WARNING: This post is a little long, legal, slightly technical and might be hard to follow but once you get through it you’ll have bragging rights on basic microchip ins-and-outs. A discussion of microchip readers comes in Part 3 of this series. (I had to split it up, there was just so much to this back-story, so there will be a Part 4 in this series, too).
In the US, there are two different kinds of chips based on the use of radio wave technology. There’s the 125 kHz chip (used by AVID and HomeAgain since the mid-nineties) and there’s the ISO (international standard) microchip which operates at 134.2 kHz (introduced by Banfield in 2004).
These two different radio wave frequencies represent two distinct technologies. But you can only buy one of these—the 125 kind used by AVID and HomeAgain (and since Feb 2007 by AKC-CAR).
The other, a chip manufactured by Crystal Technologies was introduced by Banfield (and marketed briefly in 2004) but is not available. This is the result of a law suit brought by AVID in 2004. HomeAgain “countersued,” citing monopolistic practices but AVID prevailed in early 2006 due to their early patents on their technology and access to the marketplace.
Here’s some background on the 125 versus 134.2 thing:
Currently (June, 2007) the so-called “ISO” standard for microchips manufactured for use in identifying animals has been adopted the world around. Only the major US companies (AVID and, almost immediately after, HomeAgain) opted for the 125 kHz technology instead of the ISO system, in spite of broad industry support for this international standard (set by the ISO, a Swiss organization that devises neutral standards—which, for example, make credit cards usable all over the world).
Already in use to identify wildlife in the US, the ISO technology itself enjoys the support of the AVMA, HSUS, AKC and other organizations due to its lower cost and equivalent technology. AVID first marketed its chip in the US with the help of Shering-Plough (now HomeAgain’s partner), claiming these chips were easier to read. It gained market dominance by distributing free readers to shelters nationwide and to all vet retailers.
Essentially, the US companies bet on Betamax, already knowing that the rest of the world preferred VHS. But getting in early on the marketing and ditribution of a patented technology was the only way to corner the US market on this promising technology.
You might think that’s OK—the rest of the world uses one standard and we use another. No big deal. It happens in other industries. But what happens when pets cross international lines? They need new microchips in the US. And what happens when a company tries to introduce the world’s standard in the US? They are legally barred from gaining entry, and not just for patent infringement.
You may have read about this story. Banfield, with its burgeoning chain of thousands of vet practices (and a whopping database to match) introduced the ISO standard microchip to compete with AVID and HomeAgain’s. Its stated vision was to bring the US market in line with international standards so that, eventually, all microchipped pets would be equally protected.
Sure, Banfield had money-making designs, too. It was partly trying to segment the US microchip market so it could get in on the action. But it was also acknowledging that VHS had won while we were all still using Betamax in our American bubble, to the eventual detriment of our increasingly globalized pets. (Nowhere, perhaps, is this more apparent than in Miami, though it may sound like hogwash in the heartland.)
AVID’s legal grounds for barring Banfield’s chip were based on their patents, but they also brought suit on animal safety concerns. They successfully argued that Banfield was doing its patients a disservice by introducing another microchip to the marketplace without the infrastructure in place to detect them.
Though Banfield had distributed 3000 free readers across the US, this was nowhere near the level required to detect these chipped pets. As a result, Banfield got lots of negative press for trying to introduce another standard—to the detriment of its pet patients who would not be protected by a technology most shelters don’t support (at least one of which was verifiably euthanized).
All that tough love aside, Banfield might have held the higher moral ground (“Let’s go the way of the rest of the world, fellow country-men.”) were it not for their way of going about it. They failed to inform their customers of the limitations of their isolated technology. In other words, they sold thousands of microchips without telling their clients that most local shelters and non-Banfield vets wouldn’t be able to read them, thereby rendering these chips ineffective. Now that’s not so smart, is it?
All Banfield-bashing aside (for there’s enough blame to go around) let’s talk about microchip reader technology and how that factors into things. See the next installment for more history and technology behind the microchip wars.
Add Comment12 Comments
So why doesn't some company step in and create a reader that can check for both frequencies? Even if it needs a switch flipped to change frequencies, wouldn't that be good? And what if that company created a database that housed the info for the chips from any of the companies? If they know a certain chip number is registered to company X then they can contact company X to let them know one of their registered pets has been scanned, then company X can contact the owner and the pet gets found... no pissing contests, just helping out the owners that love their pets enough to try to ensure they can be located no matter what the situation. I suppose that's a bit too utopian for them to bother with, huh?
Brandy June 27th, 2007 03:31:00 PM
The problem with that is most readers are currently passed out *for free* to shelters, etc. No one is going to pay money when they already have a perfectly functioning reader. They feel good using the one they have. Why invest? So there's no market for such a reader, no matter how wonderful it may be.
Georg June 27th, 2007 03:49:00 PM
Sounds like the Microchip people are following the Cell Phone Company business model. Everyone else in the entire world can use their phones in every other country but this one. And yet I have to bum a cell phone from some dutch guy while in Paris because my 'international phone' didn't work (this was 4 years ago). Not fair, but the divergent technology made a lot of Americans very rich. Now they are finally getting "quad band phones", yadda yadda yadda, but you pay a serious price for that.
This is so irritating. But I like the idea of the Universal readers.
amy June 27th, 2007 05:43:00 PM
Universal readers and their impact...coming up.
Dr. Patty Khuly June 27th, 2007 06:32:00 PM
Simply put, there are too many chiefs and not enough indians surrounding the whole microchip issue. Everybody wants to stick their little greedy hands in the pot and try to win the monoply of the whole concept. This is nothing new of course. Bill Gates has been playing this type of game for years with Microsoft. All the while, pet owners are literally chasing their own tails by trying to do the right thing by having their animals done in case they are lost.
It's just another prime example of corporate BS and greed.
Stacy June 27th, 2007 09:27:00 PM
You should see the microchip authorization form we have to have clients fill out at Banfield. It's glaringly obvious that somewhere, even if you didn't hear about it, Banfield got a lot of negative press about the 134 chip...so now we implant both, and the authorization form reads as one long disclaimer. It basically says that Banfield won't guarantee that your pet's chip can be read by the shelter's scanner...or that the shelter will even scan...or if the shelter does scan, the chip could migrate and not be picked up (which is true)...although it does state that if the shelter does scan, it probably won't pick up the 134 but should pick up the 125. They had just phased in the "TruPaws" system (by Crystal) when I started...there's still several boxes of unused Avid/HomeAgain chips from before they started offering the 134...collecting dust. I agree that they obviously went about initially offering the 134 the wrong way, but I'm happy that we now implant both for a single price.
anna June 27th, 2007 11:11:00 PM
Hmm, perhaps this would be a good reason to get a dog tattooed instead of chipped? I don't know how the tattoo registries work, but it would seem like there wouldn't be the problem of incompatible technologies.
Janine June 28th, 2007 01:07:00 AM
Hi Patty, thanks for these informative posts about microchips. This is one thing I haven't done a lot of research on. Our pit mix Kolbe came from the local SPCA before they started microchipping all adoptable pets. Our second dog Guster also came from the SPCA a year later, where they now microchip and tattoo all of the animals they adopt out. So once I found this out, I've contemplated getting Kolbe microchipped...they both wear name tags, rabies tags, and tags from the SPCA, and wanted the "extra protection" for Kolbe...but it looks like I have more reading to do before I decide what I want to do.
Carissa S. June 28th, 2007 03:03:00 PM
Patty, awesome series. Can't wait to see what part 3 and 4 brings. I've done my research too so think I know what's coming but will keep the suspense going. Laura
Laura Bennett June 28th, 2007 09:05:00 PM
Patty - There are actually FOUR frequencies in use in the USA today: 125 kHz unencrypted, 125 kHz encrypted, 128 kHz, and 134 kHz. AKC CAR are the only folks using the orphan frequency of 128 kHz I believe.
What is amusing is that AVID has sued the other companies for putting out chips without the readers in place, a true enough assertion. But AVID wanted to ENCRYPT the microchip number so that only AVID could decrypt it! AVID was trying to do a Bill Gates. I don't know if they still carry out this practice but it's a little pot-calling-kettle-black of AVID to criticize others.
alex June 29th, 2007 11:34:00 PM
I'm in Canada and when I went to get a microchip for my dog I was told there were 2 kinds-Avid and ISO. They told me that the Avid chip is less expensive but only works in North America so if I was planning on traveling abroad and wasn't concerned that it wasn't approved by the CKC (only the ISO chip is approved by the CKC) I could opt for the ISO chip. I didn't realize that the ISO chip was *not at all* readable in the US though-I found the whole thing a bit confusing though so perhaps I just misunderstood. Thanks for clearing all of this up! I did opt for the AVID chip in the end because it was more affordable and I'm not planning on taking my dog outside of North America.
katy July 3rd, 2007 03:20:00 PM
'if I was planning on traveling abroad and wasn't concerned that it wasn't approved by the CKC (only the ISO chip is approved by the CKC) I could opt for the ISO chip"
that should say I could opt for the Avid chip, not ISO
oops ;)
katy July 3rd, 2007 03:28:00 PM
Add Commment