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Digimarc Unveils Digimarc Automate: Revolutionizing Product Inspection with Digital Watermarks

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Digimarc (NASDAQ: DMRC) has launched Digimarc Automate, an automated product inspection solution leveraging advanced digital watermarking technology. This solution aims to enhance accuracy, efficiency, and quality assurance while reducing waste and costs in production, fulfillment, and distribution environments.

Unlike traditional product codes, Digimarc Automate embeds imperceptible digital watermarks across packaging, allowing standard vision systems to scan and track products comprehensively. This technology maintains brand aesthetics, works on various product shapes, and performs reliably under tough industrial conditions, making it a game-changer for automated product inspections.

Digimarc Automate is particularly advantageous in high-speed manufacturing, reducing errors in multi-variant products, and overcoming the limitations and risks associated with manual inspections. The technology also addresses issues like product recalls and consumer safety, especially concerning allergen labeling.

Positive
  • Launch of Digimarc Automate enhances accuracy and efficiency in production and distribution.
  • Advanced digital watermarking technology surpasses traditional product codes.
  • Reduces waste and operational costs, contributing to cost savings.
  • Maintains brand aesthetics and works on various product shapes and packaging.
  • Performs reliably in tough industrial conditions and high-speed manufacturing environments.
  • Reduces errors in multi-variant products and improves quality assurance.
  • Addresses consumer safety issues, particularly related to allergen labeling.
Negative
  • Potential high initial investment costs for implementing new technology.
  • Dependency on advanced vision systems which might not be universally available.
  • Risk of technology malfunctions or bugs disrupting automated inspection processes.

Insights

Digimarc Automate represents a significant advancement in the field of automated product inspection. Traditional systems often rely on visible barcodes and labels, which can be obstructed or damaged, leading to inefficiencies and errors. Digimarc’s use of imperceptible digital watermarks embedded in the product packaging offers a more robust and reliable solution. These watermarks can be read by standard vision systems, ensuring accurate tracking and inspection regardless of product orientation or packaging condition. This technology not only enhances quality assurance but also reduces the dependence on manual inspections which are error-prone and costly. The application of Digimarc Automate can lead to significant cost savings and efficiency improvements in high-speed, high-volume manufacturing environments, making it a compelling option for companies looking to streamline their operations.

From a market perspective, Digimarc Automate addresses several key pain points in the manufacturing and distribution sectors. The integration of imperceptible digital watermarks for product tracking and inspection can greatly enhance operational efficiency and data accuracy. This is particularly beneficial for industries dealing with complex supply chains and high volumes of diverse products. The ability to maintain aesthetic integrity while embedding important tracking data is a unique selling point, especially for brands that emphasize product presentation. Additionally, the enhanced data collection capabilities can provide valuable insights into production processes and consumer behavior, facilitating better decision-making and strategic planning. In the long term, the adoption of such advanced technologies could potentially lead to a competitive advantage in the market.

The launch of Digimarc Automate could have a positive impact on Digimarc's financial performance. The technology promises substantial improvements in cost efficiency by reducing waste, minimizing product recalls and cutting down on labor costs associated with manual inspections. These factors can contribute to improved profit margins. Additionally, the potential for widespread adoption of this technology across various industries creates new revenue streams for Digimarc. However, investors should also consider the initial costs involved in implementing this technology and the potential resistance from companies accustomed to traditional inspection methods. Monitoring the market’s reception and the company's ability to scale this solution effectively will be important for assessing its long-term financial benefits.

BEAVERTON, Ore.--(BUSINESS WIRE)-- Digimarc Corporation (NASDAQ: DMRC), the pioneer and global leader in digital watermarking technologies, today launched Digimarc Automate, an innovative automated product inspection solution designed to enhance accuracy and efficiency in production, fulfillment, and distribution facilities. Utilizing advanced digital watermarking technology, Digimarc Automate surpasses systems using traditional product codes, offering unparalleled benefits in quality assurance, waste reduction, data collection, and cost savings.

Digimarc Automate is an innovative automated product inspection solution designed to enhance accuracy and efficiency in production, fulfillment, and distribution facilities. Utilizing advanced digital watermarking technology, Digimarc Automate surpasses systems using traditional product codes, offering unparalleled benefits in quality assurance, waste reduction, data collection, and cost savings. (Graphic: Business Wire)

Digimarc Automate is an innovative automated product inspection solution designed to enhance accuracy and efficiency in production, fulfillment, and distribution facilities. Utilizing advanced digital watermarking technology, Digimarc Automate surpasses systems using traditional product codes, offering unparalleled benefits in quality assurance, waste reduction, data collection, and cost savings. (Graphic: Business Wire)

Unlike traditional product codes, Digimarc Automate embeds imperceptible digital watermarks across packaging and products. These digital watermarks can be scanned by standard vision systems, enabling comprehensive product tracking and inspection without the need for visible barcodes or labels. Imperceptible digital watermarks also allow brands to maintain aesthetic integrity and consistency, especially on curved products, products with flexible packaging, and small products with limited space. This innovation in automated product inspection brings a significant leap forward in how companies manage and optimize their operations.

“Digimarc Automate is set to transform the way companies approach product inspection,” said Ken Sickles, Chief Product Officer of Digimarc. “Our covert digital watermarking technology provides an incredibly powerful tool for enhancing accuracy, reducing waste, and ensuring quality across the supply chain. This technology is not just about improving quality and efficiency— once applied to products, Digimarc digital watermarks add value throughout the product lifecycle so brands can address evolving consumer expectations and future challenges like recycling, product authentication, dual-factor customer loyalty programs, and next generation retail checkout.”

Game-changer for Automated Product Inspection

Digimarc Automate provides a clear advantage over other product inspection solutions in every setting. This advantage is especially notable in environments where other solutions are known to underperform. For non-uniform or random pack formats such as cylindrical, irregular-shaped items, or thin flexibles, Digimarc digital watermarks excel over small, visible codes, ensuring reliable scanning regardless of orientation on production lines. In tough industrial environments where products may face physical damage, code occlusion, or poor scanning conditions, the high redundancy of Digimarc digital watermarks ensures superior performance compared to visible codes. And in high-speed, high-volume manufacturing, digital watermarks are ideal for multi-variant products, significantly reducing the risk and cost of parts matching errors. Additionally, in cases where an item’s scarcity contributes to its value, as in the case of exclusive limited run products and collectibles, digital watermarks can be used to precisely identify unit volumes and prevent damaging over-production or inaccurate allocation.

Addressing the Challenges of Manual Product Inspection

Digimarc Automate also provides a cost-effective solution to overcome the challenges of manual product inspection. The reliance on human labor for product inspections not only increases operational costs but also introduces safety risks and inefficiencies. In high-speed manufacturing environments, the limitations of manual inspections become even more pronounced, often resulting in bottlenecks and inconsistent product quality. Manufacturers and brands require automated control and quality checks to prevent incorrectly matched parts.

“Studies consistently show that manual inspections are prone to errors, leading to substantial costs associated with product recalls and rework,” said Sickles. “Beyond the cost, consumer safety is a top priority for brands and retailers. Labeling mix-ups have caused food products to be shipped without proper disclosure of ingredients. In the case of allergens like peanuts, milk, or gluten, this can be life-threatening. We are excited to offer a solution.”

To learn more about Digimarc Automate, contact us at sales@digimarc.com.

About Digimarc

Digimarc Corporation (NASDAQ: DMRC) is the pioneer and global leader in digital watermarking technologies. For nearly 30 years, Digimarc innovations and intellectual property in digital watermarking have been deployed at a massive scale for the identification and the authentication of physical and digital items. A notable example is our partnership with a consortium of the world’s central banks to deter counterfeiting of global currency. Digimarc is also instrumental in supporting global industry standards efforts spanning both the physical and digital worlds. In 2023, Digimarc was named to the Fortune 2023 Change the World list and honored as a 2023 Fast Company World Changing Ideas finalist. Learn more at Digimarc.com.

Susan Baldwin

Digimarc Corporation

509-939-1137

PR@digimarc.com

Anneka Kumli

Grove Partners

720-422-5258

anneka@thegrovepartners.com

Source: Digimarc Corporation

FAQ

What is Digimarc Automate?

Digimarc Automate is an automated product inspection solution using advanced digital watermarking technology, aimed at enhancing accuracy, efficiency, and quality assurance in production, fulfillment, and distribution facilities.

How does Digimarc Automate differ from traditional product codes?

Unlike traditional product codes, Digimarc Automate embeds imperceptible digital watermarks across packaging, allowing comprehensive product tracking and inspection without visible barcodes or labels.

What are the benefits of Digimarc Automate for businesses?

Digimarc Automate offers benefits such as improved accuracy, waste reduction, cost savings, enhanced quality assurance, and reliable performance under tough industrial conditions.

How does Digimarc Automate improve consumer safety?

Digimarc Automate helps prevent labeling mix-ups, especially concerning allergen disclosure, thereby reducing the risk of consumer safety issues related to food products.

What is the stock symbol for Digimarc ?

The stock symbol for Digimarc is NASDAQ: DMRC.

Digimarc Corporation

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Information Technology Services
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