Grand Pacaraima Gold Corp. announced recently that the company has acquired Intellectual property (IP) rights to radio frequency identification (RFID) technology (patent pending). The technology involves using RFID tags specifically developed for use in jewelry retail stores to cut inventory management costs and enhances protection from theft. Grand Pacaraima Gold will begin manufacturing unique tags that will be attached to the jewelry items and will track the tagged items' location in the store or warehouse. Store management will be alerted if the item was moved or was not returned to the shelf. Grand Pacaraima Gold has licensed the technology from an Israel-based group that has created the tags and technology.

Each tag contains a unique identification number which, when wirelessly scanned by a small electronic reader, is transmitted to an inventory database that runs on a standard PC in the store or online. Grand Pacaraima Gold is developing a web-based database that will contain detailed information on each piece of jewelry and its picture, enabling an immediate identification of any item. The RFID tags are initially being deployed in Los Angeles jewelry retail stores before the technology is rolled out to the market internationally.

A. Abduladjanov, Chairman of the Board, said, "The tags will revolutionize the way the jewelry industry is managing the inventory and supply chain. The innovative technology means that store personnel can control the jewelry inventory in real time. Because the technology gives you real time access to a detailed inventory count with information about which items are hot sellers, store management can adjust inventory levels or pre-order new inventory in a more efficient way."

Industry problems like shoplifting or employee theft can be reduced dramatically through the use of the tags, which is RFID technology. A unique patent pending design of each tag which acts as an electronic mirror which is constantly sending signals back to transmitters and will be installed in the retail stores of the client. Once the tag has been removed or tampered with, the tag will transmit a different signal. "So, if customers try to remove a tag from a cheaper item, then attach it to a more expensive item, store personnel will be immediately alerted that it has been tampered with," Abdulladjanov said.

RFID is increasingly being deployed by retail merchants such as Marks & Spencer and Wal-Mart. The company anticipates significant interest in its electronic jewelry tags after market launch.