Nokia, the world’s largest mobile phone maker, and SAP, the German software company, on Tuesday unveiled plans to launch a joint venture company to provide anti-piracy and counterfeiting technology to companies.
It will aim to offer companies a system of authenticating and tracking their branded goods – for example medicines or luxury items - from the factory gate through to the end user.
”We see a big business opportunity in brand protection services,” said Antti-Jussi Suominen, general manager of corporate development at Nokia.
Counterfeit goods such as fake medicines and knock-off designer handbags are becoming an increasing problem for businesses. Jacques Chirac, France’s former president, for example, is spearheading a political campaign for an international treaty to criminalise fake medicines as concern grows over their threat to public health around the world. Luxury goods brands including Louis Vuitton, meanwhile, have been battling to stop sales of fake handbags online.
The new company, named Original1, will have its headquarters in Frankfurt, Germany, and will be headed by Claudia Alsdorf, currently vice-president of SAP Research.
Nokia and SAP will each own 40 per cent of the company, with the remaining 20 per cent owned by Giesecke & Devrient, the German banknote printing company. The companies declined to say how much they were investing in the business.
Original1 will offer companies a combination of technologies from encryption and secure databases to tamper-proof product codes on the packaging of goods.
“Counterfeiting is a worldwide problem that is increasing and affecting many successful companies in all industries,” said Ms Alsdorf. ”Today, more than ever, companies need to combat counterfeiting before it’s too late, when their company livelihood is at stake.
“Original1 will provide a one-stop shop for companies seeking secure services that protect them from counterfeiting, safeguard the value of their brands, and help them develop a more transparent way of working to become more sustainable,” she said.
Original1 will use SAP’s technology, while Nokia will provide software for mobile authentication of goods. Nokia has provided mobile authentication services since 2006 and the new joint venture will be a further evolution of this business.
