Australian anti-counterfeiting technology firm YPB Group is hoping its biggest deal to date will open up new opportunities in the growing global business of ferreting out fake products.
YPB's invisible tracer-based technology is used in packaging and labelling to tackle the ever-increasing problem of counterfeit goods across areas ranging from pharmaceuticals to wine and even salt.
Executive chairman and founder John Houston said a new agreement with packaging giant Orora is a major coup for the company, which already deploys its anti-counterfeit technology in China.
"I think the Orora deal is a pivotal deal in our quest to conquer this marketplace in Australia and help brands protect themselves against counterfeit, and engage with customers especially in Asia," Mr Houston told AAP.
YPB's anti-counterfeit technology is based on rare earth material "tracers" which are combined with packaging in a special manufacturing process.
Invisible tracer particles can be used in plastics, paper, inks, textiles and coatings, and cannot be destroyed or damaged because they form part of the product.
Tracers are detectable by a scanner, which can be used to confirm product authenticity at any point in the supply chain, from manufacture to the till.
"We can protect almost anything. We can protect clothing, our tracer goes into the thread of a label for example, and detect whether its real or not.
"It can go into inks, plastics, papers, fibres - it's extremely versatile," Mr Houston said.
Around 70 per cent of the world's counterfeit product comes out of China, according to Mr Houston.
The value of the global counterfeit market is $US1.7 trillion ($A2.33 trillion), according to data from the International Chamber of Commerce cited by the company.
Around $US285 billion will be spent on anti-counterfeit measures by 2020, and $US32.4 billion will be spent on customer engagement by 2018, according to YPB.
Under the binding memorandum of understanding announced on Tuesday, Orora - the former packaging arm of Amcor - will be able to offer YPB's anti-counterfeit technology and other security services to customers.
Orora has 39 manufacturing plants and 83 distribution sites across seven countries, and supplies packaging products and services to the grocery, fast moving consumer goods and industrial markets.
"The contract is for a minimum of five years, and allows ORA to promote YPB products, technology and services to its customer base," Mr Houston said.
YPB shares rose 1.5 cents, or 5.6 per cent, to 28 cents, valuing the company at $29.1 million on Tuesday, in a higher Australian market.
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