Basic Info

What is automatic identification?
Automatic identification, or auto ID for short, is the broad term given to a host of technologies that are used to help machines identify objects. Auto identification is often coupled with automatic data capture. That is, companies want to identify items, capture information about them and somehow get the data into a computer without having employees type it in. The aim of most auto-ID systems is to increase efficiency, reduce data entry errors and free up staff to perform more value-added functions, such as providing customer service. There is a host of technologies that fall under the auto-ID umbrella. These include bar codes, smart cards, voice recognition, some biometric technologies (retinal scans, for instance), optical character recognition (OCR) and radio frequency identification (RFID).

What is RFID?
Radio frequency identification, or RFID, is a generic term for technologies that use radio waves to automatically identify people or objects. There are several methods of identification, but the most common is to store a serial number that identifies a person or object, and perhaps other information, on a microchip that is attached to an antenna (the chip and the antenna together are called an RFID transponder or an RFID tag). The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computers that can make use of it.

Is RFID better than using bar codes?
RFID is not necessarily "better" than bar codes. The two are different technologies and have different applications, which sometimes overlap. The big difference between the two is bar codes are line-of-sight technology. That is, a scanner has to "see" the bar code to read it, which means people usually have to orient the bar code toward a scanner for it to be read. Radio frequency identification, by contrast, doesn't require line of sight. RFID tags can be read as long as they are within range of a reader. Bar codes have other shortcomings as well. If a label is ripped or soiled or has fallen off, there is no way to scan the item, and standard bar codes identify only the manufacturer and product, not the unique item. The bar code on one milk carton is the same as every other, making it impossible to identify which one might pass its expiration date first.

Will RFID replace bar codes?
It's very unlikely. Bar codes are inexpensive and effective for certain tasks, but RFID and bar codes will coexist for many years.

Is RFID new?
RFID is a proven technology that's been around since at least the 1970s. Up to now, it's been too expensive and too limited to be practical for many commercial applications. But if tags can be made cheaply enough, they can solve many of the problems associated with bar codes. Radio waves travel through most non-metallic materials, so they can be embedded in packaging or encased in protective plastic for weatherproofing and greater durability. And tags have microchips that can store a unique serial number for every product manufactured around the world.

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If RFID has been around so long and is so great, why aren't all companies using it?
Many companies have invested in RFID to get the advantages it offers. These investments are usually made in closed-loop systems—that is, when a company is tracking goods that never leave its own control. That's because some existing RFID systems use proprietary technology, which means that if company A puts an RFID tag on a product, it can't be read by Company B unless they both use the same RFID system from the same vendor. Another reason is the price. If a company tracks assets within its own four walls, it can reuse the tags over and over again, which is cost-effective. But for a system to work in an open supply chain, it has to be cheap because the company that puts the tag on a case or pallet is unlikely to be able to reuse it.

What has prevented RFID from taking off until now?
One issue is standards. There are well-developed standards for low- and high-frequency RFID systems, but most companies want to use UHF in the supply chain because it offers longer read range—up to 20 feet under good conditions. UHF technology is relatively new, and standards weren't established until recently. Another issue is cost. RFID readers typically cost $1,000 or more. Companies would need thousands of readers to cover all their factories, warehouses and stores. RFID tags are also fairly expensive—20 cents or more—which makes them impractical for identifying millions of items that cost only a few dollars.

Are any companies using RFID today?
Yes. Thousands of companies around the world use RFID today to improve internal efficiencies. Club Car, a maker of golf carts uses RFID to improve efficiency on its production line (subscribers, see Golf Car Maker Scores with RFID ). Paramount Farms—one of the world's largest suppliers of pistachios—uses RFID to manage its harvest more efficiently (see Farm Harvests RFID's Benefits ). NYK Logistics uses RFID to improve the throughput of containers at its busy Long Beach, Calif., distribution center (see Logistics Gets Cheaper by the Yard ). And many other companies are using RFID for a wide variety of applications. (See Case Studies for more examples of how RFID is benefiting companies today.)

What are some of the most common applications for RFID?
RFID is used for everything from tracking cows and pets to triggering equipment down oil wells. It may sound trite, but the applications are limited only by people's imagination. The most common applications are payment systems (Mobil Speedpass and toll collection systems, for instance), access control and asset tracking. Increasingly, companies are looking to use RFID to track goods within their supply chain, to work in process and for other applications.

Where will the initial benefits of RFID technology be?RFID technology can deliver benefits in many areas, from tracking work in process to speeding up throughput in a warehouse. As the technology becomes standardized, it will be used more and more to track goods in the supply chain. The aim is to reduce administrative error, labor costs associated with scanning bar codes, internal theft, errors in shipping goods and overall inventory levels.

How does an RFID system work?
An RFID system consists of a tag made up of a microchip with an antenna, and an interrogator or reader with an antenna. The reader sends out electromagnetic waves. The tag antenna is tuned to receive these waves. A passive RFID tag draws power from the field created by the reader and uses it to power the microchip's circuits. The chip then modulates the waves that the tag sends back to the reader, which converts the new waves into digital data. For more information on the components of a complete system used in businesses, see Getting Started.

What is the difference between low-, high-, and ultra-high frequencies?
Just as your radio tunes in to different frequencies to hear different channels, RFID tags and readers have to be tuned to the same frequency to communicate. RFID systems use many different frequencies, but generally the most common are low-frequency (around 125 KHz), high-frequency (13.56 MHz) and ultra-high-frequency or UHF (860-960 MHz). Microwave (2.45 GHz) is also used in some applications. Radio waves behave differently at different frequencies, so you have to choose the right frequency for the right application.

How do I know which frequency is right for my application?
Different frequencies have different characteristics that make them more useful for different applications. For instance, low-frequency tags use less power and are better able to penetrate non-metallic substances. They are ideal for scanning objects with high-water content, such as fruit, but their read range is limited to less than a foot (0.33 meter). High-frequency tags work better on objects made of metal and can work around goods with high water content. They have a maximum read range of about three feet (1 meter). UHF frequencies typically offer better range and can transfer data faster than low- and high-frequencies. But they use more power and are less likely to pass through materials. And because they tend to be more "directed," they require a clear path between the tag and reader. UHF tags might be better for scanning boxes of goods as they pass through a dock door into a warehouse. It is best to work with a knowledgeable consultant, integrator or vendor that can help you choose the right frequency for your application.

Do all countries use the same frequencies?
Different frequencies have different characteristics that make them more useful for different applications. For instance, low-frequency tags use less power and are better able to penetrate non-metallic substances. They are ideal for scanning objects with high-water content, such as fruit, but their read range is limited to less than a foot (0.33 meter). High-frequency tags work better on objects made of metal and can work around goods with high water content. They have a maximum read range of about three feet (1 meter). UHF frequencies typically offer better range and can transfer data faster than low- and high-frequencies. But they use more power and are less likely to pass through materials. And because they tend to be more "directed," they require a clear path between the tag and reader. UHF tags might be better for scanning boxes of goods as they pass through a dock door into a warehouse. It is best to work with a knowledgeable consultant, integrator or vendor that can help you choose the right frequency for your application.

I've heard RFID can be used with sensors. Is that true?
Yes. Some companies are combining RFID tags with sensors that detect and record temperature, movement and even radiation. One day, the same tags used to track items moving through the supply chain may also alert staff if they are not stored at the right temperature, if meat has gone bad or if someone has injected a biological agent into food.

Are there any health risks associated with RFID and radio waves?
RFID uses the low-end of the electromagnetic spectrum. The waves coming from readers are not dangerous.

Will RFID lead to massive layoffs of workers?
RFID technology is a laborsaving technology, so it's likely that some tasks will be automated through the use of RFID. Fewer workers will be needed to scan bar codes. But the transition from bar codes to RFID could take a decade or more, so it is unlikely that RFID will lead to wide-scale displacement of workers. The technology will likely create new jobs, just as Internet technologies creating new jobs, from Web developers to warehouse workers managing inventory for online stores such as Amazon.com. The jobs that will be affected by RFID are those that involve scanning bar codes. Most of those jobs also have other components, such as moving products or restocking shelves. Those jobs will not go away because of RFID.

RFID Tags

How much information can an RFID tag store?
It depends on the vendor and the application, but typically a tag carries no more than 2KB of data—enough to store some basic information about the item it is on. Companies are now looking at using a simple "license plate" tag that contains only a 96-bit serial number. The simple tags are cheaper to manufacture and are more useful for applications where the tag will be disposed of with the product packaging.

What's the difference between read-only and read-write RFID tags?
Microchips in RFID tags can be read-write, read-only or “write once, read many” (WORM). With read-write chips, you can add information to the tag or write over existing information when the tag is within range of a reader. Read-write tags usually have a serial number that can't be written over. Additional blocks of data can be used to store additional information about the items the tag is attached to (these can usually be locked to prevent overwriting of data). Read-only microchips have information stored on them during the manufacturing process. The information on such chips can never be changed. WORM tags can have a serial number written to them once, and that information cannot be overwritten later.

What's the difference between passive and active tags?
Active RFID tags have a transmitter and their own power source (typically a battery). The power source is used to run the microchip's circuitry and to broadcast a signal to a reader (the way a cell phone transmits signals to a base station). Passive tags have no battery. Instead, they draw power from the reader, which sends out electromagnetic waves that induce a current in the tag's antenna. Semi-passive tags use a battery to run the chip's circuitry, but communicate by drawing power from the reader. Active and semi-passive tags are useful for tracking high-value goods that need to be scanned over long ranges, such as railway cars on a track, but they cost more than passive tags, which means they can't be used on low-cost items. (There are companies developing technology that could make active tags far less expensive than they are today.) End-users are focusing on passive UHF tags, which cost less than 40 cents today in volumes of 1 million tags or more. Their read range isn't as far—typically less than 20 feet vs. 100 feet or more for active tags—but they are far less expensive than active tags and can be disposed of with the product packaging.

What is the read range for a typical RFID tag?
There really is no such thing as a "typical" RFID tag, and the read range of passive tags depends on many factors: the frequency of operation, the power of the reader, interference from other RF devices and so on. In general, low-frequency tags are read from a foot (0.33 meter) or less. High-frequency tags are read from about three feet (1 meter) and UHF tags are read from 10 to 20 feet. Where longer ranges are needed, such as for tracking railway cars, active tags use batteries to boost read ranges to 300 feet (100 meters) or more.

What is tag collision?
Tag collision occurs when more than one transponder reflects back a signal at the same time, confusing the reader. Different vendors have developed different systems for having the tags respond to the reader one at a time. These involve using algorithms to "singulate" the tags. Since each tag can be read in milliseconds, it appears that all the tags are being read simultaneously.

What is energy harvesting?
Most passive RFID tags simply reflect back waves from the reader. Energy harvesting is a technique in which energy from the reader is gathered by the tag, stored momentarily and transmitted back at a different frequency. This method may improve the performance of passive RFID tags dramatically. (Subscribers, see A New Approach to RFID.)

What is a chipless RFID tag?
"Chipless RFID" is a generic term for systems that use RF energy to communicate data but don't store a serial number in a silicon microchip in the transponder. Some chipless tags use plastic or conductive polymers instead of silicon-based microchips. Other chipless tags use materials that reflect back a portion of the radio waves beamed at them. A computer takes a snapshot of the waves beamed back and uses it like a fingerprint to identify the object with the tag. Companies are experimenting with embedding RF reflecting fibers in paper to prevent unauthorized photocopying of certain documents. Chipless tags that use embedded fibers have one drawback for supply chain uses—only one tag can be read at a time.

I've heard that RFID doesn't work around metal and water. Does that mean I can't use it to track cans or liquid products?
No. Radio waves bounce off metal and are absorbed by water at ultra-high frequencies. That makes tracking metal products or those with high water content problematic, but good system design and engineering can overcome this shortcoming. Low- and high-frequency tags work better on products with water and metal. In fact, there are applications in which low-frequency RFID tags are actually embedded in metal auto parts to track them.

RFID Readers

What is an agile reader?
An agile reader is one that can read tags operating at different frequencies or using different methods of communication between the tags and readers.

What are intelligent and dumb readers?
These terms are not precise, but many people use "intelligent reader" to describe one that has the ability not just to run different protocols, but also to filter data and even run applications. Essentially, it is a computer that communicates with the tags. A "dumb" reader, by contrast, is a simple device that might read only one type of tag using one frequency and one protocol. This type typically has very little computing power, so it can't filter reads, store tag data and so on.

What is reader collision?
One problem encountered with RFID is that the signal from one reader can interfere with the signal from another where coverage overlaps. This is called reader collision. One way to avoid the problem is to use a technique called time division multiple access, or TDMA. In simple terms, the readers are instructed to read at different times, rather than both trying to read at the same time. This ensures that they don't interfere with each other. But it also means any RFID tag in an area where two readers overlap will be read twice. So the system has to be set up so that if one reader reads a tag, another reader does not read it again.

What is "dense reader" mode?
This is a mode of operation that prevents readers from interfering with one another when many are used in close proximity to one another. Readers hop between channels within a certain frequency spectrum (in the United States, they can hop between 902 MHz and 928 MHz) and may be required to listen for a signal before using a channel. If they "hear" another reader using that channel, they go to another channel to avoid interfering with the reader on that channel.

Can Class 1 and Class 0 readers be upgraded to read Gen 2 tags?
In most cases, a reader that reads Class 1 or Class 0 tags, or both, can be upgraded to read EPC Gen 2 tags by changing the reader firmware. However, EPCglobal plans to certify three different levels of Gen 2-compliant readers. At the lowest level, readers will be certified to work only when there are no other readers within a 1 km radius. The next level will be for readers capable of being deployed with several readers within a 1 km radius. The highest level will be certified to work alongside 50 or more readers within a 1km radius. Readers might need a hardware upgrade, as well as a software upgrade, to achieve the highest level of certification.

Cost Queries

Can I buy a 5-cent RFID tag?
There is no such thing as a 5-cent RFID tag that can store a unique serial number. (There are chipless RFID systems that cost less than 5 cents per tag, however.) EPCglobal's goal is to drive adoption to the point where massive numbers of tags are made each year and the cost drops to 5 cents per tag. It will take at least four years to reach the volumes necessary, though, and many experts say that we may never see a 5-cent tag.

How much does an RFID tag cost today?
Most companies that sell RFID tags do not quote prices because pricing is based on volume, the amount of memory on the tag and the packaging of the tag (whether it’s encased in plastic or embedded in a label, for instance). Generally speaking, a 96-bit EPC tag costs from 20 to 40 U.S. cents. If the tag is embedded in a thermal transfer label on which companies can print a bar code, the price rises to 40 cents and up. Low-frequency transponders in glass capsules are about $3.50 each and a transponder in a plastic card or key fob can be $4.00 or more. High-frequency transponders range from about $2.50 (in a card) to $6.00 or more (for a key fob or other special form factor).

How much do RFID readers cost today?
Most UHF readers cost from $1,000 to $3,000, depending on the features in the device. Companies may also have to buy each antenna separately, along with cables. Antennae are about $250 and up. The price of readers is expected to fall as companies purchase them in large volumes. Low- and high-frequency readers range in price depending on different factors. A low-frequency reader model (a circuit board that can be put into another device) can be under $100, while a fully functional standalone reader can be $750. High-frequency reader modules are typically $200 to $300. A standalone reader can be about $500.

How much does a fully functional RFID system cost?
The cost depends on the application, the size of the installation, the type of system and many other factors, so it is not possible to give a ballpark figure. In addition to tag and reader costs, companies need to purchase middleware to filter RFID data. They may need to hire a systems integrator and upgrade enterprise applications, such as warehouse management systems. They may also need to upgrade networks within facilities. And they will need to pay for the installation of the readers. Not only do the readers need to be mounted, they need electrical power and to be connected to a corporate network.

RFID Standards

Are there any standards for RFID?
Yes. International standards have been adopted for some very specific applications, such as for tracking animals and for smart cards, which require encryption to keep data secure. Many other standards initiatives are under way. The International Organization for Standardization (ISO) is working on standards for tracking goods in the supply chain using high-frequency tags (ISO 18000-3) and ultra-high frequency tags (ISO 18000-6). EPCglobal, a joint venture set up to commercialize Electronic Product Code technologies, has its own standards process, which was used to create bar code standards. EPCglobal has said that it intends to submit EPC protocols to ISO so they can become international standards.

Are EPC standards finalized?
The Auto-ID Center developed Class 1 and Class 0 specifications for EPC tags and handed these off to EPCglobal in September 2003. In June 2004, these two specifications completed EPCglobal's standardization process and became the first EPC "standards." In December 2004, EPCglobal's board approved a single second-generation standard that will eventually replace Class 1 and Class 2.

What is EPC Gen 2?
Gen 2 is the shorthand name given to EPCglobal's second-generation EPC protocol. It was designed to work internationally and has other enhancements such as a dense reader mode of operation, which prevents readers from interfering with one another when many are used in close proximity to one another.

What is the foundation protocol?
The term “foundation protocol” is sometimes used to describe the second-generation EPC air interface protocol, or UHF Gen 2. EPCglobal calls it the foundation protocol because Gen 2 is designed a way that higher-class tags will also talk to readers. These higher-class tags will have more memory, encryption capabilities, the ability to use a battery to broadcast a signal to a reader and the ability to communicate information from temperature and other sensors. The Foundation Protocol is expected to be approved by the end of 2004.

What's the difference between ISO and EPC?
The Electronic Product Code is a standard created by EPCglobal. Although it was designed to be a global standard for use in many industries, EPC is not an international standard approved by The International Organization for Standardization. EPCglobal, the body responsible for EPC technology, says it plans to submit the EPC Gen 2 protocol to ISO for approval. ISO has created many standards for RFID. These deal with both the air-interface protocol and applications for RFID. EPC deals with more than just how tags and readers communicate. EPCglobal wants to create network standards to govern how EPC data is shared among companies and other organizations.

What is ISO 18000-6?
ISO 18000-6 is a proposed international standard governing the way tags and readers communicate in the UHF spectrum. There are currently two versions, 18000-6A and 18000-6B. It is possible that EPCglobal's Gen 2 standard could become an international standard and be called ISO 18000-6C, but as of December 2004, the Gen 2 standard did not include an 8-bit application family identifier, which would be required for it to be an ISO 18000-6 standard.

Why is EPC Gen 2 important?
Gen 2 was designed to work internationally and has other enhancements that are significant, but the real benefit of Gen 2 is that it works anywhere in the world and major manufacturers of chips and tags have lined up behind it. That competition will drive up volume and drive down price. The first Gen 2 tags arrived on the market in the third quarter of 2005 and several companies, including Avery Dennison and UPM Rafsec, announced low-priced tags. Lower prices and the ability of tags to work internationally will drive adoption.

Application Info

Will governments be able to use RFID to spy on people?
If companies choose to put RFID tags in clothes and items consumers carry around, such as wallets, and consumers choose not to kill the tags in these items, it might be possible for governments to use RFID tags for surveillance. But they would have to have access to the database of information related to the tags' EPCs, and it would be easy for individuals to avoid being tracked. RFID readers must emit radio waves to read tags. The signals from a reader can easily be detected and blocked.

In the future, is it possible that a criminal could scan the EPCs on watches, jewelry and other items to choose whom to rob?
It's not clear whether RFID tags will ever be used on these items. Companies may simply use them in the packaging of these items. People who buy valuable items will also have the option to kill the tag in these items. But if a company did embed a tag in a watch and a consumer chose not to kill the tag, it would be possible to scan the RFID tag on the item from close range (the tag would have to have a very small antenna to be embedded in a watch, which means the read range would be less than a foot). The criminal would have to know that the serial numbers contained on the tags are associated with high-value products.

What information is stored on RFID tags?
The tags most companies are planning to use in the supply chain in the short term and in consumer packaging in the long term will contain only an Electronic Product Code. The EPC will be associated with data in online databases. Some information about the item might be accessible to anyone-such as what the product is-but other information, such as where it was made and when-will be accessible only to those whom the manufacturer wants to make the information available to. So Wal-Mart will not have access to data about products sold by Target and vice versa.

Why are companies so keen to use RFID if it is not to gain more information on consumers?
RFID could dramatically improve efficiency in the supply chain and reduce waste. If it can reduce the times products are not on the shelf when consumers want to buy they, it could also increase sales.

Are there laws governing the use of RFID?
Most countries have not passed laws governing the use of RFID specifically. In many cases, existing privacy laws cover the use of data collected by RFID systems, as well as bar codes and other systems. Some U.S. states have considered enacting new laws that deal with issues particular to RFID, such as the surreptitious scanning of RFID tags by retailers or people with criminal intent.

What kind of data do companies want to collect?
Companies are interested in using RFID in the supply chain. The main goal is to use it to make sure they have products on the shelves when companies want to buy them. It's envisioned that "smart shelves"—shelves with RFID readers in them—will alert staff when inventory is running low. There is also hope that RFID can be used to reduce theft by alerting staff when there is unusual shelf activity—such as when someone grabs a dozen tubes of lipstick or razors.

Could a criminal build an illegal, high-powered reader and scan all the items in homes to choose which ones to rob?
That's very unlikely. For a reader to read passive tags through the walls of a home from the street, the power output would have to be so high that the popcorn in the cupboard would start popping. In addition, the criminal would obtain only a string of serial numbers, which might have no meaning unless it were a truly sophisticated criminal with access to EPC databases. And looking in windows would probably be a cheaper and more effective way of figuring out whether there are items in a house worth stealing.

Will RFID enable companies to keep track of what consumers buy?
There are very few items with RFID tags in them today, so it is not clear exactly what information companies will collect. But it's likely that any information companies collect using RFID will be similar to what they glean today when consumers buy items using a credit card or a loyalty card. It's envisioned that the packaging of products will have an RFID tag that contains an Electronic Product Code-a unique serial number that identifies the manufacturer, product type and a series of numbers that identifies that unique item. Companies will use this number to track products through the supply chain. It's important to be able to tell one carton of milk from another in the supply chain because they have different expiry dates. But there is little benefit to knowing which specific items customers by. Companies want to know the types of items people buy, so they can sell those customers other items that match their taste. Companies can already get this information from barcodes.

Can RFID tags be read from satellites?
Passive RFID tags, the kind companies are talking about using one day on consumer products, can't be read from more than 20 feet or so. Active RFID tags, which use a battery to broadcast a signal and are used on cargo containers and other large assets, could be read from a satellite if there is little RF "noise" (ambient RF energy that causes interference) and the broadcasted signal is powerful enough.

From how far away can a typical RFID tag be read?
The distance from which a tag can be read is called its read range. Read range depends on a number of factors, including the frequency of the radio waves uses for tag-reader communication, the size of the tag antenna, the power output of the reader, and whether the tags have a battery to broadcast a signal or gather energy from a reader and merely reflect a weak signal back to the reader. Battery-powered tags typically have a read range of 300 feet (100 meters). These are the kinds of tags used in toll collection systems. High-frequency tags, which are often used in smart cards, have a read range of three feet or less. UHF tags-the kind used on pallets and cases of goods in the supply chain-have a read range of 20 to 30 feet under ideal conditions. If the tags are attached to products with water or metal, the read range can be significantly less. If the size of the UHF antenna is reduced, that will also dramatically reduce the read range. Increasing the power output could increase the range, but most governments restrict the output of readers so that they don't interfere with other RF devices, such as cordless phones.

Can RFID tags in consumer products be deactivated before the customer leaves the store?
Yes. This is known as the "kill" command. The reader sends a code to the tag that turns the tag off permanently. When RFID systems are fully deployed in stores and most products have RFID tags in their packaging (this won't happen for at least 10 years), each checkout counter will likely have an RFID reader that can kill the tags. In the mean time, companies will likely place kiosks near the exits of stores, so consumers who wish to can kill the tags. Products will have symbols indicating that the package contains a tag and retailers may remove the tags at the time of checkout if consumers want them removed.

How big are RFID transponders?
RFID transponders range in size from the size of a grain of pepper to the size of a brick. The size depends on whether the tag uses a battery to broadcast a signal or simply reflects a signal back from the reader. The other factor is the size of the antenna. As the antenna gets smaller the read range decreases. Tags that are the size of a grain of pepper have an antenna etched onto the microchip. Because the antenna is so small, the tags can only be read from less than an inch away.

Can tags be reactivated?
EPCglobal, the nonprofit organization that is developing standards for the use of EPC technology, has stipulated that all EPC tags should have a feature that enables them to be rendered permanently inoperably by the kill command. This is to prevent anyone from reactivating a tag and using it to track a person without their knowledge. It's always possible that a design flaw is discovered which enables someone to reactivate a tag. No such flaw is known to exist at this time.

Can RFID tags be hidden in consumer products?
RFID tags can be read through non-metallic packaging so they can be embedded in products and product packaging. However, it's unlikely that companies would try to hide tags in their products, since these would be easy to discover. A consumer could use a reader to locate the tag.

Are there any consumer benefits to RFID? Or do all the benefits go to the companies that use it?
There are many consumer benefits. Greater efficiency in the supply chain will reduce costs and improve efficiencies. Companies will pass some of these savings on to consumers to try to gain market share from less efficient competitors. RFID could be used by retailers to expedite returns and by manufacturers to manage warrantee claims and improve after-sales support of items such as computers and DVD players. RFID could also reduce the counterfeiting of pharmaceutical drugs and insure the integrity of products purchased by consumers. And RFID could be used to secure the food supply and prevent terrorists from sneaking weapons of mass destruction into a country through shipping containers.

 Can RFID be embedded in money?
It's possible but so far, no country has used RFID tags in this way. Hitachi, the Japanese high-technology company, has developed a very tiny RFID chip, called the mu-chip, designed to help governments prevent the counterfeiting of passports, securities and other documents. There have been reports that the European Union and Japan are considering embedding these chips in large bills, but officials of the EU Bank and the Bank of Japan told RFID Journal that they had no plans to use RFID in bills as of mid-2004. Even if it is technically possible, it's not clear that the benefits would outweigh the huge costs of the infrastructure needed to make RFID an effective anti-counterfeiting tool. Also, there would likely be strong opposition from privacy advocates (as well as companies that do business mostly in cash).

Can RFID tags be sewn into clothing?
Yes. A number of companies make RFID tags encased in protective plastic. These tags are designed for use in the laundry and uniform rental business. The tags used are typically 13.56 MHz tags, which have a read range of less than 3 feet (1 meter). Today, there is no way to embed a tag that is undetectable to the consumer into clothes. Companies that are testing RFID systems for tracking clothes in the supply chain are putting the RFID transponder on a hangtag that the consumer cuts off before wearing the item.