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Age of the Specialist

Fewer distributors can claim security printing expertise

By Andy Brown

Of all the specialties they could pursue, document security is one of the hardest to master. The gulf between true experts and those who simply take product orders grows wider each year.

Several trends drive this differentiation. One is that end users are more aware of the threats and consequences posed by identity theft and counterfeiting, so they expect to work with knowledgeable distributors who can solve their problems. Another is the advance of technology. The concept of document security has grown to include electronic as well as paper-based forms. As a result, document security is no longer synonymous with printed security features. Distributors must acknowledge this to stay ahead of the curve. The realm of document security encompasses not only the documents but all processes related to the creation, dissemination and tracking of secure information.

For example, many distributors sell checks. They find out the quantity their clients need and what kind of features—pantographs, microprinting, thermochromic ink—they want and can afford. They simply fill the order and wait for the next one.

On the other hand, a true document security expert learns about the lifecycle of the checks: Where will they be stored? Who will have access to them? Who’s responsible for reconciliation with the bank? What happens in case of a security breach? Knowing this information allows experts to identify weaknesses in their clients’ processes and offer solutions that could prevent them from suffering financial loss.

Globalization also plays a role in raising the bar, particularly at the intersection of brand management and security printing. Counterfeiters who print fake packaging or labels diminish the value of companies’ brands. In worst-case scenarios, a company might have to defend itself against claims of liability if an inferior counterfeit product associated with its brand injures or kills a consumer.

Companies are responding to the threat of counterfeiting by seeking more sophisticated security printing. They’re not as interested in purchasing products that have standard security features available to anyone. And they’re demanding higher standards. Already, other countries are far more strict than the United States about who can produce and sell printed security products. To set themselves apart, distributors must offer comprehensive security solutions.

Migrate to New Applications
Many traditional documents that security features protect will continue to experience relatively flat growth. They’ve been substituted for electronic versions in many cases. However, the need to protect and control secure information is gaining traction everywhere. The result is that traditional security features are being used in non-traditional applications. Printers and distributors are being asked to treat a wide range of documents as secure. “A board of directors briefing report wouldn’t have been considered a non-copyable, secure document 10 years ago, but we are now beginning to see these types of securing features added,” says Robert Spiller, president and CEO of security printer Sekuworks, LLC, Harrison, Ohio. “You want to make sure such reports can’t be copied for expanded distribution.”

Discovering new applications for security printing is paramount for distributors who sell the same-old security documents with the same features. Otherwise, they will find it hard to compete over the long term. One reason, according to Spiller, is that traditional documents and their security features are well-established. They’re widely available and don’t necessarily require expertise to sell or provide. “There are two distinct markets, one that’s traditional and established, which tends to include document and currency security-based printed products,” he says. Examples include birth certificates, stock certificates and checks. “These are well-developed, mature markets. They use fairly well-established technologies,” he says. “Then there’s a whole other world of security printing, which tends to be faster-growing, which includes products such as tamper-evident labels and tapes, lottery tickets, brand authentication labels, gift cards and so on.”

The application of security features to packaging and products reveals a growing consciousness on the part of end users about the need to protect themselves from counterfeiting. “As companies have expanded their supply chains across the world, seeking improved manufacturing economics , they’ve opened themselves up to counterfeiting,” Spiller says. “It’s a pretty significant issue if you’re a consumer or a brand owner.” He compares taking a prescription drug in some countries to gambling, for instance. Though the packaging may seem authentic, the medication inside actually could be harmful. “What happens is that brand owners are getting sued when their products fail, and the irony is that it wasn’t really their product,” Spiller says. “Everyone in the supply chain needs tools for product authentication. The ideal tool allows for simple, overt authentication by all supply chain constituents including the end customer. Wouldn’t it be nice to know if you are about to take a fake prescription medication?”

Affected industries are still in a state of denial, Spiller says, but they’re quickly recognizing the need for better protection. In larger companies, especially, shareholders and investors are demanding that executives implement responsible brand protection measures. The key to convincing skeptics is a matter of education, Spiller says: “If they think they want to buy a commodity label, they’re kidding themselves. By definition, a security product has to be unique and not easily replicated–the exact opposite of a low priced and widely available commodity. The real competitor for a security product is the counterfeiter.”

Offer Access Authorization
Security printing is no longer limited to the documents themselves. It begins with who has access to the documents in question, whether they’re printed or electronic. Therefore, distributors who want to solve their client’s document security problems should think in terms of information security and access authorization rather than ink-on-paper. Historically, physical access to a facility or company was separate from whether an employee or visitor had access to the company’s other assets, such as its computer network and databases containing sensitive information. That’s changing, says Ram Ramaprasad, director of product management at Zebra Technologies, Vernon Hills, Ill. The use of RFID technology, for instance, allows companies to tag and monitor the location of computers containing secure information. Likewise, shipping companies use RFID chips to track containers—and their contents—in a shipyard.

“What we are starting to see is the merging of physical security with companies’ larger security. The document I have not only authenticates me to get into the facility, it entitles me with access to the rest of the enterprise,” Ramaprasad says. “Almost every enterprise network has the ability to authenticate whether you’re allowed to access it or not through use of portals. We’re tying the physical access control to the larger access control of the client’s enterprise system.”

Andy Brown is managing editor of Print Solutions Magazine. Email comments to abrown@psda.org.