Radio Frequency Identification (RFID)

Company information

	Key points

• RFID technology has huge potential to deliver benefits to both consumers and industry.  
• When technology benefits are combined, they will result in downward pressure on prices for consumers while increasing overall consumer protection.
• RFID applications increase supply chain efficiencies and can contribute to the increasing competitiveness of economies around the world.
• HP is a responsible user of RFID technology. We place the utmost importance to ensuring compliance of local laws and regulations as well as abiding by codes of conduct such as the EPCglobal guidelines for consumer products: http://www.epcglobalinc.org/public/ppsc_guide/
• HP believes that legislators around the world should create a positive environment for RFID technology to flourish in. HP believes that technology specific legislation is not appropriate given the relative young age of RFID applications.

	The issue

RFID is a data transfer technology that provides users, which includes suppliers, manufacturers, health care professionals and others, with real-time information on, for instance, goods in supply chain, the dispensing of medicines, and food freshness. Such timely information enables users to respond quickly to improve stock availability, reduce shrinkage, and improve customer service. While evolution and adoption of the technology are still in their infancy stages, trends indicate a strong likelihood that RFID will serve as a major market force in enterprise business operations.

HP’s interest in RFID is manifold.

1. Internally, we have benefited from cost savings as a result of the increasing efficiencies in our supply chain through our use of RFID.
2. As a supplier, we are tagging pallets and products benefiting HP resellers and customers.
3. As a solutions provider, HP is putting in place the IT infrastructure required to best gain the rewards of RFID. For instance, HP has provided RFID solutions in healthcare projects in both Italy and Taiwan which results in a safer, higher quality service to patients.
4. Finally, HP’s interest is as an innovator. The development by HP Labs of an RFID solution for Data Center asset management is a prime illustration of the innovation that will result from wireless data transfer technologies in the future.

Challenges exist in ensuring responsible implementation of the technology as well as the development of standards to enable open market access.  It is important to gain consumer trust by addressing privacy concerns throughout the supply chain, ensuring that notice is given for the use and purpose of RFID systems, and ascertain that technology is in place to prevent database breaches.

	Impact on HP

The use of RFID in HP’s supply chain has identified several millions of dollars per year savings. The use of RFID is in its infancy making the potential to increase the competitiveness of economies embracing the technology clear.

RFID will deliver tremendous value to HP and HP customers, including:

• Fewer stock-outs;
• Counterfeiting reduction;
• Improved warranty return services;
• Lower labor costs allowing workers to be re-trained in higher skilled jobs;
• Better and faster product tracking;
• Increased supply chain inventory visibility;
• Improved, more accurate healthcare provision;
• Improved recycling processes;
• Access to real time sales and customer relationship data; and
• Lower energy costs.

Improving core technologies, products and services, such as RFID, is the foundation to capitalizing on the possibilities of global digital technology. To this end, HP has made considerable investments in RFID through HP Labs and through the company’s participation in global standards initiatives.

	HP’s position

Notice & Choice
As the largest information technology (IT) consumer provider, HP places the highest priority on consumer protection.  Consumers should always be given notice about the presence of RFID tags during their shopping experience, and where possible, have the choice to remove or deactivate RFID tags. Responsibility for notice of the presence of tags rests jointly with HP as a manufacturer and the retailer. HP products with a tag on the box are always accompanied by an EPCglobal logo which alerts the consumer to the presence of the tag. Being visible about RFID use will breed confidence in the technology, while being secretive will heighten the misconceptions. HP asks that governments assist industry in educating consumers on the benefits of RFID.

Record Use, Retention & Security
Organizations that – with permission – collect and store personally identifiable information should take appropriate security measures. HP goes to considerable lengths to prevent any unauthorized access to HP customer records.  HP continues to collaborate with legislative and standards bodies, partners, customers, and NGOs to help drive the adoption of privacy principles to protect these consumer rights. HP RFID tags on HP consumer products do not have personally identifiable information stored on them. The only information on the tag relates to the product, not the purchaser.

Spectrum
HP supports market-driven spectrum management policies that promote innovation and competition while reducing spectrum scarcity.  HP supports the U.S. Federal Communications Commission regulations that facilitate more efficient uses of spectrum and ensure unlicensed services are deployed in dedicated spectrum bands to minimize interference with licensed services. (http://www.fcc.gov/ola/docs/seidel031406.pdf).