Cryptographic ID Code Generation for Anti-Counterfeiting
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Solution Overview
Problem
The existing methods for verifying the authenticity and tax status of manufactured goods, particularly tobacco products and other taxed items, are vulnerable to counterfeiting and diversion, leading to revenue losses and safety risks for consumers.
Innovation Solution
A method involving cryptographic keys and dynamic ID codes is introduced, where a cryptographic key is activated in the supply chain to generate unique ID codes for each batch of items, which are then marked on the products and verified electronically, ensuring accurate tax collection and authentication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional physical markers or stamps are used for tax verification and authentication, then the verification process is simple and straightforward, but the system is vulnerable to counterfeiting and diversion, leading to revenue losses
Solution Approach 1:
The patent replaces physical mechanical markers (stamps, labels, tags) with electronic cryptographic identification systems. Instead of using physical tamper-evident seals or RFID tags, the system uses digitally signed ID codes that are generated, stored, and verified electronically throughout the supply chain, eliminating the need for physical authentication markers while enhancing security against counterfeiting
Solution Approach 2:
The patent transforms the authentication mechanism from static physical markers to dynamic cryptographic parameters. The ID codes are generated using cryptographic keys that change per batch (dynamic keys) and per item (unique ID codes), providing variable authentication parameters that are much harder to counterfeit than static physical markers
2Reliability
If cryptographic keys and dynamic ID codes are implemented for each item, then security against counterfeiting is significantly enhanced, but the system complexity and implementation cost increase
Solution Approach 1:
The patent implements preliminary action by pre-generating and distributing cryptographic keys to authorized manufacturers before production begins. The system pre-establishes the cryptographic infrastructure, key management protocols, and verification procedures, so that when actual production occurs, the complex cryptographic operations are already configured and ready to run automatically with minimal additional complexity
Solution Approach 2:
The system enables self-service by allowing automated generation of ID codes and cryptographic signatures at the point of manufacture without requiring manual intervention for each authentication operation. The cryptographic system operates autonomously, generating unique ID codes for each item and automatically managing key rotation and verification, reducing the burden on manufacturers while maintaining high security
3Measurement precision
If physical markers such as stamps and labels are used for tax verification, then environmental impact is minimized through simplicity, but the verification process lacks real-time capability and accuracy
Solution Approach 1:
The patent implements real-time feedback mechanisms where ID codes are electronically verified against the verification centre database as items move through the supply chain. The system provides immediate feedback on authentication status, tax payment verification, and batch validity, enabling real-time decision-making and eliminating the delays associated with manual physical marker verification
Solution Approach 2:
The patent replaces manual physical verification processes with automated electronic verification. Instead of physically examining stamps, labels, or tags, the system uses electronic scanning and cryptographic verification to instantly authenticate items and verify tax status, dramatically reducing verification time while improving accuracy
Data Source
AI summary
A method and apparatus includes providing a cryptographic key, in an inactive state, to a point in a supply chain for manufactured items, providing the cryptographic key, in an active state, and an activation code for activating the cryptographic key, to a verification center, and providing the activation code to the point in the supply chain in response to the point in the supply chain transmitting information relating to the received cryptographic key. The method includes generating, at the point in the supply chain, an identification (ID) code for each manufactured item, derived from the cryptographic key in the active state and a dynamic key generated for each batch of manufactured items. Including providing the dynamic key for each batch of manufactured items to the verification center, marking each manufactured item with the ID code, and counting the actual or correct number of ID codes marked on the manufactured items.


