ANTI-COUNTERFEIT PROTECTION

ChecktoCashup Ltd. has created a fundamentally new approach to protection and identification of product and documentation authenticity.

CONTENTSAbout us 3About protection 4Market analysis 6

Physical protection systemsCheckOne™ 9CheckOpti™ 10CheckNote™ 12

Digital protection solutionsCheckMedia™ 13CheckDoc™ 14CheckTrace™ 14Ultramarca™ 15How it works 16

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For many years manufacturers have tried successfully to protect their products, but up to now no system has been absolutely “fool-proof”. There are numer-ous ways of combating forgery in the world, but most of them have one significant drawback – they them-selves are easy to copy!

Any method of protection of goods against forgery is based on a unique reference which needs to be com-pared with a specific sample. This may include the use of brand marks, holograms, microprinting marks or other technical solutions of various levels of com-plexity. However, these protection systems are them-selves vulnerable, as it is difficult to determine the le-gitimacy of the reference itself. For instance, detailed technical knowledge, special devices and particular skills are needed to establish the validity of a com-plex hologram.

Single check systems have recently gained popularity but they cannot prove authenticity of goods after an initial check and cannot be used repeatedly. Checkto-

Protection against counterfeiting and providing a guarantee of authenticity is one of the greatest challenges for every manufacturer of goods. The more popular a brand is, the more likely it is to be counterfeited.

Cashup has developed a number of protection forms and systems to meet different requirements of the market.

ChecktoCashup systems and solutions use patented technologies and are based on the application of a unique reference. The system is developed to be used in the Internet environment both by computer and mobile applications.

A contract with ChecktoCashup Ltd. will provide man-ufacturers with a product identification system to be used by third parties. Various ways of incorporating the identification system can be chosen by the man-ufacturer depending on demand and item or article packaging.

About usChecktoCashup Ltd. was founded in 2012 and has been a full member of the International Chamber of Commerce (ICC). Since late 2014 ChecktoCashup Ltd. has been a member of AmCham Estonia. The compa-ny has worked closely with the ICC Counterfeit Intel-ligence Bureau since March 2015.

ChecktoCashup® systems and solutions use patented technologies based on the application of a unique reference.

Close collaboration with these organizations gives ChecktoCashup Ltd. a unique opportunity for solving problems and issues of intellectual property protec-tion in different countries of the world.

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What are the threats of counterfeiting?Numerous studies show that a significant number of producers worldwide are substantially affected by counterfeiting. Intellectual property rights (IPR) commonly violated by counterfeiters include trademarks, design rights, copyright and patents.

Such illegal acts result in irreversible consequences, the victims of which are people – ordinary consum-ers, whose health and safety are jeopardized by fake products. In China, for instance, around 200,000 deaths annually are attributed to fake drugs. Distribution of counterfeit products results in loss of business for companies, which in turn leads to the reduction of output and loss of employment. Counterfeit goods are responsible for the loss of 750,000 jobs globally and 100,000 jobs in Europe each year. And there is also the wider economic question of tax revenues. In Russia alone, an estimated US$ 1 billion a year in tax revenue (VAT, income tax and customs duties) is lost.

Illegal use of IPR, trademarks and patents or counter-feit products cause irreparable damage to the reputa-tion and image of a company. It is the major cause of stifling innovation, entrepreneurship and business ini-tiatives.

So, having learned that your products have been faked, you shouldn’t ignore the problem, as taking no action to prevent your trademark being used on fake prod-ucts may have very serious consequences for you as a manufacturer – you could be liable for damage caused to an individual or property due to the use of a coun-terfeit product.

Research into the world of counterfeit goods (it is esti-mated that worldwide there are ≈ 650 US$ billion worth of fake products) has led us to a simple conclusion: the more complex a reference method, the more difficult it is for the buyer to identify an original product and therefore easier for counterfeit goods to be passed off as authentic.

You can avoid all of this with the help of the unique protection system developed by ChecktoCashup®!

This protection system is based on the principle of code comparison. Each item or article is allocated a unique verification code in the form of special mark-ing or another device, which is checked against a reference by the purchaser via the Checkto Cashup® website at www.checktocashup.com, where the ver-ification code is entered. If the code numbers match on the site then the goods are authentic. Absence of the verification code, respective marking or another form of the verification code or replacement of a product by another with a different serial number indicates a forgery.

The verification process can also be carried out on spot using the ChecktoCashup® - Authenticity mo-bile app designed to scan and decipher the relevant pictogram printed on the ChecktoCashup security marking of the product.

The app can also send information relating to any counterfeit products discovered as well as activat-ing a refund to the customer’s account once a for-gery has been confirmed.

Having revealed counterfeit products you should immediately contact ChecktoCashup® at www.checktocashup.com. You will be informed how to return the counterfeit item. You will be asked where counterfeit good was purchased and file a claim.

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Insurance ChecktoCashup® has teamed up with Aon Insurance Brokers – a global insurance brokerage to develop special professional li-ability insurance cover and to provide cyber-threat and intel-

lectual property insurance.

ChecktoCashup® can offer its customers insurance cover for intellectual property of the goods’ manu-facturer.

InspectionsChecktoCashup® has an agree-ment with Inspectorate Estonia to confirm the validity of the marking. Independent inspec-tion can be carried out globally and at any time throughout the year. Inspection services are provided for a wide range of

industries including the agricultural, chemical, mari-time, steel, mining, oil and gas sectors.

Patents protect the technical characteristics of an item or process when used in a particular country authorized, following detailed examination of the uniqueness of the patent application by a respective patent authority. ChecktoCashup® technologies are patented in the major markets of counterfeit prod-ucts: European Union, Russia, USA, Canada, China, In-dia and others.

ChecktoCashup Authenticity АРР Tehe free APP identifies the status of a counterfeited or expired certificate. The user is given an opportu-nity to report a counterfeit. Please note that apps pf other manufacturers do not identify ChecktoCashup® verification codes.

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Counterfeit statistics

Counterfeit caused losses worldwidein US dollars

1 Pharmaceuticals $200 Bn

2 Electronics $169 Bn

3 Pirate software $63 Bn

4 Foodstuffs $49 Bn

5 Car parts $45 Bn

Rating of counterfeit goods in US dollars

BRAZIL

14.2Bn

USA

220Bn

MEXICO

75 Bn

GERMANY

30 Bn

CANADA

21.6Bn

UK

15Bn

6 Toys $34 Bn

7 Pirate music records $12,5 Bn

8 Footwear $12 Bn

9 Clothes $12 Bn

10 Cable TV connections $8,5 Bn

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RUSSIA

30Bn

JAPAN

60 Bn

CHINA

32.25Bn

SOUTH KOREA

12Bn

OTHER EU STATES TOTAL

29.27Bn

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ChecktoCashup® has developed a number of products to meet different market requirements.

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The system is based on the principle of providing each item or article with a unique verification code integrated in a special marking on the product. The verification code is hidden under a special security coating.

When purchasing a product the security coating is rubbed off and the verification code is input into

CheckOneTM is a one-time highly reliable verification system of product authenticity.

www.сhecktoсashup.com or the manufacturer’s web-site. If the codes match the buyer gets confirmation that the product is authentic. CheckOne requires no special equipment, no particular skills or knowledge, but is a totally reliable system. CheckOne marking is recommended for single use – for perishable and dis-posable products.

www.chechtocashup.com

ANTICOUNTERFEIT

CLEAR AND CHECK

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This method enables anti-counterfeit protection of goods or valuable items with the help of a special marking on the product packaging. In CheckOpti one of two-dimensional matrix codes – Aztec code – is used.

CheckOptiTM is a multi-verification system using an optical encrypted mark.

No expensive equipment is needed to apply this type of marking on products. CheckOpti is an ideal and in-expensive system to protect inexpensive FMCG manu-factured in large quantities against counterfeiting.

CheckOpti can be in the form of a readymade sticker as well as a code printed during production.

www.chechtocashup.com

ANTICOUNTERFEIT

Scan the square code to the right with Checktocashup Authenticity App for validation

Aztec code based on a patented code security method.

The code can be applied on any surface (glass, metal, etc.).

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Integrated codes can be used: an identical code both on the product and its packaging.

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The system is meant for protection of luxury goods – depending on the price of goods a banknote of a particular value is packaged with the item. The serial number of the banknote is the verification code of the product.

To check the validity of an item this verification code is entered on the ChecktoCashup® website at www.checktocashup.com or manufacturer’s website. If the numbers match the item is authentic. Absence

CheckNoteTM is the most secure verification system of goods extending CheckOpti options with the use of a banknote.

of a banknote or mismatch of the serial number means that the item is counterfeit. Banknotes of dif-ferent denominations can be used as an additional security feature depending on the item’s value: the more valuable the item the higher the denomination thus providing a higher level of protection.

CheckNote system can also be used for various mar-keting and promotion activities.

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Scan the square code to the right with Checktocashup app or enter numeric code at Checktocashup app or website www.checktocashup.com

Receive the response from Checktocashup validation system

Compare the number you received in response with the number of the banknote inside

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ANTICOUNTERFEIT

3214-5694-5197-3116

ANTICOUNTERFEIT

Scan the square code below with Checktocashup app or enter numeric code at Checktocashup app or website www.checktocashup.com

Receive the response from Checktocashup validation system

Compare the number you received in response with the number of the banknote inside

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3214-5694-5197-3116

The system is recommended for producers of media content, photo and art studios wishing to protect their products against unauthorized use. CheckMedia is also a reliable device to check content authenticity.

CheckMediaTM is a verification system of media carriers developed by company specialists, which enables protection of the process of transfer, storage and authentification of digital and media content with the help of special and most advanced encryption techniques.

For content protection CheckMedia system can be installed at the customer’s server as well as a media player codec.

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There many various ways to protect valuable docu-ments on hard – paper – carrier. For this physical, chemical or graphical methods are used either singly or in combination. For electronic and digitally signed documents there are also different systems and lev-els of protection against unauthorized reproduction. These systems are secure enough, but only in terms of electronic documents. There various, often non-compatible systems of digital signature. If you need to print out such a document, protection of its digital sig-nature disappears and the document is easy to falsify.

CheckDocTM is a system enabling the checking of documents signed digitally or physically.

Protection of physical documents is costly, requiring special equipment and skills. Identification of an elec-tronic document requires services provided by third parties.

CheckDoc is a universal and reliable method of check-ing authenticity of hard copy and electronic docu-ments using a unique patented technology developed by ChecktoCashup®.

CheckTrace™ is a system of goods flow and geolocation management based on CheckOpti and integration of the verification code into the inventory systems of distributor and retail companies.

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Ultramarca™ is a control system of e-commerce / goods delivery by mail.

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How it works

Authenticity confirmed!

Complete the questionnaire and sign the contract.

Delivery of security elements to production site.

Marking of goods, preparation of shipping documents.

Delivery of goods to distributors, retail outlets, etc.

Verification of goods’ authenticity.

Just seeing a security marking is not enough for authentification, verification is made via ChecktoCashup website or with the help of a mobile application! Only www.сhecktoсashup.com is authentic, the rest are NOT!

Use of ChecktoCashup APP or web link.Display at point of sale.

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Notes

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ChecktoCashup Ltd. Jõe str. 2B10151 TallinnEstonia

Tel: +372 6788 397Fax: +372 6788 399

info@checktocashup.comwww.checktocashup.com