))) Texas Instruments Introduces Tag-it™ – The First Smart Label Technology
Designed to Counteract the Threat of Counterfeit Products

))) DALLAS, TX (January 23, 1998)

The movement and sale of huge quantities of fraudulent merchandise is a vexing, worldwide problem. Standardized solutions have been elusive, but now entering the scene is advanced item identification technology that is cost-effective to implement, while being prohibitively expensive to replicate illegally. Taking the lead is Texas Instruments (TI), which today announced the availability of Tag-it™, a new "smart label" technology designed as an affordable way to ensure the authenticity and security of goods from original source to store shelf and into the customer's hands.

As the boundaries between countries, industries and economies diminish, the opportunity for counterfeiting and tax avoidance increases proportionately. Governments, product manufacturers and consumers all suffer the impact, which manifests itself in a vicious circle of lost revenues, brand erosion, higher prices and raised taxes. Tag-it™ technology is the means to prevent this from happening.

When placed inside a product label or embedded directly in the product itself, Tag-it™ transponders serve to verify the authenticity of merchandise. Unique, unalterable codes and other manufacturer data stored in the transponders form a protective shield around the merchandise. Removing the original product label or tampering with the transponder itself will alert the retailer to possible corruption.

Breaking through the price-performance barriers of existing radio frequency identification (RFID) systems, Tag-it™ is an ultra-thin transponder containing integrated circuitry that can be laminated into paper or plastic labels and attached to or embedded in products. The transponder's memory has the capacity to securely store customizable, manufacturer-specific product information. For example, a perfumer might elect to input batch numbers, production dates and type of packaging. At point-of-sale, further data could be added, such as "sold" or "returned," transforming the Tag-it™ label into an "electronic receipt."

Opening up a host of new identification and tracking applications to RFID, Tag-it™ technology can also be used to better manage inventory and supply chain logistics; improve the express parcel delivery process through more accurate package identification and real-time record keeping; and help automate airline baggage identification and positive passenger matching.

Printing and Labeling Compatibility

The ultra-thin profile, flexibility and robustness of a Tag-it™ transponder means the new "smart labels" can be produced via standard conversion processes and printed on by current printing or imaging systems. Labels embedded with Tag-it™ transponders can also be manufactured with magnetic stripes, or marked with bar codes or other printed information, creating seamless compatibility with established automatic ID, logistics, tracking and ticketing systems.

Simultaneous Identification sans Line of Sight

Unlike bar code or other ID systems where items have to be physically separated and read individually, Tag-it™ has a unique and powerful simultaneous identification (SID) capability - identifying multiple labels, packages or assets all at the same time as they pass a read point. Parcels or bags overlapped on a conveyor, or products placed inside cartons, can all be identified simultaneously, accurately and automatically. Through this mechanism, Tag-it™ achieves the type of "in-the-box" visibility needed for tracking and logistics applications.

Due to the intrinsic characteristics of RFID technology, the reading and programming of Tag-it™ transponders does not require line-of-sight, unlike other automatic ID methodologies.

Dynamic Read/Write Data Capture

Tag-it™ transponders possess an advanced read/write feature that lets system operators program application-specific data such as delivery checkpoints, places of origin/destination, pallet assignments, or inventory numbers. Transponders can also be written "on-the-fly" at any reading location, to add information such as dates and security status. In addition, each transponder chip is also factory-programmed with a unique ID code that is impossible to replicate.

TI-RFid™ - The RFID standard

Tag-it™ has been engineered with the benefit of TI-RFid™'s considerable experience in producing an extensive range of RFID solutions, field-proven in applications including automotive anti-theft systems, sports timing and automated payment programs at gas stations across the country. More then 30 million TI-RFid™ tags are in use worldwide.

In basic terms, RFID involves wireless communication between a transponder and reader unit. Signals from the reader unit instruct the transponder to transmit back stored data, which is then used to activate a system, authorize a transaction, or retrieve an asset profile.