SAP, Nokia, and a German-based supplier of security technologies have formed a company that will let businesses use smartphones to track products that are susceptible to counterfeit and piracy.

The company, called Original1, will be headquartered in Frankfurt, Germany, and will offer product authentication and anti-counterfeit services across the globe.

Specifically, using Original1's products, manufacturers would tag prescription drugs, packaged software, designer-labeled products, and other items susceptible to counterfeit with smart barcodes. Personnel both in the supply chain and at retail sites would be able to verify the identity of products by swiping them against a reader on their Nokia smartphones and matching that information to a database.

Original1's services will use SAP server software and Nokia's mobile authentication software. Germany-based Giesecke & Devrient, which is the third owner of Original1, will supply the security and ID-related technologies, including user authentication and data encryption. Claudia Alsdorf, currently VP of SAP Research, will head Original1, which is scheduled to open by year's end.

"We see a big business opportunity in brand protection services," said Antti-Jussi Suominen, GM of commerce, corporate development at Nokia, in a prepared statement. "Nokia started a mobile phone-based product authentication business program in 2006; this joint venture is a logical step in evolving that business."

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