the holography times, vol 4, issue 10

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The Holography Times

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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 techHOLOGRAMS

can uproottobaccocounterfeiting

An endeavour to safeguard products and people


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Tobacco counterfeiting and tax evasion are problems that have

existed for legitimate manufacturers, government agencies andits 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 is

1. What are tobacco manufacturers doing to protect them from

saving their products and profits?

2. What are governments doing to fight 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 UPROOTTOBACCO 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 profile and industry updates to keep you

informed.

As always, we value your comments on this issue of

The Holography Times.

Please send them to [email protected].

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 by

HOLOGRAM MANUFACTURERS

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

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

Email: [email protected]: www.homai.org

Designed and Printed byEYEDEA Advertising

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

E-mail: [email protected] 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

counterfeiting8

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

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BOBST GROUP, the leading supplierof equipment and services for thefolding carton, corrugated board and

flexible 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 flat-to-flat hologram

application on paper, labels, or board

has been the BOBST SP 76-BM foil

master. Now BOBST has introduced theVISIONFOIL 104 H to deliver hologram

application of utmost accuracy.

The VISIONFOIL 104 H uses BOBSTs

patented, high precision registrationcameras 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 flexibility

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 flexible, 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 to2000 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 industriestrying to protect their products.

Contact, Marco Lideo at

[email protected] 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.

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BP acquisition

adds toFiltronas label

expertise

Filtrona PLC a division of Payneinternational, market leadingspeciality plastic and fibre products

supplier, has acquired BP Labels

Limited and BP Secure Solutions

Limited, representing a significant

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, creativeand 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 ManagingDirector 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

significant benefits from utilising

our existing global commercial and

operational footprint to access new

markets for BPs products as well as

from offering our existing packagingand security products and technologies

to BPs current customers.

Source: www.payne-security.com

The Treasury of States of Jersey hasunveiled its new note series to beissued in April 2010. Printed by De La

Rue with imprint, the 10-, 20-, and 50-

pound notes have been redesigned to

reflect various aspects of the islands

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 first time Jrriais, the islands native

Norman French, appears on the note in

addition to English and French. Source: http://news.bbc.co.uk

KAMA- manufacturer of printfinishing machines and developerand manufacturer of the ProCut 53, the

worlds first A3 flatbed die cutter, is now

introducing a hologram stamping system

designed specifically 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 marketbecause 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 hologramstamping 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

finishing 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 orhologram-stamping systems. Source: http://www.proprint.com.au/News

JERSEYS new holographic

bank noteAnother bank note joining the hologram club for security

KAMA launched hologram

stamping system

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The findings of the Lebanons reportare that patented medicines contribute74.8% 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 confirmation 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 identification 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

Lebanons report on healthcare and medical

marketThe new report praises hologram technology in finding the fakes

Scriba Nanotecnologie a spin offcompany of the Italian NationalResearch Council producing new

technologies for anti-counterfeiting

have developed NU-CODE

technology- a complete system that

uses ultra-miniaturized digital tags

for: identification, traceability,

anticounterfeit, security and quality

control.

Nu-CODE is based on a technology that

allows permanent recording of digital

data, on specially modified holograms

(EN-TAG labels). EN-TAG is cost-

efficient 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 digitalkeys 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 andanti-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 [email protected] or

visit www.scriba-nanotec.com

SCRIBA nanotecnologies for anticounterfeiting

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

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An addictive industryIt 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 scaledrecently, 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 likezarda , gutkha

and other pan-masala.

Tobacco market in IndiaPresently, India is the second largest producer of tobaccoin 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 andzarda) form the bulk 86 per cent of

Indias total tobacco production.

The global roadblocks- illicit tobaccotrade and tax evasion

i) Illicit tobacco trade smuggling and

counterfeiting

Illicit 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 companys 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 andmanufacturers dearly in terms of lost revenue and damage to brand reputation. Further, the hightax policies on tobacco products make them a lucrative target for counterfeiters. In this article, we

will find 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 peopleusing tobacco in the Americas in1492.

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 $ 5570billion

Every year $600 bn counterfeited & smuggledcigarettes cross national borders

In India, smuggled cigarettes are estimated atRs 1700 crore in value.

Hungary was the first country to use hologramson their tax stamps

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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 1310 Turkey 12

Table 2: Revenue generated and lives saved withelimination 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 significant 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 worlds leading

cigarette brands are duplicated because they generate bigprofits for counterfeiters. The smugglers smuggle into

a country where they can make the highest profit, 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 theUnited 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 dont 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 flooding the Indianmarket 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 filter 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,

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trade and entry taxes, from Nepal and north-eastern

states are not only taking a toll on peoples health but

also ruining the revenue targets of the government.

The revenue department is estimated to incur a loss ofover 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 figures for gutkha production but the effect

seems to be trifling

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 ExciseF.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 - HologramGlobally, steps have been taken to fight this problem. One

answer could be for India to adopt hologram or holograpic

tax stamps. Tax stamps serve two purposes. One is to providea 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 affixed, 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 significant

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 fight 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 first countries to use hologram on its tax stamps.

Kanpur alone accounts for a revenue shortfall of Rs 900crore owing to large consumption of such betel nuts inover 40 pan masala and gutkha production units. Accord-ing to an official of the Department of Revenue Intelligence(DRI), the volume of trade in gutkha industry should fetcharound Rs 3,500 crore as revenue but the recovery hasfailed to move beyond Rs 800 crore. The department hadrecently seized large quantities of betel nuts being illegallysmuggled into the country from the Nepal border. A largenumber of smaller gutkha manufacturers spread across

the city procure this smuggled supari from the network andsell the manufactured products in the market, without con-sidering the ill-effects of low quality inputs. Due to the illicitnature of procurement, the finished products and the rawmaterial purchases for this processing are not shown onthe company records, thereby hitting the revenue targetsof the governmentSource: www.business-standard.com

Fig 3: Latvias cigarette tax stamps are applied as self-adhesiveholographic labels

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For example In Asia also, a Chinese

tobacco company uses a flexo press

printer that incorporates a hot foil

hologram unit to print holograms.These are printed on the flip-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 governments

collection from this industry increased consistently. After the

introduction of tax stamps and band rolls six years back, the

Bangladesh governments collected approximately Taka 45

billion (US $ 650 million) in VAT and supplementary duty

during fiscal 2007-2008.

As per Ukraines 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 counterfieting. It is used in various forms for

example:

i. Holographic tagger foil for tin boxes

ii. Holographic security thread for tobacco packs

iii. Holographic pouch

iv. Security Hologram

The strategy is to increase the sale of products by usinginnovative packaging, giving unique look, increasing brand

identity as well as to secure the product from counterfeiters.

RecommendationsUndoubtedly, hologram have become widely accepted as an

effective authentication device. Today, they present a great

opportunity for governments to act decisively & boost exciserevenue 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 flake 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 flavorings.

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 Tobaccodeveloped holographic cartonsdesigned to celebrate Lambert &Butler position of 10 years as UKsbiggest FMCG brand. The hologramused by Imperial Tobacco receivedthe Best promotion award given byInternational Hologram ManufacturersAssociation (IHMA).

Lambert & Butler is a British cigarette brand.

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Forgery and falsification affectalmost every area of economic andsocial 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 significant 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 thembeing 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 theleading tobacco manufacturers in India.

Today, Holostiks 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 sothat it is impossible for counterfeiters to

duplicate.

Security Solutions for thetobacco 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 finished 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 specific 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 confident

about buying a genuine product.

For more information contact at

[email protected] or

visit www.holostik.com

Holostik security solutions for thetobacco market

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Abstract

We 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 rotationmicro-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 isnormally 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 difficult 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, twoDanish 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 elementsto 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 flexographic printingmachines 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 dividedinto three steps:

1. Master fabrication

2. Fabrication of replication tool

3. 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 Figure2a, 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 foil

Lars R. Lindvold ([email protected]) and Jan Stensborg, ([email protected])Stensborg A/S; Frederiksborgvej 399/Niels Bohr, DK 4000 Roskilde, Denmark (www.stensborg.com)

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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 figure 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 thecured state.

Property Range

Mechanical Hardness Shore D 30-85 Modulus of

Elasticity (psi) 103-105 Tensilestrength

Thermal Degradation temp 140-400C

Chemical Water absorption down to 0.5%Chemical resistant good exceptchlorinated solvents

Optical Refractive index 1.42-1.65Transmission 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 sacrificing 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 modification 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-replicais removed from the glass master.

2a. High-resolution laser plotter

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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 flexographic

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 aroundthe 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 flexographic roller. The thickness of the layer

typically ranges from 1 to 10 microns. The lower limit on

the thickness is set by flatness 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 polymerbe applied prior to the actual hologram coating.

A polymer material was developed for the HoloPrint mould

that could fulfil the following requirements:

Highly UV transparent Good mechanical stability

Perfect release properties with respect to the cured

lacquer

As it can be seen in figure 5, the new HoloPrint mould

material turned out to possess good UV transparency.

Further refinements 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 functionalityof a printing machine. This version was presented at the

LabelExpo 2009 in Brussels and is shown in figure 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 2009exhibition 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)

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ApplicationsThe aim of this project was originally to be

able to print microstructures in-line, and

in register, with an ordinary multicolour

flexographic 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 identified a number of possible

application areas for the HoloPrint

system.

Replication of digital data mediaFig.10. 5m x 5 m 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 Khle 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 difficult as

thickness decreases. We have tested the

UV replication technology described in

this article for this purpose. The result can

be seen in figure 10.

Holographic optical elements (HOEs)HOEs are essentially flat 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 filters 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. 5m x 5 m 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 Khle Danish Institute for Fundamental Metrology (DFM).

Fig. 8. Close up of the flexo and HP4 units.

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Microstructures for control of cellgrowthAn interesting application of micro-

and nanostructures is the control ofcell growth . This area of research is

particularly relevant when it comes to

growing artificial 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 plasticsOne of the emerging technologies in display

technology is polymer-based LEDs and

flat-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 flexible 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.

MicrofluidicsOne 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 microfluidics.

The technology makes it possible to

microfabricate flow channels, mixers and

reaction chambers on a chip . Recently,

microfluidics has merged with opticsand light emitting components into

optofluidics . 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 claimthat 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 graphicsdesign, is possible on a conventional flexo

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 find their way into

smart packaging materials.

AcknowledgementsThe authors wish to thank the followingindividuals 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 materialsissues.

Process and technology innovation

manager Steen Vesborg, Carlsberg Group,

for his valuable suggestions pertaining

UV lacquers, polymers and process

integration.

References

1. Printing in register is a term used inthe 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. Deboulb,

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 ofCambridge 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

microfluidic 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 issueof Microfluidics and Nanofluidics, Vol.

4, No 1 & 2, 2008.

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Upcoming Events

Secure Documents 2010

28-30 April 2010, Rennaissance M Street Hotel, Washington, DC, USA

An important event in the field 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 financial or identification documents.

For more details contact Tel: +1 202 3097296,

Email: [email protected]; 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 oftechnologies 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: [email protected]; 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 780790

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For more details contact Tel: +44 (0) 1932 785 680, Fax: +44 (0) 1932 780 790

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3-6 December 2010, Pragati Maidan, New Delhi, India

A mega event that encompasses all the segments related to packaging, processing and

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