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NXP, Kestrel collaborate to eliminate DVD theft

Posted: 10 May 2007     Print Version  Bookmark and Share

Keywords:RFID technology  RFA/RFID solution  disc-based media 

NXP Semiconductors and Kestrel Wireless collaborated to develop a solution to eradicate the problem of DVD theft throughout the supply chain. Based on NXP's RFID chip technology and Kestrel's RFA solution, the new RFID solution has the ability to disable DVDs at the point of manufacture and enable them at the POS, making DVD theft at any point during the supply chain worthless.

The first application of NXP and Kestrel's RFA/RFID solution will be integrated into optical media. The solution is applicable to all consumer electronics products, such as MP3 players, electric shavers, toothbrushes, flat screen TVs, ink jet cartridges and flash memory.

NXP and Kestrel's network-based RFID solution opens up new opportunities for the distribution of optical media and consumer electronics. It eliminates expensive security devices, restrictive packaging and display cages, enabling a more comfortable shopping experience for consumers. Minimised product packaging creates more environmentally friendly solutions, such as paper instead of plastics. Additionally, the costs and problems of returns for DVDs and other disc-based media are reduced.

Designed for minimal disruption to existing retail POS systems and maximum benefit to retailers, the radio frequency chips are embedded in consumer goods that are activated by an RFA-enhanced RFID reader at the POS. When the chip is scanned, information is sent to the Kestrel network for authentication. Assuming all is correct, an enabling code is sent to the chip and the product is activated. For the unique application of DVDs and other optical media, electro-optic films are used to make the discs non-readable or readable regardless of the disc format or the playback device.

"This collaboration with Kestrel has the potential to dramatically reduce and ultimately eradicate the theft of optical media and consumer electronics in the retail supply chain. RFID technology is transforming the manufacturing, distribution and sale of merchandise—creating a new level of security, stimulating sales, reducing total costs and making the shopping experience more enjoyable for consumers," said Christophe Duverne, senior VP and general manager, identification, NXP.

"We believe our solution not only enriches the consumer shopping experience, we also estimate that the resulting lower cost of security for optical products presents clear benefits to manufacturers, retailers and the consumer at the same time," said Paul Atkinson, president and CEO of Kestrel.

As part of the ongoing agreement between NXP and Kestrel, the companies will continue to identify and develop a variety of applications for RFA/RFID-enabled products through a series of pilot programmes.

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