Sramana Mitra: Can you give me a sense of how much people are paying for things like that? What’s an average deal size? What ballpark is the pricing?
Barry Adika: A company like Adidas has 77 people that’s doing price monitoring every day. They have two lawyers on staff. With our software, they can have two lawyers and another three or four people.
It depends on what the company is spending today. A client can pay $6,000 a year for seller information. We have another client that can pay us $30,000 a month and use every single feature there is.
The big ROI in our software is how much money do we save you by limiting online sites from selling counterfeit products. This is money that you never knew you were losing. Counterfeit is in millions of dollars. Leakages from factories producing products are also enormous. Those products show up on Amazon which get to consumers.
Part of what we try to do is the full cycle of authentication. We want to give them serial numbers in order to protect the end consumers when they receive the products. All they needs to do is open the app and scan the product. It’s a really convenient solution. I’m very passionate about what I do. I’m not a cyber security guy. I hire an amazing team in Israel.
Sramana Mitra: What is the level of adoption of your kind of technology? How much of the market has adopted something like this?
Barry Adika: The awareness of brand protection over the last two years is growing every day. We definitely see growth. The good thing is, we get it from angles that we didn’t even thought were possible. We get it from insurance companies that protect trademarks. We get it from IP lawyers that have many different clients. It’s many different tiers. What’s fascinating about this is, it’s growing.
Sramana Mitra: Look around. In this general domain, are there other issues that are coming up that you think need new companies to solve those problems?
Barry Adika: Most of the companies are the big cyber security companies. But they’re giving solutions to larger corporations. If I tell you that Bank of America or Chase is spending close to a billion dollars on cyber security, will you believe me? No, because it’s not publicized.
This is what they do in order to maintain their clients. Cyber security firms like Cisco, Checkpoint, and Palo Alto Networks provide solutions to multi-billion dollar corporations. What about a solution for a brand that is much smaller than that?
Sramana Mitra: None of the companies you named are into brand protection. They’re into more intrusion and vulnerability management. I don’t know that any of them do brand protection.
Barry Adika: Brand protection, for them, does not fall inside cyber security. We took every mechanism on brand protection and good mechanisms for cyber security and married the two. I think that the bigger companies I mentioned should also find a solution for the smaller organizations, and really engage with the consumers and companies and give them a solution.
The mom-and-pop businesses don’t have the money to pay Checkpoint. They still want to protect their name. They don’t have a choice because the business changes. Everything is online.
Sramana Mitra: Thank you for your time.