Law Targeting Counterfeit Electronics Will Have Global Implications, Study Finds

Applied DNA Sciences Inc. (OTCBB: APDN; Twitter: $APDN) sells patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators.

A recent company blog post discusses Section 818 of the U.S. National Defense Authorization Act for Fiscal Year 2012, a new Federal anti-counterfeiting law that is expected to have "broad international implications for hundreds of overseas companies that have supplied billions of dollars’ worth of items to the U.S. government."

An assessment by research and data supplier IHS iSupply reveals that Europe is "the largest supplier of electronics to the U.S., placing the region squarely in the sights of the new law. Europe accounts for 51% of all foreign electronics sales to the U.S. military; 47% comes from the Middle East and 2% comes from Asia."

Chairman, President, and CEO of Applied DNA Dr. James A. Hayward explains,

"Not only will the impact of Section 818 be felt worldwide, but also it is bound to cross from the public to the private sector. This is because many of the same facilities that supply the U.S. military also produce global electronic components for commercial applications. As a result, it is vital that the suppliers have new technological tools to identify components at risk of counterfeits."

Dr. Hayward's company is developing one potential way to help meet these challenges: DNA marking, a process in which botanical DNA is isolated, segmented, shuffled and reassembled to form an encrypted, unique and secure DNA marker which can be applied anywhere on a product to guarantee its authenticity. 

DNA marking can be integrated into existing processes and procedures with minimal, if any, change in process. DNA is the "gold standard" of forensic evidence and is trusted and depended upon by law enforcement around the world. It is used by the FBI, Interpol and forensic labs worldwide; it is an accepted form of legal, forensic evidence that is accepted by courts globally. 

Read more at adnas.com. 

Binghamton University S3IP Center and Applied DNA Sciences Partner on DNA Authenticity Technologies for Microelectronics (APDN)

Applied DNA Sciences, Inc. (OTCBB:APDN) is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA and smartDNA®, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prosecute perpetrators.

Applied DNA, together with The New York State Center of Excellence in Small Scale Systems Integration and Packaging at Binghamton University (S3IP), New York, has announced "the signing of a Memorandum of Understanding calling for collaboration on microelectronics research and commercialization, and other projects. The two organizations aim to embark on various projects, including further advancements in Applied DNA Sciences' forensic authentication and security technologies."

The partnership utilizes the skilled staff and advanced facilities at S3IP, in combination with the technology, business experience and product lines of APDN. This new relationship comes as the defense industry searches for new ways to battle the incoming flood of counterfeit electronics that have plagued both consumer and the military markets. Applied DNA and S3IP will work "to commercialize the resulting applications, with the potential to impact the estimated $3.1 billion annual flow of semiconductors to the U.S. military(1) and a global commercial market in semiconductors valued well in excess of $300 billion."

United States Senator Kirsten Gillibrand (D-NY) welcomed the new partnership, commenting,

"New York is poised to lead in the high-tech economy of the future. When we partner our world class universities and research laboratories with cutting-edge businesses like S3IP in Binghamton and Applied DNA Sciences on Long Island, we can spark new innovation with the power to protect our defense technology, keep our country safe, and attract new businesses and new jobs to help grow our economy."

The partners will develop a joint research program to develop "new ways to embed and authenticate DNA on various substrates. The advances are aimed at extending the company's botanically derived DNA technology to new verticals and to future needs. According to the Memorandum of Understanding signed by The Research Foundation for the State University of New York, whose office is located at Binghamton University Office of Sponsored Programs, and by APDN, the partners will aim to scale up new methods for SigNature DNA incorporation into and onto a variety of materials."

Additionally, the program may involve "testing of marked packaging of microchips in coordination with APDN partners, and explore advances in rapid reading solutions for screening chips in varying scenarios." 

Bahgat Sammakia, interim vice president for research, and director of S3IP at Binghamton University, commented,

"S3IP works in partnership with government, academia and industry to enable new electronics applications for energy, healthcare, telecommunications and consumer applications, and defense industries. We are excited about this partnership with Applied DNA Sciences, which will enable new research opportunities for our faculty, staff and students. This program is just one example of the benefits of working in collaboration with industry, the results of which will bridge our expertise in biotechnology and information technology to enable new opportunities for ensuring the security of our nation's electronic systems."

Said Dr. James A. Hayward, President and CEO of Applied DNA Sciences,

"Our collaboration with Binghamton University extends our commitments to collaborative research with NYS universities, including our current work with Stony Brook University, and the College of Nanotechnology Science and Engineering at the University of Albany. Combined with Long Island's heritage in DNA science and in the defense industry, we could not be in a better strategic location to extend our biotechnologies for microelectronics."

Read the full article at adnas.com. 

An in-depth look at electronics counterfeiting; $APDN

Applied DNA Sciences Inc. (OTCBB: APDN; Twitter: $APDN) sells patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators. Applied DNA Sciences (APDN) is the only company in the world that is making use of the complex codes embedded in botanical DNA as the ultimate solution to counterfeiting.

Between the National Defense Authorization Act for 2012, Amendment 2012 requiring the Pentagon to enact more aggressive procedures and strategies for counterfeit detection, and Applied DNA Sciences' research partnership with University at Albany's College of Nanoscale Science and Engineering (CNSE), counterfeiting has been a hot topic in the news recently.  One company recently suspended as a defense contractor after a years-long investigation into its selling of counterfeit parts, Hong Dark Electronic Trade Company, provides a vivid glimpse into the counterfeiting industry as well as the specific risks the Department of Defense faces with the influx of fake parts. 

A memorandum from the Department of the Air Force revealed the vast impact that this single company had on the Department of Defense:

"Approximately 84,000 suspect counterfeit electronic parts purchased from Hong Dark entered the DoD supply chain, and many of these parts have been installed on DoD aircraft, including C-17, C-130J, C-27J, P-8A Poseidon, AH-64, SH-60B, and CH-46."

Additionally, a background memo submitted to a November, 2011 hearing before the Senate Armed Services Committee  contained the following description of the counterfeiting process:

"Much of the raw material of counterfeit electronic parts is salvaged electronic waste (e-waste) shipped from the U.S. and the rest of the world to Hong Kong. From Hong Kong, waste is trucked to cities in mainland China, such as the counterfeiting district of Shantou in Guangdong Province, where electronic parts may be burned off of old circuit boards, washed in the river, and dried on city sidewalks. Once washed and sorted, parts may be sanded down to remove the existing part number, date code (which tells you when a part was made), and other identifying marks. In a process known as “black topping,” the tops of the parts may be recoated to hide those sanding marks. State of the art printing equipment may then be used to put false markings on the parts. When the process is complete the parts can look brand new."

Legitimate microchip manufacturers operate highly controlled environments, investing billions of dollars "in state-of-the-art facilities and take extreme precautions to prevent particles of dust, moisture, or other elements from damaging their products." Comparing this process to the one "used by counterfeiters, where chips may be burned off boards, washed in dirty rivers, dried on the ground, and remarked with newer or different part numbers," it is easy to see the risk that these parts pose. 

Unfortunately, the defense industry is particularly vulnerable to the flood of counterfeit parts. The director of the DOD’s Microelectronics Activity Unit explained, "The defense community is critically reliant on a technology that obsoletes itself every 18 months, is made in unsecure locations and over which we have absolutely no market share influence." The nature of the risk combined with the defense industry's particular vulnerability to counterfeit parts helps explain the push for increased accountability at all steps in the defense industry supply chain. 

CBS NY - Applied DNA's ($APDN) Digital DNA’ May Soon Be Required To Take SAT And ACT Exams

Applied DNA Sciences Inc. (OTCBB: APDN; Twitter: $APDN) sells patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators.

On Monday, CBS New York’s Jennifer McLogan reported on what politicians will see first hand in Albany this afternoon, and what could soon be implemented in New York and at high schools around the country.

Inside the Applied DNA Sciences lab at Stony Brook University researchers are hard at work inventing and perfecting a system that can prevent cheating on SAT and ACT exams.

“A novel system that’s absolutely unbreakable for securing the identity of a student taking the SAT exam,” said Dr. James Hayward.

Applied DNA put out a press release this morning in anticipation of today's hearing which states:

Dr. James A. Hayward, President and CEO of Applied DNA Sciences, Inc. (OTC.BB: APDN.OB - News), has been invited by the Chairman of the New York Senate Higher Education Committee to speak about APDN's digitalDNA™ technology to help block cheating on standardized tests such as the SAT college entrance exam. The Chairman, State Senator Kenneth LaValle, has been pressing for a solution since dozens of individuals were arrested on Long Island last November for paying others to take the tests for them.

At least four test-takers have been accused of accepting cash payments of $500 to $3,600 to take the test for students, largely from Long Island's North Shore schools.

In his testimony, Dr. Hayward will detail how APDN's digitalDNA can aid in preventing a reoccurrence of the cheating scandal.

In a TV interview with CBS News on January 23, Dr. Hayward demonstrated the technology he called "a novel system that is absolutely unbreakable for students taking the SAT exams."

(A video clip of the interview may be found here, the CBS news story here).

The digitalDNA system creates a counterfeit-proof, secure ID card. The card is embedded with infinitesimal molecules of plant DNA segments that authenticate a student's identity in a way that is absolutely uncopyable. The anti-counterfeiting technology also features a scannable printed code, which visually represents the same identity information. Embedded within the iconic code, and in covert locations on the card, is the physical code of digitalDNA. A scan, using a Smartphone or other mobile device, may be done instantly for exam-screening purposes, or at any other point. If deemed necessary, a second level of screening is available: the plant DNA on the card may be swabbed and forensically evaluated; a system well-recognized by courts globally.

All information is sent wirelessly to, and stored in, an ultra-secure internet database in "a private cloud." Applied DNA Sciences is closely affiliated with Stony Brook University's Center of Excellence in Wireless & Information Technology.

In his planned testimony, Dr. Hayward comments:

"Botanical DNA markers transform SAT identification cards into robust evidentiary tools that can assist in criminal prosecution efforts. The challenge is to ensure that actual, eligible, registered participants complete their exams. The goal is preserving exam integrity and maintaining a level playing field for all participants, and the solution is enhanced preregistration in tandem with identity verification before and after exams. We are confident that digitalDNA can assist in achieving the goal of an effective, easy-to-use and affordable system for preventing testing fraud."

Applied DNA Sciences is well-known throughout Europe and the U.S. for using botanical DNA to create very high security anti-counterfeiting systems. Such a system, now being piloted by an agency of the Department of Defense, identifies counterfeit microchips before they make their way into the U.S. military supply chain. Product authentication using botanical DNA has proved to be virtually uncopyable and resistant to the most highly stressed environment -- a must for the military.

APDN has installed its products in Europe and the U.S., protecting banks and ATMs (U.S.), jewelry stores (Sweden), and cash-in-transit strong boxes (UK). Its Signature DNA cash-protection system has won two top policing prizes in the United Kingdom over the past two years for successful work with police in helping secure convictions of cash thieves.

The State Senate hearing on SAT cheating is scheduled for January 24th, between the hours of 12:00PM and 3:00PM Eastern Time in the Legislative Office Building, Hearing Room A in Albany, New York. This event will also be streamed live on the NY Senate, Committee on Higher Education webpage found at: http://www.nysenate.gov/committee/higher-education

SmartDNA to protect banks and ATMs, turn criminals into chumps; $APDN

Applied DNA Sciences Inc. (OTCBB: APDN; Twitter: $APDN) sells patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied.

One of APDN's products is SmartDNA, an intruder/offender tagging system. SmartDNA intruder/offender tagging devices are installed in retail locations, banks, industrial facilities - any place where the goal is to protect against theft or vandalism. If a crime is committed, the SmartDNAsystem is armed manually or through a central security system. When the intruder passes near the device, he is tagged with a DNA-marked spray that makes establishing crime linkage definitive. The DNA-marked spray provides a forensic chain of evidence that can be used to prosecute perpetrators...

...like this guy:

Criminals, you've been warned: hooded jackets and furtive moves are no match for DNA authentication.