3. Tata Steel – portfolio of more than 600 patent families
50 registered trademarks
4. 1. Lost tax revenue 2. Cost of Enforcement
3. Safety 4. Negative Impact on Innovation
1. Safety 2. Cost
1. Cost to failures 2. Lost sales 3. Brand Value
4. License revenue
Government
Customer
Industry
It is not only Industry which gets Impacted…..
5. Innovation is key to India’s economic growth and
development
“...the future prosperity of India in the new knowledge economy will
increasingly depend on its ability to generate new ideas, processes and
solutions. The process of innovation `shall convert knowledge into social
good and economic wealth. In a globally competitive world, India has to
unleash its innovation potential to increase capacity, productivity,
efficiency and inclusive growth.”...
Hon. President Pranab Mukherjee
6. Counterfeiting and Piracy Discourage Innovation…….
IP
Enforcement
R&D/Innovation
IP
Commercial
Exploitation
Differentiation
in the market
If there is
counterfeiting,
there is no
differentiation
possible
8. Why Counterfeiting Happens?
“If I had an hour to solve a problem I'd spend 55 minutes thinking about
the problem and 5 minutes thinking about solutions.”
Albert Einstein
9. Research & Development
Manufacturers Customers
Three Important elements of the Value Chain
Supply Chain
Counterfeit and pirated products, previously largely distributed through informal
markets, are infiltrating legitimate supply chains, with products now appearing on
the shelves of established shops. OECD Report 2007
Eighty-three percent of all the counterfeit items discovered by the respondents‘
organizations came from approved vendors. Construction Industry Institute (CII) Report
10. Counterfeiting ….……. Consumer perspective
35
21
21
6
5
5
3 2 1 1
% Cannot afford the genuine product
They think genuine products are
overpriced
They don't know it's not genuine
Because they don't have access to the
genuine products
CF product "do the job" just as well as
genuine ones
It would be ridiculous or stupid to pay
the full price of genuine Products
They are constantly offered those
products by sellers
CF products are more easily accessible
than genuine
They want to help CF products sellers
CF sellers are more willing to serve their
customers than regular Retailers
Source: BASCAP Study
11. Counterfeiting ….……. Manufacturer perspective
Increasing due diligence, Visibility & Control
Suppliers
X
X
X
X
Un-Authorized
Distributors/Retailers
YY
Authorized
Distributors/Retailer
Customer
Decreasing due diligence, Visibility & Control
Confidentiality is not used as strategic tool to
retain long term advantages in the market. No Processes
to Measure
Losses
12. Counterfeiting ….……. Supply Chain perspective
No robust mechanisms to trace product throughout the life cycle
Weak enforcement standards – easy to hide your identity and restart
Free trade via Internet: The proliferation of Internet auction sites has resulted an
Exponential increase in the volume of counterfeit sales
Weak alignment of distributors and retailers with manufacturers’ vision
13. Key Factors driving Counterfeiting
Market Institutional Technology Consumer
Large potential
market size and
very high
profitability per
unit – risk is very
low
Low risk of
discovery and
prosecution – easy
to conceal
Shortage of
feasible
technologies to
differentiate
between genuine
and counterfeit
product
Awareness
towards healthy,
safety and quality
is low
Genuine power of
brand
Legal and
regulatory
framework - Weak
Enforcement
Counterfeiting via
Internet Auction
Inability to
comprehend
difference between
counterfeit and
original product
Non-availability of
Genuine Products –
small towns
Socio-Economic
factor
Low regard for IPR
14. Research & Development
Launched world’s first branded cold rolled steel
(CRS) called ‘TATA Steelium
Commodities to Brands
TATA Steelium – how we are doing it
ACTION
IMPACT
2007
Tata Steelium Logo embossed every metre of
length, Unique packaging with bar code, location-
wise floor price
Authenticity
Brand Awareness,
Customer TrustCustomized Brand Management via email,
examples, comparative studies
Distributors, dealers and customers Meet
Brand Care,
Brand Ethics
Rewards and Punishments
Brand Vision maintained
15. Research & Development
TATA Steelium – how we are doing it
Extending Due Diligence from Inside to out
Level 1 Screening
List of potential Candidate
Level 2
Due diligence from
business and product
knowledge perspective
Level 3
Interviews with senior officials
Phase 1 Criteria
Willingness to be exclusive to Tata
Steel
Registration with Tax authorities
Market Reputation – Involvement in
any unethical, Criminal/
counterfeiting activities
Investment Capabilities
16. Developing Win-win Strategies with Supply Chain
partners
• Licensing Partnership of a large company with a SME (Jyoti Cera Rubber ) –
Strategic Alignment
• 3% royalty
• 3 million INR (1st year), 12 million INR (4th year).
Invention (Application No. : 404/KOL/2009 ): Developed a hybrid idler,
specially designed with a coating of high alumina ceramic powder with
polymer (called JCR-1000 CERO ZIP).
An indirect approach to ensure Anti-counterfeiting and alignment with
manufacturer’s vision
Confidentiality IP Protection
Strategic
Alignment
17. Conduct a due diligence of your
distributors/retailers/suppliers at
regular intervals. Know your supply
chain intimately, from top to bottom
(use technology)
Adopt Zero tolerance strategy
Secure your Supply chain and
maintain confidentiality at highest
level
Develop a feasible mechanism for
reporting counterfeiting
Due Diligence
Make Customer Aware of
Counterfeiting Hazards – Safety,
Quality, Longevity etc.
Develop processes to record losses
at organizational level
Track performance of your
Products/Brands at regular intervals
Register your Trademarks and Educate
employees on Confidentiality
Awareness Develop a strong alignment with
your distributors/ retailers/
suppliers – exploit employee
Network to maximum
Engage with customers via
interactive social media/rewards
platform to spread awareness and
report incidents of counterfeiting
Engage with enforcement
agencies and government to curb
counterfeiting
Partnership
Anti-counterfeiting and Anti-piracy Strategy
= Business Excellence
Tata has in 2013 climbed up the ladder to the 39th slot with a valuation of $18.16 billion (Rs 97,846 crore) —about a fifth of the combined market capitalisation of its 29 listed companies. UK-based valuation firm BrandFinance’s
Three time prime minister trophies winner, DGP. Most of the division are ISO certified. Quality and Innovation is delivered in to product consistently and hence, there is always a demand of Tata Steel product in every sector, automotive, construction, agriculture.
Countries that have robust innovation and intellectual property ecosystem in place have seen high economic growth over a period of time.
the ability of firms to benefit from the breakthroughs they make in developing new products.
Countries that have robust innovation and intellectual property ecosystem in place have seen high economic growth over a period of time.
the ability of firms to benefit from the breakthroughs they make in developing new products.
Without strong IP enforcement, differentiation in the market is very difficult to achieve. There is no way to exploit benefits of Innovation, R&D and quality.
The time corresponding to maturity and saturation phase is important phase of the product life cycle from sales perspective as investment is not high during this phase. However, this phase can be stretched if counterfeiting is addressed by appropriate means.
On a macro level, everything looks fine for a couple of years before complaints starts coming at mass level.
If we say the reason closely – two things emerges – Consumer Awareness and Differentiation in the market
The job of manufacturer does not end with producing quality and innovative product but also to ensure that quality product reaches customers.
The question to ponder upon is why the quality product, trademark product, original product does not reach to the end customer – where are the loop holes, is customer not interested in buying original product , does product looses the quality during transportation in some cases?
If we say the reason closely – two things emerges – Consumer Awareness and Differentiation in the market
Information about suppliers, components specifications flows freely.
Information about suppliers, components specifications flows freely. Packaging Confidentiality, discarded materials
The High Court system is overburdened. The backlog of existing and new cases results in lengthy delays between the time a case enters the court system and the time it reaches a sentence. According to our survey of rights holders, it takes 2-3 years to issue a summons and 6-8 years to conclude a case. Other sources offer that tribunal level cases may be pending for 7-10 years without resolution.
The Trademark Act (1999)provides companies both civil and criminal remedies to infringement, however, penalties can be stronger to create deterrent effect.
Focus has been established by Tata Steel from professionalism and aligning to best practices and a number of distributors are developing ribust qaulity management systems. More than 20 distributors have got them ISO 9001-2000 CERTIFIED.
Background: Idlers are the support rollers on which conveyor belts move. At the sinter plant, the idlers had to be replaced every month, implying a severe burden in terms of system down time, maintenance support and increases in production costs.
If we say the reason closely – two things emerges – Consumer Awareness and Differentiation in the market
