1. What implementation of the Digimarc solution is resonating most with brands?
While the Digimarc solution can be applied to any gift card form factor including secure pack, the implementation that is generating the most brand interest is using our solution with card-affixed or M6. The application of Digimarc technology to these form factors results in a gift card that is more secure than secure pack (our industry partners have rated card-affixed with Digimarc 3x more secure than the current secure packs in market) while capitalizing on the many benefits of card-affixed and M6 (lower cost, less materials, improved marketing, merchandising, and gift-ability, happier retailers, etc.).
Does this implementation comply with all relevant US laws?
Yes, using Digimarc with card-affixed or M6 is fully compliant with Maryland and New Jersey laws.
Does this implementation comply with aggregator requirements?
Yes, both BHN and InComm fully support using Digimarc with card-affixed or M6 as it is more secure than secure pack without requiring retailers to invest in expensive planogram reconfigurations as previous security features have required.
2. Can our brands change the size and shape of the watermark security feature?
In the not-too-distant future, yes. While we are only supporting the current design for the upcoming print run, we understand the value of providing options. The feedback we have received is that the industry will be best served by limiting the number of future designs to a small handful (in the range of 2-4). We agree and look forward to working with our printer customers and their brands to define those future design specs.
3. How can this solution help the gift card industry fight “design and requirement sprawl”?
A consistent piece of feedback we hear from the industry is that the spike in fraud caused a spike in designs and requirements which has negatively impacted the entire ecosystem. We believe our solution will help turn back the clock on both pain points, leading to a reduction in the complexity—and an increase in the efficiency—of the gift card printing process (as well as supply chain points further downstream).
4. What about the redemption barcode?
For the upcoming print run, the redemption barcode will be handled as follows:
For cards that have a redemption barcode without a PIN, the redemption barcode will be placed under the watermark security feature
For cards that have a redemption barcode with a PIN, the redemption barcode can be placed anywhere on the card with only the PIN under the watermark security feature
For cards that have a combined activation/redemption barcode, a new redemption barcode will need to be added, following the rules above
For future design specs, additional options include protecting the redemption barcode with another watermark security feature or replacing the existing redemption barcode with a different version of our digital watermark, further increasing gift card security while improving aesthetics and freeing up on-card space.
5. What are the on-line memory requirements needed to print your solution?
Approximately 1.4GB of memory is required per 10k active cards.
6. What is your experience with printing on paper? Any problem with warping?
We have printed on Monadnock with no concerns whatsoever, including the presence of any warping impacting our solution’s effectiveness.
7. Will your solution impact the speed of my lines?
No. We understand the importance of printing at speed, and while we have not tested our solution to determine maximum line speeds, the Digimarc solution has recently been successfully printed at rates exceeding 33k cards/hour at 2 different printing facilities.
8. Does your solution work with other lines besides Precision?
Yes. To date our solution has only been run on Precision lines, but Digimarc has nearly 30 years of history with a wide variety of printing techniques, environments, and vendors that gives us full confidence it will not be an issue as we expand to non-Precision lines. Printing scalability and versatility were two requirements that factored heavily into our solution design.
9. What is the investment needed in new tools?
To date, our partners either have had no capex (because they already had an extra print head) or they have had to purchase one additional print head.
10. What are your solution’s requirements for labels?
For the upcoming print run, we are requiring holographic scratch-off labels as we are only supporting our current design at this time. We’ve partnered with STL to deliver this widely available label because they are innovative, responsive, and widely respected across the industry.
As we begin to collaborate with our printer partners and their brands to imagine future design specs this is something that may change. Rest assured we know the importance of keeping the cost of labels in line with (or below) current industry standards. Our existing design does just that, as will any future designs.
11. workflow? Does Digimarc store any data or change any data
No.
12. Do we need to license any non-Digimarc patents or intellectual property to print the Digimarc solution?
No. Our solution is the extension of our long history of innovation and is built upon our portfolio of over 800 patents. Our license agreements also protect our customers and partners from spurious IP infringement claims in two distinct ways. First, we provide a warranty that our solution is non-infringing. Second, we provide a robust IP infringement indemnity that fully protects our customers in the unlikely case an IP infringement claim were to arise.
13. How do I explain Digimarc pricing to my customers accustomed to “non-digital” and “on-card only” security features and/or IP and patent royalty costs?
Digimarc’s vision is to provide the industry a solution that is more secure than secure pack while leveraging all the benefits of card-affixed or M6 at approximately the same cost as today’s secure pack—let alone where the cost of secure pack will be in the future as the need to continuously add additional physical security features to existing secure pack offerings will likely persist.
Unlike security features currently on the market, the Digimarc solution does not require our printer partners to just add yet another cost that’s stacked on existing offerings, instead we allow them to reimagine everything—remove security features, eliminate excess packaging, increase production speeds, unlock multiple production efficiencies, increase line utilization, eliminate the need for new (and often stranded) capex, etc.
How each of our printer partners decide to market a Digimarc powered new offering is of course up to them, but where we’ve seen the best results is doing exactly this—using our solution as an opportunity to reimagine a brand new offering instead of viewing it as a discrete security feature, talking to brands about the features of the total solution (increased security + the benefits included in our pricing tear sheet), and building a single finished good price based on that.
14. How do I explain to my customers how the Digimarc solution is able to deliver such an increase in security? How do I give them (and me!) comfort this isn’t just another security feature that will soon be obsolete?
Unlike existing non-digital and “on-card only” security features, our gift card solution is an end-to-end digital layer that resides “on-card,” “on-scanner,” and “on-server.” The white dots that are applied to gift cards are simply the physical manifestation of our end-to-end technology-driven solution, the real power lies in the technology and the team behind the dots!
By leveraging our multiple software instances (Digimarc Illuminate platform, Digimarc Gift Card Embedder, Digimarc QC SDK, and DES SDK), spread across various points in the supply chain (cloud, print lines, front of store), Digimarc has the ability to evolve and adapt our solution to fight fraud today and in the future, depending on how and where it makes the most sense as determined by the adaptation required. Each of these software instances work together to deliver a complete solution, and each have special characteristics and requirements (SaaS, on-prem, embedded) that make them ideally positioned to incorporate new functionality and inventions.
Supporting and progressing this expansive technology layer is the Digimarc team, many of whom are currently dedicated to our work helping the gift card industry fight fraud. Based on our almost 30 year history of working with the world’s central banks to protect the vast majority of currency in circulation worldwide, we understand that constant invention and iteration is needed to stay ahead of motivated bad actors, and we are already hard at work building many new features and capabilities we will be rolling out across our software footprint to ensure we do exactly that. This team includes specialists not only in the technology itself, but also the application of the technology, with expertise in multiple printing techniques and environments as well as experts in substrates and inks.
This is what Digimarc is built to do, and what we have always done. The good news as a printer is that when change comes, you don’t need to make infrastructure changes or purchase new machinery. Digimarc will simply provide you the updated software to continue to print those white dots.
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