3. Counterfeiting & Smuggling is emerging as a fastest
growing industry in S-Asia.
A recent study conducted by Business Action to Stop
Counterfeiting and Piracy (BASCAP) indicates the global
value of counterfeit and pirated goods, currently
estimated at US$650 billion, is likely to double by mid
2015 in S Asia.
4. Counterfeiting in South Asia is increasingly becoming
hugely lucrative business, with criminals relying on the
continued high demand for cheap goods coupled with low
production and distribution costs.
The illegal activities related to counterfeiting take
advantage of unwitting consumers & bargain-hunters,
exploiting people’s for brands or simply their financial
situation.
5. The criminal networks behind counterfeiting operate
across national borders of India that include the
manufacture, export, import and distribution of illicit
goods.
The flood of counterfeit and pirated products creates an
enormous drain on S Asia economy by creating an
underground trade that deprives Govt. revenue for vital
public services & imposes greater burdens on taxpayers.
6. It also leads to more public resources deployment for
fraud-detection; and setting up extensive intelligence
network and policing budgets to counter sophisticated
counterfeiting and smuggling schemes.
7. BASCAP (Business Action to Stop Counterfeiting & Piracy)
report on India reveals that a significant percentage of
consumers purchase counterfeit or illegal copies of:
DVDs or CD’s – 63%
Clothes- 62%
Software for computers- 37%
Luxury items e.g. purses, watches, jewelry, leather goods – 52%
Perfume – 49%
Toys-56%
Cosmetics e.g. make-up, lotion – 38%
Auto parts- 37%
Food Products or non-alcoholic Beverages- 40%
Hygiene products e.g. soap, shampoo, toothpaste – 39%
Small Electronic gadgets e.g. mobile phones, camera- 37%
Alcoholic Beverages- 26%
Cigarettes- 25%
Medicines- 15%
8. Based on my expertise dealing with 18 cases, a
comprehensive action plan/ Modus Operandi must be
envisaged, accordingly.
Aim is to have an overall deterrent effect or minimise on
growing counterfeit menace in India.
These are:
9. A) Market Survey (through experience/ expertise Field
Investigators):
To identify Grey Markets/ Areas
Mystery Shopping- Sample Collections
B) Conduct Due Diligence Investigation:
To identify all Stakeholders involvements in the Counterfeit
Racket
10. To identify nexus amongst - Dealers/Sub-dealers/Suppliers
with Employee or Management from the Branded Products
To identify Supply Chain Racket & its Stockpiles.
C) BI (Business Intelligence) Supports:
Analytical review on cumulative loss & its impact (growth +
brand).
Experts suggestive measures to overcome & restore a
sustainable market growth, business continuity & brand
protection.
11. D) Legal courses/ supports:
Liaison with local police to lodge FIR & conduct raids on
counterfeit stockpiles.
There after, proceeding for criminal cases through legal
experts.
E) Media Advisory :
To create overall Public awareness against counterfeit,
circulate advisory through Local Media
12. Cross border smuggling/ trafficking on counterfeit products is
a great concern for the enforcement agencies. Needs to initiate
following policies to curb it strictly:
A) Free Trade Zones (FTZs):
The reduction of barriers & regulatory oversight associated
with Free Trade Zones (FTZs) is causing international
trafficking of counterfeit goods.
International agencies need to improve legal frameworks on
FTZs to eliminate trade in counterfeit goods.
13. B) Proceeds of Crime:
UNICRI & ICC -BASCAP report in April 2013, advocating the
confiscation of the proceeds of crime as an effective tool,
which can strictly implement against the infiltration of
transnational organized crime into the illicit business of
counterfeiting.
C) Criminal sanctions in Europe:
Criminal sanctions in Europe is a strategy to fight against
counterfeiting. Dissuasive sanctions across the EU include
mandatory prison sentences and confiscation of criminal
assets.
14. D) Goods in transit:
Revised EU Regulation on customs enforcement of IPR i.e “The
Community Trade Mark Regulation (CMTR)” & the Trade Mark
Directive (TMD), should strongly & effectively implement
against counterfeit goods in transit.
E) European Observatory:
European Observatory on Infringements of IPR was created by
the EC in 2009.
Since then, BASCAP along with 3- Observatory Expert Working
Groups - Statistics, Legal & Public Awareness are closely on
consultation process to provide input to the Office for
Harmonization in the Internal Market (OHIM) on the future
mission, objectives and work program of the Observatory
15. F) Anti- Counterfeiting Trade Agreement (ACTA):
Last but not least, final version of ACTA report (Dec 3, 2010)
for strengthening the enforcement of IPR was released on
Dec 3, 2010.
The high-level international framework began 3- years earlier
when Canada, the EU, Japan, Korea, Mexico, New Zealand,
Switzerland & USA announced their intentions to draft the
agreement.
Cross border counterfeiting through International border will
be minimized, once ACTA implement.
16. Ashim Kumar Mukherjee
Vice President, Operations
Cognosco Risk Solutions (P) LTD
Main IGNOU Road, Neb Sarai
New Delhi - 110068
Mobile - +91-09873073425
Email - ashim@cognosco.co.in
Website - www.cognosco.co.in
