Michael McDonald, a branding expert at HP, pointed out this WSJ article on the "watch that can't be counterfeited":

http://online.wsj.com/article/SB122411896958338969.html?mod=dist_smartbrief

Let's spot a couple of questionable aspects about their approach:

1. The watch "uses layers of invisible UV marking, laser perforations of some watch parts, special high-security inks, and other measures used to secure passports and currencies like the euro and Swiss franc." This is a focus on covert and forensic marks, none of which mean anything to the would-be snob who wants her friends to think it's genuine.

2. "The company, which produces about 18,000 watches annually, expects to make 800 Quai de l'Iles a year." Will the demand be higher than the supply? Absolutely. And, how many of those "demanding" the watch would rather pay $400 for a good fake than $29,000-$60,000 for the real thing? As Bono might muse, a $400 watch without the laser perforations is "even better than the real thing".

Don't get me wrong, I like that they're using microtext ("Tiny texts on the dials of some models -- illegible without the aid of a magnifying glass") and invisible inks (although it's not clear that they are using variable text and perforations, I'm assuming they've done that considering the expertise of their consultants). It may be, however, that they've failed to fully consider the ecosystem for authentication. Have you ever had a friend (insufferable or otherwise) show you an elegant watch and then wait for you to pull out your UV light and loupe?

There is, of course, part of the ecosystem for authentication they've addressed successfully. That of bad retailers trying to pawn fake Quai de I'lles as real. Those coverts and forensics may help there. Just so long as they don't issue a "come-and-get-me challenge" to would-be counterfeiters, that is.

Whoops, too late.

-->This appears to have given would-be counterfeiters an opportunity to get cracking on Vacheron's come-and-get-me challenge. Mr. Pfund, who is currently designing the 2010 series of the Quai de l'Ile, says, "They already have fakes of this watch. I saw one yesterday on the Internet. Of course, the movement is wrong -- a lot of things are wrong."

-Steve