The Potential of RFID for Brand- and Product-protection

Abstract

Radio Frequency Identification (RFID) is an automatic identification technology that relies on radio waves to transmit data, typically a serial number, between an RFID transponder (or tag) and a corresponding RFID reader. The technology is well established in applications such as animal tracking, vehicle immobilization, access control and payment systems. In recent years its potential to improve supply chain processes has generated considerable attention. Enterprises from diverse industries are hoping RFID will provide solutions for a wide range of management problems. Applications include approaches to increase processing efficiency for the receipt and dispatch of goods, improvements in process control and product quality, and savings due to faster and better information processing. The current interest is based mostly on the advantages of RFID as a technology for automatic identification in comparison with the classic barcode. However, its characteristics as a radio technology together with a potential combination of sensor technologies and low-cost information processing units make possible a range of applications for which the barcode appears to be completely unsuitable. Examples of the latter class of applications are the implementation of real-time location systems, the realization of new payment concepts (pay-per-use, pay-per-risk, etc.), and the combination of conventional products with online services. RFID systems can also provide an efficient means to prevent or delimit product counterfeiting. The technology overcomes several drawbacks of established brand-and product-protection measures. It allows for automated checking processes for products arriving in bulk, while at the same time offering a high level of protection against cloning attacks due to cryptographic measures and stable, user-friendly interfaces. While the potential benefits of seamlessly linking objects and information systems are considerable (c.f. Fleisch et al. 2005), there are still several challenges to be overcome before a widespread, "ubiquitous" adoption of RFID may become reality. Besides the non-technical challenges such as the establishment of policies governing information sharing and access rights, privacy protection, agreements on data standards and models defining the distribution of costs, several hurdles regarding hardware and software issues persist. In this chapter we discuss what brand owners and licit manufacturers can expect from RFID, and what steps can-or should-already be undertaken to reap the benefits. We start with a short excursion on Ubiquitous Computing technology as an enabler of the emerging "Internet of Things" and explain the role of RFID as an integral part of this development. Furthermore, we outline concrete solution concepts of brand-and product-protection measures based on RFID, and conclude with recommendations for their implementation.