With the increasing use of FPGAs in production designs and the implementation of system on FPGA (SOF) applications there is a need to protect the intellectual property (IP) in these devices to preserve competitive advantage and protect investment. IP-protection specialist Carratu International estimates that counterfeit products now account for approximately nine percent of all worldwide trade. Other industry observers estimate that pirated goods account up to 10 percent of all products. The Electronic Retailers Association International recently found 186 different counterfeit ICs available on the market. According to the International Anti-Counterfeiting Coalition, US companies lose more than $200 billion in revenue annually due to worldwide copyright, trademark, and trade-secret infringements. Companies selling pirated goods have a significant cost advantage over traditional competitors. They have lower R&D expenses, so they can establish a beachhead in new markets, steal market share, and drive the original developer out of the market entirely.