Extending the EPC network: the potential of RFID in anti-counterfeiting

The International Chamber of Commerce estimates that seven percent of the world trade is in counterfeit goods, with the counterfeit market being worth 500 billion USD in 2004. Many companies already use overt anti-counterfeiting measures like holograms to confine counterfeiting and product piracy. However, current techniques are not suited for automated tests of product authenticity as required in warehouses, or do not provide the required level of security. In this context, Radio Frequency Identification (RFID) is a promising approach, providing an extensible, flexible and secure measure against counterfeiting. Unique product identification numbers together with an infrastructure to seamlessly share RFID-related data over the Internet are a basis of efficient Track & Trace applications. An emerging infrastructure is the EPC Network, which can be used to provide pedigree information of products and makes plausibility checks possible. In this paper, we propose a solution for products requiring authentication mechanisms that go beyond track & trace. Therefore, the evolving EPC Network should comprehend the functionality to handle tags which support strong cryptography. We suggest extending the upcoming EPC Network infrastructure with an EPC Product Authentication Service. Moreover, the development of cost-effective, dedicated authentication devices as well as the belonging standardization is motivated.