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

• 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

THE HOSPITALITY MARKET OVERVIEW

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• 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

adapters can be installed inside or near the locks in an unobtrusive way HOSPITALITY MARKET TRENDS

Picture: NXP Semiconductors

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Hotel guests Hotel Lock Cards providers Cards and prelam producers Card and reader IC

HOSPITALITY ECOSYSTEM

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RFID VERTICAL MARKETS

• ePassports
• eNational ID cards
• eDriving licenses

eID

• eVisas
• eHealth cards
• eSocial security cards
• Car immobilizers
• Laundry
• Waste management

Industry & Logistics

• Factory automation
• Logistics
• Animal ID components

Security Industry

• Contactless payment
• Access control
• Entry ID

FTA

• Active card applications
• Automated Fare

Collection

• Retail
• Media Management
• Automation & Product

Authentication

Electronic Product Identification (ePI)

• NFC
• Supply Chain
• Pharma & Healthcare

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RFID STANDARDS

RFID Band Bandwidth Average Range Standards Applications

Low Frequency LF 120 – 135 kHz 1 cm Close Coupling ISO/IEC 10536 ISO/IEC 18000-2 Access Control, Animal Tagging, Car Immobilizers, Waste Managment High Frequency HF 13.56 MHz 10 cm Proximity ISO/IEC 14443 ISO/IEC 18000-3 eID, ePassport, Electronic Payment, Access Control Public Transportation Ultra High Frequency UHF 433 MHz > 1 m Vicinity ISO/IEC 15693 ISO/IEC 18000-7 eID, Border Control, EPC, Product Identification 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

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• 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

CURRENT ISO STANDARDS FOR 13.56 MHZ

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• 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

not have an ISO14443A license

• Unauthorized MIFARE copies are not compliant with

ISO14443 standards

• 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

• >60,000 unauthorized offerings in auctions stopped

IPR situation Related activities

NXP MIFARE IP RIGHTS

Seizure of unauthorized MIFARE copies at Cartes Paris 2013

Basis for effective evidence collection

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CONTACTLESS (RFID) HOSPITALITY CARD

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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 & module) Required life span Plastic material Required life span

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CHIP PACKAGING – THE MODULE mould wire bond

Gold or Al

lead frame

CuSn6

chip

module type manufacturer MOA4, MOA8 NXP SMOA4, SMOB6 Smartrac

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ANTENNA TYPES

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INTERCONNECTION METHODS: MODULE TO ANTENNA

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4 layer construction with embedded module & antenna

TYPICAL INLAY / PRELAM CONSTRUCTION

40 microns 300 microns antenna 100 microns 40 microns

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SMARTRAC’S PROPRIETARY AND PATENTED WIRE-EMBEDDING TECHNOLOGY

Antenna embedding TC bonding

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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

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FINISHED CONTACTLESS CARD PRODUCED IN HOT LAMINATION

40 microns 130 microns 480 microns 130 microns 40 microns

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• 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? IMPLICATIONS AND OPPORTUNITIES TO ICMA

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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.