NXP Semiconductors and Kestrel Wireless have partnered up to create a solution to solve the problem of DVD theft throughout the supply chain, based on NXP''s RFID technology and Kestrel''s RFA (radio frequency activation) system.
     The new solution means that it is now possible to disable DVDs at the point of manufacture and enable them at the point of sale, making goods stolen at any point during the supply chain worthless, thus eliminating the incentive for theft. 116.30.192.184 This article is copyright 2007 UsingRFID.com.

Optical media first
     The first application of the combined RFA/RFID solution will be integrated into optical media. The solution, however, is applicable to almost any consumer electronics product, such as MP3 players, electric shavers, toothbrushes, flat screen TVs, ink jet cartridges and flash memory. For the unique application of DVDs and other optical media, electro-optic films are used to make the discs non-readable or readable regardless of the disc format or the playback device.

     The network-based RFID solution opens up new opportunities for the distribution of optical media and consumer electronics. The companies say that it can help remove the need for other security devices, restrictive packaging, and display cages, enabling a more comfortable shopping experience for consumers. Minimal packaging enables more environmentally friendly products, using paper instead of plastics. And the costs and problems of returns for DVDs and other disc-based media can also be greatly reduced.

Theft prevention costs lowered
     According to Christophe Duverne, senior vice president and general manager of identification at NXP, hundreds of millions of dollars that are paid for by retailers, manufacturers and, indirectly, by consumers are wasted each year on theft prevention. This new development has the potential to dramatically reduce and ultimately eradicate the theft of optical media and consumer electronics in the retail supply chain."

     Commenting on the near-term application for optical disc media, Bo Andersen, president of the Entertainment Merchants Association (EMA), said on behalf of EMA''s Loss Prevention Committee, "We are excited by the promise of these types of solutions. DVD and video game theft is a problem that has gone on far too long and at a cost of millions of dollars annually. Where solutions include more environmentally and consumer friendly packaging, improve merchandising with more shelf space for discs, and reduce the cost of returns - these are the ingredients for solutions that will greatly enhance everyone''s business."

Low impact on POS systems
     Designed for minimal disruption to existing retail point-of-sale (POS) systems, the radio frequency chips are embedded in consumer goods that are activated by an RFA-enhanced RFID reader at the POS. When the chip is scanned, information is sent to the Kestrel network for authentication. Assuming all is correct, and the product hasn''t been stolen, an enabling code is sent to the chip and the product is activated.

     As part of the agreement between NXP and Kestrel, both companies will continue to identify and develop a variety of applications for RFA/RFID-enabled products through a series of pilot programmes.

 

 

 

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