1998-04-27 , E/IC-1017/39

Lost luggage, counterfeited brands and missing stock may soon be symbols of the past, thanks to a revolutionary 'smart label' technology from Philips Semiconductors.

The 'smart labels' contain an integrated circuit (IC) that can be programmed with detailed product information, such as the date and place of manufacture, distribution history and warranty details. Designed for high value goods such as electronic equipment, clothing, baggage and parcel-tracking the smart label technology will replace many of today's bar-code labels. Using radio frequency, the smart labels do not require a direct 'line of sight' to be scanned, unlike conventional bar codes which often need to be positioned manually in front of the scanner.

'Smart labels' have many advantages over bar coded alternatives: the information on smart labels can be re-programmed, or added to, without the need to print and attach a new label. The labels can be placed inside the product packaging to prevent shop-lifting, removing the need for a separate security tag. The technology even allows several labels to be scanned simultaneously, so that individual products in one box can be examined without the need to unpack each item.

The first commercial trials of the new smart labels will start in June 1998 in partnership with a major Spanish IT company Inform·tica El Corte Inglés, who are developing readers and systems for use with smart labels in retailing. Further trials will take place in Spain's largest retail chain, El Corte Ingl»s, where the system will be installed in a selected store. Other Philips' customers will also be provided with the ICs and readers to conduct their own trials.

The new IC which has made smart labels possible is called I*CODE. The device is so thin and small that it can be placed inside the label between two sheets of paper or plastic foil and will not be damaged in normal use. The chip is attached to an antenna which also lies inside the label and communicates with the scanner by radio signals over a distance up to 1.2 metres. The I*CODE chip is powered by the radio signal from the scanner so no battery is required inside the label.

The I•CODE smart label system has been developed in co-operation with Informática El Corte Inglés and El Corte Inglés, both Madrid, Spain, Philips Semiconductors Gratkorn, Austria, and Philips RHW, Hamburg, Germany. It is partly funded by the Commission of the European Communities in the ALBATROS project under the ESPRIT programme.

Informá'tica El Corte Inglés was incorporated in 1988 with the aim of using the high level of experience of its professionals to bring to market the very latest computing solutions. In terms of revenue it is the third largest computing company in Spain, and the first in terms of wholly Spanish capital. Inform·tica El Corte Inglés integrates a comprehensive range of information technology solutions and services. It also designs, manufactures and markets personal computers, document management systems, call centre solutions, software application for retailing and goods warehousing. The turnover during 1996-1997 fiscal year amounted US$434 millions. Inform·tica El Corte Inglés employs over 1,500 people in 22 locations around Spain and branches in Portugal, Italy, Chile, Argentina, Mexico and Morocco.

Philips Semiconductors, a division of Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world. Philips Semiconductors is a leader with a proven reputation in the development and production of components for radio frequency identification, cryptocontroller and contactless smart card ICs. Philips Semiconductors' innovations in digital audio, video and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by regional application labs.