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| Sep 26, 2019

New Survey Reveals 80 Percent of Manufacturers Mislabel Products Annually

by Sep 26, 2019

Digimarc Platform addresses challenge with new manufacturing quality control features

BEAVERTON, Ore. – September 26, 2019 – Digimarc Corporation (NASDAQ: DMRC), creator of the Digimarc Platform for digital identification and detection, today announced the results of a survey sponsored by Digimarc and Datalogic, a global leader in automatic data capture technologies. The survey, conducted by Packaging World magazine and released following PACK EXPO 2019, shows that for manufacturers that monitor label accuracy, 80 percent will report a problem from mislabeled products on their primary production line this year. Shutting down the line and fixing errors takes time and resources which leads to higher operating costs and reduced profit margins. To learn more, download a free report summarizing the survey.

Digimarc Platform Enables Improvements in Manufacturing Quality Control

The value of Digimarc for packaging and labels continues to expand, as consumer packaged goods manufacturers are adopting Digimarc-based improvements for manufacturing quality control. According to the survey, there is widespread lack of automation for parts matching in the manufacturing industry with 67 percent still using manual inspection methods. Several leading brands are employing Digimarc for packaging and Digimarc Discover software in high-speed inspection systems to catch mislabeling problems before products ship to consumers.

Digimarc Barcode provides data redundancy on product packaging without marring the appearance of the design. Consumer brands using Digimarc Barcode for packaging, combined with high-speed inspection system scanning equipment from Cognex or Datalogic, can improve matching of front and back labels, cartons and lids, and other multi-component packages.

The potential improvement in scanning rates for labels on cylindrical and other shapes are particularly noteworthy because inspection systems often have trouble reading when legacy Data Matrix codes are used. Digimarc Barcode is repeated many times over the surface of the label giving the inspection system more opportunities to verify the part number.

Digimarc Barcode contains traditional UPC/EAN barcode information plus extra custom data. This enables manufacturers to include asset identification numbers for artwork versions and other purposes. Often, manufacturers will use different asset ID numbers on a front and back label, or a carton and lid. By automatically verifying these numbers are correct, brands can reduce mismatch errors that result in costly product recalls, lawsuits and cause an erosion of consumer trust.

“Manufacturing quality requirements are becoming more challenging as speed of production and complexity of product lines increase,” said Bruce Davis, CEO, Digimarc. “No reads and misreads of label matches on packaging can be very costly. The list of benefits of package enhancement for consumer brands continues to grow, providing further impetus for adoption.”

Digimarc’s long-standing partner, Datalogic, has introduced two new fixed industrial scanners, the Matrix 120™ and Matrix 220, developed specifically for manufacturing support of Digimarc Barcode. These exclusive solutions were presented at the Datalogic booth at PACK EXPO 2019 and featured Digimarc-enhanced plastic packaging components produced by Berry Global, a leading global manufacturer and marketer of plastic packaging products.

Learn more about the new manufacturing quality assurance capabilities from Digimarc.

About Digimarc

Digimarc Corporation (NASDAQ: DMRC) is a pioneer in the automatic identification of everyday objects such as product packaging and virtually any media, including print, images and audio. The Digimarc Platform provides innovative and comprehensive automatic recognition technologies to simplify search, and transform information discovery through unparalleled reliability, efficiency and security. Digimarc has a global patent portfolio, which includes over 1,100 granted and pending patents. These innovations include state-of-the-art identification technology, Digimarc Barcode, as well as Digimarc Discover® software for barcode scanning, image recognition, as layers of its ground-breaking Platform. Digimarc is based in Beaverton, Oregon. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. Visit and follow us @digimarc to learn more about The Barcode of Everything®.