Registers – Systems controlled by data bearing records – Inventory
Reexamination Certificate
2000-11-28
2003-04-15
Le, Thien (Department: 2876)
Registers
Systems controlled by data bearing records
Inventory
C235S380000
Reexamination Certificate
active
06547137
ABSTRACT:
FIELD OF THE INVENTION
The present invention is directed to distribution and inventory control, and specifically to the authentication and control of goods from a manufacturer through the distribution chain to the consumer.
BACKGROUND OF THE INVENTION
Goods and merchandise are placed into the stream of commerce by manufacturers and suppliers as part of the business cycle. Because many goods and merchandise are similar, the manufacturers frequently apply trademarks in order to distinguish their goods from those manufactured by a competitor. These trademarks may be registered with the federal government's Trademark Office, with the various bureaus of each of the states or acquire common law meaning by use. The use of trademarks is a common way that a manufacturer of goods can identify his unique product to the buying public. The buying public has come to rely on the trademark as an indication of the source or origin of the goods. The consumer of the goods can rely on the trademark as an indication of the nature and quality of the goods, even if the source is unknown. Of course, the trademark also induces the supplier to maintain the consistent level of quality that the consumer has come to expect. In order to maintain the level of quality, the supplier may sometimes not permit a product to be distributed within a country, for example the U.S., because it may not meet the customer's expectations. In such a case, the product may carry the supplier's authentic trademark, but only is available for export. If such an exported product is then re-imported into the U.S., the product or goods are referred to as gray market goods. Because these goods may not be of the same quality as those designated for the U.S. market, their re-import is an act that the supplier or manufacturer usually desires to prevent.
Goods and merchandise placed into the stream of commerce by manufacturers frequently are tracked by a machine readable code. The machine readable code includes relevant information about the goods and merchandise, including identification or information about the manufacturer and an identification specific to the product. The machine readable code can be a series of bars and spaces, frequently referred to as a bar code. One well-known use of bar code is for a uniform product code, also referred to as a UPC. The UPC is widely used in commerce for many purposes. The consumer is most familiar with the UPC as the code that is scanned at check out at a retail outlet that provides the price of the item. Although this usually is the last use of the UPC, it has other purposes as the product is manufactured and distributed through the stream of commerce. For purposes of this invention, the machine readable code hereinafter will be used so as to include the term bar code. This terminology is not to be construed so narrowly as to be confined to restrictive symbology, such as the UPC. The machine readable code includes not only bar codes, but also technology that codes or decodes written symbols, electrical impulses, electromagnetic impulses, or electromechanical impulses to allow detection and identification.
Because of the value associated with trademarked goods, there is a growing problem with the counterfeiting of these goods. Typically, counterfeited goods look like the genuine goods of the manufacturer and may even carry the trademark of the manufacturer, but usually are knock-offs of inferior quality. These knock-offs represent a serious problem for the manufacturer, as his reputation can be tarnished by the counterfeit goods. However, these goods can be a threat to the health and safety of the consuming public, as the inferior counterfeit goods involves not only famous and expensive products such as ROLEX watches, but also articles such as aircraft engine replacement parts and circuit breakers for electrical panels. Clearly, the use of inferior products in these applications can lead to catastrophic results. Although these knock-offs sometimes are discovered and traced to their source by the legitimate trademark holder, in many instances they remain undetected unless and until there is a problem, or they damage the reputation of the manufacturer or supplier by disappointing the consumer. Thus, there is a need to improve the identification of goods to ascertain that the goods are authentic. Simultaneously, there is a need to control the inventory of goods within the distribution system so that authorized dealers and wholesalers of goods can be readily identified, and unauthorized dealers and wholesalers distributing authentic goods can quickly be identified and distinguished from those placing counterfeit goods into commerce.
Various methods have been used to improve security. An apparatus and a method for using the apparatus are set forth in related U.S. Pat. No. 5,306,899 to Marom et al. and U.S. Pat. No. 5,422,744. These patents utilize a machine readable code, such as a bar code, in conjunction with a holographic image that is recorded on an item to authenticate the item. The machine readable code may optionally be recorded as a holographic image. It should be noted that the use of a machine readable code that includes a unique identifier either as a holographic image or within a holographic image adds additional security by making it more difficult to copy the labels, but currently is expensive. However, advances in technology should lower the costs making this method price competitive. The apparatus and method are used to authenticate an item, such as at check out. While this apparatus and method for using the apparatus provides a method for a retailer to authenticate an item, for example a credit card, in order to assure the merchant that he is not defrauded, it is of little use to a consumer not in control of the equipment to assure that he is not being defrauded by the merchant. In addition, the apparatus and method set forth in these patents do not disclose means that manufacturers may use to detect counterfeit goods, gray market goods or goods distributed outside of authorized channels.
What is needed is a system for use by a manufacturer for reliably detecting gray market goods and goods distributed outside authorized distribution channels. Ideally, the method should also provide the consumer with a means for identifying goods with some degree of confidence so that the consumer can ascertain that the goods purchased originate from a source of known quality. The system should deter counterfeiting by making it difficult for the counterfeiter to copy the means for identifying the goods. If the unauthorized marketer successfully places goods into the stream of commerce, the system should readily provide a convenient tracing system for the manufacturer to determine the point at which the unauthorized goods enter the stream of commerce.
SUMMARY OF THE INVENTION
The present invention is an inventory and tracking system based on a labeling system. Labels are provided for affixation to the product or product container. Each label includes, in addition to the standard information associated the product such as the product name, required warnings and such additional information that a manufacturer wishes to include thereon, a hologram associated with the product and a machine readable code. The machine readable code may be a bar code that can include the UPC code for the product, and a supplemental code that provides a unique identification for the product unit. Although a hologram does not eliminate the threat of counterfeiting, the product and its label, it discourages counterfeiting since the equipment required to counterfeit a hologram requires a large capital investment. Moreover, when the hologram includes the trademark of the manufacturer or supplier, the consumer can ascertain at a glance that the product originates from a source of known quality and that the absence of a trademark hologram is an indication that the goods may not originate from the trusted source.
The machine readable code on each unit of product includes at least one set of unique machine readable
Begelfer Larry J.
DeHoff Mark S.
Neff James M.
Le Thien
Maria Carmen Santa
McNees Wallace & Nurick
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