Computer locks

	The FMS-5AS DragaMouse from Hong Kong's Linpo Optics provides three levels of data access security: logon, screensaver lock and file encryption.

Strong laptop market and demand for security to boost Greater China's PC security industry

PC security products currently comprise a minor line in Greater China’s supply market for computer peripherals and related products. Makers expect market growth to be driven by the bullish laptop market and the growing need for security, particularly for notebook PCs that are easily stolen. A growing number of suppliers in mainland China expect the increase in laptop supply worldwide will translate into rising production of different peripheral products, including PC security products.

The bulk of supply includes PC locks of different types—mechanical, electronic and wireless—generally regarded as low end. Several companies have released biometrics-based security devices designed for access control and data protection. More suppliers in Hong Kong have in recent years switched their focus to data rather than physical protection in response to findings that in most cases of laptop theft, the stolen data is more valuable than the computer itself. As this trend gains more traction, production of PC locks will decline steadily. Suppliers of access and data protection devices are looking to take advantage of the latest advances in biometrics, encryption, RFID tracking and wireless Internet to be able to offer higher-value access and data protection.

Mainland China suppliers offer laptop steel cable locks, desktop lockdown plates, privacy filters and USB PC locks. Laptop steel cable locks and USB PC locks combined take up a chunk of mainland production, as the former is not technology-intensive and the latter is a derivative of the mature USB flash drive market.

Taiwan’s PC security sector yields both hardware and software products. Growing awareness of the importance of privacy and data security has contributed to the increasing demand for PC security products. Large manufacturers such as AsusTek Computer Inc. and Acer Inc. have launched laptops featuring fingerprint recognition technology. Most suppliers make mechanical and electronic computer locks.

With PC security yet to become makers’ staple product, output across Greater China has remained relatively smaller compared with other PC products and peripherals. Even suppliers in Taiwan, which have been dominating the PC supply market in the region, do not pursue PC locks as a mainstream product. In mainland China, makers forecast stable output, with ready capacity in case orders rise.

Mainland China has less than 20 suppliers of different security products for computers. Most makers are based in Shenzhen, Dongguan and Guangzhou of Guangdong province, and a few more in Zhejiang.

More companies are active in making laptop steel cable locks. There were about five makers of USB PC locks in Shenzhen in late 2007, and makers expect newcomers to expand the supplier base this year. The supplier base for privacy filters will likely remain small.

Taiwan has 17 suppliers of PC security products, including trading companies, according to Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA). However, as the figure is based on TEEMA’s membership base, the actual supplier base for PC security products may be larger.

Grave concerns about data security and the resulting rising demand for PC security products have encouraged companies to enter this line in recent years in Taiwan, according to Jin Tay Industries Co. Ltd, despite the reduced market share resulting from more competition. Each year, there are about 10 newcomers joining the fray.

In Hong Kong, there are less than 10 suppliers of PC security products. Many of these companies supply PC locks, the most ubiquitous of computer security devices.

Most overseas shipments from these companies go to EU and North America, where laptops have a high penetration rate.

	The 4003001 notebook security lock from Connectland of Hong Kong is a 1.5m-long stainless steel wire with PVC shield.

Greater China’s supply yields different types of products—from basic locks to more advanced biometrics devices. No product type can be singled out as dominant, as the different products cater to various applications and market segments.

Mechanical locks generally target the low-priced market and users requiring only medium-level computer security, such as students and office workers. Computer locks of the electronic type provide a higher level of data security and may be targeted at enterprises, schools, libraries and public spaces.

Despite the low technology threshold, few suppliers offer PC locks to focus on higher-value, better-margin products. Hong Kong’s Connectland Technology Ltd includes PC locks among more than 1,000 computer peripherals in its product catalog.

Taiwan’s supply of mechanical locks includes traditional lock sets with keys, combination locks and 5-in-one locks. Traditional locks come with keys that can be easily lost, and combination locks use number digits and dials. Five-in-one or 3-in-one locks are designed to lock and chain together computers along with their other devices, such as printers and modems. Most makers in Taiwan follow the design trends set by leading computer lock makers, such as Kensington Computer Products Group.

Mechanical locks consist of a metal body, keys and wires to chain computers in place. Taiwan’s Jin Tay houses its locks in zinc alloy with nickel electroplating to prevent corrosion. The keys are typically made of brass and are also coated with nickel for anti-corrosion. Stainless steel is widely used for the wire, while clear PVC is used to wrap around the steel wire. Some suppliers use high-carbon steel for the wires.

Meanwhile, electronic locks are made using mainly RF technologies. Wireless PC locks, such as those from Spirit-On Enterprise Co. Ltd, come with a transmitter and receiver. The user can carry the transmitter, while the receiver is plugged in the USB port. The PC’s keyboard and mouse are locked when the user steps at least 3m away from the computer.

Linpo Optics Ltd develops biometrics-enabled products for access control. It integrates fingerprint sensor technology for data access protection in storage devices such as flash drives and external hard disks. It also offers portable USB devices for locking computers and denying access to unauthorized users.

The DragaStick from Linpo Optics is a USB flash drive with a fingerprint sweep sensor. It is available with 32MB to 4GB flash memory and contains a TDES symmetric encryption engine to protect data against intruders.

The sweep-type capacitive sensor in the DragaStick enables live scanning of 3D-fingerprint minutiae. The sensor comes with a distinctive blue LED light and is scratch-resistant to ensure high matching accuracy and durability. Measuring 80x27x11mm, 10 fingerprint templates the device can save.

Another model from Linpo Optics, the DragaMouse, incorporates electronic computer locking function. Like the DragaStick, the DragaMouse has a built-in fingerprint ID scanner with a sweep-type capacitive sensor for user authentication. It provides three levels of data access security: logon, screensaver lock and file encryption. The locking function gives users the option of locking the computer or individual files only. Users also have the option of converting the DragaMouse into a 3-in-1 device by incorporating accessible flash memory into the device. Buyers can choose from 5- and 10-template versions.

Linpo Optics’ FID-Mouse is another series of computer locking mice. It features optical and capacitive touch-type sensors, instead of the sweep-type sensor of the DragaMouse series.

RCG Corp. offers consumer-level computer security devices and facial recognition access software, as well as notebook computers preloaded with its facial recognition authentication technology. The X-Key from RCG is a USB PC lock against unauthorized access and accidental deletion. It provides logon and PC lock functions, as well as stealth-mode folder and file protection.

RCG’s FxSecure Key is a notebook computer antitheft device that fits in a standard PCMCIA slot. It supports on-the-fly folder, drive and file encryption, and doubles as a wireless modem with 3G connectivity and 7.2Mbps/384Kbps downlink/uplink speeds.

The SecureBook Series comprises notebook computers in different computing configurations integrating RCG’s biometric facial and fingerprint recognition technologies.

Giga-TMS Inc. immobilizes a computer and its peripherals with the use of a smart card, or ‘proximity card’ as the company calls it, which uses RFID technology. The company’s Winloq PCR300 is an access control card and card reader that can verify a user through the registration ID coded in the smart card. It records the access history of the computer for possible future tracking. The Winloq PCR300 is compatible with most of the operating systems under Microsoft Windows.

More companies in Hong Kong have been focusing on protecting data rather than the hardware. Makers expect fewer active players in the physical lock arena, as more suppliers shift to high-end security products.

Linpo Optics is one of Hong Kong’s leading suppliers of IT products integrating the latest in fingerprint biometrics technology. Linpo Optics specializes in hardware and software development, and utilizes partner factories’ manufacturing services with a production capacity of 100,000 PC-locking electronic devices per month. Its biometrics-enabled devices use fingerprint sensors from Atrua, AuthenTec and LTT.

RCG makes biometrics-enabled PC security products. Listed at the London Stock Exchange, the company has built a reputation as a developer of leading-edge, enterprise-level multifactor biometric and RFID solutions for many years before opening its consumer product division. It is based in Hong Kong’s IT flagship project, the Cyberport, and has R&D teams in Malaysia and Shenzhen. Its Malaysia factory employs about 200 workers and has a production capacity of 20,000 units per month.

More mainland China companies are exploring the PC security industry and are, thus, venturing into new security product types.

USB Online Electronic Ltd, which has been focusing on USB products, started developing USB PC locks. Production in 2007 was small at 60,000 units, but the company forecast a moderate increase in output volume this year. Its USB PC locks are targeted at the midrange and high-end segments. The company’s password-enabled USB PC locks are priced at $4.50. New products with password and fingerprint security will list at $20 each.

USB Online’s 10,000sqm 5-story factory has facilities for mold design, plastic injection molding, component insertion, SMT and soldering. The company outsources other production processes.

Huado (GZ) Computer Tech Co. Ltd specializes in laptop enclosures, monitor anti-reflection PVB papers and keyboard stickers. The company started making privacy filters in H2 2007, with production divided into
60 percent domestic and 40 percent export shipments.

Huado’s privacy filters are either stuck to monitor panels by double-sided stickers or embedded in the panel enclosure, which covers the entire monitor brim. The company projects its monthly output will reach 500 units later this year from 300 units initially. It sources filters from 3M.

Tons International Ltd is a trading company that specializes in computers and computer peripherals. Its computer security product focus is on laptop steel cable lock. It exported 20,000 units in 2007, mainly to EU.

Tons International sells its laptop steel cable locks for $1 to $3 each. The company carries 20 new models a month. One new model features password-enabled cable lock.

Many Taiwan suppliers do not place a heavy premium on vertically integrated production, although most companies have in-house production capabilities.

Spirit-On manufactures RF modules—its main product—for its wireless computer locks, but outsources the other components. All parts are then assembled in-house.

Spirit-On makes 8,000 wireless PC locks a month. The company’s products comply with RoHS. Its main markets include North America and Western Europe.

Giga-TMS follows a similar manufacturing approach, wherein in-house production largely revolves around the production of major parts and final product assembly.

Jin Tay, established in 1987 as a lock set maker for cabinets and doors, began producing locks for PCs and peripherals only about six years ago. Jin Tay produces metal components whenever die-casting and stamping can be used, and injects plastic parts that it needs for products. Although some parts are outsourced, assembly and surface treatments on the finished products are conducted in-house.