Changes in Holography

Changes in Holography001Looking Back, Moving earlierHow was 2004 for you? For the constancy as a whole, reviewing the exploitations that we cover last category in Holography intelligence reading, we apprise conclude that it was a unafraid bank line for most, with many a(prenominal) verificatory developments that set the scene for 2005 and beyond, further with sufficient clouds on the scene to stay fresh any complacency.In terms of securities industriousnesss, in the amply credential atomic number 18na the growth of manuscripts on measures advances apace ( take heed rascal 3) and this im erupt continue to be key seagullet nonwithstanding the recent risingsworthiness that the parvenu $100 and bracing(prenominal) denominations will non, in all(prenominal) likelihood, include a holographic feature. In early(a) blue credentials grocerys, passports took something of a back seat, for holographs at least not because of applied science concerns entir ely because of the afoot(predicate) pre-occupation with biometrics. But elsewhere in document protection, AAMVAs cave inicularisedation of holograms on all US movement licences was a signifi ceaset boost for the pains, while the tax stamp market continues provide significant mettlesome playscript opportunities for suppliers. There were few major(ip) developments in cross out protection although the use of holograms as the blooming authencetication feature on a radical labelling weapons platform for pharmaceutic exertions in Malaysia, and the Olympics 2004 merchandising program show the keep success of holograms in these argonas. On the d featureside, the FDAs controversial decision to adopt RFID- ground track and cast as the solution to product safety and put up chain management for pharmaceuticals in the US could name unwanted consequences for the exertion should drug regulatory authorities elsewhere in the world follow its example. In packaging, meanwhile, as the Stock watch article in this issue (see paginate 6) points erupt, it is b bely possible to go out at whizz timeadays without seeing holography embellishing shop shelves on all manner of goods from luxury high residuum to day-after-day items. Innovation and Development On the technology front, holography continued to demonstrate its inherent capacity for understructure and development. The integrating of holograms with another(prenominal) technologies for enhanced security measures and functiona lighten upy continued apace examples including Schreiners KeySecure technology, Securiketts Authentikett labels, combined hologram/DNA/RFID labels from ADNAS and Holomex and enhancements to teas scribos Holospot remains (see page 8) to name that a few. In the flier market, De La Rue, Louisenthal and Kurz all entraped new security features during 2004 establish on combinations of substrate, thread and foil technology. In terms of output, parvenumec and Gidue some(prenom inal) entered the market with foil applications arrangings, pla meshingary nullity launched its new cut metalliser while Spatial Imagings new Lightspeed digital hologram printer pronounced the author of new era in ample format hologram origination. Aside from the developments in the constituted market for corroboration and decorative thingumajigs, holography is also beginning to demonstrate its potential for use as a brute as well as a feature. Examples of this potential include Smart manuscripts development of mirror find out holograms as medical diagnostic windings and holographic info storage ashess from Optware. Publicly-listed companies were covered in detail in the declination issue of Holography News. But in that respect was news from many other quarters as well, including the amplification plans announce by ABNH, ITW Covid, AFC and Holoshape, and AET learns move into wide embossing on the packaging front. Louisenthal, a major player in the banknote dilig ence, revealed that it straight off offers full-scale hologram merchandise, including origination, while its former strategic partner in foils, Hueck Folien, fall in the ranks of banknote suppliers with its offshoot order for cuts for the Thai currency, signalling a potentially significant new fledgling to the market. Its stretch was partially offset by AOTs decision to abandon banknote foils, while the bankruptcy of another(prenominal) high security supplier, Mantegazza, was staved off by its acquisition by Italian security papermaker Fabriano. Outside of the traditional industry centres of Western Europe and North America, the Far East, India and Eastern Europe and the CIS countries continue to play an increasely grand role not just as markets for western companies plainly as major centres of development in their own right. Russia, a hotbed of scientific innovation, held its commencement exercise regional concourse this year the commitment amongst Indian companies to c alibre and industry standards is an inspiration to us all, while all eyes are shortly on China, the localization principle for the 2005 Holo-packHolo-print which will provide the frontmost opportunity for many western hologram companies to witness the capability and place setting of this massive market. 2004s Downside So much for the positively charged. On the downside, RFID continues to position itself, and be viewed in some quarters, as the liquid bullet antidote to counterfeiting and diversion, new technologies much(prenominal) as Nanoventions claim their superiority over diffractive features and high attri excepte counterfeit holograms generate been discovered on currency notably the euro. The latter, in particular, is leading to a open sense of disenchantment with holograms in terms of their claimed security benefits, technology proliferation and lax standards amongst suppliers. This topic has been covered thoroughly in recent issues of Holography News and was sens ation of the main topics for intelligence at the recent Holo-packHolo-print conference in Prague, a positive outcome of which was the openness of debate and willingness amongst industry participants to work collectively to verbalize the solidistic issues that are causing concern and counter the misperceptions behind them. All in all, not a pretty year for the industry. Provided the concerns leading to disenchantment in some celestial spheres continues to be recognised and addressed with get hold of measures, and provided hologram companies continue to invest in the new products and techniques that form the lifeblood and future of this industry, 2005 could be horizontal better.002A washbasin Year for the IHMAIn his Chairmans report to the Annual widely distri thoed Meeting of the Inter topic manuscript Manufacturers fellowship, Hugues Souparis determine the launch of the Secure Hologram Producer Certification Scheme as a watershed for the Association (se HN Vol 18 No 3) . This Scheme, run in co- action with Intergraf, should make a significant contribution to up(p) procedures in the cover hologram field, and help to raise node awareness of the need to source ripe holograms from a qualified secure producer. Souparis gild, Hologram Industries, was the eldest to be certified, but several others prevail instantaneously applied. some other cardinal development during the year had been the negotiations with the Hologram Manufacturers Association of India (HoMAI), aimed at mental synthesis a hygienic relationship between the 2 associations and serving as a model for the IHMAs relationship with other regional or national hologram associations. An important part of the planned relationship was that the IHMAs Hologram Image history and HoMAIs Hologram Registry would be linked so that all searches for a hologram match on each data establish would cover some(prenominal) databases, improving the likelihood of identifying matches which publica tioned from attempts to source illicit copies of a hologram al put in in use. He inform that Despite the news that the US Bureau of Engraving and Printing is cast its net wider for security features (see page 1), banknotes continue to be a good market for the holography industry. A make out of new banknotes demand been introduced during 2004, including dickens major currencies the new Canadian dollar series which features a stripe and the two higher denominations of the newly-designed Japanese yen, each with a patch. Kurz was the supplier for both, the latter understood to be the largest individual(a) hologram order for banknotes in the industry. Other currencies that have introduced holograms to all or most of their the visiting card was in discussion with the China AntiCounterfeiting engine room Association (CATA) with a view to CATA establishing a hologram section, and that the IHMA was also in overture discussions with Russian producers interested in an industry organi sation there. Souparis also reminded members of IHMAs links with Interpol and other transnational and national police organisations, saying that he hoped to build on these contacts in the advance year. New panel Members In the elections at the AGM, Souparis was re-elected Chairman a post he can hold for another two years. Wilfried Schipper (Hologram caller-up Rako) was elected as the European representative on the Board, with Alkis Lembessis (Cavomit and Taurus) as his deputy Umendra Gupta (Holostik India) was re-elected as Asiatic representative, with Khalid Khanani (Metatex) as deputy. Randy James (PacificHolographics) was elected as deputy North American representative and since the AGM the Board has co-opted pot Halotek (ITW Covid) as the North American representative, there being no accepted nomination at the meeting. Alex Goncharsky (Computer Holography Centre, Moscow) and passel Traub (ABNH) remain on the board for a encourage and fourth year respectively.Spreading t he excogitateIn addition to the objectives above, a key task for the IHMA in 2005 and thereafter will be to crowd the positive benefits of holograms, particularly as credential devices, as a counter to disenchantment with the technology in accredited quarters, notably some parts of the high security firmament. A proactive PR campaign, a great comportment at industry conferences, an improved wind vanguardesite as a communications tool both for members and users, and a drive to increase the membership and the visibility of the IHMA are all currently under style. The hologram industry is unity of the few in the authentication arena to have its own association and the IHMA is committed to building on this position and the strengths that a collective voice can provide for hologram companies. concussion www.IHMA.org.003 global Vacuums New Compact Metalliser (Pg 5) common Vacuum, manufacturer of vacuum metallising equipment, unveiled further details of its new compact Holosec metalliser (see HN Vol 18 No 2) at the recent Holo-packHolo-print conference in Prague.Vacuum metallisers have until today been supplied with production widths of 800-3000m, limiting their use both financially and for production purposes among small and narrow-web hologram producers and forcing these to buy in their learn and foil pre-metallised from wide web suppliers. The Holosec was designed to fill this niche and enable narrow-web producers to bring metallising in-house, thereby increasing their security of production and enabling them to take advantage of the specialised treatments the placement offers. The Holosec combines the vacuum chamber, decelerate and rewind units, blood plasma pre-treatment, demetallization and evaporation source within one compact unit with a footprint of 2m x 3m. In addition to the conventional aluminium used for holographic carrys and foils, it can coat silicon oxide, chrome, fluent-tongued and slovenly person and zinc sulphide for high ref ractive index films. It also offers pattern demetallisation with in-line alteration and plasma pre-treatment that enhances the appear energy of the films to improve adhesion and hence quality. The run rate varies from 10m to a maximum of 200m per minute. General Vacuum, at once Valmet and immediately part of the Bobst Group, declined to violate prices for the Holosec, stating that these depend on specification. But it can assumed that they will be considerably lower than the prices for wide web systems. When questioned at Holopack. Holo-print about the risks of spreading low- apostrophize secure hologram production technology in the market, Dr Nadir Ahmed, who gave the presentation on behalf of his former order, commented that the telephoner would let out the legitimacy of customers before supply. To watch, two machines have been sold with other orders in the pipeline for early 2005.Contact Andy Jack, General VacuumEquipment. Tel +44 1706 622442emailprotected004Menzel Visio n System for Web GuidingMenzel, a German company specialising in machinery for finishing and watch machines for textiles, expanded into similar equipment for the plastic films industry in the late 1960s, and at Holopack Holo-print exhibited a machine quite a little system for view of web handling machines for holographic films. The system keeps web lines in register to improve the accuracy and quality of slitting, winding/re-winding, stamping and other hologram finishing processes. base on the companys live building textile and film web guiding systems, the hologram guiding system can be set to read the rim of the hologram film or a specific part of the pattern in the hologram the camera scans across the width of the film to record the edge position, the registration mark position or the position of a specified trope element. Once programmed, it feeds the view data to a sensor and a breakler, which in turn adjusts the web guides to maintain the position of the web.The Menz el vision system for holographic film costs about 17- 20,000, depending on the configuration necessary.Contact www.menzel.net.005Optical inventory protective coverThe terzetto edition of the reference book Optical Document Security is now obtainable from publishers Artech House. create verbally by Rudolf van Renesse, an expert in the field and editor and co-author of the two foregoing editions (published in 1994 and 1998 respectively), the book provides a comprehensive and cohesive treatment of all aspects of optical document security, match to itspublishers.The books circumscribe have been substantially updated and revised from the previous edition, and expanded to include coverage of additional security features and evaluation. The inlet on the theory of colours is followed by chapters on light interference and diffraction, substrate-based security, create inks and printing techniques, printed security patterns (including screen decoded images and digital watermarks), diffractive- and interference-based security features, security design and evaluation and an gateway to biometrics. The emphasis is on both the physics of security features and their value in resisting counterfeiting, while the chapter evaluating security design looks at the gentleman factors of first line document inspection.The books 350 pages contain over 270 black and white illustrations, including live security documents, and an addendum with samples of important security features. In addition, a CD-ROM is included which contains all illustrations of the book in full-colour. occasion Rudolf van Renesse was senior research engineer in the Optics Department of TNO Institute of Applied Physics in The Netherlands and is nowan independent consultant on document security for government departments and banking and financial institutions. He has abundant experience in the areas of holography, optical inspection techniques, and the theory of colors and document security, and is the author of much than 80 publications in these areas, as well as a contributor to Holography News and its sister publications Authentication News and money News. Optical Document Security is lendable at the discounted price 72/$118 from Artech House www.artech-house.com006 break Holography on the RisePhotopolymer is reservation progress winning projects that perhaps embossed hologram producers might have judge to supplyWe feel for Nick Hardy and Valerie Love of OpGraphics, the British company that has listed its DuPont photopolymer hologram production equipment for change on eBay. Op has been producing pageantry holograms for the gift and promotional trade since 1983, primitively on Agfa silver halide films, then in the 1990s Nick Hardy started working with DuPonts holographic photopolymer, partiallybecause Agfa ceased production of its holographic films, partly because the photopolymer notice holograms had lower noise and were more light efficient. Unfortunately, when DuPo nt Authentication Systems was established as a marijuana cigarette post with Label Systems Inc, the company decided to restrict the distribution of its unexposed photopolymer film to authorised security hologram producers. Op were among the hologram producers which were given notice of a cessation of supply. They tried to fight this under competition lawfulness in the UK, but despite their significant investment in DuPonts production equipment and the time to perfect their processes, this was to no avail. The result holographic production kit being offered on eBay.The Year of Photopolymer?The timing could not be more poignant as there appears to be an upsurge of interest in photopolymer holograms could 2005 be the year of photopolymer? The year has started well for DAS with NASCARs announcement of its licensed product authentication label, a numbered photopolymer reproach hologram (see page 4). To date, the North American sports licensing authentication projects have been domin ated by embossed holograms. NASCAR (the most popular labor sport organisation in North America) may not rival the big national sporty leagues in popularity, but big race meetings much(prenominal) as Daytona and Indianapolis attract large crowds of aegir souvenir hunters. Last year, DAS released its izon advanced photopolymer holograms, offering instant holo portraits on the film, making it particularly able for ID documents. And across the Pacific, Dai Nippon and Nippon Paint Co announced that Teikoku Piston Ring Co had become the first major customer for authentication holograms on Secure Image hot-stampable photopolymer. So photopolymer is making progress in the brand protection market, perhaps winning projects that embossed hologram producers might have expected to supply. dickens announcements do not make a fully-fledged market, but do represent progress. Coming Full lickAnd now, coming full circle, Liti Holographics has announced that it is shipping a new instant hologr aphic film suitable for reflection holograms for the home and hobby market (see page 3). Meanwhile, silver halide display holograms remain a hale in the marketplace. Slavich continues to find a market in Russia and beyond for its silver halide plates and films, and Colour Holographics, which took over the production and supply of HRT holographic plates, finds a steady if not spectacular market. The company is finding a ready market for its own large format co lour holograms, while other silver halide display hologram producers remain in steady production. The availability of compact LED lights which illuminate holograms at a very high quality, and the improved recognition by holographers that they have to deliver a complete, lit and frame in installation, is boosting the readiness of display artists and interior designers to consider display holograms as a medium. As one who first got involved in holography because of the excitement of such(prenominal) 3D images, it is reassuring and somewhat surprising to see the continuing interest in full parallax holograms, complementing and supplementing the large volume market of embossed holograms.007Litis New grammatical construction FilmLiti Holographics, which offers low cost portrait hologram kits selling for $99 (see HN Vol 18, No 9), has launched a new hologram film. concord to the company, this film has all the instant hologram qualities of its previous film but is now capable of making reflection as well as transmission holograms. The new film is red-sensitive, making it compatible with both the Litiholo and other hologram kits, as well as red laser diodes and even helium neon lasers.Contact www.litiholo.com008Nigerias New drug company CertificateNAFDAC, the Nigerian Food Drugs Agency, has introduced a new certificate to be issued to authorised imported and domestically produced pharmaceuticals. The new certificate is being produced by a security printer in the UK and includes a hologram among its security features. This follows participation by Dr Dora Akunyili, theatre director of NAFDAC in the first Global Forum on pharmaceutic AntiCounterfeiting, where she make contact with possible suppliers among the exhibitors.009Pharmaceuticals a Hologram Market Expanding or Threatened?At the time of writing, the 2nd Global Forum on Pharmaceutical AntiCounterfeiting has just finished in Paris, organised by Holography News publisher, Reconnaissance International. One of the themes to publish during the course of the 21/2 day meeting was the importance of authentication of genuine products as part of the system to combat counterfeit medicines, heard from speakers from national drug regulatory agencies and from pharmaceutical manufacturers. Several of the speakers implied, but Dr doubting Thomas baby-walker of Boehringer Ingelheim explicitly stated, that the high-flown authentication device for pharmaceuticals is not yet available. As Dr Zimmer was language in his capacity as Chairman of the Anti-Counterfeit Group of the European Federation of the Pharmaceutical application Associations (EFPIA), his observations mustinessiness be taken seriously by suppliers or aspiring suppliers of authentication products to the pharmaceutical sector.To date holograms have been the leading device used for overt authentication on pharmaceuticals, so the claim that the ideal device is not yet available can only be interpreted as a quarrel to hologram suppliers. Either holograms have failed to deliver what the pharma sector requires or hologram manufacturers have not succeeded in persuading their customers to use all the levels of security that a hologram can offer that is first, second and third levels overt, covert and machine read. To implement covert and machine read requires additional investment by customers in training, reading tools and for machine read infrastructure.Ideal SectorThe pharmaceutical sector is ideal for the introduction of such an infrastructure. Another ca ll at the Global Forum was for increased harmonisation of authentication and inspection systems. In a sector which is as regulated and as controlled as this one, where all medicines (at least, the legitimate ones) are distributed through with(predicate) a controlled system in a willing partnership between manufacturers, distributors, retailers and governments, training and equipping those who care the goods to examine the authentication device should be feasible. As should the introduction of a machine-read infrastructure, assuming that there is commonplaceness of what is to be read. The call for greater harmonisation results from the heterogeneity in the sector at present, which makes inpsection and trial run a harder task for all involved.At present each hologram supplier offers its own copyrighted manner of encoding and reading hidden data. It is impractical for a warehouse or pharmacist to be equipped with legion(predicate) hologram reading systems, each one required to read the differently encoded information on the holograms from each of the many manufacturers whose medicines they provide. Equally, government inspectors are not able to carry around numerous hold devices. But as the well-established precedent of credit cards and bar-codes shows, distributors and retailers will equip themselves to read value codes if the equipment footprint, cost and training required is minimal and the compatibility is maximal.Can the hologram industry achieve this for the pharmaceutical sector? That is to say, will the hologram industry recognise that here is a cause where collaboration on the word sense of a common approach to encoding and decoding could offer the industry the opportunity to capture that market for many years to come? Because once established, any competing technique has not just to prove itself superior, but must also overcome the inevitable reluctance of a whole sector to change the way it does things. immense AdvantageThe hologram industry starts with a huge advantage because holograms have an established customer base in the Pharma sector. And holograms are perceived by the public as a mark of authentication the public may not know how to examine a hologram but its presence gives a level of comfort. Yet if the industry takes no coherent action to work together, it will go through this advantage. The Pharma sector (manufacturers, regulators, even patients groups) is making a case for the ideal authentication device, without perhaps realising that what is in reality unavoidable is an authentication system. That system could be rein durabilityd around holograms but it could alternatively be built around other types of device. There are many alternatives all seeking to usurp holograms from their number one spot. Recently, RFID has made the running, in lobbying and PR terms at least, but other technologies taggants, magnetics, complex bar-codes and others are all looking at for their killer application and see th e pharma sector as ripe for their efforts. The pharma sector is well-favored mixed signals about the use of holograms. On one side, Pfizer, in its current generation of product authentication, is currently using colour shift inks instead of holograms as the basis for its solution on the positive side, Malaysias Meditag uses a three-level hologram (overt, covert and machine-read) at the heart of a system of registration and inspection. Can the hologram industry not individual suppliers, but the industry working together persuade the whole pharmaceutical sector that Malaysias is the way forward, not Pfizers?The RFID industry successfully lobbied the US Food Drugs Administration anticounterfeit task force so that it has identified RFID as the best way forward, although it has left the door open for other technologies by not mandating the use of RFID. This is the example the hologram industry needs to follow, because it has to persuade governments, distributors and manufacturers tha t the pharma sector can continue to use or even, needs to use holograms at the heart of an integrated system of authentication. The measure is immense, because other market sectors would follow the pharmaceuticals sector. There is no consolation prize, because surrendering this market sector to an alternative technology would give an unavoidable signal to other market sectors.010HoloTouch ProgressHoloTouch Inc, a development company based in Darien, Connecticut working in association with Atlantex Corp, has launched the BeamOne HoloTouch evaluation unit, a working demonstration of its noncontact control technique. HoloTouch was founded by R Douglas McPheters to exploit its patented process for projecting a real holographic image of a computer keyboard or similar finger-tip control board such that passing(a) a real item, such as a finger, through the image, activates the control (US Patent 6377238 see H N Vol 17 No 6). Atlantex specialises in helping bring new products to marke t, especially in the field of electronic controls and data processor accessories .The BeamOne is a four-button box to issue instructions to a PC, to which it is connected by a USB cable. The holographic image of the buttons air bladder about 4 (10 cm) above the BeamOne box and can be programmed to instruct the computer to finish the required functions. It is fully functional, priced at US$1995, but is characterised by Atlantex and HoloTouch as an evaluation device. Nonetheless, it has been chosen by readers of see to it engine room as the most innovative human-machine interface featured in Control Engineering during the bygone year. McPheters identifies HoloTouch as suiting applications where non-contact is important, such as in a sterile environment, or where switches or buttons cannot be made rugged enough for the environment. The hologram image can also be larger than the keypad it mimics, making it suitable where the device is small or vision may require assistance, such as for sight impaired people or while driving a vehicle, where a ready glance at a small button can be dangerous. The hologram is also, of course, intrinsically illuminated, so it is usable for night time or dark environments. HoloTouch and Atlantex are looking for applications partners who will adapt the HoloTouch technique into their own control devices.www.HoloTouch.comHoloTouch Selected for FastTrackHoloTouch Inc, the company that has developed a holographic interface for contactless control devices, has been selected for Connecticut engine room Councils FastTrack evasion for promisinghigh-technology start-ups. FastTrack is an advisory and matching programme that helps start-ups with innovative ideas and rapid growth potential to fool seed-stage swell and business planning input through the mobilisation of a network of investors, advisors, professional profit providers and industry contacts. Commenting on the scheme, HoloTouch founder and president R Douglas McPheters sa id FastTrack offers potentially valuable assistance in connecting us with mentors and advisors and can promote our partnering with companies who see value in our innovative touchless, holographic actuation and control technology.The company has already partnered with Atlantex Corp to launch the BeamOne HoloTouch unit. This enables operators of control boards such as keypads to enter commands simply by passing a finger through holographic images that represent these commands and float in front of the device (see HN Vol 19, No 3) and is suited for applications where non-contact is important for operability of hygiene, including consumer electronics, kiosks, ATMs and medical equipment. HoloTouch and Atlantex have also announced that the BeamOne is now available with pass on output, extending thetechnologys reach to electronic equipment controlled by programmable logic controllers (PLCs).BeamOnealready offers communication with PCs through USB, serial and other ports. According to McPh eters, this latest development means that the technology can now be used in a numerous industrial applications as well, such as factory floor equipment. McPheters will be presenting a paper on the HoloTouch technology at Holopack Holo-print 2005.Contact www.holotouch.com011Holotek Doubles Sales and ProfitsHolotek Technologies Ltd, of Sanzao Zhuhai in China, has manifold its gross revenue and profits in 2004 and is aiming to achieve at least 50% growth in 2005. Its 2003 audited sales of RMB103m (US$12.5m) rose to RMB210M ($25.5m) in 2004, with net profit climbing from RMB58m ($7m) to RMB123.5m ($15.2m), but note that the 2004 figures are not yet audited. Although the company was not liable to tax in its first years of operation (as a start-up in the Zhuhai Economic Zone), these margins of almost 60% make Holotek probably the most profitable holographic producer in the world, both by margin and in its dollar figure. 98% of these sales are for packaging, mainly for transfer metallisi ng of cigarette liners and cartons 85% is on OPP with the reminder on PET. Holotek has been through ownership changes since we first reported on the company (see HN Vol 17 No 6). It was set up by Fong Teng Technology of Taiwan, but government regulations limit the investment that can be put into a mainland Chinese company from Taiwan. FT has accordingly sold its interest to four private shareholders, including the CEO Mark Chiang (as a nonage owner), and Holotek operates as a subsidiary of Aimrich which is registered in Samoa. The company has also divested its former 49% holding in Yong Feng Tian Technology, a Shenzhen company that produces cigarette packaging materials. All these changes mean Holotek has also postponed its plans to float on the Hong Kong well-worn exchange. It had originally stated its aim was to float this year with a market capitalisation of US$150m, but it is now aiming for floatation in 2008 with aChanges in HolographyChanges in Holography001Looking Back, Movi ng ForwardHow was 2004 for you? For the industry as a whole, reviewing the developments that we covered last year in Holography News, we can conclude that it was a good year for most, with many positive developments that set the scene for 2005 and beyond, but with sufficient clouds on the horizon to prevent any complacency.In terms of markets, in the high security arena the growth of holograms on banknotes continues apace (see page 3) and this will continue to be key market notwithstanding the recent news that the new $100 and other denominations will not, in all likelihood, include a holographic feature. In other high security markets, passports took something of a back seat, for holograms at least not because of technology concerns but because of the current pre-occupation with biometrics. But elsewhere in document protection, AAMVAs specification of holograms on all US driving licences was a significant boost for the industry, while the tax stamp market continues provide signifi cant high volume opportunities for suppliers. There were few major developments in brand protection although the use of holograms as the prime authentication feature on a new labelling program for pharmaceutical products in Malaysia, and the Olympics 2004 merchandising program demonstrated the continuing success of holograms in these areas. On the downside, the FDAs controversial decision to adopt RFID-based track and trace as the solution to product safety and supply chain management for pharmaceuticals in the US could have unwelcome consequences for the industry should drug regulatory authorities elsewhere in the world follow its example. In packaging, meanwhile, as the Stock watch article in this issue (see page 6) points out, it is barely possible to go out nowadays without seeing holography embellishing shop shelves on all manner of goods from luxury high end to everyday items. Innovation and Development On the technology front, holography continued to demonstrate its inherent capacity for innovation and development. The integration of holograms with other technologies for enhanced security and functionality continued apace examples including Schreiners KeySecure technology, Securiketts Authentikett labels, combined hologram/DNA/RFID labels from ADNAS and Holomex and enhancements to teas scribos Holospot system (see page 8) to name but a few. In the banknote market, De La Rue, Louisenthal and Kurz all launched new security features during 2004 based on combinations of substrate, thread and foil technology. In terms of production, Newmec and Gidue both entered the market with foil applications systems, General Vacuum launched its new compact metalliser while Spatial Imagings new Lightspeed digital hologram printer marked the beginning of new era in large format hologram origination. Aside from the developments in the conventional market for authentication and decorative devices, holography is also beginning to demonstrate its potential for use as a tool as well as a feature. Examples of this potential include Smart Holograms development of reflection holograms as medical diagnostic devices and holographic data storage systems from Optware. Publicly-listed companies were covered in detail in the December issue of Holography News. But there was news from many other quarters as well, including the expansion plans announced by ABNH, ITW Covid, AFC and Holoshape, and AET Films move into wide embossing on the packaging front. Louisenthal, a major player in the banknote industry, revealed that it now offers full-scale hologram production, including origination, while its former strategic partner in foils, Hueck Folien, joined the ranks of banknote suppliers with its first order for stripes for the Thai currency, signalling a potentially significant new entrant to the market. Its arrival was partially offset by AOTs decision to abandon banknote foils, while the bankruptcy of another high security supplier, Mantegazza, was staved off by its acquisition by Italian security papermaker Fabriano. Outside of the traditional industry centres of Western Europe and North America, the Far East, India and Eastern Europe and the CIS countries continue to play an increasingly important role not just as markets for western companies but as major centres of development in their own right. Russia, a hotbed of scientific innovation, held its first regional conference this year the commitment amongst Indian companies to quality and industry standards is an inspiration to us all, while all eyes are currently on China, the location for the 2005 Holo-packHolo-print which will provide the first opportunity for many western hologram companies to witness the strength and scope of this massive market. 2004s Downside So much for the positive. On the downside, RFID continues to position itself, and be viewed in some quarters, as the silver bullet antidote to counterfeiting and diversion, new technologies such as Nanoventions claim their super iority over diffractive features and high quality counterfeit holograms have been discovered on currency notably the euro. The latter, in particular, is leading to a perceptible sense of disenchantment with holograms in terms of their claimed security benefits, technology proliferation and lax standards amongst suppliers. This topic has been covered exhaustively in recent issues of Holography News and was one of the main topics for discussion at the recent Holo-packHolo-print conference in Prague, a positive outcome of which was the openness of debate and willingness amongst industry participants to work collectively to address the real issues that are causing concern and counter the misperceptions behind them. All in all, not a bad year for the industry. Provided the concerns leading to disenchantment in some sectors continues to be recognised and addressed with appropriate measures, and provided hologram companies continue to invest in the new products and techniques that form th e lifeblood and future of this industry, 2005 could be even better.002A Watershed Year for the IHMAIn his Chairmans report to the Annual General Meeting of the International Hologram Manufacturers Association, Hugues Souparis identified the launch of the Secure Hologram Producer Certification Scheme as a watershed for the Association (se HN Vol 18 No 3). This Scheme, run in co-operation with Intergraf, should make a significant contribution to improving procedures in the secure hologram field, and help to raise customer awareness of the need to source secure holograms from a qualified secure producer. Souparis company, Hologram Industries, was the first to be certified, but several others have now applied. Another important development during the year had been the negotiations with the Hologram Manufacturers Association of India (HoMAI), aimed at building a strong relationship between the two associations and serving as a model for the IHMAs relationship with other regional or natio nal hologram associations. An important part of the planned relationship was that the IHMAs Hologram Image Register and HoMAIs Hologram Registry would be linked so that all searches for a hologram match on either database would cover both databases, improving the likelihood of identifying matches which resulted from attempts to source illicit copies of a hologram already in use. He reported that Despite the news that the US Bureau of Engraving and Printing is casting its net wider for security features (see page 1), banknotes continue to be a good market for the holography industry. A number of new banknotes have been introduced during 2004, including two major currencies the new Canadian dollar series which features a stripe and the two higher denominations of the newly-designed Japanese yen, each with a patch. Kurz was the supplier for both, the latter understood to be the largest single hologram order for banknotes in the industry. Other currencies that have introduced holograms to all or most of their the Board was in discussion with the China AntiCounterfeiting Technology Association (CATA) with a view to CATA establishing a hologram section, and that the IHMA was also in preliminary discussions with Russian producers interested in an industry organisation there. Souparis also reminded members of IHMAs links with Interpol and other international and national police organisations, saying that he hoped to build on these contacts in the coming year. New Board Members In the elections at the AGM, Souparis was re-elected Chairman a post he can hold for another two years. Wilfried Schipper (Hologram Company Rako) was elected as the European representative on the Board, with Alkis Lembessis (Cavomit and Taurus) as his deputy Umendra Gupta (Holostik India) was re-elected as Asian representative, with Khalid Khanani (Metatex) as deputy. Randy James (PacificHolographics) was elected as deputy North American representative and since the AGM the Board has co-opted John Halotek (ITW Covid) as the North American representative, there being no accepted nomination at the meeting. Alex Goncharsky (Computer Holography Centre, Moscow) and Ken Traub (ABNH) remain on the board for a second and fourth year respectively.Spreading the WordIn addition to the objectives above, a key task for the IHMA in 2005 and thereafter will be to promote the positive benefits of holograms, particularly as authentication devices, as a counter to disenchantment with the technology in certain quarters, notably some parts of the high security sector. A proactive PR campaign, a greater presence at industry conferences, an improved website as a communications tool both for members and users, and a drive to increase the membership and the visibility of the IHMA are all currently underway. The hologram industry is one of the few in the authentication sector to have its own association and the IHMA is committed to building on this position and the strengths that a collective vo ice can provide for hologram companies.Contact www.IHMA.org.003General Vacuums New Compact Metalliser (Pg 5)General Vacuum, manufacturer of vacuum metallising equipment, unveiled further details of its new compact Holosec metalliser (see HN Vol 18 No 2) at the recent Holo-packHolo-print conference in Prague.Vacuum metallisers have until now been supplied with production widths of 800-3000m, limiting their use both financially and for production purposes among small and narrow-web hologram producers and forcing these to buy in their film and foil pre-metallised from wide web suppliers. The Holosec was designed to fill this niche and enable narrow-web producers to bring metallising in-house, thereby increasing their security of production and enabling them to take advantage of the specialised treatments the system offers. The Holosec combines the vacuum chamber, unwind and rewind units, plasma pre-treatment, demetallization and evaporation source within one compact unit with a footpr int of 2m x 3m. In addition to the conventional aluminium used for holographic films and foils, it can coat silicon oxide, chrome, silver and copper and zinc sulphide for high refractive index films. It also offers pattern demetallisation with in-line registration and plasma pre-treatment that enhances the surface energy of the films to improve adhesion and hence quality. The run rate varies from 10m to a maximum of 200m per minute. General Vacuum, formerly Valmet and now part of the Bobst Group, declined to give prices for the Holosec, stating that these depend on specification. But it can assumed that they will be considerably lower than the prices for wide web systems. When questioned at Holopack. Holo-print about the risks of spreading low-cost secure hologram production technology in the market, Dr Nadir Ahmed, who gave the presentation on behalf of his former company, commented that the company would check the legitimacy of customers before supply. To date, two machines have b een sold with other orders in the pipeline for early 2005.Contact Andy Jack, General VacuumEquipment. Tel +44 1706 622442emailprotected004Menzel Vision System for Web GuidingMenzel, a German company specialising in machinery for finishing and inspection machines for textiles, expanded into similar equipment for the plastic films industry in the late 1960s, and at Holopack Holo-print exhibited a machine vision system for control of web handling machines for holographic films. The system keeps web lines in register to improve the accuracy and quality of slitting, winding/re-winding, stamping and other hologram finishing processes. Based on the companys experience building textile and film web guiding systems, the hologram guiding system can be set to read the edge of the hologram film or a specific part of the pattern in the hologram the camera scans across the width of the film to record the edge position, the registration mark position or the position of a specified image element. Once programmed, it feeds the image data to a sensor and a controller, which in turn adjusts the web guides to maintain the position of the web.The Menzel vision system for holographic film costs around 17- 20,000, depending on the configuration required.Contact www.menzel.net.005Optical Document SecurityThe third edition of the reference book Optical Document Security is now available from publishers Artech House. Written by Rudolf van Renesse, an expert in the field and editor and co-author of the two previous editions (published in 1994 and 1998 respectively), the book provides a comprehensive and cohesive treatment of all aspects of optical document security, according to itspublishers.The books contents have been substantially updated and revised from the previous edition, and expanded to include coverage of additional security features and evaluation. The introduction on the theory of colours is followed by chapters on light interference and diffraction, substrate-based securi ty, printing inks and printing techniques, printed security patterns (including screen decoded images and digital watermarks), diffractive- and interference-based security features, security design and evaluation and an introduction to biometrics. The emphasis is on both the physics of security features and their value in resisting counterfeiting, while the chapter evaluating security design looks at the human factors of first line document inspection.The books 350 pages contain over 270 black and white illustrations, including live security documents, and an appendix with samples of important security features. In addition, a CD-ROM is included which contains all illustrations of the book in full-colour. Author Rudolf van Renesse was senior research engineer in the Optics Department of TNO Institute of Applied Physics in The Netherlands and is nowan independent consultant on document security for government departments and banking and financial institutions. He has extensive experi ence in the areas of holography, optical inspection techniques, and the theory of colors and document security, and is the author of more than 80 publications in these areas, as well as a contributor to Holography News and its sister publications Authentication News and Currency News. Optical Document Security is available at the discounted price 72/$118 from Artech House www.artech-house.com006Display Holography on the RisePhotopolymer is making progress winning projects that perhaps embossed hologram producers might have expected to supplyWe feel for Nick Hardy and Valerie Love of OpGraphics, the British company that has listed its DuPont photopolymer hologram production equipment for sale on eBay. Op has been producing display holograms for the gift and promotional trade since 1983, originally on Agfa silver halide films, then in the 1990s Nick Hardy started working with DuPonts holographic photopolymer, partlybecause Agfa ceased production of its holographic films, partly becau se the photopolymer reflection holograms had lower noise and were more light efficient. Unfortunately, when DuPont Authentication Systems was established as a joint venture with Label Systems Inc, the company decided to restrict the distribution of its unexposed photopolymer film to authorised security hologram producers. Op were among the hologram producers which were given notice of a cessation of supply. They tried to fight this under competition law in the UK, but despite their significant investment in DuPonts production equipment and the time to perfect their processes, this was to no avail. The result holographic production kit being offered on eBay.The Year of Photopolymer?The timing could not be more poignant as there appears to be an upsurge of interest in photopolymer holograms could 2005 be the year of photopolymer? The year has started well for DAS with NASCARs announcement of its licensed product authentication label, a numbered photopolymer reflection hologram (see p age 4). To date, the North American sports licensing authentication projects have been dominated by embossed holograms. NASCAR (the most popular motor sport organisation in North America) may not rival the big national sporting leagues in popularity, but big race meetings such as Daytona and Indianapolis attract large crowds of eager souvenir hunters. Last year, DAS released its izon advanced photopolymer holograms, offering instant holo portraits on the film, making it particularly suitable for ID documents. And across the Pacific, Dai Nippon and Nippon Paint Co announced that Teikoku Piston Ring Co had become the first major customer for authentication holograms on Secure Image hot-stampable photopolymer. So photopolymer is making progress in the brand protection market, perhaps winning projects that embossed hologram producers might have expected to supply. Two announcements do not make a fully-fledged market, but do represent progress. Coming Full CircleAnd now, coming full circ le, Liti Holographics has announced that it is shipping a new instant holographic film suitable for reflection holograms for the home and hobby market (see page 3). Meanwhile, silver halide display holograms remain a force in the marketplace. Slavich continues to find a market in Russia and beyond for its silver halide plates and films, and Colour Holographics, which took over the production and supply of HRT holographic plates, finds a steady if not spectacular market. The company is finding a ready market for its own large format co lour holograms, while other silver halide display hologram producers remain in steady production. The availability of compact LED lights which illuminate holograms at a very high quality, and the improved recognition by holographers that they have to deliver a complete, lit and framed installation, is boosting the readiness of display artists and interior designers to consider display holograms as a medium. As one who first got involved in holography b ecause of the excitement of such 3D images, it is reassuring and somewhat surprising to see the continuing interest in full parallax holograms, complementing and supplementing the large volume market of embossed holograms.007Litis New Reflection FilmLiti Holographics, which offers low cost portrait hologram kits selling for $99 (see HN Vol 18, No 9), has launched a new hologram film. According to the company, this film has all the instant hologram qualities of its previous film but is now capable of making reflection as well as transmission holograms. The new film is red-sensitive, making it compatible with both the Litiholo and other hologram kits, as well as red laser diodes and even helium neon lasers.Contact www.litiholo.com008Nigerias New Pharma CertificateNAFDAC, the Nigerian Food Drugs Agency, has introduced a new certificate to be issued to authorised imported and domestically produced pharmaceuticals. The new certificate is being produced by a security printer in the UK an d includes a hologram among its security features. This follows participation by Dr Dora Akunyili, Director of NAFDAC in the first Global Forum on Pharmaceutical AntiCounterfeiting, where she made contact with possible suppliers among the exhibitors.009Pharmaceuticals a Hologram Market Expanding or Threatened?At the time of writing, the 2nd Global Forum on Pharmaceutical AntiCounterfeiting has just finished in Paris, organised by Holography News publisher, Reconnaissance International. One of the themes to emerge during the course of the 21/2 day meeting was the importance of authentication of genuine products as part of the system to combat counterfeit medicines, heard from speakers from national drug regulatory agencies and from pharmaceutical manufacturers. Several of the speakers implied, but Dr Thomas Zimmer of Boehringer Ingelheim explicitly stated, that the ideal authentication device for pharmaceuticals is not yet available. As Dr Zimmer was speaking in his capacity as Chair man of the Anti-Counterfeit Group of the European Federation of the Pharmaceutical Industry Associations (EFPIA), his observations must be taken seriously by suppliers or aspiring suppliers of authentication products to the pharmaceutical sector.To date holograms have been the leading device used for overt authentication on pharmaceuticals, so the claim that the ideal device is not yet available can only be interpreted as achallenge to hologram suppliers. Either holograms have failed to deliver what the pharma sector requires or hologram manufacturers have not succeeded in persuading their customers to use all the levels of security that a hologram can offer that is first, second and third levels overt, covert and machine read. To implement covert and machine read requires additional investment by customers in training, reading tools and for machine read infrastructure.Ideal SectorThe pharmaceutical sector is ideal for the introduction of such an infrastructure. Another call at the Global Forum was for increased harmonisation of authentication and inspection systems. In a sector which is as regulated and as controlled as this one, where all medicines (at least, the legitimate ones) are distributed through a controlled system in a willing partnership between manufacturers, distributors, retailers and governments, training and equipping those who handle the goods to examine the authentication device should be feasible. As should the introduction of a machine-read infrastructure, assuming that there is commonality of what is to be read. The call for greater harmonisation results from the heterogeneity in the sector at present, which makes inpsection and examination a harder task for all involved.At present each hologram supplier offers its own proprietary method of encoding and reading hidden data. It is impractical for a warehouse or pharmacist to be equipped with numerous hologram reading systems, each one required to read the differently encoded informati on on the holograms from each of the many manufacturers whose medicines they provide. Equally, government inspectors are not able to carry around numerous handheld devices. But as the well-established precedent of credit cards and bar-codes shows, distributors and retailers will equip themselves to read standardised codes if the equipment footprint, cost and training required is minimal and the compatibility is maximal.Can the hologram industry achieve this for the pharmaceutical sector? That is to say, will the hologram industry recognise that here is a cause where collaboration on the adoption of a common approach to encoding and decoding could offer the industry the opportunity to capture that market for many years to come? Because once established, any competing technique has not just to prove itself superior, but must also overcome the inevitable reluctance of a whole sector to change the way it does things.Huge AdvantageThe hologram industry starts with a huge advantage becaus e holograms have an established customer base in the Pharma sector. And holograms are perceived by the public as a mark of authentication the public may not know how to examine a hologram but its presence gives a level of comfort. Yet if the industry takes no coherent action to work together, it will squander this advantage. The Pharma sector (manufacturers, regulators, even patients groups) is making a case for the ideal authentication device, without perhaps realising that what is actually needed is an authentication system. That system could be built around holograms but it could alternatively be built around other types of device. There are many alternatives all seeking to usurp holograms from their number one spot. Recently, RFID has made the running, in lobbying and PR terms at least, but other technologies taggants, magnetics, complex bar-codes and others are all looking for their killer application and see the pharma sector as ripe for their efforts. The pharma sector is giving mixed signals about the use of holograms. On one side, Pfizer, in its current generation of product authentication, is currently using colour shift inks instead of holograms as the basis for its solution on the positive side, Malaysias Meditag uses a three-level hologram (overt, covert and machine-read) at the heart of a system of registration and inspection. Can the hologram industry not individual suppliers, but the industry working together persuade the whole pharmaceutical sector that Malaysias is the way forward, not Pfizers?The RFID industry successfully lobbied the US Food Drugs Administration anticounterfeit task force so that it has identified RFID as the best way forward, although it has left the door open for other technologies by not mandating the use of RFID. This is the example the hologram industry needs to follow, because it has to persuade governments, distributors and manufacturers that the pharma sector can continue to use or even, needs to use hologr ams at the heart of an integrated system of authentication. The prize is immense, because other market sectors would follow the pharmaceuticals sector. There is no consolation prize, because surrendering this market sector to an alternative technology would give an unavoidable signal to other market sectors.010HoloTouch ProgressHoloTouch Inc, a development company based in Darien, Connecticut working in association with Atlantex Corp, has launched the BeamOne HoloTouch evaluation unit, a working demonstration of its noncontact control technique. HoloTouch was founded by R Douglas McPheters to exploit its patented process for projecting a real holographic image of a keypad or similar finger-tip control board such that passing a real item, such as a finger, through the image, activates the control (US Patent 6377238 see H N Vol 17 No 6). Atlantex specialises in helping bring new products to market, especially in the field of electronic controls and computer accessories .The BeamOne i s a four-button box to issue instructions to a PC, to which it is connected by a USB cable. The holographic image of the buttons float about 4 (10 cm) above the BeamOne box and can be programmed to instruct the computer to perform the required functions. It is fully functional, priced at US$1995, but is characterised by Atlantex and HoloTouch as an evaluation device. Nonetheless, it has been chosen by readers of Control Engineering as the most innovative human-machine interface featured in Control Engineering during the past year. McPheters identifies HoloTouch as suiting applications where non-contact is important, such as in a sterile environment, or where switches or buttons cannot be made rugged enough for the environment. The hologram image can also be larger than the keypad it mimics, making it suitable where the device is small or vision may require assistance, such as for sight impaired people or while driving a vehicle, where a quick glance at a small button can be dangerou s. The hologram is also, of course, intrinsically illuminated, so it is useful for night time or dark environments. HoloTouch and Atlantex are looking for applications partners who will adapt the HoloTouch technique into their own control devices.www.HoloTouch.comHoloTouch Selected for FastTrackHoloTouch Inc, the company that has developed a holographic interface for contactless control devices, has been selected for Connecticut Technology Councils FastTrack scheme for promisinghigh-technology start-ups. FastTrack is an advisory and matching programme that helps start-ups with innovative ideas and rapid growth potential to gain seed-stage capital and business planning input through the mobilisation of a network of investors, advisors, professional service providers and industry contacts. Commenting on the scheme, HoloTouch founder and president R Douglas McPheters said FastTrack offers potentially valuable assistance in connecting us with mentors and advisors and can promote our par tnering with companies who see value in our innovative touchless, holographic actuation and control technology.The company has already partnered with Atlantex Corp to launch the BeamOne HoloTouch unit. This enables operators of control boards such as keypads to enter commands simply by passing a finger through holographic images that represent these commands and float in front of the device (see HN Vol 19, No 3) and is suited for applications where non-contact is important for operability of hygiene, including consumer electronics, kiosks, ATMs and medical equipment. HoloTouch and Atlantex have also announced that the BeamOne is now available with relay output, extending thetechnologys reach to electronic equipment controlled by programmable logic controllers (PLCs).BeamOnealready offers communication with PCs through USB, serial and other ports. According to McPheters, this latest development means that the technology can now be used in a numerous industrial applications as well, s uch as factory floor equipment. McPheters will be presenting a paper on the HoloTouch technology at Holopack Holo-print 2005.Contact www.holotouch.com011Holotek Doubles Sales and ProfitsHolotek Technologies Ltd, of Sanzao Zhuhai in China, has doubled its sales and profits in 2004 and is aiming to achieve at least 50% growth in 2005. Its 2003 audited sales of RMB103m (US$12.5m) rose to RMB210M ($25.5m) in 2004, with net profit climbing from RMB58m ($7m) to RMB123.5m ($15.2m), but note that the 2004 figures are not yet audited. Although the company was not liable to tax in its first years of operation (as a start-up in the Zhuhai Economic Zone), these margins of almost 60% make Holotek probably the most profitable holographic producer in the world, both by margin and in its dollar figure. 98% of these sales are for packaging, mainly for transfer metallising of cigarette liners and cartons 85% is on OPP with the reminder on PET. Holotek has been through ownership changes since we first reported on the company (see HN Vol 17 No 6). It was set up by Fong Teng Technology of Taiwan, but government regulations limit the investment that can be put into a mainland Chinese company from Taiwan. FT has accordingly sold its interest to four private shareholders, including the CEO Mark Chiang (as a minority owner), and Holotek operates as a subsidiary of Aimrich which is registered in Samoa. The company has also divested its former 49% holding in Yong Feng Tian Technology, a Shenzhen company that produces cigarette packaging materials. All these changes mean Holotek has also postponed its plans to float on the Hong Kong stock exchange. It had originally stated its aim was to float this year with a market capitalisation of US$150m, but it is now aiming for floatation in 2008 with a