfeiting technology within 18 months.

Anti-Counterfeiting Methodologies Anti-counterfeiting has been said to involve three steps: Interception: Use investigators to find fake products and give leads on their origin to law enforcement Authentication: Help consumers pick authentic goods by educating them regarding product authenticity features, such as special labels. Secure Supply Chain: Track goods through supply chain to prevent counterfeit goods from being introduced, through such technologies as UPC codes or RFID

Means of Product Authentication Product authentication makes it easier for consumers to choose an authentic product and reject counterfeits. It also assists with finding and intercepting fakes, and prosecuting the counterfeiters. Brand protection via product authentication is often divided into three types: Overt: visible to the naked eye and consumer Covert: not visible to the naked eye or consumer, but readily noticed in field with portable sensors Forensic: lab analysis is required to determine authenticity

Common Authentication Technologies Two of the technologies most widely known by the consumer are foil holograms and RFID. These technologies have limitations: Holograms have been copied by many counterfeiters RFID’s principal weakness for many industries is cost There’s said to be a risk RFID can be reprogrammed. HP rejected RFID for these reasons. Labels can be diverted and put on counterfeits Wouldn’t it be nice to have a solution which overcame these limitations?

BrandAuthen Anti-Counterfeiting Readily incorporates into manufacturing processes Prints in clear layer over existing logos Can be mixed into existing inks or toners Can be printed directly on product Extremely secure technology Point of Sale UV light provides overt authentication UV penlight provides covert authentication Forensipen version for forensic-level authentication Shoe with BrandAuthen on the left side under a UV light All trademarks are property of their respective owners, and pictures here are shown as examples of how BrandAuthen could be used. These pictures are not meant to imply approval by the respective brand owners.

BrandAuthen readily incorporates into manufacturing processes Available as an aqueous or solvent dispersion, or as a thin film. Can be mixed with an existing ink or toner which already has pigment in it. Can be added to an ink, toner, or other base without pigment for clear printing on top of colored surfaces, so they don’t require any redesign to make space to add security features. BrandAuthen is available in a variety of colors

BrandAuthen=Extremely secure technology Other materials can’t be printed in a transparent layer over a brand logo BrandAuthen prints in virtually invisible layer Our patented nanotechnology-based authentication materials are extraordinarily difficult to reverse engineer, and can be printed in code patterns so tracking data can be read from the print. Only Sun Innovations has this patented technology One large global materials technology company tried in vain for two years to duplicate this technology; then they gave up and tried to buy our company Prints in a clear layer over existing logos, so it only shows up under a UV light All trademarks are property of their respective owners, and pictures here are shown as examples of how BrandAuthen could be used. These pictures are not meant to imply approval by the respective brand owners.

BrandAuthen Point of Sale UV light provides overt authentication Standard inexpensive UV lights make BrandAuthen glow with the aura of authenticity. BrandAuthen allows the manufacturer to put authentication directly on the product, making the supply chain more secure than with just label authentication Enclosing a UV light source in a POS display would allow consumers to authenticate the product for themselves at retail locations All trademarks are property of their respective owners, and pictures here are shown as examples of how BrandAuthen could be used. These pictures are not meant to imply approval by the respective brand owners.

BrandAuthen UV penlight provides covert authentication Inventory managers, customs agents, and mystery shoppers can easily test products with an inexpensive UV penlight to verify authenticity For added security, dual color versions of BrandAuthen are available, glowing in two different colors. BrandAuthen film, reflecting a different color depending on the wavelength used

Forensipen for forensic- level authentication For the highest level of security, we offer proprietary formulations of BrandAuthen, coupled with the Forensipen Forensipen analyzes the BrandAuthen to ensure it’s an exact match. BrandAuthen can be quickly authenticated in the field with our Forensipen. This makes it virtually impossible to counterfeit, and provides you with instant forensic verification. Watch with BrandAuthen film applied under the clear plastic cover All trademarks are property of their respective owners, and pictures here are shown as examples of how BrandAuthen could be used. These pictures are not meant to imply approval by the respective brand owners.

Evaluate BrandAuthen for your Company! Contact us for a proof of concept Simply send us a label, or label ink, or actual product, and we’ll return it with a UV light so you can see how BrandAuthen works We’d be happy to then discuss running a trial, reviewing issues such as scope, operational concerns, inventory control, costs, and performance benchmarking All trademarks are property of their respective owners, and pictures here are shown as examples of how BrandAuthen could be used. These pictures are not meant to imply approval by the respective brand owners.

Brand Protection through Nanotechnology Sun Innovation’s Solution for Anti- Counterfeit Brand Authentication