1. COUNTERFEITS - A ‘FAKE’ PROBLEM
DEVDAS BALIGA

2. Impact Of Counterfeiting On Economy
2015 USD 1.7 Trillion estimated
(Source: ICC)
44% increase in loss to 7 manufacturing sectors due to counterfeits between 2012 to 2014 (Source FICCI Cascade)
20% of accidents due to counterfeit / spurious auto parts (Source ACMA)
Concern : Auto Parts, Drugs, Food, Beverages, Cosmetics, Alcohol, FMCG Personal Goods
‘Willful Counterfeiting’: Apparel, Shoes, Bags and Leather Goods, Perfume
2008 ICC estimates

3. The Scourge Of Counterfeiting
Fake products destroy the reputation of the copied brand.
Are often hazardous
Fake drugs contribute to antibiotic resistance
Illicit factories are harmful to the environment
Linkage to organized crime and funding of terrorist activities
Reduces desire of genuine manufacturers to innovate and make fresh investments.

4. Challenges In Tackling Counterfeits On Online Platforms; e-commerce
In December 2015, Xinhua stated that 40% of goods sold online were counterfeit.
E-Commerce is growing rapidly in India as well as are counterfeits.
Liability of websites in B2C and marketplace model.
Need to conduct due diligence of vendors and ensure sourcing chains can be tracked.
What can brand owners do ? Be vigilant for products available on line and take quick action against websites and sellers who sell suspect products. Rating of vendors. Mystery shoppers.

5. Recent Judicial Rulings
Cartier International & Others Versus Gaurav Bhatia & Others 2016
Delhi High Court awards exemplary damages INR 10 Million against counterfeit luxury watches sold online. Brands Cartier, Panerai, Jaeger Le Coultre
Raids conducted resulting in recovery of large quantities of counterfeit watches
Digaaz.com ordered to be taken down
Disney CS (OS) 3466/
Permanent injunction granted against defendant
Delivery up of infringing goods to plaintiff

6. Counterfeiting: challenges in enforcement
Local enforcement bodies burdened with conventional crimes
Lack of awareness and low prioritization outside metro cities
Resources to track surveillance lacking
Some courts are highly aware but India is a large country
Need to build greater consumer awareness to reject counterfeit goods

7. Enabling environment To Strengthen & Protect IP Rights
2016 National Intellectual Property Rights (IPR) Policy
Review existing IP laws, where necessary, to update and improve them or to remove anomalies and inconsistencies, if any, in consultation with stakeholders; 
Special thrust on awareness generation and effective enforcement of IPRs, besides encouragement of IP commercialisation through various incentives.
IPRs a marketable financial asset, promote innovation and entrepreneurship, while protecting public interest.
Proposed Central Consumer Protection Agency