The system is to use radio frequency identification, or RFID tags. These are already being used to track drugs that are popular with counterfeiters. Pfizer uses the RFID tag to track packs of its erectile dysfunction drug - viagra. Purdue Pharma LP have been using them to track its pain reliever OxyContin.

IBM's ePedigree system helps drug companies create certificates of authenticity for the medications, right down from a single bottle, as it moves from manufacturers to distributors to pharmacies and hospitals.

There is no guarantee RFID chips will stop all counterfeiting of medications, but it will make it much more difficult. Holograms and watermarks have been produced with such accuracy, not even brand managers could tell the difference.

IBM started working with RFID 10 years ago and its ePedigree system will help companies comply with the new regulations coming into effect in California in 2009. California's new ePedigree law will require that all medication distributed in the state have its life history attached to it.

The ePedigree system is useful, not only for tracking fakes, but also expiration dates, and batch numbers in case of a recall.