Hierarchical electronic watermarks and method of use

摘要

A method and apparatus for authenticating currency and other important documents. A preferred embodiment may contain both a substrate, such as paper, and an embedded RFID transponder. An embedded RFID transponder or electronic watermark may contain multiple hierarchical layers of electronic passwords that are used to electronically protect the host currency from counterfeiting, or unauthorized modification. In addition, such intelligent RFID tags may uniquely identify a particular document and data related to the document. The authenticating agency can utilize a public or private Electronic Product Code database as a means for the authenticating agency and third parties to authenticate documents and data in documents. The intelligent interactive Electronic Product Code can be used as an anti-counterfeit mechanism enabling third parties requested to provide services, benefits or monetary payments to authenticate documents and prevent counterfeits.