www.homai.org

The Holography Times

1

The Holography TimesApril 2010 | Volume 4 | Issue 10 www.homai.org

TM

The Holography Times is a quarterly newsletter published by Hologram Manufacturers Association of India (HoMAI).

High tech HOLOGRAMS

can uproot tobacco

counterfeiting

An endeavour to safeguard products and people

www.homai.org

The Holography Times

2

www.homai.org

The Holography Times

Tobacco counterfeiting and tax evasion are problems that have existed for legitimate manufacturers, government agencies and

its users since long. Whenever a tobacco product is counterfeited, it poses serious risks to its users. Governments suffer as counterfeit products escape taxation. This is because such goods are either smuggled or come with forged documents. Manufacturers suffer due to lost revenues and hampered brand image. Workers suffer as counterfeit products directly affect employment leading to fewer jobs in the legitimate manufacturing sector. Consumers suffer because they are duped into buying an inferior copy of the legitimate product, which may present serious and unforeseen health risks. Moreover, even societies suffer as counterfeiting, to an extent, is proven to support organized crime.

So, the real question that arises is1. What are tobacco manufacturers doing to protect them from

saving their products and profi ts? 2. What are governments doing to fi ght this problem? The answer may be a hologram, which is used globally since the past 15 years as an important authentication device for government tax stamps. In this issue of THE HOLOGRAPHY TIMES, we feature views on how “HIGH TECH HOLOGRAM CAN UPROOT TOBACCO COUNTERFEITING”. Here we will give you a snapshot on the tobacco industry, the extent of tobacco counterfeiting both in India and globally, the challenges that governments and brands face in an era of globalization, and the solution in a Holographic tax stamp. We also aim to look at various holographic developments worldwide such as HOLOPRINTTM - the revolutionary machinery developed by Stensborg and Bobst VISIONFOIL. Besides this, there are features like newsbytes, company profi le and industry updates to keep you informed. As always, we value your comments on this issue of The Holography Times.

Please send them to info@homai.org.

Best Wishes, Team HoMAI!

In this issue

Editorial

News Bytes 4-6

Editorial BoardNeha Gupta, Editor in Chief

C S Jeena, Editor

The Holography Times is published byHOLOGRAM MANUFACTURERS

ASSOCIATION OF INDIA (HoMAI)21-Ground Floor, Devika Tower 6, Nehru Place,

New Delhi - 110019, INDIATelefax: +91-11-4161 7369,

Email: cjhomai@gmail.comWeb: www.homai.org

Designed and Printed byEYEDEA Advertising

E-439/9, SDV, Charmwood Village,Faridabad, Haryana (INDIA)

E-mail: eyedeaadvertising@gmail.comon behalf of HoMAI

Disclaimer: The data used here are from various

published and electronically available primary and

secondary sources. Despite due diligence the source data

may contain occasional errors. In such instances, HoMAI

would not be responsible for such errors.

High tech hologram can uproot tobacco counterfeiting 8

12

UV assisted casting of microstructures for high-volume production of diffractive optical elements on foil

Industry Updates 19

13

Holostik security solutions for the tobacco market

3

www.homai.org

The Holography Times

BOBST GROUP, the leading supplier of equipment and services for the

folding carton, corrugated board and fl exible materials industries has recently launched a version of its VISIONFOIL press, dedicated to security hologram application.

As more and more industries look for solutions to protect the authenticity of their products, holographic materials offer an ideal solution, helping its brand owners make a clear difference between originals and forgeries, deterring counterfeiters. However, reproducing holograms, and placing them accurately on the product, require specialized equipment. Until 2010, the reference machine for fl at-to-fl at hologram application on paper, labels, or board has been the BOBST SP 76-BM foil master. Now BOBST has introduced the VISIONFOIL 104 H to deliver hologram application of utmost accuracy.

The VISIONFOIL 104 H uses BOBST’s patented, high precision registration cameras to bring each hologram on the sheet into perfect register, be they 2-

D, 2-D/2-D, 3-D, 2-D/3-D, or multiplexed. The same cameras

process diffraction foils, skipping the unusable

shim line areas. All current sizes of

holograms can be

processed using the VISIONFOIL 104 H. The smooth foil path created by the specially designed internal foil unwind module, enables high precision foil handling and better productivity. The cameras are auto-setting, reducing make-ready time. Up to six independently driven advance shafts, increase fl exibility and cut down on foil waste. The platen entry easily handles light materials which make up the majority of security print jobs.

Alongside its hologram application capabilities, the VISIONFOIL 104 H is highly fl exible, being able to apply conventional as well as holographic foil. The press shares with the rest of the VISIONFOIL 104 range a maximum running speed of 7,500 sheets per hour, along with the ability to run paper and labels down to 80 gsm, carton board to 2000 gsm, and corrugated sheets up to 4 mm in thickness. The maximum sheet size the VISIONFOIL 104 H can handle is 1040x740 mm.

The VISIONFOIL 104 H is ideal for banknote printers applying holograms and/or metal stripes; software packaging manufacturers applying seals to CD/DVD cases; ticket printers producing concert, event and sporting event tickets, tobacco industry suppliers and other industries trying to protect their products. ■

Contact, Marco Lideo at marco.lideo@bobstgroup.com or

visit www.bobst.com

BOBST visionfoil provides ultraprecise hologram applicationThe newly launched visionfoil is dedicated to hologram industry

“The VISIONFOIL 104 H is ideal for banknote printers applying holograms and/or metal stripes; software packaging manufacturers applying seals to CD/DVD cases; ticket printers producing concert, event and sporting event tickets, tobacco industry suppliers and other industries trying to protect their products.”

4

News Bytes

www.homai.org

The Holography Times

BP acquisition adds to Filtrona’s label expertise

Filtrona PLC a division of Payne international, market leading

speciality plastic and fi bre products supplier, has acquired BP Labels Limited and BP Secure Solutions Limited, representing a signifi cant expansion in the label capability of the Coated and Security Products (“CSP”) division.

BP, based in Cardiff, United Kingdom, is a manufacturer of high quality, creative and secure self adhesive labels for the pharmaceutical, healthcare, cosmetic and food & drink markets, providing it as an authentication solution. The business will complement with Coated and Security Products, sharing a focus on providing consumer products companies with value added packaging and security solutions through maximizing the use of technologies, systems and production capabilities.

Tony Edwards, Divisional Managing Director of Coated and Security products said, “The acquisition is consistent with our vision to be the premier provider of creative and secure packaging, identity and security solutions to our customers and markets of choice. We believe we can deliver signifi cant benefi ts from utilising our existing global commercial and operational footprint to access new markets for BP’s products as well as from offering our existing packaging and security products and technologies to BP’s current customers.” ■Source: www.payne-security.com

The Treasury of States of Jersey has unveiled its new note series to be

issued in April 2010. Printed by De La Rue with imprint, the 10-, 20-, and 50-pound notes have been redesigned to refl ect various aspects of the island’s culture, history and architecture.

Increased security measures have been taken by the treasury to prevent forgeries, including a new hologram, all denominations having windowed security threads, map of Jersey as a registration device, and watermark of a Jersey cow, electrotype denomination, Cornerstones and 100% cotton paper. The hologram only features on notes of higher denomination. All feature a portrait of Queen Elizabeth II on the front. For the fi rst time Jèrriais, the island’s native Norman French, appears on the note in addition to English and French. ■Source: http://news.bbc.co.uk

KAMA- manufacturer of print fi nishing machines and developer

and manufacturer of the ProCut 53, the world’s fi rst A3 fl atbed die cutter, is now introducing a hologram stamping system designed specifi cally for this machine. With its ability to stamp holograms onto the product being processed, the new design allows the machine to be used for high quality labeling of print products and packaging. This application opens up an attractive market because in addition to their decorative effect, holograms are also in great demand as a visible safety marker for copy and brand protection.

The new system for the ProCut 53 works with two separate foil feeders. In contrast to the continuous hot foils, holograms have to be positioned with absolute precision when they are stamped. Hologram foils use markers on the carrier foil to achieve this. The hologram stamping system of the ProCut 53 has four individually controllable heating

zones. Holograms can be applied within a working area of 510 mm x 360 mm. In addition to hologram foils the KAMA module is also capable of processing all kinds of hot foils. The ProCut 53 has an output of up to 3500 sheets per hour when stamping holograms, up to 5,000 sheets per hour for hot foil stamping and up to 6,000 sheets per hour for die cutting and creasing.

The broad spectrum of applications make the A3 die cutter of interest for digital printing and digital packaging production where heavier paper and fi nishing is in increasing demand. Kama chief executive Marcus Tralau said: “Two out of three of our ProCut 74 diecutters are now being ordered with hot foil or hologram-stamping systems.” ■Source: http://www.proprint.com.au/News

JERSEY’S new holographic bank noteAnother bank note joining the hologram club for security

KAMA launched hologram stamping system

5

News Bytes

www.homai.org

The Holography Times

The fi ndings of the Lebanon’s report are that patented medicines contribute

74.8% of the prescription drug market and 67% of the total pharmaceutical sector. Although generic drugs continue to feature as a small proportion of all pharmaceutical spending, their proportion of the prescription market will rise from 25.2% in 2009 to 30.3% by 2014.

Pharmaceutical industry representatives in Lebanon have announced that drug packaging needs to be redesigned to enable easy confi rmation of product authenticity. The move is part of an effort to address the counterfeit medicines that are on the rise. The Order of

Pharmacists (OOP) in Lebanon has stated that drug packaging can easily be forged and that new hologram or high-tech identifi cation tags are to be added to medicine labels to make fakes easier to detect. Public enlightenment campaigns have also been underlined as one of the strategies that will deter further purchases and lower demand for these drugs.

The association is also suggesting that testing laboratories should also be established to ensure that seizures or closures of suspected illegal outlets can be supported with evidence. Imports could also be tested for bioequivalence in this manner, alleviating the reliance

on US Food and Drug Administration (FDA)- or European Medicines Agency (EMEA)-derived medicines to ensure product safety. ■

Source: www.companiesandmarkets.com

Lebanon’s report on healthcare and medical marketThe new report praises hologram technology in fi nding the fakes

Scriba Nanotecnologie a spin off company of the Italian National

Research Council producing new technologies for anti-counterfeiting have developed NU-CODE technology- a complete system that uses ultra-miniaturized digital tags for: identifi cation, traceability, anticounterfeit, security and quality control.

Nu-CODE is based on a technology that allows permanent recording of digital data, on specially modifi ed holograms (EN-TAG labels). EN-TAG is cost-effi cient permanent data storage and a security hologram at the same time. Digital data recorded on the EN-TAG™ can be easily read either by commercial digital cameras or custom designed cameras.The anti-counterfeit features of the hologram substrate adds to the endless capability of encrypting digital keys making the Nu-CODE system a very powerful, viable and versatile anti-counterfeit solution.

NU-CODE can be easily integrated in the printing process of most types of holograms and offers security and anti-counterfeiting capabilities at very affordable prices. NU-CODE™ is the proper tool to implement the

RESPONSIBLE PACKAGING criteria for all products. ■

For more information contact Serena Lanza at slanza@scriba-nanotec.com orvisit www.scriba-nanotec.com

SCRIBA nanotecnologie’s for anticounterfeiting

EN-TAGTM micro label which can be integrated into any security hologram.

6

News Bytes

www.homai.org

The Holography Times

7

www.homai.org

The Holography Times

An addictive industry It was in 1600 when tobacco was introduced in India by the Portuguese. It became a valuable commodity of barter trade, being used by the Portuguese for purchasing Indian textiles. In 1776 with the independence of American Colonies, the British East India Company began growing tobacco in India as a cash crop, both for domestic consumption and foreign trade. As domestic consumption of cigarettes rose, the Imperial Tobacco Company (ITC, now Indian Tobacco Company) commenced production. Also, in the late nineteenth century, the beedi1 industry began to grow in India. Even though tobacco chewing was practiced for many centuries, commercial production and marketing have been up scaled recently, with the introduction of the gutkha2.

This industry remains an addictive one since it contributes in a unique manner to several important facets of Indian economy, covering revenue, export, employment, and GDP growth. The Indian tobacco industry mainly covers manufacturing of cigarette, beedi, cigar and cheroot, hookah, snuff and other chewing tobacco like zarda , gutkha and other pan-masala.

Tobacco market in India Presently, India is the second largest producer of tobacco in the world after China. Of the total amount of tobacco produced in the country, around 48 per cent is in the form of chewing tobacco, 38 per cent as beedis, and only 14 per

cent as cigarettes. Thus, beedis, snuff and chewing tobacco (such as gutka, khaini and zarda) form the bulk 86 per cent of India’s total tobacco production.

The global roadblocks- illicit tobacco trade and tax evasion

i) Illicit tobacco trade – smuggling and counterfeitingIllicit trade in tobacco products is a global problem. The illicit trade, through smuggling and counterfeiting, creates serious health problems, robs Governments of tax revenues and threatens public safety and security. Moreover, the damage caused by counterfeiting to a company’s brand reputation, loss of sales and market capitalisation can be incalculable. A report commissioned by Framework Convention Alliance, said this billion dollar counterfeiting business was estimated at 10.7 per cent of worldwide sales.

High tech hologram can uproot tobacco counterfeiting

Illicit tobacco trade and tobacco tax evasion are problems that costs governments and manufacturers dearly in terms of lost revenue and damage to brand reputation. Further, the high

tax policies on tobacco products make them a lucrative target for counterfeiters. In this article, we will fi nd out how hologram, an anti-counterfeiting technology, could prove to be an important tool in tackling this problem.

Fig1: Tobacco Consumption in India

Christopher Columbus saw people using tobacco in the Americas in 1492.

Some quick facts:

• 5.5 trillion cigarettes get smoked per year

• One out of three cigarettes is smoked in China

• The total sales from cigarettes is US $ 5570 billion

• Every year $600 bn counterfeited & smuggled cigarettes cross national borders

• In India, smuggled cigarettes are estimated at Rs 1700 crore in value.

• Hungary was the fi rst country to use holograms on their tax stamps

8

Cover Story

www.homai.org

The Holography Times

Table 1: The 10 biggest market for illicit trade in 20073

Ranking Country Illicit trade (bns of cigarettes)

1 China 214

2 Russian Federation 76

3 United States 62

4 EU 58

5 Brazil 38

6 Philippines 19

7 India 18

8 Indonesia 14

9 Pakistan 13

10 Turkey 12

Table 2: Revenue generated and lives saved with elimination of global illicit trade4

Current situation Global High Low and income middle countries income countries

Total illicit cigarette 11.60% 9.80% 12.10%market (% of consumption)

Total illicit cigarette market 657 bn 124 bn 533 bn(cigarettes per year)

Total revenue lost to $40.5 bn $17.6 bn $22.9 bngovernments

Estimated deaths in 2030 8.3 mn 1.5 mn 6.8 mn

If this illicit trade were $31.3 bn $13 bn $18.3 bneliminated immediate gainin revenue

Lives saved in 2030 and 164,000 32,000 132,000annually thereafter

(ii) Tobacco tax evasionTobacco taxes are a major source of revenue and have been a signifi cant contributor to the economies of over 150 countries. For example In countries like India and Pakistan the unorganised beedi and gutkha industry which represent bigger share of tobacco consumed are big sources of revenue loss to government.

Governments lose money when cigarettes are smuggled from lower tax to higher tax states. Most of the world’s leading cigarette brands are duplicated because they generate big profi ts for counterfeiters. The smugglers smuggle into a country where they can make the highest profi t, and this should be a country where tax is a high proportion of the

price. The losses in revenue as a result of illicit tobacco trade are enormous, but vary widely among countries. Taxes (excise duties and Value Added Tax), for instance, on a pack of Marlboro vary between $US 0.85 in China to $US 8 in the United Kingdom (see Table 3).

Table 3: Cigarette prices in selected markets5

(value in US $)

Market Average price of a pack of 20

cigarettes

Russia Federation 0.68

India 0.78

China 0.84

Brazil 1.58

USA 4.10

Canada 6.34

United Kingdom 8.24

When tax revenues are stolen, they don’t go to their intended sources of funding tax relief programs, healthcare and infrastructure. In some cases, these stolen revenues have been shown to fund criminal and terrorist activities. As a result, governments lose millions of dollars in tax revenue and the security of their citizens is threatened.

Loss to Indian industryIn India, the demand for low cost copies of premium brands, access to high quality reprographic technology that has made it easy and affordable to copy brand packaging, industrial globalisation, extended supply chains, lax regional law enforcement and criminal penalties are the main reasons for explosion in counterfeiting.

As per Directorate of Revenue Intelligence (DRI) –responsible for keeping a watch on the illegal entry of foreign-made cigarettes into the Indian market), the margin in cigarettes is more nowadays and smugglers are now fl ooding the Indian market with foreign-made cigarettes as well as their fake.

■ India smuggled cigarettes were estimated to account for more than 14 percent of total cigarette consumption in India.

■ It is estimated that nearly 4 billion fi lter cigarettes are made annually and sold by unscrupulous manufacturers without paying of excise duty.

■ The 2007 ERC6 report noted that non-duty paid sales remains a major problem in India.

■ Further, the unorganized beedi and gutka industry have become a big source of revenue loss to government in India.

■ The inferior quality and inedible betel nuts being smuggled into the country, bypassing the excise duties,

9

Cover Story

www.homai.org

The Holography Times

trade and entry taxes, from Nepal and north-eastern states are not only taking a toll on people’s health but also ruining the revenue targets of the government.

■ The revenue department is estimated to incur a loss of over Rs 3,000 crore US$ every year due to this.

■ DRI had recently issued guidelines for the manufacturers to show their monthly statements of raw material purchase and fi gures for gutkha production but the effect seems to be trifl ing

■ According to industry players, Rs 200,000 worth betel nuts produce around Rs 2 crore worth of gutka. So, an estimated 100 tonnes of betel nuts (worth Rs 40 lakh) being traded into the city everyday produces gutka worth over Rs 4 crore everyday while this production is never on the record.

■ Further the increased excise duty on tobacco industry in the Union Budget for 2010-11 may encourages evasion and inter-state / international smuggling (See Table 4).

Table 4: Basic excise duty on tobacco in India Commodity Excise Duty Increased Excise F.Y. Duty F.Y. 2009-2010 2010-11

Branded 42% 50%

unmanufactured tobacco

Tobacco refuse 42% 50%

Chewing tobacco 50% 60%

Zarda, Scented tobacco and Snuff 50% 60%

Pan Masala 8% 10%

Branded Hookah or gudaku 8% 10%

Source: Union Budget 2010-2011

Solution - Hologram Globally, steps have been taken to fi ght this problem. One answer could be for India to adopt hologram or holograpic tax stamps. Tax stamps serve two purposes. One is to provide a record of payment of tax that is tracking of cigarette/tobacco packs throughout their distribution would enable tax authorities to ensure proper tax collection.

The other is to provide evidence that the stamp, and hence the product to which it is affi xed, is genuine. Although it is a 15-year old application, holographic government tax stamps prove to be an important device for authentication and revenue collection purposes. Today, tax stamps make up a signifi cant share of the security print market. It is part of the largest sub-sector of the security print market, placing tax stamps ahead of banknotes in terms of printed documents globally.

In the current global markets, to fi ght the problem of tobacco counterfeiting, holographic tax stamps are widely used for authentication worldwide. Holograms are security devices that have effects which cannot be exactly replicated by normal reprographics methods. Expensive and high-tech hologram printers print holograms directly on cigarette packets. As per Reconnaissance international, UK globally, an estimated 124 billion tax stamps are issued annually for cigarettes out of which 60 billion features a hologram. As of 2007, 68 countries were using tax stamps for cigarettes, of these 20 used hologram on their cigarette stamps which is 29% of the total.

Fig.2: A Hungarian tax stamp for cigarettes. Using since, 1995 Hungary was one of the fi rst countries to use hologram on its tax stamps.

Kanpur alone accounts for a revenue shortfall of Rs 900 crore owing to large consumption of such betel nuts in over 40 pan masala and gutkha production units. Accord-ing to an offi cial of the Department of Revenue Intelligence (DRI), the volume of trade in gutkha industry should fetch around Rs 3,500 crore as revenue but the recovery has failed to move beyond Rs 800 crore. The department had recently seized large quantities of betel nuts being illegally smuggled into the country from the Nepal border. A large number of smaller gutkha manufacturers spread across the city procure this smuggled supari from the network and sell the manufactured products in the market, without con-sidering the ill-effects of low quality inputs. Due to the illicit nature of procurement, the fi nished products and the raw material purchases for this processing are not shown on the company records, thereby hitting the revenue targets of the governmentSource: www.business-standard.com

Fig 3: Latvia’s cigarette tax stamps are applied as self-adhesive holographic labels

10

Cover Story

www.homai.org

The Holography Times

For example In Asia also, a Chinese tobacco company uses a fl exo press printer that incorporates a hot foil hologram unit to print holograms. These are printed on the fl ip-tops of boxes and on the outer boxes of the cigarette packets, so consumers can easily check if products are genuine.

Further, Bangladesh has started using tax stamps six years back, and since the introduction the government’s collection from this industry increased consistently. After the introduction of tax stamps and band rolls six years back, the Bangladesh government’s collected approximately Taka 45 billion (US $ 650 million) in VAT and supplementary duty during fi scal 2007-2008.

As per Ukraine’s EADPS consortium, which is endorsed by INTERPOL, advances in hologram technology can help government in safe guarding loss of revenue worth $ 50 billion (US).

In India, holograms are used by tobacco manufacturers to combat counterfi eting. It is used in various forms for example:i. Holographic tagger foil for tin boxesii. Holographic security thread for tobacco packsiii. Holographic pouchiv. Security Hologram

The strategy is to increase the sale of products by using innovative packaging, giving unique look, increasing brand identity as well as to secure the product from counterfeiters.

Recommendations Undoubtedly, hologram have become widely accepted as an effective authentication device. Today, they present a great opportunity for governments to act decisively & boost excise revenue from growing tobacco sales, and for manufacturers to protect their brand and use the technology as an integral part of their strategy.

The Secretary General of the World Customs Organizations has singled out praise for the Ukrainian systems of protecting goods with tax stamps with holographic security elements. Also, the World Bank and the International Monetary Fund have both declared the introduction of anti-counterfeiting measures such as forgery-proof tax stamps as essential to combating tobacco smuggling.

Thus, Indian Excise Department too should use security holograms to check the theft and pilferage of Central Excise Duty on various excisable tobacco products like Cigarette and Pan Masala. The Hologram should have central excise Logo, incorporating various holographic security features, lot number and serial number etc. Mandatory application of Holograms on tobacco products and the use of holographic technology will substantially increase the Excise Revenue and prove to be the best solution for protecting tax stamps against the indelible mark of the counterfeiter. ■

References:

1 Beedi-A beedi is a thin, South Asian cigarette made of 0.2-0.3 grams of tobacco fl ake wrapped in a tendu (or temburini; Diospyros melonoxylon) leaf and secured with colored thread at both ends.

2 Gutkha – Manufactured in India Gutkha is a preparation of crushed betel nut, tobacco, catechu, lime and sweet or savory fl avorings.

3 Framework Convention Alliance, How big was the global illicit trade problem in 2006? Geneva, 2007, available at www.fctc.org/.../fca-2007-cop-illicit-trade-how-big-in-2006-en.pdf

4 A report on tobacco taxation by Bloomberg Philanthropies & Bill and Melinda Gates Foundation

5 Euromonitor international

6 ERC group, World cigarettes/1, The 2007 Survey India, Suffolk, 2007

■ Reconnaissance International

■ British American Tobacco

■ Euromonitor International Currency market insight, India, March 2005

■ Godfrey Phillips India.

■ ITC India

■ www.taxstamforum.com

In year 2007-2008, Imperial Tobacco developed holographic cartons designed to celebrate Lambert & Butler position of 10 years as UK’s biggest FMCG brand. The hologram used by Imperial Tobacco received the “Best promotion award” given by International Hologram Manufacturers Association (IHMA).

Lambert & Butler is a British cigarette brand.

11

Cover Story

www.homai.org

The Holography Times

Forgery and falsifi cation affect almost every area of economic and

social life today- Tobacco counterfeiting and trade in fake cigarettes being the latest alert that has been in the news. It is a huge business all over the world, operating as an underground economy. Both smokers and non-smokers alike know, smoking is bad for health, but fake cigarettes can be even more so.

Holostik India, a pioneer in providing security solutions, views tobacco anti-counterfeiting with signifi cant priority. To counteract the duplication of tobacco products and packaging, there are many anti-counterfeit technology products that can be introduced, the most effective solution amongst them being the use of holograms. These are recognised worldwide as the premier optical security and authentication technology.

Since 1991, Holostik India provides security solutions to various industries helping them combat counterfeiting. Today, it provides customised tailor-made solutions to more than 5000 customers in the government, public and private sectors including some of the leading tobacco manufacturers in India. Today, Holostik’s security solutions are used to protect and authenticate varied products and packs in the tobacco industry.

These solutions are available at varied levels of security- security solutions, semi high security solutions and high security solutions but, Holostik always incorporates certain security features in all of the above three categories so that it is impossible for counterfeiters to duplicate.

Security Solutions for the tobacco industry:Using holographic products is a reliable way to integrate brand protection security solutions onto tobacco packaging / products. This is because they are instantly recognizable to the naked eye, and uniquely resistant to counterfeiting. Holostik on the basis of demand and requirement, offers a wide range of products to address the challenges faced by the tobacco industry. From security labels to security holograms, high security paper label to holographic stripe, holographic pouch to holographic tagger foil; Holostik overt security, covert security and forensic technologies have been applied to a wide variety of products within the tobacco sector.

These include ■ Holographic tagger foil for tin

boxes

■ Holographic stripe

■ Holographic pouch for gutkha industry

■ Security seal for cigarette packs■ Re-sealable labels for loose tobacco■ Security labels for loose tobacco ■ High security paper label with

security hologram ■ Complete holographic solutions

Holostik is a leading manufacturer with fully integrated and modern facilities and capabilities from master origination to fi nished products all under one roof. It offers services like design, origination, manufacturing and distribution to help steer clients from concept to product launch. It develops security solutions according to specifi c packaging shape and size requirements, whilst integrating the latest security technology.

Holostik stands for authenticity. It has helped the government protect revenue, manufacturers protect brand image and has made the consumer more confi dent about buying a genuine product. ■

For more information contact at holostik@vsnl.com or visit www.holostik.com

Holostik security solutions for thetobacco market

12

Company Profi le

www.homai.org

The Holography Times

AbstractWe present the first commercially available system for in-line printing of diffractive microstructures as a part of a conventional 4-colour printing machine for e.g. label printing. The purpose of these diffractive microstructures is either as decorative or product security. This article will focus on the challenges of transferring diffractive microstructures, by means of rotation micro-moulding and UV curable lacquers in a process known as HoloPrint™ at a speed of 60 m/min with high fidelity. The possible use of this technology as a generalised platform in industrial roll-to-roll (R2R) fabrication of microstructures will also be discussed.

IntroductionDiffractive optical elements can be applied as an integral part of packaging materials, where they are used for decoration or as a security element or a combination of both. This is normally done by application of a label containing diffractive optical elements, that is holograms. The label is often manufactured by an embossing method. This requires the label to be applied to the packaging material in a process that is separate to the label fabrication. Often this is a multi-step procedure, taking place at different locations.

From a printers perspective this solution is not very satisfactory. First of all, the many handling steps often involve transport of the material between multiple locations resulting in high costs of this type of label material. Furthermore, the mere fact that the diffractive elements have to be added to the printed material in an off –line process makes it diffi cult to integrate these structures in the graphics design, The result is the familiar silver-like patch with sparkling colour seen on bank notes and tickets.

In order to change this paradigm, two Danish companies Stensborg A/S (hologram manufacturer) and Nilpeter

A/S (manufacturer of label printing machines) formed a joint venture aimed at developing a printing process that would enable a printer to execute both conventional 4-colour printing and transfer of diffractive optical elements to a web in an in-line process. An additional feature of the printing process should be its ability to print in register . Implemented on a printing machine this would allow the printer to integrate diffractive optical elements at will in a graphics design. Such a process would represent a major shift in paradigm in the printing industry.

The design of the system that we wish present in this article is largely inspired by conventional fl exographic printing machines and an extension of a replication technique known as soft lithography. The concept of soft lithography based on replication of UV curable polymers using elastomer as micro moulds was originally pioneered by Whitesides et al and the IBM research group in Zurich (CH).

Fabrication of diffractive optical elements (DOEs)The fabrication of DOEs can be divided into three steps:

1. Master fabrication2. Fabrication of replication tool3. Mass production

The most common diffractive DOEs are those based on a micro surface relief. This type has the advantage of being fairly easy to replicate and to mass-produce due to its surface structure . The generic feature of all diffractive DOEs is a periodic microstructure like the one shown in Figure 1. Typically, this structure will have fringe spacing of 500-1500 nm and a relief depth of 50-300 nm.

The two most prevalent methods of master fabrication are either by the use of a high-resolution laser plotter Figure 2a, or by interference of two or more laser beams as shown in Figure 2b.

Fig.1. AFM scan of section of master grating in photo resist on glass. Depth is 300 nm and width is 1000 nm of the groove structure

13

UV assisted casting of microstructures for high-volume production of diffractive optical elements on foilLars R. Lindvold (lali@stensborg.dk) and Jan Stensborg, (jan@stensborg.dk) Stensborg A/S; Frederiksborgvej 399/Niels Bohr, DK 4000 Roskilde, Denmark (www.stensborg.com)

Technology

www.homai.org

The Holography Times

The recording of the microstructure requires a photosensitive material, typically photo resist. This material will record the microstructure as a surface relief after exposure and subsequent development as shown in fi gure 1.

The glass master is too fragile to be used in mass production and it is necessary to make a replica of it. Fortunately, the CD and DVD industry already has developed a method known as electroforming whereby replicas of microstructures can made commercially . The basics of this method, sometimes referred to as electroforming, are outlined in Figure 3 a and b. The Ni-replica can be used for mass fabrication either by injection moulding or embossing in suitable polymer materials like the mould material currently used in the HoloPrint™ process, as will be described later in this article.

The UV replication method

The advantage of using UV curable polymers is that this type of polymers is commercially available with a variety of mechanical, thermal, optical and chemical properties as shown in table 1.

Table 1. Properties of UV curable polymers in the cured state.

Property Range

Mechanical Hardness Shore D 30-85 Modulus of Elasticity (psi) 103-105 Tensile strength

Thermal Degradation temp 140-400°C

Chemical Water absorption down to 0.5% Chemical resistant good except chlorinated solvents

Optical Refractive index 1.42-1.65 Transmission windows: 350-900 nm, 450-900 nm, 500-900 nm, 600-900 nm

The wide range of properties is facilitated by the difference in polymer and photoinitiator composition . Typically the commercially available UV resins are pure acrylates, or acrylated urethanes, epoxies or silicones.

Furthermore, this type of polymers can be dyed to enhance the contrast of the hologram without sacrifi cing its UV curing property. In that case the UV curable polymer is referred to as UV curable ink.

In terms of surface properties, UV curable polymers provide the user with a plethora of possibilities. One of the most common methods of surface modifi cation is the so-called photografting . Using this procedure, surface properties like hydrophilicity and friction can be altered.

Fig. 2b. Interferometrical recording.

Fig. 3a. A thin metal layer is deposited on the photo resist glass master in vacuum to render it electrically conductive.

Fig. 3b. The glass master is placed in a Ni-sulphamate bath as a cathode together with a Ni anode. By passing a current through the bath, Ni is electrolytically deposited on the cathode in a layer with a thickness of a few 100 microns. After the process this Ni-replica is removed from the glass master.

2a. High-resolution laser plotter

14

Technology

www.homai.org

The Holography Times

The wide range of properties is facilitated by the difference in polymer and photoinitiator composition . It is noteworthy that the photoinitiator not necessary has to be UV sensitive but can have its spectral sensitivity in the visible spectrum. Therefore, it may be more appropriate to describe the process as photo-curing rather than just UV-curing.

The HoloPrint™ processIn order to develop this method into a fully integrated mass production tool, we need to turn the batch process into a reciprocating process that is compatible with a fl exographic process. The proof-of-principle set-up that has demonstrated this concept is shown in Figure 4. The process has been dubbed HoloPrint™ . Although the process strictly speaking is a micro-moulding process we decided to name it HoloPrint™ to make it more acceptable to the printing industry.

The key feature of this technology is photo-curing of a liquid polymer in the contact point of a mould material placed around the cylinder and the web carrying the UV-curable lacquer. Technically speaking, this step is referred to as curing in the nib.

The UV curable polymer is applied to the web by a conventional fl exographic roller. The thickness of the layer typically ranges from 1 to 10 microns. The lower limit on the thickness is set by fl atness of the foil and the mechanical tolerances of the roller.The upper limit is essentially set by the UV power available from the lamp and the viscosity of the UV resin. In the case of paper foil it is recommended that an overcoat of UV polymer be applied prior to the actual hologram coating.

A polymer material was developed for the HoloPrint™ mould that could fulfi l the following requirements:

• Highly UV transparent• Good mechanical stability• Perfect release properties with respect to the cured

lacquer

As it can be seen in fi gure 5, the new HoloPrint™ mould material turned out to possess good UV transparency.Further refi nements in the optics and proper thermal management of the lamp-printing cylinder unit eventually lead to a printing speed of 60 m/min, the design target for the HoloPrint™ process.

HoloPrint Mark IV (HP 4)The HP 4 unit has been designed to match the functionality of a printing machine. This version was presented at the LabelExpo 2009 in Brussels and is shown in fi gure 7 and 8.

Fig.5. Transmission curve of a HoloPrint™ mould material recorded using a CARY 50 spectrophotometer.

Fig.7. The HP4 machine as it appeared at the LabelExpo 2009 exhibition in Brussels.

Fig.4. HoloPrint™ principle. UV resin is applied to a substrate material and brought into contact with the mould. UV resin is cured in the line of focus and the micro surface relief is replicated onto the substrate.

Fig.6. Details of printing roller with mounted wafers (maud)

15

Technology

www.homai.org

The Holography Times

ApplicationsThe aim of this project was originally to be able to print microstructures in-line, and in register, with an ordinary multicolour fl exographic printing machine. The main application for this application was in-line printing of labels for product security . It is evident that the applications for this system extend far beyond this goal. We have identifi ed a number of possible application areas for the HoloPrint™ system.

Replication of digital data mediaFig.10. 5μm x 5 μm AFM images shown in top-view pseudo 3D projection of the DVD Ni-master (left), the polymer mould (middle) and the UV lacquer replica (right). The image of the polymer mould has been inversed and mirrored in order to ease comparison. AFM scan courtesy of Dr. Anders Kühle Danish Institute for Fundamental Metrology (DFM).

Throughout the past 10 years optical data storage has increased its storage capacity dramatically. One of the media is the DVD. This medium is fabricated by cementing together two 600 micron thick DVDs made by injection moulding. The current trend points towards even higher storage capacities. This can only be accomplished by stacking even thinner layers. The fabrication of these discs with conventional injection moulding technology will become quite diffi cult as thickness decreases. We have tested the UV replication technology described in this article for this purpose. The result can be seen in fi gure 10.

Holographic optical elements (HOEs)HOEs are essentially fl at elements with optical properties determined by a microstructure. The proliferation of mobile phones has augmented the use of HOEs, as they frequently are use as focussing diffusers and colour fi lters in the LCD displays of these phones. A present, these components are mass-produced using the DuPont Omnidex photopolymer . We believe that the replication method described in this article could be a cost-effective alternative to DuPont photopolymer.

Fig.9. Close up of the printing.

Fig.10. 5μm x 5 μm AFM images shown in top-view pseudo 3D projection of the DVD Ni-master (left), the polymer mould (middle) and the UV lacquer replica (right). The image of the polymer mould has been inversed and mirrored in order to ease comparison. AFM scan courtesy of Dr. Anders Kühle Danish Institute for Fundamental Metrology (DFM).

Fig. 8. Close up of the fl exo and HP4 units.

16

Technology

www.homai.org

The Holography Times

Microstructures for control of cell growthAn interesting application of micro- and nanostructures is the control of cell growth . This area of research is particularly relevant when it comes to growing artifi cial tissue. Usually this is done on a collagen coated Petri dish. We suggest that our method could prove to be of value, if the microstructure had to be transferred to a membrane.

Optoelectronics in plastics One of the emerging technologies in display technology is polymer-based LEDs and fl at-screen displays . Unlike conventional LEDs based on semiconductor processing, these components are based on screen-printing technology combined with conductive polymers like Orgacon from Afga . This format permits the display to be formed on a fl exible substrate at very low cost. Combining this technology with HoloPrint™ would make it possible integrate light control function like polarisation control and focussing directly into the light emitting structure. In this way, novel designs for light emitting devices may be devised.

Microfl uidics One of newcomers to Life Science is the Lab-on-a-chip. The aim of this technique is to provide drug discovery and genetics with a tool for high throughput screening methods. The core technology in most of these systems is microfl uidics. The technology makes it possible to microfabricate fl ow channels, mixers and reaction chambers on a chip . Recently, microfl uidics has merged with optics and light emitting components into optofl uidics . It would be interesting to see if HoloPrint™ combined with ink-jet and laser direct write technologies could provide a platform for complete chemical analysis system to be integrated monolithically.

So far, most of the work done in this area has used conventional chip fabrication and microinjection moulding technology. We believe that a novel concept for Lab-on-a-chip would be Lab-on-a-foil. We claim that this could be a future application for the HoloPrint™ process.

ConclusionsIt has been demonstrated that in-line fabrication of diffractive microstructures, in register with the printed graphics design, is possible on a conventional fl exo label printing machine.

We are convinced that this system can be utilised in general for industrial scale production a variety of micro- and even nano structures. A number of these applications may even fi nd their way into smart packaging materials.

AcknowledgementsThe authors wish to thank the following individuals for contributing to the project:

Bent Hansen, Nilpeter A/S, for his patience, ingenuity and technical support during the factory tests of the system.Research Professor Dr. Niels B. Larsen, DTU Nano, for performing the AFM scans and his expert advice on PDMS.Christian Elbek, Chempilots A/S, is acknowledged for fruitful discussions on UV curable polymers other materials issues.

Process and technology innovation manager Steen Vesborg, Carlsberg Group, for his valuable suggestions pertaining UV lacquers, polymers and process integration. ■

References1. Printing in register is a term used in

the printing and desktop publishing industry. It is the method of correlating colour separations.

2. S.Brittain, K. Paul, X-M Zhao and G. Whitesides, “Soft lithography and microfabrication”, Physics World, 11, no. 5, pp 31-36, 1998.

3. B.Michel, A. Bernard, A. Bietsch, E. Delarmarche, M. Geissler, D. Juncker, H. Kind, J. -P. Renault, H. Rothuizen, H. Schmid, P. Schmidt-Winkel, R. Stutz and H. Wolf, ”Printing meets lithography: Soft approaches to high-resolution patterning”, IBM J. Res. & Dev., 45, No. 5, pp 697-719, 2001.

4. M.Gale, “Replication techniques for diffractive optical elements”, Microelectronic Engineering, vol. 34, pp 321-339, 1997.

5. Typically this kind of plotter has a resolution of 25000 dpi, which should be compared to an ordinary laser printer with 1200 dpi.

6. Strictly speaking the electroforming process dates back to the days of the old vinyl records.

7. C. Roffey, “Photogeneration of reactive species for UV curing”, Wiley 1997.

15. I.R. Bellobono and E. Selli, “Photografting processes into polymers”, pp 115-148, in Photopolymerisation and photoimaging science and technology, ed. N.S. Allen, Elsevier Applied Science, 1989.

16. C. Roffey, “Photogeneration of reactive species for UV curing”, Wiley 1997.

17. Patent EP1150843 “Method And Device For Rotational Moulding Of Surface Relief Structures”, L.R.Lindvold, J.Stensborg and T.Rasmussen.

18. R.L. van Renesse ed., Optical Documents Security, Artech House, 1998

19. B. Loiseaux, C. Joubert, A. Deboulbé, J.P. Huignard, B. Morbieu, F. Delauzun, T.J. Trout and W.J. Gambogi, “Phase volume holographic components for LCD applications, Proceedings of the Sixth International Display Workshops, pp 1025-1028, 1999.

20. C.S. Chen, M. Mrksich, S. Huang, G.M. Whitesides and D.E. Ingber,”Geometric control of cell life and death”, Science, 276, pp 1425-1428, 1997.

21. For an extensive update on this area please consult the homepage of Cambridge Display Technology at www.cdtltd.co.uk

22. For more information please consult http://www.agfa.com/en/sp/solutions/orgacon_electronic_materials/index.jsp

23. M.J. Madou and G.J. Kellogg, “The LabCD: A centrifuge-based microfl uidic platform for diagnosis”, Proceedings of the SPIE, 3259, pp 80-93, 1998.

24. An excellent review of the current state-of-the-art can be found a special issue of Microfl uidics and Nanofl uidics, Vol. 4, No 1 & 2, 2008.

17

Technology

www.homai.org

The Holography Times

18

Technology

www.homai.org

The Holography Times

Upcoming Events

Secure Documents 2010 28-30 April 2010, Rennaissance M Street Hotel, Washington, DC, USA An important event in the fi eld of high security printing, encompassing the latest products, technologies, and application for the production and issue of currency, passports, e-ID, revenue stamps and other government issued fi nancial or identifi cation documents. For more details contact Tel: +1 202 3097296, Email: john.buss@pira-international.com; Web: www.securedocumentsconference.com

Industry Updates

2nd Tax Stamp Forum 14-15 June, 2010, London, UK Theme: Effective Programmes to Maximise Revenue, Focus: Development and deployment of technologies and system that are resulting in an increase in government revenues and a decrease in contraband and counterfeit products. For more details contact Tel: +44 (0) 1932 785680, Fax: +44 (0) 1932 780790 Email: info@reconnaissance-intl.com; Web: www.taxstampforum.com

Abu Dhabi International Anti-Counterfeiting Conference & Exhibition 2010 10 - 12 Oct 2010, Abu Dhabi Abu Dhabi International Anti-Counterfeiting Conference & Exhibition 2010 focuses on the displaying of counterfeit goods and identifying to the general public, trading companies and brand companies the difference between genuine goods and counterfeit goods.For more information visit http://www.zonegroupuae.ae

Holopack-Holoprint 2010 14-16 November 2010, Le Meridien Hotel, Kuala Lumpur, Malaysia A must attend event for all holography community, the venue for the Annual General Meeting of International Hologram Manufacturers Association and a place where the best industry work was awarded with Annual Excellence Holography Awards. For more details contact Tel: +44 (0) 1932 785680, Fax: +44 (0) 1932 780790Email: info@reconnaissance-intl.com, Web: www.holopackholoprint.info

9th Asian High Security Printer Conference 17-19 November 2010, Kuala Lumpur, Malaysia For more details contact Tel: +44 (0) 1932 785 680, Fax: +44 (0) 1932 780 790Email: info@cross-conferences.com; Web: www.cross-conferences.com

Pack Plus 20103-6 December 2010, Pragati Maidan, New Delhi, India A mega event that encompasses all the segments related to packaging, processing and supply chain. For more details contact Tel: +91 (11) 29812833, Fax: +91 (11) 41722130Email: info@packplus.in; Web: www.packplus.in

19

www.homai.org

The Holography Times

20