Intellectual Property and Contactless Card Innovations ICMA North - PowerPoint PPT Presentation

Intellectual Property and Contactless Card Innovations ICMA North American Workshop September 30 - October 1, 2014

THE HOSPITALITY MARKET OVERVIEW  14.5 M hotel rooms  >750 M key cards/year issued with 100 M contactless cards/year  Magnetic stripe card locks migrating to contactless (RFID)  90% of all new installation are contactless  About 80% of contactless cards are counterfeited  Growing demand for higher security and multi-application services  Smart access cards  Secure and convenient hotel room access  Closed loop payment (mini-bar, vending machines, hotel bar)  Access to special areas (Gym, Wellness, business center& conference rooms, parking)  Logical access (Internet e.g. WIFI pairing with NFC phone)  Audit trail for staff cards Page 2

HOSPITALITY MARKET TRENDS  Mobile check-in apps replacing physical check-in desk  “Virtual smartphone keys“ + Bluetooth/NFC locks replacing traditional mag stripe locks & smart cards  Hilton mass roll out of smartphone enabled locks by end of 2016  Starwood’s Apple watch app will allow hotel guests to unlock their rooms  Hotels don't have to replace door locks as Picture: NXP Semiconductors adapters can be installed inside or near the locks in an unobtrusive way Page 3

HOSPITALITY ECOSYSTEM Cards providers Hotel Hotel guests Lock Cards and Card and prelam reader IC producers Page 4

RFID VERTICAL MARKETS Security Industry eID Electronic Product Identification (ePI)     ePassports eVisas Retail NFC     eNational ID cards eHealth cards Media Management Supply Chain     eDriving licenses eSocial security cards Automation & Product Pharma & Healthcare Authentication FTA Industry & Logistics     Contactless payment Active card applications Car immobilizers Factory automation     Laundry Access control Automated Fare Logistics    Entry ID Collection Waste management Animal ID components Page 5

RFID STANDARDS RFID Band Bandwidth Average Standards Applications Range Low Frequency 120 – 135 kHz 1 cm Close Coupling Access Control, Animal LF ISO/IEC 10536 Tagging, Car Immobilizers, ISO/IEC 18000-2 Waste Managment High Frequency 13.56 MHz 10 cm Proximity eID, ePassport, Electronic HF ISO/IEC 14443 Payment, Access Control ISO/IEC 18000-3 Public Transportation Ultra High 433 MHz > 1 m Vicinity eID, Border Control, EPC, Frequency ISO/IEC 15693 Product Identification UHF ISO/IEC 18000-7 860 - 960 MHz > 1 m ISO/IEC 18000-6 License Plates, Containers, Palettes 2.45 GHz > 1 m ISO/IEC 18000-4 Automated Fare Collection Page 6

CURRENT ISO STANDARDS FOR 13.56 MHZ  ISO 14443  Market penetration for last 15 years  Applies to transportation and security applications in particular  Is called a standard, but systems from different chip suppliers do not comply with each other (especially the encryption varies)  Segmented into different types (ISO 14443 type A, B, C, ...)  clone ICs don’t have ISO14443 license  ISO 15693  Latest standard and longer read distance, compared to ISO 14443  All main chip suppliers have been able to supply the relevant chips Page 7

NXP MIFARE IP RIGHTS Basis for effective evidence collection IPR situation • NXP is the sole owner of IP rights related to MIFARE products • To mitigate sourcing and supply concerns NXP has and will license MIFARE to multiple vendors • Manufacturers of unauthorized MIFARE copies do not have a MIFARE license granted by NXP • Manufacturers of unauthorized MIFARE copies do no t have an ISO14443A license • Unauthorized MIFARE copies are not compliant with ISO14443 standards Related activities • NXP is cooperating on this topic with internal and external legal specialists • Successful seizures of unauthorized MIFARE copies at trade shows (i.e. Cartes Paris 2013) • Dozens of individual cases related to use of fake products converted to genuine MIFARE products Seizure of unauthorized MIFARE copies at Cartes • >60,000 unauthorized offerings in auctions stopped Paris 2013 Page 8

CONTACTLESS (RFID) HOSPITALITY CARD Page 9

PRELAM COMPONENTS Component Technology Determination Factors Chip module Application specified by the System Integrator (SI) Module packaging Mostly predetermined by the chip Antenna type Required life span, application and manufacturing process Interconnection technology (antenna Required life span & module) Plastic material Required life span Page 10

CHIP PACKAGING – THE MODULE mould wire bond Gold or Al lead frame CuSn6 chip module type manufacturer MOA4, MOA8 NXP SMOA4, SMOB6 Smartrac Page 11

ANTENNA TYPES Page 12

INTERCONNECTION METHODS: MODULE TO ANTENNA Page 13

TYPICAL INLAY / PRELAM CONSTRUCTION 4 layer construction with embedded module & antenna 40 microns 300 microns antenna 100 microns 40 microns Page 14

SMARTRAC’S PROPRIETARY AND PATENTED WIRE-EMBEDDING TECHNOLOGY Antenna embedding TC bonding Page 15

INLAY / PRELAM MANUFACTURING pre-lamination = hot-lamination Leighton Technologies LLC (Leighton) has been granted patents related to “RFID card production”, more specifically to the “hot lamination” process used in an RFID contactless card production Page 16

FINISHED CONTACTLESS CARD PRODUCED IN HOT LAMINATION 40 microns 130 microns 480 microns 130 microns 40 microns Page 17

IMPLICATIONS AND OPPORTUNITIES TO ICMA  Hospitality offers a significant growth opportunities for contactless card producers if counterfeited prelam/cards are challenged and eradicated  HTNG is forming a RFID Workgroup dealing with “RFID Lock Security”  should ICMA get involved?  The main risk derived from poor “RFID Lock Security” is loss of mag stripe and contactless card business to NFC and BLE  How can ICMA get proactively involved in the hospitality segment to support a healthy growth of contactless card business? Page 18

Eitan Avni Director Segment Development Finance, Access & Transportation eitan.avni@smartrac-group.com SMARTRAC TECHNOLOGY Fletcher Inc. 267 Cane Creek Road Fletcher, NC 28732 U.S.