Close WindowRFID Update for Monday, March 28th
Monday, March 28, 2005
Issue 83
Will Smith, Editor

Top RFID News
1. Intermec Counter-Counter-Sues Symbol
2. ABI Research: Two Big Problems with Retail RFID Adoption
3. International Paper Debuts RFID Forklift
4. Forrester Research: BI Providers Watch RFID From Sidelines
5. RFID Implant Pictures Posted by Hobbyist

Editor's Note: After much preparation and careful consideration of your needs in the RFID industry, it is our pleasure to officially announce that beginning this Friday, the 1st of April, RFID Update will be published daily. Rather than bringing you the five top RFID stories every Monday and Thursday, as we do now, we will bring you the most important news of the day, every weekday.

Our stated goal has always been to sift through the overwhelming amount of information written about RFID and offer you a digested break-down of only the most important developments and must-know information. We are confident that our new daily format will allow us to keep you in the forefront of current RFID news.

As always, we welcome your feedback and look forward to continuing to inform you on developments in the ever-changing world of RFID.

Your Editor,
  Will Smith

Intermec Counter-Counter-Sues Symbol

The battle rages between archrivals Intermec and Symbol as Intermec sued Symbol last week in apparent retaliation for Symbol's suit against Intermec two weeks earlier. According to an announcement posted on Intermec's website, Symbol is unlawfully using Intermec intellectual property in "a substantial part of [its] data capture line." Specifically cited is the following IP:
  • a coherent, integrated wireless data capture system capable of distributing data over a network
  • portable, battery-powered data processing devices capable of running a multi-tasking operating system
  • handheld portable data capture devices with graphical user interfaces (GUI)
  • the ability to accept handwritten information and the ability to process that information
Intermec and Symbol had signed a OEM agreement a number of years ago in which they agreed not to sue each other over questions of intellectual property. But Symbol's March 11th suit against Intermec breached that agreement, according to Intermec President Tom Miller, allowing Intermec to sue Symbol back. In Miller's words, Symbol's suit "frees us to defend ourselves against Symbol's claims and to prosecute our own patent infringement claims against Symbol."

Symbol not only sued, it also indefinitely halted supplying Intermec with its laser scan engines. The move seemed abrupt, and Miller has sought to assuage possible customer fears that without the Symbol laser scanning technology Intermec will not be able to continue manufacturing some of its key products: "Intermec had been anticipating [Symbol's supply contract cancellation] for some time. Symbol's decision will have no effect on Intermec business operations."

For background on the Intermec-Symbol saga, see our articles Symbol Sues Intermec and Symbol vs. Intermec, "Clash of the Titans".

Read the announcement on Intermec's site

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ABI Research: Two Big Problems with Retail RFID Adoption

Two disconcerting conclusions regarding retailer adoption of RFID were recently found by research firm ABI Research and published in the report "RFID in Retail: ABI Research Identifies a Frustrating Disconnection." The first is that RFID companies do not fully understand the business and challenges of retailing and, conversely, retailers don't fully understand RFID technology. With the exception of highly publicized initiatives by Wal-Mart, Target, and the like, this "frustrating disconnection" is hindering healthy and rapid adoption of RFID throughout the retail space.

The second conclusion has to do with retailers' solution to their RFID shortcomings: they outsource the work to technology consulting companies. Here the problem is that the big, top-name consulting companies that are usually tapped for the job are characteristically conservative with new technology. At this early stage in the game, RFID remains an early-adopter technology, and an innovative, experimental approach is preferred. Thus, the report argues that smaller, creative consulting firms are a better option, as they are more likely to offer the out-of-the-box thinking that successful RFID deployments require. Their obvious drawback is their small size; many such niche RFID outfits would be overwhelmed by the scope of reengineering a retailer's supply chain around RFID.

ABI's finding are all the more disconcerting given that it has been more than six months since the very same research company observed that the big consulting houses were moving aggressively into RFID, aiming to build expertise and capture supply chain business. The implication is that either these consulting giants have pulled back somewhat and decided to wait for the technology to mature further, or they have indeed moved ahead with their plans but are meeting the needs of retailers inadequately. Neither possibility bodes well for retail adoption of RFID.

The report's press release

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International Paper Debuts RFID Forklift

International Paper last week debuted an RFID reader-equipped forklift, banking on the idea that it can save companies thousands by preventing them from needing to install RFID readers at numerous portals and dock doors around the warehouse. Released under the Smart Packaging business unit, the forklift includes software which monitors the location and identification of goods with which it interacts and reports that data back to the central warehouse system. International Paper says the forklift can be integrated with a company's existing supply chain or RFID installation.

InformationWeek has more

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Forrester Research: BI Providers Watch RFID From Sidelines

New research from Cambridge, Massachusetts-based Forrester Research reveals a surprising finding: business intelligence (BI) software providers are waiting on the sidelines of the RFID game. Much of the early focus in RFID was on obtaining and managing the new data, but now that that layer has a number of competitive players and offerings, there is increasing demand for that same data to be analyzed. This is historically the province of the very BI companies from whom Forrester doesn't expect to see near-term participation.

It is hard to agree with the Forrester findings. In our own talks with BI companies, it is clear that there are substantial executive-level resources focused on RFID. And no wonder. The demand is already there, and of all the layers in the RFID ecosystem, data analytics is the sweet spot. RFID provides vast amounts of new data about the supply chain, and the goal is to use that information wisely in order to achieve new efficiencies. Rest assured, when the time is right and the budgets are prepared, BI will leap from the sidelines in a hurry.

Frontline Solutions reports

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RFID Implant Pictures Posted by Hobbyist

A set of digital photos chronicling the insertion of an RFID tag into the photographer's own left hand has been posted online. The ten pictures follow the various stages of the process from pre-insertion to the fully-healed hand. The caption under the last photo reads, "I can't feel the implant no matter what I do with my left hand... but I can feel it under the skin when I poke at it with my finger."

Why did the (unidentified) user do it? He doesn't offer much explanation on the rudimentary FAQ page. Based on what he plans to do now that he is chipped (equip his car, computer, and house with RFID readers to automate mundane tasks), it seems the process is an exercise in cutting-edge technology experimentation, nothing more.

The photos are worth a look

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Upcoming RFID Events
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RFID Networking Forum, 5 May 2005, London Heathrow, UK
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Chemical Week's RFID Pharmaceutical Focus, Mar 30-31, Phila, PA
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RFID World Asia 2005, 27 - 29 April, Suntec Singapore
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About RFID Update - Launched in early 2004 to provide timely analysis of RFID industry news, RFID Update publishes editorial briefings every Monday and Thursday for the growing ranks of top level executives involved in the deployment of RFID projects. Each issue distills the impact of global RFID developments by providing an analytical summary of the news and issues most pertinent to successful RFID implementations.

RFID Update Editor: Will Smith, editor@rfidupdate.com
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