Why am I having this conversation then??

I looked back on my post and never said that. You asked me that question. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97368409 why I don't know. I don't think HOT said that either. Those are your words. I was just showing you HOT theory could be right. As for the suspension I will let the lawyers take care of that I can only speculate.

The Rabbit Hole (Phantom Shares) make sure you watch this one.

I can send you 30 more links if you really want me too.

There is just so much info out there to back up what Hot is saying.

Crime of the Century

The Truth About Naked Short Selling in Juniors

On March 31, 2007 I had the opportunity to interview Dr. Patrick M. Byrne, Chairman and CEO of Overstock.com on Financial Sense Newshour [FSN]. Dr. Byrne was interviewed by Bloomberg News' Michael Schneider on March 14, 2007, the transcript of this interview titled 'Phantom Shares,' Failed Trades and Naked Shorts (Transcript) is still available on Bloomberg.com. This interview, coupled with Dr. Byrne's explosive slide presentation of the not-so-hidden corruption in our financial markets called, The Dark Side of the Looking Glass: the Corruption of Our Financial Markets, motivated me to do my own investigation.

http://www.financialsense.com/node/547

`Phantom Shares,' Failed Trades and Naked Shorts: (Transcript)

March 14 (Bloomberg) -- Bloomberg's Michael Schneider reports on the practice of naked short selling, its impact on companies such as Overstock.com Inc. and efforts by the Securities and Exchange Commission to combat abuses. Naked short selling involves selling stocks short without borrowing the shares first, meaning sellers theoretically can place unlimited orders to drive down a company's stock. Patrick Byrne, chief executive officer of Overstock.com, and others speak. (Source: Bloomberg)

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEOpTqmLZB7A

Thanks Jaime, Have a good day at church.
Kmag

Nice, and I like sellers

As for a maniac shorter. Depends on your definition.

All I can say that it is possible for the Market Makers to do it and I will let Max K explain it to you. It is ten minutes long the last part he will explain why market makers do it.

Naked Short Selling explained by Max Keiser 2010

Nope I am saying the SEC has a trend in making mistakes.

S.E.C.’s Losing Streak in Court Puts Agency in Spotlight

Every litigator says that trials are messy affairs because no one can predict how they will play out. After a string of recent unfavorable verdicts in fraud cases, the Securities and Exchange Commission may, too, be concerned with that trend.

http://dealbook.nytimes.com/2014/02/10/s-e-c-s-losing-streak-in-court-puts-agency-in-spotlight/?_php=true&_type=blogs&_php=true&_type=blogs&_r=1

As for a maniac shorter. Depends on your definition.

All I can say that it is possible for the Market Makers to do it and I will let Max K explain it to you. It is ten minutes long the last part he will explain why market makers do it.

Naked Short Selling explained by Max Keiser 2010

Really what makes you think they did not average down?

Conclusion

After remaining largely unchanged for over 60 years, the SEC believes that the short sale rule has become increasingly susceptible to abuse and is inconsistent with market developments. In addition to the traditional objectives of short sale regulation, the SEC believes that implementation of the Regulation SHO short sale rules will reduce market volatility and market manipulation and thereby promote capital formation by increasing issuer and investor confidence in the markets.

http://www.dorsey.com/newsevents/uniEntity.aspx?xpST=PubDetail&pub=2232

how exactly does futures trading in commodities relate to a previously suspended grey microcap stock???

Key words among others

One critical trend involves market manipulation investigations brought by newly empowered federal regulators, including the Commodities Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC), among others.

thank you

I am referring to before suspension.

I believe Hot is correct IMO

Federal market regulators are aggressively investigating market manipulation claims

"SEC Adopts New Short Sale Rules," Business Law News

March 2005
Attorney Articles

Definition of a Short Sale

Former Rule 3b-3 under the Exchange Act is now incorporated in the new Rule 200 of Regulation SHO. The new Rule continues to define the term “short sale” as any sale of a security that the seller does not own or any sale that is consummated by the delivery of a security borrowed by, or for the account of, the seller. The new Rule also retains former Rule 3b-3’s definition of ownership for purposes of Rule 10a-1, including instances in which a person has purchased or entered into an “unconditional contract” to purchase the securities.

The SEC initially proposed to amend the definition of “unconditional contract” to specify an irrevocable price and amount of securities to be purchased, and to provide for present delivery. The SEC was concerned that a purchaser that considers itself “long” under a contract with an unspecified price and amount may have an incentive to sell the securities prior to the close of trading, thereby depressing the closing price. The SEC decided not to incorporate this change in light of its preservation of the current price test during the application of Rule 202T’s pilot program.

Notably, Rule 200(g) requires that sell orders in all equity securities be appropriately marked “long,” “short,” or “short exempt.” Further, the SEC decided to amend former Rule 3b-3 to permit broker-dealers to calculate net positions in a particular security within defined trading aggregation units, subject to certain conditions (as opposed to firm-wide). Rule 200(f) allows trading unit aggregation if the following requirements are met: (1) the broker-dealer has a written plan of organization that identifies each aggregation unit, specifies its trading objective(s), and supports its independent identity; (2) each aggregation unit within the firm determines at the time of each sale its net position for every security that it trades; (3) all traders in an aggregation unit pursue only the trading objectives or strategy(ies) of that aggregation unit; and (4) individual traders are assigned to only one aggregation unit at any time.

The SEC also codified in Rule 200 prior interpretations related to security futures products, and the unwinding of certain index arbitrage positions. The exception for unwinding index arbitrage positions is limited to the following situations: (1) the index arbitrage position involves a long basket of stock and one or more short index futures traded on a board of trade or one or more standardized options contracts; (2) such person’s net short position is solely the result of one or more short positions created and maintained in the course of bona-fide arbitrage, risk arbitrage, or bona-fide hedge activities; and (3) the sale does not occur during a period commencing at the time that the Dow Jones Industrial Average (“DJIA”) has declined below its closing value on the previous trading day by at least two percent and terminating upon the establishment of the closing value of the DJIA on the next succeeding trading day during which the DJIA has not declined by two percent or more from its closing value on the previous day.

Short Sales - Uniform Locate and Delivery Rule

In an effort to safeguard against the practice of “naked short selling,”[1] the SEC has adopted a uniform standard specifying procedures for all short sellers to locate securities for borrowing. Specifically, Rule 203 under Regulation SHO prohibits a broker-dealer from executing a short sale order for its own account or the account of another person, unless the broker-dealer, or the person for whose account the short sale is executed, (1) borrowed the security or entered into an arrangement for the borrowing of the security, or (2) had reasonable grounds to believe that it could borrow the security such that it would be capable of delivering the securities on the settlement date.[2] Consistent with current SRO requirements, Rule 203 mandates that the “locate” be made and annotated in writing prior to effecting any short sale, regardless of whether the seller’s short position will be closed out by purchasing securities the same day. The rule places the onus to execute on the broker-dealer effecting the sale. The SEC exempts from Rule 203 short sales executed by broker-dealers accepting a short sale order from other registered broker-dealers, specialists or market makers in connection with bona fide market making activities.[3] In order to satisfy the “reasonable grounds” determination in Rule 203, the broker-dealer must have relied on an “Easy to Borrow” list that is less than 24 hours old and lists securities that are readily available and unlikely to result in a fail-to-deliver.

In addition, SEC has adopted a delivery requirement targeted at securities where there is evidence of significant settlement failures. The SEC incorporated into Rule 203 the threshold currently used in NASD Rule 11830 (i.e., any security where there are fails-to-deliver at a registered clearing agency of 10,000 shares or more per security which is equal to at least one half of one percent of the issuer’s total shares outstanding). The rule stipulates that for short sales of any security meeting this threshold, the selling broker-dealer must take action to close out all fails-to-deliver ten days after the normal settlement date, i.e., after thirteen consecutive settlement days, by purchasing securities of like kind and quantity. The close out requirements of Rule 203 do not apply to fail-to-deliver positions established prior to the security meeting the threshold. There is no exception for short sales made in connection with market making and, unlike existing SRO rules, these additional delivery requirements apply to all equity securities registered under the Exchange Act (not just Nasdaq securities).

Conclusion

After remaining largely unchanged for over 60 years, the SEC believes that the short sale rule has become increasingly susceptible to abuse and is inconsistent with market developments. In addition to the traditional objectives of short sale regulation, the SEC believes that implementation of the Regulation SHO short sale rules will reduce market volatility and market manipulation and thereby promote capital formation by increasing issuer and investor confidence in the markets.


--------------------------------------------------------------------------------

[1] Naked short selling is selling short without borrowing the necessary securities to make delivery, thus potentially resulting in “fail-to-deliver” securities to the buyer. Naked short selling can have a number of negative effects on the market, particularly when the fails -to-deliver persist for an extended period of time and resulting in a significantly large, unfulfilled delivery obligation at the clearing agency where trades are settled.

http://www.dorsey.com/newsevents/uniEntity.aspx?xpST=PubDetail&pub=2232

Strategic Planning for 2014: Protecting Your Trading Operation from Federal Regulatory Enforcement Actions

December 3, 2013
Attorney Articles

Companies with trading operations are experiencing increased difficulty navigating the rapidly evolving and complex regulatory environment. One critical trend involves market manipulation investigations brought by newly empowered federal regulators, including the Commodities Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC), among others. This eUpdate analyzes the current and future path of those federal enforcement investigations. Successfully coping with these trends requires strategic and careful preparation as you enter 2014.

Federal market regulators are aggressively investigating market manipulation claims in the oil, electric power, futures, swaps and other markets. Enforcement actions are being brought based on open-ended antifraud-type statutes. Any company with a trading operation may face the scrutiny of a regulator.

The stakes are high. Investigations are being resolved with fines as high as one billion dollars. Settlements have included restrictions on the relevant company’s trading operation and access to the markets. Parallel criminal investigations targeting the company and individuals are on-going in some instances.

Successful defenses are few. Traditional compliance systems are not a defense. The lawfulness of specific, individual trades is not necessarily a defense. Suffering a loss is not a defense and may aid the prosecution. Making a profit may also aid enforcement officials. Even following the “letter” of market rules may not be enough to avoid liability. There are, however, steps that can be taken to protect your company

The approach of enforcement agencies

Enforcement officials are building these cases on a rigorous scrutiny of market place conduct and trading activity. Investigators make a detailed analysis of the individual trades and/or conduct; a critical evaluation of specific portfolios; a careful assessment of overall trading patterns; and an evaluation of market and consumer impact.

Intent and deception in the market place, both critical elements of the manipulation claims, are often inferred from evidence such as:

Cancelled trades: Repeatedly placing and canceling trades suggests luring participants to market – a false statement -- to get better execution on other trades;
Fictitious bidding patterns: Bidding patterns seemingly out of sync with the market, suggesting the bids are a sham;
Trading at a loss: Repeatedly trading at a loss, suggesting an ulterior motive for the transactions such as obtaining a bigger profit on other trades;
Gaming the system: Placing seemingly lawful but uneconomic trades that are rarely implemented because of the rules or practices in the market as part of a plan to achieve large profits that hurt the market or manipulating the rules to maximize profit; and
Market impact: Negative effects in the market from bids and trades that were not intended to be executed, or outsized positions that alter or distort the market and price.

Regulators frequently bolster their trading analysis with proof of persistent, repetitive conduct or a showing that the transactions constitute a significant change of tactics. E-mails, instant messages and tapes of telephone calls placed by traders frequently aid enforcement officials with admissions. Whistleblowers are providing a road map inside the company and its trading operation to speed enforcement investigators. And, company or trader statements to officials about market conduct, the reasons for trades, or the purpose of a transaction which are less than full and complete become weapons for enforcers who view them as false statements and a cover-up, suggesting guilty knowledge.

What you can do to protect your company in 2014

A proactive approach to compliance built not just on traditional systems but the approach of enforcement officials yesterday and tomorrow is critical. This begins with a culture that centers on fair and ethical conduct rather than simply following specific rules. In this culture, the statutes and rules are viewed through the eyes of enforcement officials who see them not as a list of “do’s and don’ts” but as a code of ethics.

Compliance efforts should focus on periodically analyzing the trading operation using the same approach employed by enforcement officials. The objective is to identify any potential issue or question at the earliest time, fully investigate it and take any necessary action. An essential supplement to these efforts is the creation of an atmosphere that encourages employees to report any question to the company rather than become a whistleblower for the regulators. Finally, if a law enforcement inquiry begins, prompt investigation and remediation is frequently the key to a quick and effective resolution.

In the end, vigilance, informed by closely monitoring changing and evolving regulatory trends in the market place which are then used to analyze your trading book, is the best approach to avoiding difficulties. Stated differently, the company’s trading activity should be carefully and constantly monitored through the lens of the code of ethics being enforced by the regulators and their investigative techniques.

http://www.dorsey.com/eu_ra_strategic_planning_2014_regulatory/

To be honest I don't even think it will be a fine.

Just wanted to send you a link were the SEC is losing many court cases.

Time will tell.

S.E.C.’s Losing Streak in Court Puts Agency in Spotlight

Every litigator says that trials are messy affairs because no one can predict how they will play out. After a string of recent unfavorable verdicts in fraud cases, the Securities and Exchange Commission may, too, be concerned with that trend.
http://dealbook.nytimes.com/2014/02/10/s-e-c-s-losing-streak-in-court-puts-agency-in-spotlight/?_php=true&_type=blogs&_r=0

DJ had a count of longs at one time. I can not remember the count. I was #76

No I don't think so. The SEC own words. "And now that the agency has said it would be more aggressive in seeking admission of wrongdoing in some cases
http://dealbook.nytimes.com/2014/02/10/s-e-c-s-losing-streak-in-court-puts-agency-in-spotlight/?_php=true&_type=blogs&_r=0

You say "Fraud" I say "wrongdoings"

I believe it will be settled for a fine. KMAG will be reinstated.

lol

$hit is happening. How do you like my FACTS with links.

After “going dark,” an issuer’s reporting obligations can be reinstated if the issuer exceeds the limit on the number of record holders on the first day of any fiscal year after it files a Form 15

http://www.dorsey.com/going_dark_voluntary_delisting_deregistration/

The most important part is the DATE.
After “going dark,” an issuer’s reporting obligations can be reinstated if the issuer exceeds the limit on the number of record holders on the first day of any fiscal year after it files a Form 15

Can I get a BAM
http://www.dorsey.com/going_dark_voluntary_delisting_deregistration/
After “going dark,” an issuer’s reporting obligations can be reinstated if the issuer exceeds the limit on the number of record holders on the first day of any fiscal year after it files a Form 15. For example, brokers and other institutions holding shares in street name can elect to cease holding the shares in that capacity, and cause the transfer agent to record the shares directly in the name of the persons for whom they hold the securities. In such a case, each beneficial owner will become a record holder, and the stockholder count may exceed the limits. To avoid having to reregister, companies which have “gone dark” should carefully monitor the number of record holders they have during the year, and take steps (such as a reverse stock split or stock repurchase or tender) to ensure that they continue to have less than 300 record holders before the applicable test dates under Sections 12(g) and 15(d).

Most companies would have diluted to pay those expenses. But not Mr. Reid he made an executive decision to "Delist or go Dark"

Mr. Reid saved millions of dollars by delisting. going "Dark"

Better than diluting the share structure.

It's all about what you know, right DJ

Companies facing delisting are more likely to consider “going dark” than those not under immediate pressure to address their listing status. However, many companies not facing near term delisting pressure may also wish to consider this possibility. Public company burdens are particularly acute for companies with a market capitalization of less than $50 million and total revenues of under $100 million. Public company compliance costs can range from $1.0 million to over $3.0 million annually even for such a relatively small company. The more troubled the issuer, the more burdensome public company status can become as a company spends a greater proportion of its diminishing resources dealing with difficult disclosure and accounting questions.In the past there has been some stigma associated with “going dark.” As the current recession has deepened, this negative perception may have less force as companies face the very high costs of remaining a public company in a very difficult business environment.

Financial Reporting/Disclosure
Reporting Status
Dark: Alternative Reporting Standard
Deregistered a/o Sep 16, 2008

BrentUSA I read this part and it reminded me what "rubber" likes to point out. "Deregistered a/o Sep 16, 2008"

Yes this is true but; lets ask why a company would go "Dark"

I found this article a while back.

Mr. Reid, made a very smart financial move, going "Dark". As many companies have in the past. You see it is all about the money.

What “Going Dark” Means
“Going dark” refers to the process of voluntarily delisting a public company’s shares from a national securities exchange or inter-dealer quotation system (if so listed or quoted) and subsequently deregistering the shares under the Exchange Act, thus suspending or terminating the company’s public reporting obligations under the Exchange Act. Delisting alone does not eliminate public reporting requirements. Many non-listed companies are also reporting issuers. However, for such an unlisted public reporting company, the lack of a stock exchange listing may substantially diminish the benefits of remaining a public company.

“Going dark” should not be confused with a “going private” transaction. A “going private” transaction generally involves the cash-out of all or a substantial portion of a company’s public shares so that the company becomes eligible to delist and deregister its shares under the Exchange Act. “Going private” transactions can take many forms and may involve a merger, tender offer or reverse split of the company’s shares. “Going private” transactions require extensive and detailed disclosure filings under Rule 13e-3, the “going private” rule. “Going private” transactions are often undertaken by or at the direction of controlling shareholders or third party acquirors and require extensive board consideration, disclosure, fairness opinions, SEC filings and often a shareholder vote.

“Going dark,” on the other hand, can be accomplished without a shareholder vote, fairness opinion or any shareholder cash out. While some companies electing to delist and “go dark” have considered the possibility of providing shareholders with a liquidity event, such as a tender offer or stock repurchase program, in practice this is not often done because companies which “go dark” rarely have sufficient cash resources to make a meaningful tender offer. Nevertheless, such a liquidity event could be undertaken in connection with a “going dark” transaction by a company that has the cash resources to offer one, provided that care is taken not to trigger the “going private” rules.2

Procedures for “Going Dark”
To understand the “going dark” procedure, it is first necessary to understand what triggers Exchange Act reporting requirements. A company’s Exchange Act obligations can be triggered in any of three ways:

under Section 12(b) if it has shares listed on a national securities exchange;
under Section 12(g) based on having over 500 record holders of a class of securities and total assets exceeding $10 million3; and
under Section 15(d) by having a registration statement declared effective under the Securities Act.
Each of these three independent predicates for Exchange Act registration must be separately addressed as a company considers whether and how to “go dark.”4

Both U.S. domestic issuers and foreign private issuers can delist and/or deregister if there are less than 300 holders of record of the relevant class of its securities as defined in Rule 12g5-1. It is possible for a company to have less than 300 holders of record of a class of securities even though it has thousands of beneficial owners of that class of securities. This is because, in counting record holders, in general, the issuer need only count the number of registered holders on its shareholder list and if depositaries are listed, the number of holders for whom the depositary holds securities. For most U.S. issuers, this mean counting the registered holders and adding the number of participants listed in the security position listing of DTC, the principal depositary for U.S. issuers.5 For purposes of determining whether the Company has less than 300 holders of record, Rule 12g5-1 has been interpreted to mean that an issuer does not have to further “look through” DTC participants to the ultimate beneficial owners. Many companies may therefore be eligible to delist and “go dark” without management or the board of directors even being aware of the possibility.

Foreign private issuers can also delist and deregister under Exchange Act Rule 12h-6 but that Rule requires the company to have and maintain a foreign listing which is its primary trading market. Since the non-U.S. company would still be listed on a non-U.S. Exchange, using Rule 12h-6 would not technically be “going dark,” although it would involve withdrawal from the U.S. reporting system.6

Delisting and Deregistration under Section 12(b)
The “going dark” rules are simple in conception, but can be complex and highly technical in their practical application. The first step for a listed issuer is to delist. Listed issuers are entitled to delist their securities voluntarily and to deregister them under Section 12(b) of the Exchange Act by filing a Form 25 with the SEC. The issuer must give notice of its intention to file the Form 25 and issue a press release announcing that intention ten days prior to filing the Form 25. The delisting will become effective ten days after filing the Form 25 and most SEC reporting obligations are suspended on that date. However, the actual termination of registration under Section 12(b) does not occur until 90 days after effectiveness of the delisting.7

http://www.dorsey.com/going_dark_voluntary_delisting_deregistration/

I have Mr. Reid's phone number. And have talked to him. And he says KMAG is still in business. You can find the phone number on this site if you look.

I would have to agree with them. Why would the SEC let Mr. Reid sell shares in another company? Does not make sense to me if their was an on going investigation. JMO

"S.E.C.’s Losing Streak in Court Puts Agency in Spotlight"

I find this story interesting. Since we are talking about the SEC and fraud. And if the SEC makes mistakes. You can read and make your own judgment.

"The S.E.C.’s authority extends to civil actions, which require a lower burden of proof than the higher criminal standard of proof beyond a reasonable doubt. Nevertheless, it appears that in some recent actions – including the closely watched Mark Cuban case and ones involving accounting fraud — the S.E.C. may have pushed too far in trying to prove fraud. And now that the agency has said it would be more aggressive in seeking admission of wrongdoing in some cases, the agency will face pressure to figure out how to avoid wasting its resources on losing efforts."

http://dealbook.nytimes.com/2014/02/10/s-e-c-s-losing-streak-in-court-puts-agency-in-spotlight/?_php=true&_type=blogs&_r=0

Cool thanks for the post.
So what happens to the patients??

I can not think of one good reason why someone would want to hold on to KMAG after today with this years big drop in the share price.
I think it would be wise to sell.

I just don't understand why no one is selling, this makes no sense.

I better have my morning coffee. And do a little reading, it just might come to me.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95426844

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95426856

There has to be someone out there who lost 950% on KMAG that would love to sell today for tax purposes. Come on now it is time to cut your losses and start the new year fresh. ROTFLMAO

United States Patent 7,345,583
Reid , et al.
What is claimed is:

1. A dual security label comprising: a) a cover stock body comprising a first side and a second side wherein the second side is coated with an adhesive, b) a first antitheft device adhered to the adhesive on the second side of the cover stock body and wherein the first antitheft device is an acousto-magnetic antitheft device, and c) a second antitheft device adhered to the adhesive on the second side of the cover stock body and wherein the second antitheft device is a radio frequency antitheft device.

2. The dual security label according to claim 1 wherein the acousto-magnetic antitheft device and the radio frequency antitheft device are separated from one another by a distance of about 0.25 inches.

3. The dual security label according to claim 1 further comprising a radio frequency identification device having a chip for storing information adhered to the adhesive.

4. The dual security label according to claim 1 wherein the cover stock body comprises polyester and polyester blends.

5. The dual security label according to claim 1 further comprising a enclosing member having a first side and a second side and wherein the first side is coated with an adhesive and wherein the enclosing member adheres to the adhesive on the second side of the cover stock body such that the first antitheft device and second antitheft device are secured therebetween.

6. The dual security label according to claim 5 further comprising a radio frequency identification device for storing information adhered between the enclosing member and the cover stock body.

7. A method for making a dual security label for securing a product, the method comprising: a) providing a release liner having a silicone side and a metallized side for grounding the release liner and preventing the build up of static electricity, b) providing a first antitheft device and a second antitheft device and applying the first and second antitheft devices on the silicone side of the release liner, c) providing a cover stock body and applying the cover stock body over the first and second antitheft devices and the silicone side of the release liner and wherein the cover stock body has an adhesive, and d) removing the release liner and applying the dual security label to the product.

8. The method according to claim 7 comprising the further steps of using an acousto-magnetic antitheft device for the first antitheft device and using a radio frequency antitheft device for the second antitheft device.

9. The method according to claim 8 comprising the further step of providing a distance between the acousto-magnetic antitheft device and radio frequency antitheft device of about 0.25 inches.

10. The method according to claim 7 comprising the further step of providing a radio frequency identification device having a chip for storing information and adhering the radio frequency identification device to the adhesive layer second side.

11. The method according to claim 7 comprising the further steps of providing a enclosing member having a first side and a second side and providing an adhesive on the first side of the enclosing member and adhering the enclosing member to the adhesive on the stock cover body such that the antitheft devices are secured therebetween.

12. A method of making dual security labels comprising the steps of: providing a roll of release liner and unwinding the roll of release liner and running it through a first sensor application machine and applying a first antitheft device to the release liner, providing a second sensor application machine and applying a second antitheft device to the release liner, providing a roll of cover stock having an adhesive and applying the cover stock over the first and second sensors, providing a cutting machine and cutting the cover stock without cutting the release liner to form dual security labels, providing a rewind wheel and winding the dual security labels in a roll.

13. The method of making dual security labels according to claim 12 comprising the further steps of providing the release liner with a metallized side and a silicone side and applying the first antitheft device and second antitheft device to the silicone side of the release liner.

14. The method of making dual security labels according to claim 13 wherein the metallized side of the release liner is used for reducing static electricity build up.

15. The method of making dual security labels according to claim 12 comprising the further steps of using an acousto-magnetic antitheft device for the first antitheft device and using a radio frequency antitheft device for the second antitheft device.

16. The method of making dual security labels according to claim 15 comprising the further step of providing a distance between the acousto-magnetic antitheft device and radio frequency antitheft device of about 0.25 inches.

17. The method of making dual security labels according to claim 15 comprising the further steps of providing deactivation machines and deactivating either the acousto-magnetic antitheft device or radio frequency antitheft device before shipping the products to be sold to retailers.

18. The method of making dual security according to claim 12 comprising the further steps of providing a third sensor application machine for applying radio frequency identification devices to the dual security label.

19. A method of making dual security labels according to claim 12 comprising the further steps of automatically unwinding the roll of dual security labels and removing the release liner and adhering the dual security labels to products to be sold.

20. A dual security label comprising: a) a cover stock body comprising a first side and a second side wherein the second side is coated with an adhesive, b) a first antitheft device adhered to the adhesive on the second side of the cover stock body, c) a second antitheft device adhered to the adhesive on the second side of the cover stock body, d) and wherein the first antitheft device is an acousto-magnetic antitheft device and the second antitheft device is a radio frequency antitheft device, and e) wherein the cover stock body is adhered to a product to be sold by the adhesive and wherein either of the acousto-magnetic antitheft device or the radio frequency antitheft device is deactivated prior to shipment of the product.

21. A method for making a security label comprising the steps of: a) providing a cover stock body comprising a first side and a second side, b) providing an adhesive and applying the adhesive to the second side of the cover stock body, c) providing a first antitheft device and adhering the first antitheft device to the adhesive, d) providing a second antitheft device and adhering the second antitheft device to the adhesive, and e) attaching the cover stock body to a product to be sold by the adhesive and deactivating one of the acousto-magnetic antitheft device or radio frequency antitheft device prior to shipping the product.

Description



BACKGROUND

Shoplifting is a problem that plagues retailers. In order to combat shoplifting, retailers have demanded antitheft devices or security devices be placed on the consumer products they sell. This has, however, caused many manufacturers to carry a plurality of inventories of the identical product. This is because of the plurality antitheft technologies currently in use in market place, and because some products do not carry any antitheft device and there is no need to expend money equipping these products with antitheft devices.

For example, a manufacturer makes product A and places a first type of antitheft device on it for a first retailer, said first security device compatible with the security system in use at the business of the first retailer. Then, for a second retailer having a different type of security system, the manufacturer must use a second type of antitheft device in connection with product A that is different from the first antitheft device, yet compatible with the security system in use at the business of the second retailer. Additionally, the manufacturer must carry product A without any antitheft devices for a third retailer who has no security system and thus does not want to pay the added expense associated with antitheft devices.

Thus, these product manufacturers must maintain their inventories at certain levels to facilitate customer demand, which leads to multiple inventories of identical products. This is very costly to the manufacturer because of the time and energy which must be expended in keeping track of the plurality of inventories of the same product A and additionally there are significant expenses incurred in storing the inventories of the same product.

It would be desirable to have a security device that solves the problem manufacturers have associated with carrying and storing multiple inventories of the identical product. It would also be desirable if the security device was easy to use and inexpensive to manufacture.

SUMMARY

The present invention is for a dual security label. The dual security label comprises a cover stock body comprising a first side and a second side. The dual security label further comprises an adhesive that has been applied to the second side of the cover stock body. Two antitheft devices are adhered to the adhesive. These antitheft devices are an acousto-magnetic (AM) antitheft device and a radio frequency (RF) antitheft device. The AM antitheft device and RF antitheft device cannot touch one another and are separated by a distance of about 0.25 inches or more. Interference becomes problematic if the AM antitheft device and RF antitheft device touch or if the distance between them is less than about 0.25 inches. In addition, a radio frequency identification device may be substituted for one of the antitheft devices or used in combination with the two antitheft devices. The radio frequency identification device should not contact the radio frequency antitheft device or acousto-magnetic antitheft device.

The dual security label is made by the following process:

a) a release liner or web made of polyester or other suitable material is provided,

b) one side of the release liner or web is the silicone side and has a silicone coating and the other side of the release liner is the metallized side and has a metallized coating,

c) antitheft sensors or devices (acousto-magnetic antitheft devices and radio frequency antitheft devices) and/or radio frequency identification sensors are applied to the silicone side, such that when the cover stock is applied the sensors will release from the web liner and travel with the cover stock when being applied to the finished product,

d) the metallized coating on the metallized side of the release liner is used for grounding the web so that static electricity does not build up which could be problematic for the radio frequency antitheft devices,

e) the antitheft devices and/or sensors are laid in a pattern on the silicone coating on the silicone side of the release liner so that they can be applied to a finished retail product, and in particular the acousto-magnetic antitheft device and radio frequency antitheft device do not touch one another and are separated from one another by a distance of about 0.25 inches or more,

f) the two antitheft devices travel down the release liner web and a cover stock having a one side self adhesive is applied over the sensors and release liner with the adhesive layer second side of the cover stock being applied on top of the sensors and the web,

g) the web then travels over a rotary cutting device that cuts the cover stock without cutting the release web,

h) the web and cover stock travel to a rewind wheel which rolls the release web carrying the dual security labels onto a roll format making the dual security labels ready for production,

i) the finished product is a roll of the release liner with about 5,000 dual security labels having the cover stock applied to them, and

j) the roll of dual security labels is used in an automatic application process wherein the cover stock carries/pulls the sensors off the release liner and onto a finished manufactured product to which the dual security label is to be applied. It is noted that because the adhesive of the cover stock is strong enough to pull the sensors off the silicone coating on the silicone side of the release liner the security labels are maintained in correct format to be applied to the finished product.

In another embodiment, a triple security label is provided for that includes an acousto-magnetic antitheft device, a radio frequency antitheft device, and a radio frequency identification device. Here, the assembly process includes the additional step of applying the radio frequency identification device to the silicone coating on the silicone side of the release liner.

In other embodiments an enclosing member is provided. The enclosing member has a first and second side, and the first side is coated with an adhesive. The enclosing member is adhered to the stock enclosing member, such that the first antitheft device and second antitheft device are positioned between or sandwiched between the enclosing member and cover stock body.

The dual security label does away with the need for manufactures to keep multiple inventories. The manufactured receives an order from a retailer that has a known security system. All the manufacture needs to do is run the product through deactivation machines that deactivate one of the security devices, while keeping the security device required for the particular retailer active. This deactivation can be readily accomplished in deactivation machines.

Thus, the manufacturer only needs to keep one inventory, and as a result the costs and expenses associated with maintaining multiple inventories is no longer problematic for the manufacturer.

DESCRIPTION OF THE FIGURES

This invention is illustrated in the drawings in which like reference numbers designate the same or similar parts.

FIG. 1 shows a front elevational view of the dual security label.

FIG. 2 shows a rear elevational view of the dual security label.

FIG. 3 shows an exploded left side elevational view of the dual security label.

FIG. 4 shows a left side elevational view of the dual security label.

FIG. 5 shows a top plan view of the dual security label.

FIG. 6 shows a left side elevational view of the dual security label and enclosing member.

FIG. 6A shows a left side elevational view of the triple security label and enclosing member.

FIG. 7 is a front elevational view of a digital video disc case with dual security label.

FIG. 8 is a front elevational view of a digital video disc case that includes product information.

FIG. 9 is a rear elevational view of another embodiment of the security label having an acousto-magnetic antitheft device and radio frequency identification device.

FIG. 10 is a rear elevational view of another embodiment of the label having a radio frequency antitheft device and a radio frequency identification device.

FIG. 11 is a rear elevational view of the triple security label having a an acousto-magnetic antitheft device a radio frequency identification device and a radio frequency antitheft device.

FIG. 12 shows a diagrammatic view of the production machine for manufacturing the dual security labels.

FIG. 13 shows a diagrammatic view of the application machine wherein the dual security labels are applied to products to be sold.

DESCRIPTION

Turning to FIGS. 1-5, shown therein is a dual security label 20. FIG. 1 shows a front elevational view of the dual security label 20, and FIG. 2 shows a rear elevational view of the of the dual security label 20. The dual security label 20 comprises a cover stock body 30. The cover stock body 30 comprises a first side 32, a second side 34, and a peripheral edge 35, as shown in FIGS. 1-5. The cover stock body 30 further comprises a length designed L and width designated W, as shown in FIG. 1. The cover stock body 30 can comprise paper, coated paper products, woven fabrics, nonwoven fabrics, plastics, polyethylene and polyethylene films, and polyester and polyester blends, and combinations thereof. Also, the first side 32 of the cover stock body 30 can have written indicia thereon to disguise the dual security label 20 or to carry information, for example a UPC (universal product code) directing the retailer where the dual security label 20 is embedded in the product being sold.

The second side 34 of the cover stock body 30 is coated with an adhesive 36. Adhesives are well known to those having ordinary skill in the art.

The antitheft devices, commonly designated 48 throughout the figures, are adhered to the adhesive 36, as shown in FIGS. 1-2 and 4-5. This is accomplished by placing the antitheft devices 48 on the adhesive 36 in a manner to be described presently. FIG. 3 shows an exploded left side elevation view of the dual security label 20, detailing the components thereof.

One of the antitheft sensors or devices 48 is an acousto-magnetic (AM) antitheft device 50 (hereinafter AM antitheft device 50) and the other antitheft device or sensor 48 is a radio frequency (RF) antitheft device 52 (hereinafter RF antitheft device 52. Also, the present invention provides for a radio frequency identification (RFID) device or sensor 56 (hereinafter RFID sensor 56) that has a chip 58 for storing information, as shown in FIG. 9.). AM antitheft devices 50, RF antitheft devices 52, and RFID devices 56 are all well known to those having ordinary skill in the art, and the means for detecting these antitheft devices 48 and RFID devices 56 are commercially available and are well known to those having ordinary skill in the art. The dual security label 20 can comprise any two of the antitheft devices 48. In particular, the dual security label 20 can have an AM antitheft device 50 and a RF antitheft device 52 (FIGS. 1 and 2). In other embodiments, the dual security label 20 may comprise an AM antitheft device 50 and a RFID sensor 56 (FIG. 9), or a RF antitheft device 52 and an RFID sensor 56 (FIG. 10).

There is a specific relationship between the spacing between the AM antitheft device 50 and RF antitheft device 52. First, the AM antitheft device 50 and RF antitheft device 52 cannot touch one when used in the dual security label 20. In particular, the AM antitheft device 50 and RF antitheft device 52 need to be spaced from one another by a distance of about a 0.25 inches or more when they are used in the dual security label 20. In FIG. 1 the distance is designated by D is shown. If the spacing between the AM antitheft device 50 and RF antitheft device 52 is closer than about 0.25 inches, then signal interference becomes problematic.

In use, the manufacturer may receive an order from one of the retailers it distributes product to, and the retailer may have an acousto-magnetic (AM) security system and may thus require the products it sells to be equipped with acousto-magnetic (AM) antitheft devices 50. All the manufacturer needs to do is deactivate the radio frequency (RF) antitheft devices 52 that are adhered to the adhesive 36 on the second side 34 of the cover stock body 30 by use of a deactivation machines. Such deactivation machines are well known to those having ordinary skill in the art. Then, the manufacturer ships the product having activated acousto-magnetic antitheft (AM) devices 50 to the retailer.

Or, the manufacturer may receive an order from a different retailer that it distributes product to, and this retailer may have a radio frequency (RF) security system that requires the products it sells to be equipped with radio frequency (RF) antitheft devices 52. All the manufacturer needs to do is deactivate the acousto-magnetic antitheft devices 50 in a deactivation machine. Such deactivation machines are well known to those having ordinary skill in the art. Then, the manufacture can ship the product having radio frequency (RF) antitheft devices 52 to the retailer.

The dual security label 20 may be attached to a product in a plurality of manners. At the most basic level, the dual security label 20 may be sold as a single label 20, and the user peels the dual security label 20 off a removable backing. The removable backing is made of a material that does not bond to adhesives, such materials known to those having ordinary skill in the art. The user then manually places (sticks) the dual security label 20 on the product to be sold. A plurality of dual security labels 20 may also be sold on sheets, and the user simple peels off the dual security labels 20 from the backing and applies them to products as desired. There may be perhaps thirty labels 20 on each sheet. Or, the dual security labels 20 may be sold on rolls or festoons, each having hundreds or thousands of labels 20. The rolls or festoons could be used for the automatic application of dual security labels 20 on the customer's or vendor's product line, as shown in FIG. 13. As the spools or festoons are fed into the application tools/machines, the backing is removed and the labels 20 are applied to the product. In other embodiments the entire application process using application tools could be computerized, thus providing for the constant application of labels 20 on products in a quick and precise manner. Thus, the spools and festoons greatly increases the utility of the dual security labels 20 to manufacturers and vendors.

Finally, the process of making the dual security label 20 and applying the dual security labels 20 can be entirely automated, as shown in the diagrammatic view of FIG. 12. FIG. 12 shows an production machine or line 120 used for making the dual security labels 20. FIG. 13 shows the application process wherein the application machine 120a adheres the dual security label 20 on the products 160 to be sold.

Production begins with a roll of release liner or web 122. The release liner or web 122 can be made of polyester or other suitable material known to those skilled in the art. A silicone side 124 of the release liner or web 122 has a silicon coating 126, and a metallized side 128 of the release liner 124 has metallized coating 130. Antitheft sensors or devices 48 (acousto-magnetic antitheft devices and radio frequency antitheft devices) and/or radio frequency identification devices are applied to the silicone side 124. It is noted that the metallized coating 130 on the release liner 122 is used for grounding the release liner or web 122 so that static electricity does not build up which could be problematic. For example, build up static electricity can cause shorts in the RF antitheft device 52, but the grounded metallized coating 130 prevents such short circuits. Thus, the metallized coating 130 is used for grounding and used for preventing electrical damage.

The antitheft devices 48 are automatically laid in a pattern on the silicone side 124 of the release liner 122 so that they can be applied to a finished retail product. A first sensor application machine 132 applies the acousto-magnetic antitheft device 52 on the silicone side 124 and a second sensor application machine 134 applies the radio frequency antitheft device 52 to the silicone side 124. The first and second sensor application machines 132,134 respectively, apply the acousto-magnetic antitheft device 50 and radio frequency antitheft device 52 on the silicone side 124 of the release line 122 such that they are spaced a distance of about 0.25 inches from one another. Sensor application machines are commercially available and known to those having ordinary skill in the art. The two antitheft devices 48 travel down the release liner web 122. A roll of cover stock 150 having an adhesive layer and from which the cover stock bodies 30 will be cut is applied over the antitheft devices 48 and over the release liner 122. Also, a low adhesive sheet 150b is removed from the roll of cover stock 150 by a low adhesive sheet removal machine 150a to thus expose the adhesive on the roll of cover stock 150.

The web 122 travels over a rotary cutting machine 152 that cuts the cover stock 150 without cutting the release web 122. Rotary cutting machines are known to those having ordinary skill in the art. The web 122 and cover stock 150 then travel to a rewind wheel 154 that rolls the release web 122, which is carrying the antitheft devices 48, onto a roll format 156 making the dual security labels 20 ready for vendors to apply the dual security labels 20. Rewind machines known to those having ordinary skill in the art.

The finished product is a roll 156 has about 5,000 dual security labels 20 having the cover stock bodies 30 applied to them. As shown in FIG. 13, in the automatic application line 120a, the dual security roll 156 is used in an automatic application process wherein the cover stock 150, which has been cut, carries the antitheft devices 48 off of the release liner 122 and onto a finished manufactured product 160 as shown in FIG. 12. It is noted that the adhesive on the roll of cover stock 150 is strong enough to pull the antitheft devices 48 off the silicone side 124 of the release liner 122 which keeps the dual security labels 20 in correct format to be applied to the finished product 160. The release liner 122 is removed automatically by a release liner removal machine 122a is wound on a reel or spindle.

Of course, in the above-described assembly process, it is noted that either of the antitheft devices 48 could be replaced with a RFID sensor 56, and the same process as described above followed could be followed to attach them to the web liner 122.

Thus, by attaching two different antitheft devices 48 to the adhesive layer second side 42 the manufacturer can activate and deactivate the desired antitheft device 48 before shipment to each retail store. Hence, by use of the dual security label 20, the manufacturer no longer has to maintain costly multiple inventories.

The manufacturer can then use this dual security label 20 and attach it to the product it is shipping to various retailers. An illustrative example of use of the dual security label 20 is shown in connection with a digital video disc (hereinafter DVD) case 60 as shown in FIG. 7. A DVD 68 is the product being sold by the manufacturer. The DVD case 60 comprises a base 62, a cover 64, and a hinge 66 connecting the base 62 and cover 64. The cover 64 has an inside surface 65. The DVD 68 is shown supported on the base 62, and secured on the base 62 by a means for securing 70 extending from the base 62. There is also a means for closing 72 attached to the cover 64 and base 62 and used for keeping the case 60 closed when the cover 64 and base 62 are folded toward one another along the hinge 66 and contact one another. As shown, the cover stock body 30 is secured to the inside surface 65 of the cover 64 because the adhesive layer second side 42 is adhered to the inside surface 65. As show there are two antitheft devices 48 adhered to the DVD case 60. One is the AM 50 antitheft device and the other is the RF 52 antitheft device. Of course, in other configurations, described above, different pairs of antitheft devices 48 can be adhered to the inside surface 65 of the cover 64. FIG. 8 shows a front elevational view of an open DVD case 60 wherein product literature 74 is included, partly covering the security label 20.

In another embodiment, shown in FIG. 11, a triple security label 100 is provided for in which two antitheft devices 48 and a RFID sensor 56 are employed and adhered to the adhesive 36 on the second side 34 of the cover stock body 30. The antitheft devices 48 include the AM antitheft device 50 and RF antitheft device 52. As previously described, one of the antitheft devices 48 is deactivated before the products to which they are adhered are shipped to the retailer. In this embodiment, the adhesive 36 supports the two antitheft devices 48, and the RFID sensor 56. The adhesive 36 is placed against the product 160 to be sold, and it adheres thereto. To make such a triple security label 100, the assembly line 20 shown in FIG. 12 has added to it a RFID sensor application machine (not show), which is adjacent to the first and second sensor application machines 132, 134 respectively. Such machines are well known to those having ordinary skill in the art and are commercially available.

In yet another embodiment, shown in FIG. 6, a covered dual security label 20a is provided that has an enclosing member 46, as shown in FIG. 6. Here the enclosing member 46 adheres or bonds strongly with the cover stock body 30. The enclosing member 46 has a first side 32a and a second side 34a. An the first side 32a of the cover stock body 30 is coated with an adhesive 36. To cover the antitheft devices 48 the first side 32a of the enclosing member 46 is moved in the direction indicated by arrow A toward the cover stock body 30. The enclosing member 46 thus contacts and adheres to the cover stock body 30 and the antitheft devices 48. After contact, no adhesive is exposed and the antitheft devices 48 (AM antitheft device 50 and RF antitheft device 52) are enclosed between the cover stock body 30 and enclosing member 46. The covered dual security label 20a is ready for use. An AM antitheft device 50 and a RFID sensor 56, or a RF antitheft device 52 and a RFID sensor 56 also be enclosed and covered in the same manner.

Also, in another embodiment, shown in FIG. 6A, a covered triple security label 100a is provided with a enclosing member 46. In particular, the enclosing member 46 adheres or bonds strongly with the cover stock body 30. The enclosing member 46 has a first side 32a and a second side 34a. A second self adhesive strip 36a having a adhesive layer first side 40a and adhesive layer second side adhesive 42a is provided, and adhered to the first side 32a of the enclosing member 46. Then, the second side 32a of the enclosing member 46 is moved in the direction indicated by arrow A toward the cover stock body 30. The enclosing member 46 then contacts and adheres to the cover stock body 30 and the antitheft devices 48 and RFID sensor 56. After contact, no adhesive is exposed and the antitheft devices 48 and RFID device 56 are enclosed between the cover stock body 30 and enclosing member 46. The covered triple security label 100a is ready for use.

Then, after the enclosing member 46 has been adhered to the cover stock body 30, the covered dual security label 20a or covered triple security label 100a can be deposited in the packaging used in connection with the products being sold.

It is noted that the cover stock body 30 and enclosing member 46 can comprise paper, fabric, coated paper products, woven fabrics, nonwoven fabrics, plastics, polyethylene and polyethylene films, and polyester and polyester blends, blown polyester, and combinations thereof, all of which allow the antitheft devices 48 to be carried thereon. Also, both the cover stock body 30 and enclosing member 46, respectively, are designed to carry a print that allows the end user to either disguise the covered dual security label 20a or covered triple security label 100a or to carry other information, such as a UPC (universal pricing code) directing the retailer where the covered dual security label 20a or covered triple security label 100a is embedded. Additionally, manufacturers can configure their product lines such that the covered dual and triple security labels, 20a, 100a, respectively, automatically drop into the product packaging.

It will be appreciated by those skilled in the art that while dual security label has been described above in connection with particular embodiments and examples, the dual security label is not necessarily so limited and other embodiments, examples, uses, and modifications and departures from the embodiments, examples, and uses may be made without departing from the dual security label. All of these embodiments are intended to be within the scope and spirit of the this dual security label.
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=10&f=G&l=50&d=PTXT&p=1&p=1&S1=7345583&OS=7345583&RS=7345583

United States Patent 6,404,341
Reid
What is claimed is:

1. A method of making a security tag comprising:

providing a first encapsulating strip;

placing an anti-theft strip on the first encapsulating strip;

applying an adhesive to the first encapsulating strip;

providing a second encapsulating strip;

pressing the second encapsulating strip to the first encapsulating strip so as to attach the first encapsulating strip to the second encapsulating strip to hold the anti-theft strip between the first and second encapsulating strips, wherein the first encapsulating strip is fabric and wherein the fabric further comprises blown fiber, and wherein the blown fiber is polyester.

2. A method of making a security tag comprising:

providing a first encapsulating strip;

placing an anti-theft strip on the first encapsulating strip;

providing a second encapsulating strip;

applying an adhesive to the second encapsulating strip;

pressing the second encapsulating strip to the first encapsulating strip so as to attach the first encapsulating strip to the second encapsulating strip to hold the anti-theft strip between the first and second encapsulating strips, wherein the second encapsulating strip is fabric and wherein the fabric further comprises blown fiber, and wherein the blown fiber is polyester.

3. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the first encapsulating strip is fabric, and wherein the fabric is comprised of blown fiber.

4. The security tag of claim 3 wherein the anti-theft strip is one of the following selected from the group consisting of: a metallic strip; a radio frequency resistor; and a radio frequency identification strip.

5. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the first encapsulating strip is fabric, and wherein the fabric is comprised of blown fiber, and

wherein the blown fiber is polyester.

6. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the second encapsulating strip is fabric and wherein the fabric is comprised of blown fiber.

7. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the second encapsulating strip is fabric and wherein the fabric is comprised of blown fiber, and wherein the blown fiber is polyester.

8. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the first encapsulating strip is fabric, and wherein the fabric is comprised of blown fiber, and

wherein the blown fiber includes polyester fibers.

9. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the first encapsulating strip is fabric, and wherein the fabric is comprised of blown fiber, and

wherein the blown fiber comprises polyester and cellulose.

10. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the second encapsulating strip is fabric and wherein the fabric is comprised of blown fiber, and wherein the blown fiber includes polyester fibers.

11. A security tag comprising:

a first encapsulating strip;

an anti-theft strip on the first encapsulating strip;

a second encapsulating strip on the anti-theft strip and the first encapsulating strip;

an adhesive between the first and second encapsulating strips for bonding the first encapsulating strip to the second encapsulating strip, wherein the second encapsulating strip is fabric and wherein the fabric is comprised of blown fiber, and wherein the blown fiber comprises polyester and cellulose.

Description



BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to an improved security tag and a method of making such a security tag. The security tag of the present invention can be used with clothing or other articles in order to prevent theft, for example from a retail store.

2. Description of the Prior Art

It is known in the prior art to use a pair of metallic strips attached to an article to prevent theft of the article. In such anti-theft systems, a magnetic field is established at an exit of a retail store. When the metallic strips enter the magnetic field, the magnetic field is disturbed and the presence of the magnetic strips is thereby detected. Upon detection, an alarm is caused to sound.

In lieu of a magnetic based system, radio frequency systems are also commonly known. Such systems use a radio frequency detection and emission device ("RFDED") attached to an article. A first radio frequency is emitted near an exit of the retail store. When the first radio frequency is detected by the RFDED, the RFDED emits a second radio frequency, which is detected by an alarm system. RFDED's are commonly referred to as a "radio frequency resistor" and may be included with a device commonly referred to as a "radio frequency identification strip."

The magnetic strips, radio frequency resistor and radio frequency identification strip described above are examples of anti-theft devices commonly in use. After reading this disclosure, it will be apparent to those skilled in the art that the present invention is not limited to a magnetic strip, radio frequency resistor or a radio frequency identification strip. These three devices are merely examples of the types of anti-theft devices that may be used with the present invention. Since the commonly used anti-theft devices are usually contained on a strip, such devices are herein referred to as "anti-theft strips."

In some of the prior art methods and devices, the anti-theft strip is covered by a fabric-like material, and then the edges of the material are sealed by application of heat or ultrasonic vibrations to encapsulate the anti-theft strip within the material. Such a method and device is disclosed in U.S. Pat. No. 5,583,489. A problem with such prior art devices is that the fabric-like material which encapsulates the anti-theft strip is easily separated to remove the anti-theft strip and thereby defeat the security function of the anti-theft strip.

SUMMARY OF THE INVENTION

An object of the present invention is to provide a security tag which holds the anti-theft strip in a secure manner.

Another object of the present invention is to provide a method of making the anti-theft strip according to the present invention.

Accordingly, the present invention includes an improved security tag and a method of making such a security tag. The security tag of the present invention includes two encapsulating strips, with an anti-theft strip between the encapsulating strips, and an adhesive for attaching the encapsulating strips to each other.

In the method of the present invention, a first encapsulating strip is provided, an anti-theft strip is placed on the first encapsulating strip, an adhesive is applied to at least one of the encapsulating strips, and then a second encapsulating strip is provided and pressed to the first encapsulating strip.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows an embodiment of the security tag of the present invention attached to an article of clothing;

FIG. 2 illustrates an embodiment of the present invention in which upon cleaning the article of clothing, the anti-theft strip will leave the article of clothing;

FIG. 3 is a cross-sectional view of the security tag according to the present invention attached to an article;

FIG. 4 is a top view of an embodiment of the security tag according to the present invention.

FIG. 5 is a flow chart showing steps of a method according to the present invention;

FIG. 6 is a perspective view of an apparatus for making the security tag according to the present invention;

FIG. 7 is a perspective view of another apparatus similar to that shown in FIG. 6 with a caterpuller added; and

FIG. 8 is a schematic of part of an apparatus for making the security tag according to the present invention.

DESCRIPTION OF THE PREFERRED EMBODIMENT

The present invention is an improved security tag 10 and a method of making such a security tag 10. As shown in FIGS. 1-3, the security tag 10 has a means for providing security (herein referred to as an "anti-theft strip") 14, such as a pair of metallic strips, held between two encapsulating strips 18,19. As discussed above, other types of anti-theft strips 14 are known in the art, including radio frequency resistors and radio frequency identification strips, and the present invention is not limited to any particular anti-theft strip 14.

One or both encapsulating strips 18,19 may be a flexible fabric. The flexible fabric may be woven, but a preferred flexible fabric is comprised of a blown fiber, and preferably includes polyester fibers. Such a blown fiber fabric is preferably comprised of 60% polyester, 39% cellulose and 1% polyvinyl alcohol. This preferred blown fiber fabric will allow a security tag 10 attached to an article 22 to be removed by tearing the encapsulating strips 18,19.

The encapsulating strips 18,19 are attached to each other by an adhesive 24. A preferred adhesive 24 is marketed under the trade name 3M 100 Fastbond Adhesive manufactured by the 3M Company located in Minnetonka, Minn. When the preferred adhesive 24 is used with the preferred blown fiber fabric, the adhesive 24 bonds the polyester fibers of the encapsulating strips 18,19 together to securely hold the anti-theft strip 14 between the encapsulating strips 18,19.

The encapsulating strips 18,19 may be larger than the anti-theft strip 14 in order to provide a location for attaching the security tag 10 to the article 22, such as an article of clothing. It is anticipated that a security tag 10 will be attached, for example by sewing, to the article 22, but a security tag 10 may also be placed inside the article 22 without attaching the security tag 10 to the article 22.

In an embodiment of the present invention, the adhesive 24 is water based so that the adhesive 24 will deteriorate after repeated cleaning of the article 22. One such adhesive 24 is the 3M 100 Fastbond Adhesive referenced above. When such an adhesive 24 is applied to only one of the encapsulating strips 18,19, the encapsulating strips 18, 19 will separate after one or two cleanings and release the anti-theft strip 14, as illustrated in FIG. 2. However, if the adhesive 24 is applied to both encapsulating strips 18, 19, many more cleanings are required to cause the encapsulating strips 18, 19 to separate.

FIG. 4 shows that a symbol 26, such as a trade name, can be printed on one or both of the encapsulating strips 18,19. Furthermore, one or both of the encapsulating strips 18,19 may be colored or sized as desired.

As shown in FIG. 5, a method of making the security tag 10 according to the present invention may begin by a first providing step 100 wherein the first encapsulating strip 18 is provided, and a second-providing step 104 wherein the second encapsulating strip 19 is provided. The method also includes a placing step 112 during which an anti-theft strip 14 is placed on the first encapsulating strip 18, and includes an attaching step 116 during which the second encapsulating strip 19 is attached to the first encapsulating strip 18, so as to hold the anti-theft strip 14 between the first and second encapsulating strips 18,19. In an embodiment of the method according to the present invention, the attaching step 116 includes applying an adhesive 24 to at least one of the encapsulating strips 18,19. The adhesive 24 may be applied by an air atomizing low pressure spray gun, such as model number Mach 1A Automatic manufactured by ITW Binks, located in Chicago, Ill.

The steps of the method described above need not be done in the order described. For example, the adhesive 24 applied in the attaching step 116 may be applied prior to the placing step 112 wherein the anti-theft strip 14 is placed on at least one of the encapsulating strips 18,19, or alternatively, may be applied after the placing step 112.

In a preferred method according to the present invention a symbol 26 is printed (step 120) on at least one of the encapsulating strips 18,19. Finally, the encapsulating strips 18,19 are severed (step 124) to produce a security tag 10, and placed in a shipping carton (step 130).

The method of the present invention can be practiced in a continuous process by an apparatus depicted in FIG. 6. In an example of such a continuous process, a ribbon of the first encapsulating strip 18 is fed from a first spool 28 to a cutter 30. As the first encapsulating strip 18 is fed to the cutter 30, anti-theft strips 14 are placed on the first encapsulating strip 18 by a strip dispenser 32 at a rate of about between 150 to 300 anti-theft strips 14 per minute, preferably at a location on the first encapsulating strip 18 prior to the printing machine 34. The strip dispenser 32 may be a wipe-on label application system, model number ALS-230R manufactured by Avery Dennison located in Hamburg, Germany.

As shown in FIG. 6, after placing the anti-theft strip 14 on the first encapsulating strip 18, the adhesive 24 is sprayed on a surface of the first encapsulating strip 18 by a sprayer 36, and then a ribbon of the second encapsulating strip 19 preferably having a width about equal to the first encapsulating strip 18 is fed from a second spool 38 and positioned over the first encapsulating strip 18, with adhesive 24 applied thereon, and over the anti-theft strip 14. As suggested above, the second encapsulating strip 19 may be sprayed with adhesive 24, for example, in the same manner as that described above with regard to the first encapsulating strip 18. Then in an attaching step 116 the second encapsulating strip 19 is attached to the first encapsulating strip 18 and to the anti-theft strip 14, preferably by pressing the first and second encapsulating strips 18,19 together to cause the adhesive 24 to adhere to both encapsulating strips 18,19. The force required to press the encapsulating strips 18,19 may be provided by the printing machine 34 and an opposing roller 40.

A surface 42 of either the first encapsulating strip 18, or the second encapsulating strip 19, or both, may then be subjected to the printing step 120 wherein a symbol 26 is printed by the printing machine 34 on one of the encapsulating strips 18,19. After the printing step 120, if any, the first and second encapsulating strips 18,19 are subjected to the severing step 124 wherein the encapsulating strips 18,19 are severed, for example by a cutter 30, to produce individual security tags 10. As shown in FIG. 8, the cutter 30 may include a cylinder 44 with cutting blades 46 arranged thereon, which is commonly known in the industry as a rotary cutter, and can be obtained from Calmec Precision Limited, located in Mississauga, Ontario.

FIG. 8 shows an optical sensor 48 inside the cutter 30. The optical sensor 48 detects marks on the cylinder 44 and sends a signal to the strip dispenser 32 via communication line 52. Upon receiving the signal from the optical sensor 48, the strip dispenser 32 is directed to dispense an anti-theft strip 14. An adjustable delay circuit 95 may be included so that the strip dispenser 32 is directed to dispense an anti-theft strip 14 at a time after the signal from the optical sensor 48 is received. In this manner, the anti-theft strip 14 can be properly positioned within the encapsulating strips 18,19, for example as shown in FIG. 4 and described above.

The security tags 10 are then sent to a packaging area 56, which may include a diverter chute 58 and a unit counter 60, for placing a predetermined number of the security tags 10 in a container 62B. The diverter chute 58 may be movable so as to permit placement of the security tags 10 in either container 62A or container 62B without moving the containers 62A, 62B. The unit counter 60 may include an optical sensing device such as model number E3SAD61, manufactured by Omron located in Japan. Alternatively, the strip dispenser 32 may include a counter, such as model number GEM20000 manufactured by Red Lion located in York, Pa.

It is contemplated that such a continuous process would need anti-static equipment 64 to protect the integrity of the anti-theft strip 14. Such anti-static equipment 64 can be obtained from Calmec Precision Limited, located in Mississauga, Ontario.

The apparatus of FIG. 6 can be modified as shown in FIG. 7 by adding a caterpuller 65. The caterpuller 65 is well known in the art, and can be obtained from Calmec Precision Limited, located in Mississauga, Ontario.

An example of the security tag 10 produced by the continuous process described above is shown in FIG. 4. It is preferred that the anti-theft strip 14 be placed off center so as to leave wider areas 66,68 of the encapsulating strips 18,19 adjacent to two sides 70,72 of the anti-theft strip 14. The wider areas 66,68 permit easy attachment of the security device 10 to an article 22, for example by sewing the security device in the wider areas 66,68 to the article 22. It should be noted that the dimensions of the security tag 10 shown in FIG. 4 are merely preferred dimensions that make the security tag 10 easy to apply with commonly used manufacturing equipment.

It is apparent that the present invention accomplishes the intended objects described above. The security tag of the present invention holds the anti-theft strip 14 in a secure manner, and the present invention provides a method of making the security tag.

Although preferred embodiments of the present invention have been described and illustrated herein, the present invention is not limited to such preferred embodiments. Since various changes could be made without departing from the spirit and scope of the invention, it is intended that the foregoing description shall be interpreted as illustrative, and not interpreted in a limiting sense. Furthermore, it is intended that the present invention shall be limited only by the following claims.
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=40&f=G&l=50&co1=AND&d=PTXT&s1=6404341&OS=6404341&RS=6404341

You forgot the bag of chips.

There are two US patents
US7345583 Filed 4/7/2004 Issued 3/18/2008
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=0&f=S&l=50&d=PTXT&RS=6404341&Refine=Refine+Search&Refine=Refine+Search&Query=7345583

US6404341 Filed 4/6/2000 Issued 6/11/2002
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=0&f=S&l=50&TERM1=6404341&FIELD1=&co1=AND&TERM2=&FIELD2=&d=PTXT

KMAG will take off.

Can you please point that out to me I can not find that part. I have yet to have my morning Coffee. Just show me a link please.
https://www.sec.gov/investor/pubs/microcapstock.htm

I am sorry I think I did make a mistake.

It is the word "must" that made me realize that a company "must" file an 8k if a significant events occurs.

If the company has 2,000 or more investors or more than 500 investors that do not qualify as 'accredited investors,' and $10 million or more in assets; or

A company can also file an 8k if a significant events occurs, if it does not meet the above criteria. The company has the option, but does not have to file (it is not a "must") if a significant events occurs. So I believe KMAG can file an 8k anytime there is a significant events occurs. regardless of $10 million or more in assets. Am I understanding this correctly?
https://www.sec.gov/investor/pubs/microcapstock.htm

The ten million dollar question. Does kmag have 10 million in assets???