RFID FUNDAMENTALS

TABLE OF CONTENTS

2

10

6

9

4

5

8

What Is RFID?

RFID in an International Context– Standardization

12 RFID and Privacy

RFID and Consumer Protection

Strengths and Opportunities

15 Glossary

Frequency: Critical Parameterof an RFID System

Human and Environmental Protection

13An Overview of RFID Applications

11

17Informationsforum RFID

Where Are We Today? TheResearch Needs of RFID

The Significance of RFIDfor Mid-Sized Businesses

1RFID FUNDAMENTALS

FOREWORD

In recent years, radio frequency identification (RFID) has become in-creasingly important. Whether the area of application is logistics, tradeand retail, or leisure-time activities, the technology is changing pro-cesses in many areas and creating new service opportunities. For exam-ple, RFID transponders attached to shipping units make it possible toimprove product traceability. In public institutions, RFID access cardsmake for quick and efficient admission control.

CeBIT 2006 showed just how important RFID technology has become.For the first time, the leading international trade fair for informationand communications technology created an exhibition area exclus-ively for RFID. Visitors to the trade fair were impressed by the technol-ogy: a survey revealed that 90 percent said they expected RFID tobecome established in the marketplace. The survey was conducted bythe IEB (Institute of Electronic Business) for the InformationsforumRFID. Eighty percent of those polled said they expected the technol-ogy to optimize processes and approximately 70 percent said theythought it would lower costs. The visitors to the trade fair saw thegreatest potential for RFID applications in logistics, in trade and retail,in the security industry, and in production. Half of all respondents saidthey expected RFID technology to make everyday life easier. More than80 percent of them, however, thought that the benefits of the tech-nology were not being demonstrated clearly enough.

The Informationsforum RFID has taken on the task of closing this per-ceived gap regarding the benefits of the technology. This brochure ispart of this effort. It will introduce you to the technology’s functions,its areas of application, and its potential. We believe that better under-standing of RFID provides the foundation for a fact-based dialogueand broader public acceptance of the technology. RFID will be able toestablish itself in the market only when consumers understand thevalue of it. This acceptance must be achieved before consumers andcompanies can begin to profit from the multi-faceted applications ofthis technology.

Dr. Andrea HuberManaging Director, Informationsforum RFID

2 RFID FUNDAMENTALS

WHAT IS RFID?RFID stands for radio frequency identification. Thanks to thistechnology, data can be transmitted via radio waves withoutphysical or line of sight contact. An RFID system infrastructureconsists of a transponder, a reader, and an IT system running inthe background. The heart of the technology is the transponder– a tiny computer chip outfitted with an antenna. It is integratedinto a carrier object – such as an adhesive label or a plastic card.Generally, a number code is stored on the chip. The codeencrypts information stored in a database. This process givesevery object containing an RFID transponder an unmistakableidentity.

Linking of codes and informationSpecial readers are needed to receive the stored information.This send-receive-unit produces an electro-magnetic field thatis picked up by the antenna on the RFID transponder. Thetransponder then transmits the number code to the reader.Depending on the frequency, transmitting power and localenvironmental conditions, the read range of the data can be afew centimeters to several meters.

Information about objects can be stored in a manner similar tothe way in which information about persons or companies canbe presented on their home page on the Internet. For this thereader transmits the combination of numbers to the database.The IT system decrypts the code and links it to information storedin the database or on the Internet. The system’s knowledge, orintelligence, is located in the database, not in the transponder.

1 2 4Pallet/cartonwith an RFIDtransponder

Portal with readers Middleware Merchandisemanagementsystem

Information throughcomparison of thenumber code:

Supplier, producer

Supplier and article

number

Etc.

Transponder contains

number code

Readers receive the

transponder’s data

Software that links readers

to existing IT systems

Data processing and

filtering, transmission

to the merchandise

management system

Management and

monitoring of the readers

Recording of the infor-

mation in the merchandise

management system

3

EPC EPC

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3RFID FUNDAMENTALS

Information can also be stored on the chip. In these applications,the readers need not be linked to a database. Rather, decentra-lized administration and control are possible. A further benefit isthat it is generally easier to alter data on the chip than in thesystem. The disadvantage, however, is that the reading processtakes longer and the transponders are more expensive.

There are various types and sizes of transponder. Depending onthe area of application they can be either active or passive. Active

transponders are equipped with their own batteries. As a result,the data stored on them can be read at a greater distance. Thesetransponders are used in areas such as electronic toll-collectionsystems. Passive transponders do not have their own powersource. They draw their power from the reader’s electromagneticfield.Their read range is relatively short. However, they are muchless expensive and lighter than active transponders. Passive trans-ponders are designed to optimize logistics in trade and retail andin the consumer goods industry.

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Information in database(data on network)

Information(data warehouses)

Management(real-time logistics)

EPC transponder

Simple and low-cost transponders

Write once, read many

Central data storage

Clear product identification

Uniform data standards

Smart tags + aware objects

“Intelligent” transponders

Write many, read many

Decentralized data storage

Large amounts of information

Additional functions and sensor

technology

Information on transponder(data on tag)

WHAT IS THE DIFFERENCE BETWEEN ACTIVE AND PASSIVE TRANSPONDERS?

Active PassivePower Battery Radio waves

Service life Linked to battery’s service life Unlimited

Price High Low

Storage space Large Small to medium

Write properties Several times Once or several times

Read range Far From a few centimeters to several meters

Read rate Medium to high Small to medium

4 RFID FUNDAMENTALS

RFID systems use radio waves to transmit information and power.Similar to radio, which uses ultra-high frequency, mediumfrequency, or low frequency ranges, RFID applications also employvarious ranges of radio frequencies. Generally, RFID systems uselow frequencies (around 125 kilohertz), high frequencies (13.56megahertz) or ultra-high frequencies (860 to 960 megahertz).The chosen frequency depends on the type of application,because the various frequencies have their own individualcharacteristics – particularly in terms of read range and speed.Both increase as the frequency rises. The table below provides anoverview of the application areas.

To ensure that RFID systems are compatible around the world,companies need uniform standards. In merchandise manage-ment, ultra-high frequencies have become the frequency rangeof choice. They offer two major advantages: fast data trans-mission and a long read range. Trials have already shown that thisfrequency range works effectively. Other sectors are focusing onhigh frequencies (HF). These frequencies are being used in areaswhere the transponders are read from short ranges. The pharma-ceutical industry, for instance, uses HF transponders to labelmedication. Other areas of applications are lift passes at skiresorts and public transportation tickets.

Technological progressIn light of the growing focus on ultra-high frequencies (UHF) intrade, retail, and the consumer goods industry, technology sup-pliers have quickly optimized their systems. Among other things,they have developed UHF transponders that avoid metalreflection and absorbing effects. This development shows thatstandardization is the engine of technological progress.

Radio regulationJust like RFID systems, radios and cell phones transmit theirsignals via radio waves. To prevent disruptions, regulationsdefine which frequency range is reserved for each application.The use of radio frequencies for identification purposes (RFID)does not represent a special area of application. RFID users canemploy so-called ISM frequencies, which have been made avail-able for industrial, scientific, and medical purposes. Governmentagencies and supranational organizations regulate theassignment of frequencies.

The chart on page five provides an overview.

RFID frequencies Applications (examples) Typical rangesLF Animal identification 1–1.5 meters

Low frequency Production monitoring

125–135 kHz Automation

Access control

Auto engine immobilizer Several centimeters

HF Retail goods (individual products) 1–1.5 meters

High frequency Library management 1–1.5 meters

13.56 MHz Ticketing (public transportation, events, ski lifts) 10 centimeters + security

Access control

Automation

NFC – near field communications 10 centimeters + security

UHF Pallet identification and 3–4 meters Europe, 7 meters USA

Ultra-high frequency carton identification (trade and retail)

860–960 MHz

Active transponders Container identification Up to several hundred meters

(GHz) (with battery) Production monitoring

FREQUENCY: CRITICAL PARAMETEROF AN RFID SYSTEM

5RFID FUNDAMENTALS

Radio regulators

United Nations

Liaison partners(including)

ITU

Standardizationinstitutes

CEPT

German Federal Network Agency

ERO

Office

ECC

Committee

ETSI GS1 EU EFTACEN CENELEC

Abbreviations:CEN: European Committee for StandardizationCENELEC: European Committee for Electrotechnical StandardizationCEPT: European Conference of Postal and Telecommunications AdministrationsECC: Electronic Communications CommitteeEFTA: European Free Trade AssociationERO: European Radiocommunications OfficeETSI: European Telecommunications Standards InstituteEU: European UnionGS1: Global Standards One (formerly EAN International)ITU: International Telecommunication Union

Standardization

Europe has specific legal regulationsgoverning the transmission of informationvia so-called “electromagnetic fields.” In1998 an international commission of theWorld Health Organization (WHO) recom-mended radiation limits on electromag-netic fields. The limits have been set at alevel where current scientific findingsshow that the application of the techno-logy will not cause any health risks. Onthe basis of these recommendations,Germany developed the EN standard EN50357. This norm defines the legallypermissible levels for RFID systems.

The issue of disposal has not yet beenfinally resolved. Currently, RFID transpon-ders that are part of an electric appliancemust be disposed of together with theappliance as waste electrical equipment.If the chip is part of outer packaging or isattached to the product as a label, regu-lations allow it be treated as normalhousehold trash. This issue is regulatedby the European Union’s WEEE Directive2002/96/EC on Waste Electrical and Elec-tronic Equipment. In the future, disposalor recycling will play an important role.The recycling of RFID transponders is

possible, especially for products that arealready in circulation. This includes ship-ment packaging and pallets. In addition,material researchers are making enor-mous progress in this area. Transpondersproduced with polymer technology willnot contain metals or silicon, thus alto-gether eliminating disposal problems.Working with its members, EPCglobalsupports research into environmentalfriendliness and recycling.

HUMAN AND ENVIRONMENTAL PROTECTION

6 RFID FUNDAMENTALS

Most of today’s RFID applications are closed systems – such asaccess control to buildings, ski lifts, and stadiums, or engineimmobilizers incorporated into car keys. In closed systems, thetechnology can be designed to serve the exact need – withoutany consideration of factors outside the system. The drawbackof closed systems is that the use of the RFID solution is restrictedto the individual system. The system operator alone must coverthe costs of development, introduction, and operation.

With an open RFID system, all participants can communicatewith one another through the system. A typical example is thesupply chain in which pre-suppliers, producers, logistics servicesuppliers, and retailers exchange merchandise and data. In opensystems, several actors profit from the RFID technology. Thus,the costs can be shared proportionally. The crucial operatingfactor of open RFID systems is the general readability of the RFIDtransponders. To achieve this, general standards must be createdand applied.

Cross-application and cross-sector standards fromEPCglobal and ISOEPCglobal and the International Organization for Standardization(ISO) develop technological, application and cross-sector normsand standards. EPCglobal was set up in 2003 by GS1 and GS1US.In Germany, GS1 Germany is the contractual partner for com-panies and institutions that are involved in the development ofstandards as members of EPCglobal. The organization’s goalis to develop business and technical standards for the EPCnetwork. The EPC network is a special system architecture thatenables users to access the electronic product code (EPC). TheEPC is a set of numbers stored on the RFID chip and uniquelyidentifies products.

The ISO has also developed standards for RFID applications andincorporated pre-existing norms into its set of regulations.Standards like ISO 14443 und ISO 15693 governing communi-cations between the transponder and reader (air interface) arewidely used.

RFID IN AN INTERNATIONAL CONTEXT –STANDARDIZATION

7RFID FUNDAMENTALS

Cross-application standards apply to these areas, among others:

Data StandardThe data standard defines which data can be stored on an RFIDtransponder and in which format.

Air interfaceThe air interface determines the physical conditions – such asthe frequency range – under which data can be transmitted backand forth between the transponder and the reader.

Data protocolThe data protocol establishes the sequence for the transmissionof certain information

Network standardsUniform standards are needed in order to store data in a networkto which various persons and organizations have access.

Application software

RFID transponder

RFID reader

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Logical storage

Decoder/encoder

Control unit

Tag driver

Air interface hardwareand software

Additional pro-cesses

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Review processUniform review processes enable the individual components ofan RFID system to be tested in an effort to determine whetherthey work in concert.

Application recommendationStandardization organizations issue concrete recommendationsgoverning the use of RFID technology, the installation of RFIDreaders and antennas, the applications of RFID transponders,and recyclability.

Sector-specific standardsOrganizations such as the International Air Transport Association(IATA) and the German Association of the Automobile Industry(VDA) are currently working on sector-specific standards. Theextent to which these will be linked to ISO or EPCglobal standardshas not yet been determined.

7

Standardizationareas

8 RFID FUNDAMENTALS

The most groundbreaking research into RFID technology wasconducted in the 1990s by the Auto-ID Center at the Mass-achusetts Institute of Technology (MIT). The institute remainsthe research leader in this area today. The standardizationorganization EPCglobal grew out of the Auto-ID Center.

Germany also has various institutes that are playing a leadingrole in the continued development of RFID technology. Theseinclude various institutes of the Fraunhofer Gesellschaft, in-cluding the Fraunhofer Institute for Material Flow and Logistics.In Switzerland, the M-Lab of the universities of St. Gallen andZurich has also won worldwide recognition. It is part of the inter-national association of Auto-ID Labs.

The METRO Group and the standardization organization GS1Germany jointly set up a test lab in 2005 and this lab becamethe first center in Europe to receive the title of European EPCCompetence Center (EECC) from EPCglobal. It offers users,suppliers, and service providers the facilities needed to exploreand develop RFID technology.

Research fieldsScientists are currently primarily focusing their research on threeareas: the improvement of current technological standards, thedevelopment of new approaches, and the social impact of RFIDtechnology.

LabelOnly about 50 percent of the costs for today’s RFID transpon-

ders are attributed to the silicon chip. The remaining costs arecreated by the carrier material, the antenna, and its connectionto the chip. Researchers are working to lower the productioncosts of the individual components. In addition, these compo-nents must be flexible, environmentally friendly, and multi-functional. In order to integrate the transponder into a product,it should be as easy to combine with other materials as possible.

Chip designTo reduce the size of the transponder, the chips, sensors, radiocomponents, and power source must be blended into a singleunit.

Power sourceThe power source is a major challenge: The RFID transpondershould be as small as possible and the battery generally cannotbe recharged. Researchers are exploring film batteries, energy-saving algorithms (especially for cryptographic processes), energyharvesting, and energy-conservation management.

Radio transmissionNew antenna designs can improve the read range and read rate.“Printed” antennas can be integrated into objects more easily. Inthe long term the assigned frequencies must be used more effi-ciently to manage increased radio traffic.

SensorsIn the future users may find new applications by linking sensortechnology and RFID. Nevertheless, extensive research must still

WHERE ARE WE TODAY? THE RESEARCHNEEDS OF RFID

9RFID FUNDAMENTALS

be conducted in this area. Integration in the chip, power-con-serving and event-controlled sensors, and the diminution of thesensors to sub-molecular size would represent significant stepsin the integration of RFID technology.

IT architectureIT architectures must be changed to improve harmonizationwith RFID systems and to exploit the benefits of modern real-time systems. Decentralized, self-organizing computer systemsare needed. Within them, the intelligent object has a higher levelof autonomy.

CryptographyTo ensure data protection, coding technology must be adapted tothe needs of RFID technology: The key requirements are shortercomputing times and reduced storage space.

Polymer technologyA fundamental factor in the future of RFID is polymer research.The goal of this research is to end the production of transpondersfrom silicon chips and metal antennas and to manufacture themsolely from organic polymer structures. Known polymer structuresare PET, PVC, and nylon. In 2005, employees of the Germancompany PolyIC succeeded for the first time in producing anoperational polymer 13.56 MHz transponder. Still, many hurdles

must be cleared before it is ready for mass production. The radioperformance, for instance, remains weak. Researchers projectthat it will be possible to mass produce polymer-based RFIDtransponders in about 10 years. It is hoped that polymer chipswill lead to lower-priced transponders. The materials are inex-pensive and the printing process simplifies the manufacturingprocess. Because the RFID chip is imprinted, it is also easier tointegrate the RFID transponders into products and packaging.One other strength of the polymer chip is its high level of envi-ronmental friendliness.

Bistable displaysDisplays are needed to visually place the data of the RFID chip,including the serial number, on the transponder. Conventional LCDdisplays need a constant supply of power. Bistable displays needpower only to change the display. As a result, they have hugepotential in regard to RFID technology.

Socio-economic researchRFID will have an impact on the social and economic environ-ment. Research into these socio-economic factors will be par-ticularly important in the effort to better recognize this impactand to react to it. This is the only way that RFID will be success-fully introduced on a broad basis.

9

The creation of value is not the sole pur-pose of radio frequency identification. Interms of consumer protection, the tech-nology also has promising potential insuch areas as the pharmaceutical industry.Experts estimate that every 10th medi-cation is counterfeit. Siemens has devel-oped RFID transponders that can be easilyintegrated into medication packaging. Asa result, the medication is clearly labeledand patients can be protected frompotentially life-threatening fake medi-cines. The technology can also preventfinancial and business losses that compa-nies suffer as a result of counterfeit pro-ducts. In addition, RFID simplifies returns

management and improves processesalong the entire logistics chain. RFID-la-beled products ease pharmacists’ admin-istrative tasks.

RFID can also improve consumer pro-tection in the food industry. Philips, forinstance, has produced RFID transpondersthat animal breeders use to tag cattle.With these transponders, exact informa-tion about each animal, including lineage,pedigree, breeding, feed, and veterinarycare, can be tracked – from birth to theslaughterhouse. In addition to this data,information about processing and thesupply chain can be included on the RFID

transponder that is part of the meatpackaging. Transponders with tempera-ture sensors enable the cold chain to beseamlessly monitored. RFID also guaran-tees company-wide traceability. Should aquality problem arise, recall announce-ments can be precisely and quickly issued.This benefit applies not only to fresh pro-ducts such as meat, but also to cars andother technical equipment.

RFID AND CONSUMER PROTECTION

10 RFID FUNDAMENTALS

Today, industry, trade, and retail arecommitted to RFID as a technology ofthe future because it optimizes theirprocesses, lowers process costs, andincreases product safety – for con-sumers as well. Currently, however,the high unit cost of the transpondersstands in the way of large-scale use.Sector experts expect that the priceper chip will be as low as one cent by2015. Nonetheless, one should notassume that RFID transponders willreplace barcodes in trade, retail, andlogistics overnight. The more prob-able scenario is that both technol-ogies will exist parallel to each otherfor a long period of time. In a com-parison of the two, though, RFIDtechnology definitely has some clearadvantages over barcodes:

Data collection without physicalor line of sight contact in realtimeMulti-tag readingExpanded storage capacityfor dataResistance to dirt and otherpotential damageData-storage and data-alterationcapacity

The use of RFID technology createsopportunities in all realms of life – forbusiness, science, government, andleisure-time activities. RFID can

Optimize processes,Facilitate traceability,Guarantee authenticity,Improve product safety,

Boost the efficiency of ware-house management,Simplify access control.

Furthermore, RFID technology fostersthe development of autonomous sys-tems that act and think for them-selves. For example, if shelves in awarehouse are equipped with RFIDreaders, they will “know” whensupplies are running low. The com-puter could automatically place are-supply order when necessary.

STRENGTHS AND OPPORTUNITIES

Passive transponder

Active transponder

2-D code

Linear code Costs

Functionality

11RFID FUNDAMENTALS

The market for RFID is growing rapidly. Experts estimate that glo-bal spending on this technology will reach €22 billion by 2010.This compares with €1.5 billion in 2004. Within the same time-frame, the RFID market in the EU-15 countries is likely to climbfrom €0.4 billion to €4 billion. The trendsetters in the intro-duction of radio frequency identification are trade and retail com-panies, including Wal-Mart in the United States and METROGroup in Europe. Studies have shown that the technology has ahuge potential in the area of retail logistics. Today, the salesbrands of Metro Cash & Carry and Real, and the distributionwarehouses of METRO Group are already saving a total of €8.5million in Germany every year. Thanks to RFID, Wal-Mart wasable to cut the number of sold-out products by 16 percent. Withthe help of the technology, stock shortages can be eliminatedthree times faster than before.

At the moment, there are no reliable figures for small and mid-sized companies. But examples from various branches clearlyshow that RFID can significantly improve processes in these busi-nesses as well. Carl Schnicks GmbH & Co. KG – a producer ofplastic window and door profiles – used RFID to improve ware-house organization and transparency and to simplify processes.Another example is the waste management companies in thewestern German city of Warendorf. Among other things, theyregularly inspect the sewage network. With radio frequency

identification, they have optimized maintenance work and accel-erated work processes.

These examples show that RFID is more than a technology withmajor potential for large industrial and retailing companies. Forthis reason, small and mid-sized companies should avoid beingleft behind. Keeping up with the technology is the only way forthem to secure the future competitive advantages offered byRFID.

The Informationsforum RFID has compiled a guide for small andmid-sized companies that is designed to help them. The publica-tion provides 10 case studies that describe how small and mid-sized companies successfully introduced RFID technology. Theguide also provides a quick check-list of the benefits of RFID,offers tips on introducing projects, and lists important points ofcontact that can provide further advice and decision-makingassistance on the introduction of RFID. The aim is to make smalland mid-sized companies aware of the technology’s potential.

The guide (in German) can be downloaded atwww.info-rfid.de.

THE SIGNIFICANCE OF RFID FORMID-SIZED BUSINESSES

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12 RFID FUNDAMENTALS

Technical innovations help make people’s lives easier, more effi-cient, and safer. Radio frequency identification does so, too. Withthis technology, objects can be linked to data in a computersystem. Information – about products, for instance – can becollected automatically, opening up a wide spectrum of applica-tions.

Critics worry that, as the use of RFID spreads, data will be col-lected in a surreptitious way and without the permission of theaffected parties. For this reason, data protection and the right toinformational self-determination are important issues in regardto the technology. However, in most applications, includinglogistics and production management, no personal data iscollected, processed, or used.

The consumer decidesThere are areas of application for RFID where personal data isprocessed. These areas include access control and membershipcards to health clubs. In a – future – application of RFID in re-tailing, personal data will be collected only when the consumeruses a customer card. The German Data Protection Act appliesanytime personal data is stored. People who collect, process, oruse personal data are required to inform the person about theprocedure and receive his or her permission. Even after permissionhas been granted, the consumer can revoke it at any time. Thesecurrent data-protection regulations provide adequate assurancethat RFID will be used in an unobjectionable way.

Transparency in the use of RFIDTo exercise their rights, consumers must be informed about RFID’spotential uses and means of operation. Transparency is an importantrequirement to achieve this goal. One example of open com-munication is the EPCglobal guidelines: Here, the members ofthe international standardization organization EPCglobal havemade a voluntary pledge regarding the use of RFID. Among otherthings, this commitment requires that products and packaging

containing transponders will bear the EPCglobal logo. This willserve as a signal about the use of RFID. In addition, the partici-pating companies will inform consumers about the way that thetechnology operates and where it will be used. Furthermore, theywill make it possible for consumers to be able to remove thetransponders, turn them off, or make them non-operationalfrom purchased products. As with conventional barcodetechnology, EPC-specific data will be collected, compiled,stored, maintained, and protected in accordance with currentlegal regulations. EPCglobal will regularly supplement andmodify the regulations in order to keep up with the further deve-lopment of RFID technology.

Working together, the political, academic, and business commu-nities should conduct a regular dialogue about the privacyaspects of RFID. After all, companies and consumers profitequally from the use of the technology. In so doing, it is up to theindividual to decide which of the many possibilities he or shewould like to use and which ones he or she would like to turndown.

As a contribution to the public debate about the issue of dataprotection, the Informationsforum RFID asked Prof. Dr. BerndHolznagel, University of Münster, to conduct a study on the legalaspects of radio frequency identification. The study examines thelegal foundation of data protection and presents ways of respon-sibly using RFID technology.

The study (in German) can be downloaded atwww.info-rfid.de

RFID AND PRIVACY

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13RFID FUNDAMENTALS

The commercial forerunners of RFID technology entered themarket in the 1960s. But it was not until recently that researchand development helped trigger its breakthrough. Since then,RFID has become accepted into many sectors.

LogisticsRFID systems offer many potential uses in logistics and transpor-tation, including the automotive industry, and in the transportprocesses used in the management of reusable transport units.RFID is also being employed in airports. In Shanghai an RFID trans-ponder is applied to each piece of luggage, enabling it to beloaded much faster and more reliably than with conventionalbarcode technology. And if a piece of luggage happens to getlost, airport personnel can find it more easily.

Production managementgRFID solutions have been introduced in several areas ofcar-manufacturing. In the production of the BMW 3 series, anRFID system made by Siemens is attached to the car body. Thissystem enables the bodies to be tracked at any time and containsall information relevant to the production of the vehicle.Volkswagen also uses RFID technology for such jobs asproduction-stage documentation, management of car body flowin production, and process optimization. A receptaclemanagement system supported by RFID helps improveorganization and the reliability of just-in-time production. TheFlensburger brewery uses RFID transponders on its beer kegs.The transponders improve container management and conserveenergy and water. With the aid of the technology, the washer

AN OVERVIEW OF RFID APPLICATIONSunit recognizes the type of beer that the keg contained and canautomatically adjust the intensity of the cleaning process.

Health careIn health care, RFID systems have been used to label bloodplasma, specimens, and other medical products. A medicalcenter in Amsterdam, for instance, places RFID transponderscontaining temperature sensors on units of blood. As a result, thecold chain is automatically monitored.

Pharmaceutical industryThe pharmaceutical industry uses RFID to clearly label products,protecting patients from life-threatening counterfeit medi-cations and significantly reducing cases of misuse and misappli-cation. The pharmaceutical company GlaxoSmithKline, forexample, places passive RFID transponders on all bottles of theHIV medication Trizivir.

Trade and retailUp until now, trade and retail companies have employed RFIDprimarily in logistics and inventory management. RFID createstransparency in logistical processes and enables merchandisemanagement processes to be controlled more efficiently. METROGroup is one of the pioneers in the introduction of RFID technol-ogy. In the company’s sales centers, workers no longer have tomanually record pallets once RFID transponders are attached tothem. Readers set up at the warehouse entrances and exits auto-matically record the deliveries within seconds. As a result, themerchandise and information flow can run parallel.

14 RFID FUNDAMENTALS

Public institutionsPublic institutions also profit from RFID solutions. Transpondertechnology, for instance, simplifies the check-out of materialfrom libraries. All media that can be lent contains transponders,a development that considerably accelerates the check-outprocedure. In addition, the technology improves theft protection.The Volkswagen Library at the Technical University of Berlin andthe Berlin University of the Arts, the city libraries of Munich, Stutt-gart, and Siegburg, the main library in Vienna, and the library atthe Vatican are among the present users of RFID technology.

RFID technology also offers many benefits in traditional areas ofpublic administration. For instance, transponders are placed onall documents in the regional court in Detmold. With the help ofa PC, the documents are easier to locate. Time-consumingsearches and lost documents have become a thing of the past.

Maintenance and repair managementRFID systems enable the optimization of maintenance manage-ment and repair processes and quality improvement. In the Air-bus A380 approximately 10,000 RFID transponders will performroutine tasks. During maintenance, workers can quickly identifyimportant components. Each part has its own maintenancehistory.

ForestryThanks to RFID, wood harvesting in German forests is becomingincreasingly more efficient. After a tree is cut, an RFID transponderis placed on the trunk, optimizing the information and processchain. As a result, the Cambium-Forstbetriebe, which managesparts of the Odenwald forest just south of Frankfurt, has beenable to streamline registration and considerably lower the wasterate.

As to tree care in major cities, RFID transponders help mark thetrees. Nail-like transponders are hammered into the trunks,enabling the trees to be clearly identified with a reader. Thus,data about the tree’s maintenance and condition can be quicklyand simply documented.

Public transportationRFID provides users of public transportation with new comfortand convenience. In 2003, for instance, the Rhein-Ruhr Transpor-tation Association replaced all paper monthly tickets with chipcards equipped with RFID technology. Now, passengers no long-er have to obtain tickets each month. And if the ticket is lost, thecustomer can receive a replacement smoothly and automatically.

Animal husbandryIdentification systems have been used in electronically managedanimal husbandry for more than 20 years. The Spanish associ-ation of cattle breeders (FEVEX) urges its members to place RFID

transponders on their cattle. Using a database, the pedigree ofthe animal and veterinary information can be clearly tracked.Livestock owners are not the only ones who can profit from RFID.Transponders can help lost cats and dogs be returned to theirowners, too.

Leisure timeAccess-control systems without physical contact are alreadywidely used in the leisure-time industry. In the Neptunbad inCologne, for example, identification cards with RFID trans-ponders ensure that visitor admission is quick, safe, and com-fortable. Using a smart key, visitors can make cashless paymentsand open their lockers. If the smart key is lost, the visitor canhave it blocked and receive a new one.

RFID is also used at marathons. Runners tie a transponder wrap-ped in yellow plastic to their shoes. As a result, each runner canbe clearly identified, the mass start remains fair, and the fin-ishing times can be recorded automatically. Measuring points setup at various parts of the race route enable runners to checktheir split times and prevent people from taking illegal shortcuts.

Further examples of applications can be found onthe website of the Informationsforum RFID:www.info-rfid.de

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15RFID FUNDAMENTALS

Active transponderRFID transponders with their own battery-generated powersource are called active transponders. Some transponders havebatteries that can be changed and others have batteries that arecontained in an enclosed unit. The latter are also known asmodular active transponders.See “Passive transponder.”

Agile ReaderA term for readers that can operate on several frequencies.See “Reader.”

AnticollisionIf several transponders pick up a signal from one reader, they willrespond at the same time, possibly leading to a collision of dataduring reception. To prevent this from happening anti-collisionprocesses are used. As a result of these special processes, thetransponders are activated individually.

BackendThe section of the RFID system that handles the actual adminis-tration of the data. Examples of the tasks performed in thebackend include matching the corresponding data with thetransponder’s number or the administration of the reaction thatfollows the reading of the transponder.

BackscatterA means of communication between readers and passive trans-ponders. The transponder reflects back the waves of the readerand modulates its information into these reflected waves.

BeaconTerm for active transponders that “wake up” at defined intervalsand transmit information.

EANInternational article number (formerly European article number).It serves as the product identification reference for trade articlesand consists of a set of numbers (13 or 8 digits) that is adminis-tered internationally. With its help, each product can be allo-cated to a product group.

Electronic Article Surveillance (EAS)Electronic article security device for article security and theft pre-vention. EAS uses the so-called 1-bit transponder. The transpon-ders or labels supply only one type of information: “transponderavailable” or “transponder not available.”

Electronic Product Code (EPC)The EPC data standard promotes the clear identification of pro-

ducts and product types through the assignment of serial num-bers. It incorporates the EAN and the Serial Shipping ContainerCode.

Far and near fieldsAn antenna is surrounded by a magnetic field. This field isconstantly converted into an electromagnetic field. At a certainpoint the electromagnetic field begins to break free of theantenna and to propagate through space as an electromagneticwave. The term used to describe the area beyond this point –calculated as lambda/2pi – is a far field. Inductive couplingbetween the reader and transponder is possible up to the distanceof lambda/2pi. This area is called the near field.

Faraday cageThe physicist Michael Faraday discovered that the interior of anelectric conductor is always a zero field. A container made ofmetal acts as a shield. As a result, the reading of RFID transpon-ders in metal containers is not possible.

Flat antennaA flat, conducting antenna, generally made of a metal plate orfoil.

FlashTerm for a non-volatile, reprogrammable memory.

FrequencyThe number of cycles that a periodic signal transmits within acertain unit of time.

MiddlewareThe segment of the RFID systems that connects the reader to thebackend.See “Reader” and “Backend.”

Multi-tag readingThe nearly simultaneous reading of several transponders by areader. Because of the phenomenon of collision, the transpon-ders cannot be read at precisely the same time. Rather, they areread quickly one after the other.See also “Anti-collision.”

Near field communication (NFC)RFID systems that operate in the near field are called NFC sys-tems. The radius of the near field is determined by the frequencyor wavelength in use.

Nominal rangeThe read range at which a transponder can be read reliably.

GLOSSARY

16 RFID FUNDAMENTALS

Passive transponderUnlike active transponders, passive transponders do not havetheir own power supply. Their power comes from externalsources. Typically, they receive this power from radio wavesemitted from the reader.See “Active transponder.”

ReadThe decoding, extraction, and display of data content that istransmitted in addition to the bits from the transponder that aredesignated for format definition, control, and error management.

ReaderAn antenna that emits signals to transponders and receives theirdata. Most readers are also writers. Using radio signals, theyplace data on writeable transponders.

Read rateThe speed at which data from a transponder can be read, ex-pressed in bits or bytes per second.

RFID (radio frequency identification)RFID is a technology for the non-contact transmission of datathrough the physical basis of electromagnetic alternating fieldradio waves. The heart of RFID technology is an RFID transpon-der. This tiny computer chip with an antenna is attached to theobject and contains a number code, such as the Electronic Pro-duct Code (see EPC). The code is read by a reader.

RFID tag See “Tag.”

RFID transponder See “Transponder.”

ScannerAn electrical device that turns optical information into electricsignals and transmits these signals to a computer for decoding.Antennas, transmitters (or exciters), and receivers are integratedcomponents of a scanner.

SensorA device that responds to a physical stimulus and produces anelectronic signal. See “Scanner.”

TagTag is a popular term for RFID transponder. See “Transponder,”“Active transponder” and “Passive transponder.”

TransponderTransponder is a word created from the terms “transmitter” and“responder” (other popular terms are “RFID labels”or“tags”).See “Active transponder” and “passive transponder.”

2-D barcodeUnlike conventional barcodes, the data is not printed in simplebar sequences. Rather, it is stored within a field in a two-dimen-sional pattern. This significantly increases storage space. But italso complicates the reading process. There is no uniform stan-dard for 2-D barcodes.

Write rateThe rate at which data is transmitted to a transponder, writteninto the transponder’s memory, and verified as being correct. Therate is expressed as the average number of bits or bytes that aretransmitted per second until the transmission is completed.

The Informationsforum RFID e. V. was established in April 2005with the aim of making the public increasingly aware of thefuture and innovation potential of radio frequency identification(RFID) and promoting the use of this promising technology in anopen dialogue.

Disseminating informationThe mission of the Informationsforum RFID is to explain RFID tothe public, to provide comprehensive information to politicaldecision-makers, media representatives and consumers, and todescribe the variety of uses offered by the technology. For thispurpose, the forum disseminates factual information with whichpeople can objectively evaluate the technology. In addition, theassociation contributes to the effort to bundle and clarify openquestions – on issues such as standards, frequencies, the compa-tibility of various systems, and legal regulations.

Promoting dialogueThe Informationsforum RFID views itself as a platform for dia-logue. It offers representatives from politics, business, academia,and media, as well as interested consumers an opportunity toexchange views about the technology. The information forum isa skilled intermediary among technical development, technicalinformation, and political evaluation.

The impact for Germany as a technology siteOne of the chief responsibilities of the forum is to underscorethe potential of RFID for the future of Germany as a technologysite. The representatives of the forum actively contribute theirknowledge to the social debate. Using concrete applicationexamples, the Informationsforum RFID communicates an under-standing for the technology and its benefits.

INFORMATIONSFORUM RFID

THE MEMBERS OF THE INFORMATIONSFORUM RFID E.V.

PublisherInformationsforum RFID e. V.Dr. Andrea Huber, Managing DirectorDorotheenstraße 3710117 BerlinTel.: +49 (0) 30.20 65 81-0Fax: +49 (0) 30.20 65 81-20E-Mail: info@info-rfid.dewww.info-rfid.de

Press contactHartmut Schultz/Irmgard JaroschTel.: +49 (0) 30.20 65 81-30Fax: +49 (0) 30.20 65 81-31E-Mail: presse@info-rfid.de

Editorial staffSimon Japs, Christoph Selig,Antonia Voerste

PrintingDruckerei Hölters

Photo creditGS1 Germany, Informationsforum RFID,METRO AG, Photocase

Publication dateJuni 2006

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INFORMATIONSFORUM RFID e.V.Dorotheenstraße 37 I 10117 BerlinTel.: +49 (0) 30.20 65 81-0 I Fax: +49 (0) 30.20 65 81-20E-Mail: info@info-rfid.de I www.info-rfid.de