Theft Protection and Recovery Through Microdots

The new weapons against theft are the black light and a microscope. Law enforcement can now use a black light for quick identification of stolen vehicles or automotive components and a microscope to determine the property’s owner. DataDot Dealer Services (DDS) offers, a theft deterrent system that utilizes a unique microdot identifier that is fitted to 60-80 components of a vehicle.

The Product

DataDots are tiny microscopic discs (microdots), which contain unique information that links property and owners. As small as a grain of sand, DataDots are recognized as being one of the most effective ways of preventing theft, and play a crucial role in the recovery and return of stolen goods.

Single inscribed "microdots" were originally developed by the U.S. military in the 1940s to covertly identify items. It became obvious the tiny plastic discs would be useful for espionage as the grain size message carriers were very easy to conceal and transport. It was not until the early 1990s that microdots became a commercially feasible product. A U.S. engineer, Brent McLaws, was the first to develop a low cost process to inscribe information onto thousands of microdots.

Ounce of Prevention – Pound of Cure

Encoded on polyester substrate, Automotive DataDots can be installed on a production line or in a dealership. Either way, they provide undeniable proof of ownership. The adhesive used to apply the DataDots contain an ultraviolet tracing agent that fluoresces under an ultraviolet or black light, allowing dots to be easily read with a magnifier, but are difficult to detect with the naked eye. Water-based adhesive is clear when it dries and can be applied to any surface. When the adhesive is dry, it is resistant to solvents, road salts and cleaners. A typical vehicle offers many points of application, including the chassis, engine, drive train, exhaust, suspension system and after-market parts, where DataDots can be installed.

All DataDot Automotive Kits sold in the USA are registered on the DataDot International Database with the contact information of the purchaser and the unique PIN of the dots in the kit purchased. In addition, PINs are registered with the Insurance Services Office (ISO) - the most widely recognized database for patrol officers in North America. If a vehicle or part marked by DataDots is stolen, law enforcement can access these databases to affirm an owner and return recovered property.

Thieves are ever changing their approach and instead of stealing an entire car, they steal parts of the car. Catalytic converter theft has risen significantly due to the rising cost of the rare metals. Rental car companies have parts removed by renters and replaced with defective parts of the renter’s personal vehicles with no way to prove otherwise.

OEMs have struggled with warranty fraud for years. DataDots on vehicle parts proves if the part is OEM or not, eliminating warranty fraud from the substitution of expired warranty vehicles. Also, OEMs no longer have to compete against stolen parts and can increase their genuine parts sales.

DataDot USA Inc., currently is the only manufacturer that can manufacture VIN microdots for just-in-time delivery to OEMs anywhere in the world with five manufacturing facilities: Spokane, Washington; Taiwan; Sydney, Australia; South Africa (two plants) and the United Kingdom. The DDS automotive product comes with one to five years of warranty (dealer selected) and has a benefit of $500-$5000 (dealer selected).

Distribution, Sales and Support

In 2004, DataDot Technology (DDT) approached T. Rick Hughes, founder of DDS, to market the product in the U.S. as the exclusive distributor for the automotive industry. As a former employee of Pat Ryan and Associates, Rick had the training, the contacts and the vision to crack the U.S. marketplace. There are now over 100 million microdots on vehicles in the U.S. and the number grows annually.

DDS distributes the product to distributors, agents and major dealer groups. Major distributors are JM&A, EFG, Ethos Group, Ally Financial Services, Resource Automotive, IAS and others. In Canada, Leader Automotive Resources is their primary partner serving over a thousand dealerships.

All distributors are required under contract to provide an A-rated insurer if they choose to underwrite the limited warranty benefit (available for production levels of 15,000 monthly or greater). Assurant Solutions is the current A-rated carrier.

A partnership with IAS, using the SmartPad application, is the most recent addition to the marketing and sales presentation. E-Rating and e-Contracting are offered and there is full menu integration with over 19 menu systems and contracting in English and French, with Portugese, German and Spanish soon to follow is the result of the partnership DDS has with F&I Administrators.

Future Technology

The physical product used by DDS is either a polyester substrate or metal for higher heat applications. New stainless steel microdots are being delivered to a limited number of test sites and DDS expects to manufacture ceramic microdots for extreme heat applications beyond the automotive industry.

As more OEMs mark vehicles as they are produced for sale in the U.S. market, the move to a theft deductible waiver from the OEM and a VSC upgrade or combination will become available.

Today, DataDot Technology (DDT:ASX) is a publically traded company that manufacturers the microdots under the trade name DataDotDNA^®.