Watchmaker Hublot and WISeKey join forces
The unacceptable plague of fraud
HI-TECH NABS COUNTERFEITERS »»» by Raymond Langley
Secret codes, hidden ciphers, information encryption, hidden extreme-security data centres in the Swiss mountains, military-grade USB keys and participation in cutting edge projects such as the world-first Internet voting system and securing the data of the Alinghi Team (the winners of the America’s Cup, world-renowned formula-type sailing race), have all been the mainstay of WISeKey’s business since its foundation in 1999.
WISeKey is now considered among the leading information security and identity management companies in the world.
Linking such technology with the luxury industry may, at first glance, seem contradictory. And yet, the prestigious Hublot watch brand called upon WISeKey’s WISeAuthentic©certification system of authenticity to assist them in fighting one of the watch industry’s main challenges: counterfeit products.
Earlier this year the two companies announced a world “first” in the fight against imitations: that henceforward, Hublot watches will be protected by a smartcard, proving their identity and origin. This innovative solution represents a decisive step in the fight against the counterfeit trade.
The unacceptable plague of fraud
The challenge Hublot and its colleagues face is far from being a minor issue. The luxury sector is plagued by counterfeiters; in fact, counterfeiting represents the biggest threat these brands have to face and is a major concern of most manufacturers. The overall figure is indeed staggering: counterfeiting represents some 5–7% of all world trade – and it is increasing every year.
In 2008, according to the latest figures, the number of seizures of counterfeit goods in the European Union increased by 17% to reach some 43,671 incidents. Not surprisingly, the sectors most affected were the jewellery and horological sectors (an increase in seizures of fake goods of 89% over the preceding year; around 1.8 million items) and the beauty products sector (seizures of counterfeit items up 264% over previous year; more than 6 million items).
Given these figures, a country such as Switzerland, for example, is losing around $10 billion in sales due to the counterfeit “parallel” market.
“In the watch industry, we are seeing a significant increase in counterfeit goods … it was imperative for us to find a way to protect our watches and those who purchase them. WISeKey has a strong track record in security and authentication, and when looking for a partner to help us in the fight against counterfeiting, we knew WISeKey was the right choice for us.” —Jean-Claude Biver, CEO, Hublot
The hi-tech antidote of authenticity
The idea behind WISeAuthentic© consists of creating an electronic guarantee certificate, which not only contains the watch identity code, but also enables privileged access to a reserved space on the Hublot website. Both Hublot sales outlets and clients will be able to use the smartcard to instantly check via the Internet if the watch is genuine.
It’s the first time that this technology has been used as a protection against counterfeiting. “There is a patent pending on this method,” explained Carlos Moreira, CEO of WISeKey. “It is based on digital identification protected by a cryptographic smartcard associated with a Hublot watch. We supply a secured platform which the buyer can access via the watchmaker’s website where the watch can be definitively identified as part of Hublot’s inventory within an encrypted area reserved for watch identification. Each smartcard that is given at the time of purchase, in addition to its Certificate of Origin, is unique to each watch and contains full details of the product, including registration number, barcode and place where it was manufactured, among other details. It is the watch’s true DNA. If the information contained in the card is not valid, access to this area is simply denied.”
“Hublot is the first company in the world of luxury and watchmaking to attain this level of protection for its products, by combining state-of-the-art electronic technology and traditional watchmaking know-how,” adds Jean-Claude Biver, Hublot CEO. “I am proud to be the pioneer in this domain, as even though imitation is flattering (he said laughing), manufacture of counterfeit watches is an unacceptable plague for the whole of the watchmaking industry, and we must use every means possible to fight it.”
Thus, as of this autumn, purchasers of Hublot watches will find the electronic card included in their watch’s case. In addition to the information enabling traceability of the watch, they will, thanks to this card, be able to connect to the Hublot website and get access to a privileged space reserved for them, while remaining anonymous.
“In the watch industry, we are seeing a significant increase in counterfeit goods,” Biver comments. “It was imperative for us as a company to find a way to not only protect our watches but also those who were purchasing them. WISeKey has a strong track record in security and authentication, and when looking for a partner to help us in the fight against counterfeiting, we knew WISeKey was the right choice for us.”
This combination of technology with traditional watchmaking provides a fail-safe solution, impossible to replicate at a cost that is a small fraction of the amount lost in sales due to counterfeits.
Anti-fraud security net spreads farther
WISeKey is now expanding the application of WISeAuthentic© to many other luxury brands and expects its patented technology to become a standard in the avoidance of counterfeit luxury goods globally. By leveraging this technology, online shopping and auction websites have the ability to provide its users a safe, secure transaction, by controlling counterfeited goods in their product range. «««
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