Using NXP’s RFID chip technology and Kestrel’s radio frequency activation (RFA) offering, it is 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, and thus eliminating the incentive for theft.
The radio frequency chips are embedded in consumer goods that are activated by an RFA-enhanced RFID reader at the point of sale. When the chip is scanned, information is sent to the Kestrel network for authentication. Assuming all is correct, an enabling code is sent to the chip and the product is activated.
The first application of NXP and Kestrel’s RFA/RFID solution will be integrated into optical media. However, it is applicable to all consumer electronics products, including MP3 players, electric shavers, flat screen TVs, ink jet cartridges and flash memory.
NXP and Kestrel’s network-based RFID solution opens up new opportunities for the distribution of optical media and consumer electronics, the companies claim. It eliminates expensive security devices, restrictive packaging and display cages, which will also reduce the costs and problems of returns for DVDs and other disc-based media.
Hundreds of millions of dollars from retailers, manufacturers and, indirectly, consumers are spent each year in order to prevent theft, said Christophe Duverne, senior vice president and general manager of identification at NXP. This collaboration with Kestrel has the potential to dramatically reduce and ultimately eradicate the theft of optical media and consumer electronics in the retail supply chain. RFID technology is transforming the manufacturing, distribution and sale of merchandise – creating a new level of security, stimulating sales, reducing total costs and making the shopping experience more enjoyable for consumers.
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.
