Philips Semiconductors announced a cooperation agreement with the French card manufacturer Gemplus to develop "smart labels" based on chip technology.

Designed for such functions as inventory tracking, data entry, and counterfeit protection, the systems rely on the same radio-frequency identification devices as contactless smart cards, such as those used for mass transit and highway toll collections. Gemplus formed a business unit, Gemplus Tag, aiming to cut into the market-share dominance of bar coding.

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