"A Radio Chip in Every Consumer Product" 
New York Times (02/25/03) P. C1; Deutsch, Claudia H.; Feder, Barnaby J. 

Radio frequency identification (RFID) chips are being tested and touted 
by retailers as an alternative to the limited practice of tracking items 
with bar codes. Joint ventures between manufacturers, retailers, and 
customers aim to use the technology to keep tabs on products from 
their assembly to their sale, prevent theft, and manage inventory better.  

RFID chips would allow stores to know how much customers paid for 
products even if they lose the receipt, and identify customers who buy 
defective products in order to simplify the recall process. Meanwhile, 
James H. Gordon Jr. of Canon USA says his company wants to employ 
the technology to facilitate preventative maintenance for its equipment, 
as well as keep track of lease expirations.  

There are, however, problems with RFID technology: For one thing, 
electronic tags cost at least 30 cents each, while the ideal price should 
be less than a penny. In addition, such chips could threaten personal 
privacy if they are programmed with personal information, such as credit 
card data. There are also technical issues--it is difficult to shrink the 
attached antennas that accompany the tags, while most retailers are 
holding back on deploying the technology until all merchants, 
manufacturers, and carriers agree to a universal RFID communication 
standard. RFID transmissions can also be disrupted by other 
communications devices, such as cell phones and local wireless 
networks, as well as by liquids and metals.  

Nevertheless, early tests have been promising, and chipmakers are 
fervently promoting RFID technology. "That need to have the right 
product on the right shelf in the right store at the right time
--ultimately, that's what will drive our business," says Karsten 
Ottenberg of Philips Semiconductor.  

http://www.nytimes.com/2003/02/25/technology/25THEF.html

Reproduction of this text is encouraged; however copies may not be 
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News Summary should be cited as the source of the information. 
Copyright 2003, Information Inc., Bethesda, MD.  

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Source: NLECTC - http://www.nlectc.org/justnetnews/weeklynews.html#story1


Cheers, Steve..

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