by guest » Mon Jul 25, 2005 8:10 am
Cary Conover for The New York Times
A transponder, which is inserted under the skin.
But the industry that has grown up to market the tags in the United States has been locked in a bitter battle recently over which radio frequency to use. The wrangling has led to confusion and anger among veterinarians, animal shelters and pet owners, and in one case, a runaway dog being accidentally put to death.
The main dispute pits supporters of an international standard, which is also used in the United States in tracking livestock, against companies that have built the domestic pet tracking business based on tags and scanners that operate at a lower frequency.
A second conflict is over the insistence of American Veterinary Identification Devices, one of the first companies to make tags, that its tags be encrypted. The company says it does so to fight fraud. As competitors and many tag users see it, encryption serves mainly to tie customers to its database and drive up costs.
The infighting over the standards has been so intense that Iams, the pet food division of the consumer products giant Procter & Gamble, has suspended a pledge to donate 30,000 tag scanners able to read both frequencies to animal shelters - enough, it says, to blanket the nation.
"We won't go into a situation we know will put us into a lawsuit," said Kelly Vanesse, a spokeswoman for Iams. "It's a very emotional debate, and it's been very disheartening for us."
The first signs of a compromise emerged recently with a proposal July 12 by American Veterinary, known in the industry as AVID, and Banfield, a pet hospital chain that has been one of its leading opponents, to finance an independent study of the available technology and steps needed to create a universal tag- reading standard. The chief executives of the two companies wrote a letter asking the Coalition for Reuniting Pets and Families, a consortium of veterinary and animal welfare groups recently organized by the Humane Society of the United States, to oversee the study.
The letter suggested that the study could be completed within 90 days at a cost of $20,000 to $50,000. It recommended that a transition period of five years be proposed if the study concluded that new technology would be needed to create a universal system.
"I suspect the coalition will support anything that will put this issue to rest but we have to be sure we can do it in a way that won't be second-guessed," said John Snyder, the Humane Society's representative to the group. He said the group was trying to organize a conference call to discuss the offer before the end of the month.
The proposal emerged shortly after American Veterinary and Banfield agreed on July 5 to settle a lawsuit in a California court. American Veterinary and Dr. Robert F. Stonebreaker, a veterinarian in Del Mar, Calif., accused Banfield of deceptive marketing. Banfield, which is 30 percent owned by Petsmart, has three stand-alone hospitals and about 450 others in Petsmart stores. It implanted chips based on the international standard for several months in 2004. The lawsuit said Banfield had not provided enough warning that most American shelters and veterinarians did not have the right type of scanner to read them.
The standards conflict has spawned antitrust and civil fraud lawsuits and spilled over into Congress. Supporters of the international standard recently succeeded in inserting a provision directing federal support for it in legislation that passed the House of Representatives.
There has also been at least one case of confusion that led to a dog's being put to death. The dog, a pit bull named Hayden, had been implanted at a Banfield hospital with a radio tag before running away from its owner, Lisa Massey of Stafford, Va. He was euthanized shortly before Ms. Massey arrived at the shelter where he ended up. Workers there had failed to find the tag because they were using a scanner that could recognize only lower-frequency tags.
Veterinarians say that it is likely that other animals have also perished or have been given to new owners because of the lack of a universal standard but that the extent of the problem is unknowable.
The radio tags are rice-size microchips originally developed to track and identify livestock. They are inserted into the shoulders of dogs and cats and less frequently to other types of pets.
When a radio scanner is passed over the animal, the energy from the scan powers up the chip to respond with its identification number. That number corresponds to information about the owner in one of many databases that have been set up by chip manufacturers, pet hospitals and animal welfare groups.
The pet identification business was pioneered in the United States by American Veterinary and Destron-Fearing, now owned by the Digital Angel Corporation. Digital Angel distributes its HomeAgain chips through Schering-Plough. Both companies use chips in the United States that operate on a frequency of 125 kilohertz.
The rest of the world, though, has settled on a frequency of 134.2 kilohertz. Advocates for the world standard, which has been officially adopted by the International Standards Organization, include a wide range of veterinary and animal welfare groups in the United States because it opens the way to more competition.
Prices for chips and scanners in Europe are about half those in the United States, according to backers of the international standard. While some pet owners may pay little or nothing extra to get a chipped animal from a shelter, American veterinarians often charge $25 to $60 for the service.
Because the data on the chip is just a reference number to an outside database, the pet owner must also register with the company or group that stores information about the animal and its home. That service typically costs up to $20 with additional charges to change information.
Chipping rates have soared in Europe with the adoption of the international standard, in part because European nations have begun requiring all pets crossing borders to be radio tagged. By some estimates, as many as half the dogs in England are now chipped, which would be 10 times the level commonly estimated for the United States.
Digital Angel, a public company based in South St. Paul, Minn., and American Veterinary, which is privately owned and based in Norco, Calif., have charged that vendors of the international standard have invaded the American market in a reckless way that endangers animals.
American Veterinary also said that moving to the international standard would waste the $20 million investment in more than 100,000 scanners geared to the American standard that have been distributed over the years.
Shering-Plough says that would-be vendors of the international chip have underestimated the investment needed to run accurate databases, without which the chips are useless.
The most aggressive newcomer has been DataMars, a privately held company based in Lugano, Switzerland. DataMars thought it had achieved a breakthrough last year when it reached a distribution agreement with Banfield.
Banfield announced a $19.95 bargain plan for chipping pets in February 2004 and implanted 26,000 animals over the next few months. American Veterinary and Digital Angel immediately said Banfield was misleading consumers because so few high-frequency scanners had been distributed that the tags would often go unread. And even when shelters had the scanners many workers did not realize that they worked on a different frequency.
Banfield stopped the implants in May 2004.
American Veterinary and Digital Angel filed patent infringement suits against DataMars and its American subsidiaries. In December, DataMars responded with a federal lawsuit in Alabama accusing American Veterinary and Digital Angel of illegally conspiring to keep it and other competitors out of the market.