The Cambridge-based firm has devised special inks that can create unique discreet colour signatures to be printed onto labels or documents using standard printing technology.

These signatures, which are virtually impossible to copy and can't be read by the naked eye or any other commercially available terminal, can hold encrypted information to combat forgery.

The firm has teamed up with technology firm Cambridge Consultants to develop a compact handheld verification terminal that uses a spectrometer.

"Cambridge Consultants' colour reading technology is helping us to widen the potential for our security process substantially, as it helps to bring costs down to a level that makes sense even for small volume applications," said Colour Secure senior partner Peter Keay.

It can also be used to print high-value product labels and packaging to verify genuine goods and spot fakes.

Story by Eloise Seddon