17 DECEMBER, 2004

Generation 2 testing complete

The feasibility testing for the UHF Generation 2 RFID tag standard has just been completed by EPCglobal, moving the organisation close to its goal of ratification of the standard by the end of 2004. There are, however, still several issues that need to be resolved before companies get the chance to exploit it.

There are two main benefits from Generation 2. One is the availability of Global Tags. Country-specific tags based on different frequencies would make the Return on Investment (ROI) for RFID unattainable for global companies that operate in multiple countries. These need a single standard for tags to truly integrate RFID into their supply chain. The second benefit is Multiple Read/Write capabilities. This will provide support for multiple reads and writes to a tag, offering the important potential for tag reuse and the chance to generate a significantly change in the economics of RFID and the delivery of a better ROI.

But there are still problems to be resolved. Interference, for example is still a problem as the specification operates in the UHF range, around 900MHz. This can lead to interference issues with the GSM/GPRS cellular networks outside the United States, and Generation 2 gear must be tested in real environments to understand how companies must work around the interference. Another problem area concerns the Intellectual Property Rights of Intermec, which holds several key patents related to the Generation 2 specification. Intermec suspended its Intellectual Property licensing program for 60 days to allow for the testing to be completed. But suspension is not long-term resolution, and this issue will need to be resolved before vendors dare to start producing Generation 2 equipment for sale.

The specification should, however, allow companies to create a global infrastructure for RFID and makes the ROI more easily attainable. There is already a good deal of knowledge that has been built up by the coterie of specification early adopters on dealing with interference and frequency issues. This leaves Intermec's Intellectual Property Rights as the burning issue still to be resolved, for without that what could otherwise be a significant step forward will find itself stymied.