The Platform of Everything

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 25 Year Development of the Digimarc Platform

Print & Packaging

Digimarc-powered connected packaging now
on retail shelves globally

Secure Money
Digimarc works with central banks for
global counterfeit deterrence

Driver Licenses
For years, Digimarc was the leading provider of
driver licenses in the United States

Media & Entertainment

Digimarc won the 2015 Emmy Award for
Engineering Creativity in audio and video

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 Technology

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 Digimarc Barcode: The Barcode of Everything ®

General Characteristics
• Low contrast, two-dimensional
data carrier

• Imperceptible to consumers in
normal use

• Can be applied to print and

digital images, audio and video

• Massive redundancy and

efficiency in auto-identification
due to repetition of barcodes
LOOKS LIKE THIS PERFORMS LIKE THIS

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 What We Do
Digimarc gives every package an identity to drive business transformation

+ =

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 What is Digimarc Barcode?

GTIN QR Code
VS
GS128 Data Matrix

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 Functional Benefit

Looks Like This Performs Like This

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 Enhancement Process

Provide File Evaluate Design Enhance Elements Code Verification Connected Package
Deliver press-ready file Digimarc or Minor adjustments to Quality checks Design is printed normally
from printer or pre-media enhancement partner color and brightness of throughout pre-media with no specialty inks or
(adjusted for press will evaluate and dots within design and production substrates
curves) analyze the design elements workflow

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 The Benefits of Connected Packaging

Consumer Engagement

Operational Efficiency

Sustainability

Brand Protection

Serialization

Omnichannel

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 Digimarc Platform
Solutions

Security Brand Protection Traceability Sustainability Engagement Efficiency

Digimarc Partners

IoT Services
My.Digimarc, Digimarc Connections, Insights

Quality Management
Specifications Verification Education & Training

Identification: Enhancing Media with Digital Identities Discovery: Detecting Digital Identities
Industry Leading Design & Production Tools Industry Leading Imaging Scanners, Machine Vision Cameras & Smartphones

Offerings

Packaging & Labels Documents Print Plastic Fabric Audio Corrugate

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 Applications

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 Digimarc Code Applications

Packaging Food Labels In-line Print Metal Plastics Surfaces Apparel Tabs & Circulars Interactive
TV & Radio

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 Providing Value at Each Stage of the Package Journey

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 Supply Chain Benefits
Suppliers
• Add Digimarc to clamshells, corrugate
trays and pallets
• Equip harvesters with devices to scan labels to
communicate pack date and provenance
• Track fresh items easily during product recalls
Packaging & Label Design
• Plan ‘connected packaging’ strategy
• Add Digimarc to artwork
• Plan/create digital content for customers
and partners
Packaging & Labels
• Validate accurate reproduction
of Digimarc identities
Manufacturing / Production
• Support parts-matching
• Reduce manufacturing errors
• Improve in-line inspection
• Minimize manual effort for greater efficiency
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Distribution / Logistics
• Scan shipping containers and corrugated case
packs easily
• Verify sorting and delivery processes
• Support passive scanning by auto-update system
• Pinpoint and trace location of specific items
Retail
• Scan private label packaging easily
• Audit prices more efficiently
• Reduce shrink on fresh items
• Link print campaigns to e-commerce sites
• Support Scan & Go systems
• Improve the accuracy of inventory counts
In-Aisle
• Scan packaging for product info
• Improve brand loyalty
• Offer personalized pricing
• Link store experience to e-commerce sites
• Support more rapid restocking
Checkout
• Scan products and labels easily
• Improve first-pass read rate
• Reduce misreads and manual keying
• Improve customer experience
• Support Scan & Go systems
Home
• Scan for brand and social media content
• Reorder directly from packaging
• Cross-sell related products and services
• Access digital product and assembly
instructions
• Promote brand loyalty with digital content
E-commerce
• Scan boxes via mounted cameras
• Add to corrugate packaging and labels
• Scan from distances
• Verify logistics and returns processes
• Improve the accuracy of inventory counts
• Protect your digital assets
Recycling
• Improve scanning accuracy at
multi-reuse facilities
• Improve sorting of materials and substrates
• Provide consumer recycling instructions
• Support a circular economy
 Digimarc is Taking the World Beyond the Barcode

PAST PRESENT NOW & FUTURE

Digimarc has invented the

Marketing
successor to the barcode:

RFID

Beyond the Barcode:

Digimarc Makes Retail
Operations Safer and
More Profitable

Supply Supply Supply DIGIMARC

Chain/POS Chain Chain/POS Imperceptible digital identities
enables multiple supply chain use
cases: Manufacturing, Logistics, Retail &
Recycling
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 Deliver Compelling Digital Content
Provide additional information and promote a digital dialogue with consumers

Coupons Instructions

Videos Recipes

Social Media Product Support

Exclusive Offers Customer Service

Product Reviews Reorder

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 Mobile Scan Comparison
A look at the strengths and weaknesses of popular mobile engagement technologies

Image Digimarc
QR Codes NFC / RFID
Recognition Barcode

No Additional Per-Unit Cost

Highly Scalable

Imperceptible on Packaging

Press Ready for Commercial Printers

Effective on Irregular Surfaces

Applicable on any Substrate

Compatible with most Smartphones

Consistently Accurate

Suitable for POS Scanning

Easily Serialized

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 My.Digimarc

CREATE MANAGE SCAN

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 Easy Account Management

My Digimarc
• Cloud account management (SaaS)
• Anytime, anywhere 24/7/365 access
• Easy-to-use web modules
• Supports packaging, print and other media
• Buy and manage Digimarc Barcode
• Easily input barcode information and meta data
• Rapidly update web-based experiences
• Provide real-time access to clients, partners

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 The Digimarc Platform for Sustainability

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 Holy Grail Project 2.0

PIONEERING DIGITAL
WATERMARKS
FOR SMART PACKAGING
RECYCLING IN THE EU

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 Recycling considerations and improvements since HolyGrail 1.0

Recycled plastic is compacted, contaminated and

moves at target speeds.

Reliable detection during sorting requires

• Higher Digimarc barcode strength
• Wider coverage

Flexibility in enhancements enabled by detector

light sources provide strength and coverage while
mitigating visual impact.
Digimarc has significantly improved the
recognition software for recycling applications.

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 How it works

• Digimarc barcode inserted into the mold

(blow molding, thermoforming, pressing, thermoforming).

• The code is replicated on the entire plastic object and is barely

perceptible to the human eye.

• There are a limited number of unique chemical tracers, but the

number of Digimarc barcodes available is unlimited - each SKU
gets its own code.

• Another Digimarc barcode is applied to

Shrink sleeve label or applied paper label for greater
redundancy.

Looks Like This Performs Like This

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 Retail packaging

Looks Like This Performs Like This

Retail Consumer Engagement Sustainability

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 Digimarc is a low-contrast 2D code
Different light sources 'see' colors differently.
Our enhancement approaches strive to account for these variations.
We invest as much R&D and implementation effort in the scanning environment as we do in the ability to improve the media.

Human eye Red light White light Blue light

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 Digimarc Barcode: Application in printing

Repeated tile

The encoder applies the tiles to

graphics in a mosaic fashion

Pieces of multiple tiles can be

combined to recover a barcode.
Uses existing pixels. No special printing
process. In most cases, no additional inks.

Exaggerated view for illustration purposes

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 From production to recycling with Digimarc Barcode

MANUFACTURING RECYCLING
Activate application (identifiers) Activate application (identifiers)

Lettering Lettering
• Incorrect filling (GTIN, GIAI, SGTIN, etc.) • Recycling (GTIN, Recycling ID, etc.)
• Tracking and tracing (SGTIN) • Tracking and tracing (SGTIN)
• Recall (SGTIN, GIAI, etc.)
• Expiration (GTIN + date)
Bottles
Bottles
• Recycling (Recycling ID, etc.)
• Fill in incorrectly
LABEL LABEL • Visibility of the supply chain (container ID,
(Container ID, Recycling ID, etc., Tool ID, Stepping, etc.)
etc.)
• Visibility of the supply chain
(container ID, tool ID, stages, etc.) • Food safe packaging (container ID, etc.)
• Gray market/labeling (mold ID, stepping, etc.)
• Food safe packaging (container ID, etc.)

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 Sorting in the recycling center with Digimarc barcode

Incoming materials to be Sensors detect

recycled Digimarc barcode Air nozzle sorts plastics
according to data
supplied via Digimarc
barcode

Illustration source @TOMRA

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 Giving plastics a 'digital recycling passport

Integrated into the form through "micro-topological variations".

• Adds texture or subtle dots, but no human detectable structure

Added to redundancy to shrink sleeves and labels

Virtually unlimited codes

• Identifies manufacturer and product (for reduced EPR fees).
• Food vs. non-food packaging
• Recyclable vs. compostable packaging
• Component layers of multilayer packaging
• Carbon black, opaque, difficult to recycle
• New material introductions

Compatible with the circular economy - no environmental impact or additives

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 Usecases

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 Tackling Critical Retail and Consumer Brand Challenges

Operational Long Lines, Product Inventory Rise of Private Counterfeiting Manufacturing Recyclable
Shrink Slow Checkout, Transparency; Management Label Products & Grey Market Quality / Parts Identification
Hand Keying Regulations Diversion Matching
Shrink cost Average Out-of- Private brands 39% of consumers
retailers $100B 86% of U.S. Three quarters of Stock rate is about influence 46% of Consumers spend Food recalls cost chose sustainability
last year (2017) consumers have shoppers in 2018 8% consumers on $460 billion yearly companies an as a factor when
accounting for left a store due to would switch brands where to shop on counterfeit average of $10 deciding which
1.85% of sales long lines, losing an for transparency 78% of the time, goods million in direct products to buy.
estimated $38B when a product Private brands costs alone
64% of retail 73% of shoppers isn’t on shelf, it’s had growth of more Counterfeit goods
shrink is 58% of consumers are concerned still in the store than 3x the rate of cost the U.S. from More than half of
associated with would change about the nutritional somewhere branded products $29B to $41B FDA recalls involve
operational shrink stores for better content in their food annually the mislabeling of
checkout products

Digimarc Barcode for Digimarc Barcode for Digimarc Barcode Digimarc Barcode Digimarc Barcode HP Link with Digimarc Barcode Digimarc Barcode
Thermal Labels (thermal labels, for Packaging for Packaging for Packaging Digimarc Barcode for for Manufacturing for Recycling
packaging, hangtags) Track and Trace and
Brand Protection

1 Sensormatic Global Shrink Index – Tyco Retail Solutions & PlanetRetail RNG, May 2018 • 2 National Supermarket Shrink Survey - FMI & The Retail Control Group, 2011 • 3 The cost of convenience – Ayden & 451 Research, May 2018 • 4 Consumers Cringe At Slow Checkout - Forrester Consulting

on behalf of Digimarc, August 2018 • 5 The Transparency Imperative: Product Labeling from the Consumer Perspective - FMI & Label Insight, October 2018 • 6 U.S. Grocery Shopper Trends 2018 - FMI & The Hartman Group, June 2018 • 7 SOLVING THE OUT-OF-STOCK PROBLEM - FMI/GMA
Trading Alliance, March 2015 • 8 Product Promotion Effectiveness: Root Causes Of Stock-Outs - MIT Supply Chain Management, May 2016 • 9 The Power of Private Brands – FMI & IRI, July 2018 • 10 Total Consumer Report - Nielsen, March 2018 • 11 The Economic Impacts of Counterfeiting and
Piracy - International Trademark Association, February 2017 • 12 IP Commission Report - Commission on the Theft of American Intellectual Property, February 2017 • 13 Capturing Recall Costs - GMA, October 2011 • 14 2017 Recalls, Market Withdrawals & Safety Alerts - FDA, 2017

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 Creating New Connections in Retail

DIGITALLY-EMPOWERED THE CONNECTED

CONSUMERS INDUSTRY

Well-informed and always online Provide product transparency and information

Non-linear shopping journeys Connect with shoppers across all channels

Infinite choice Create a relevant, engaging shopper experience

Time-challenged Make shopping easy and convenient

Short attention spans Meet demand immediately

Seeking best price, quality and service Personalize offers based on data-driven insight

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 Digimarc Barcode: Application in Plastic

Micro-topological variations in
substrate create signal tiles

Decorative embossing effect

informs consumers of recyclability

Works in variety of
mold types

Exaggerated view for illustration purposes

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 Retail Packaging

Looks Like This Performs Like This

Retail Operations Consumer Engagement Recyclable

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 Print

Consumer Engagement Omni Channel

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 Print

Consumer Engagement Omni Channel

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 Fresh Produce

Looks Like This Performs Like This

Serialization Consumer Engagement Operations

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 Counterfeit Deterrence

Operations Brand Protection Serialization

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 Digimarc Identifies Products, Uncovers Errors

Industrial barcode
Suppliers provide imagers enable high-
Digimarc-enhanced speed identification for
product packaging
product identification and
or labels that component validation.
contain GTIN and
other information • Cognex DataMan 262
including component • Datalogic Matrix 120
part numbers, which • Datalogic Matrix 220
can be read on a
manufacturing line
during production.

Digimarc-enabled handheld • Datalogic

scanners can be used for • Honeywell
inventory management or • NCR
shipment tracking. • Zebra Technologies

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 Brand Protection | Layering Solutions to Increase Security
The Digimarc Platform provides unique and custom identities for brand protection on packaging and
products themselves, as part of a multi-pronged approach to ensuring product authenticity

2
6
5

1
4

Corrugate Shipping Container Case Pack Product Packaging

1 Overt batch/lot 3 Overt code 5 Overt code
2 Covert serialized 4 Covert code 6 Covert code

Points of Validation in the Supply Chain

Raw Materials Factory Logistics Warehouse Retailer/Consumer

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 Brand Protection | Digimarc Barcode Data Encoding Options

Product (SKU) level Batch level uniqueness Item level uniqueness

uniqueness
1 2 1 2 3 4

Data encoded: Data encoded: Variable Data encoded: Variable

Static

Incorporating Additional Data Increases Security & Traceability

Detection Devices Purposes Object Types

Mobile Machine Vision Handheld Identify Pallet Case Item Label

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 Quality Control Processes

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 Quality control process during prepress

New steps Already today - without Digimarc required

Scanner Mobile Visual GTIN

Performance Performance Effect Verification

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 Quality control with Digimarc Verify Desktop
Upload a digital file (PDF, TIF, AI, PSD).
Scan a print or proof (using a qualified scanner).

Additional benefit for recycling:

• Provides a new coverage map that reflects the ability to
detect recycling sorting
• Continue to provide barcode scanner metrics to confirm
that retail scanners, mobile devices and recycling will work
well

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 Quality control process during the print production phase

GTIN
Special emphasis on
Verification

Reviewing
the
Report
From
Print
Sample

1. Digimarc Verify
Extended artwork
(Android / iOS)
Prepress review For validation of - Mobile application
report & incoming
QC instructions for materials and Print
printers Printer briefing of Verification 2. Digimarc Verify (Mac /
internal teams Windows)
- Desktop software
Reviewing
the
Report
From
Print
Sample

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 Printing Digimarc barcodes
• Printing according to specifications
• Avoid file manipulation
• Use extension reports

• Keep densities according to

specification

• Observe tone value increase

• Point win
• Point loss
• Standard tolerances may be affected
depending on the enhancement

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5
2

Printer Education Materials

Additional, more detailed information for better understanding and fine-tuning
Guide: Requirements for printers & prepress
• English version available: https://digimarc.box.com/s/aqqurskdg2uvjo86aehisol9cp2heq4z
• German version available: https://digimarc.box.com/s/qlwzv9qytzwlzq61neix1j9oce4hoe1v
• French version available: https://digimarc.box.com/s/x24bg8t0xikhz4dv8uohobnck7pc4jpe
• Italian version available: https://digimarc.box.com/s/rn8if0wy5xfb2p1n14m7f2e5mxoftqps

Website:
• English version available: https://www.digimarc.com/industry/printers
• German version planned (tbd)

Further support:
• Upon request from Digimarc EMEA team
• Digimarc and qualified industry trade groups, as well as partners, will keep you
keep you informed about the further developments
• Webinars for the printing industry (tbd)

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 Thank you.

Güneri Tugcu
Sr. European Channel Manager
gueneri.tugcu@digimarc.com
+49 221 65088943

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