The report was released at the Conference on Trade in Counterfeit, Pirated and Smuggled Goods - A Threat to India's National Security and Economy, 19-20 September 2013 in New Delhi. Hosts included the Federation of Indian Chambers of Commerce and Industry (FICCI) Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) and ICC Business Action to Stop Counterfeiting and Piracy (BASCAP).
Summary of the report
Section one of the BASCAP-FICCI CASCADE report explores the important role of intellectual property for economic growth and development. A strong IPR regime adds jobs, attracts FDI, promotes innovation and R&D, encourages growth of SMEs, and protects consumers and society from health and safety concerns linked to counterfeit products.
Section two documents the ill-effects of counterfeiting, piracy and smuggling. Referencing a FICCI study, the report states that counterfeit automobile parts account for nearly 30% of the market and cause both directly and indirectly 20% of total road accidents in India. Half of all alcohol consumption comes from illegal production, posing an elevated health risk. 80% of consumers buying fast moving consumer goods are duped into believing they are buying authentic products. Computer hardware, mobile phones, tobacco, movies and pharmaceuticals were also found to be vulnerable to counterfeiting, piracy and smuggling.
For businesses and trademark holders, the result of a weak IPR regime causes reduced sales, lower profits, impairment of brand value and reputation, and consumer distrust.
Section three provides a roadmap for moving forward with an assessment of the barriers to effective anti-counterfeit and piracy enforcement in India, with more than 25 specific recommendations for removing these barriers.
Key recommendations
There is a clear consensus that stronger enforcement of existing laws and regulations is key to combatting counterfeiting, piracy and smuggling. BASCAP and FICCI CASCADE's recommendations target national policy and infrastructure issues -- both in the short term and long term -- and in stopping the supply of counterfeit products.
National policy and infrastructure recommendations
Short term recommendations include:
- Giving political priority to IPR crimes,
- Increasing funding to existing IP cells at the state level,
- Expanding the number of IPR cells that prioritize enforcement,
- Establishing a rewards system for police officers investigating economic crimes.
In the long term the creation of an IPR enforcement agency at the federal-level would be beneficial. India could also increase efforts to:
- Educate police officials about IPR crimes,
- Increase the number of independent IPR investigations,
- Ensure ease of access to pertinent records,
- Establish specialized courts and encourage the use of mediation and alternative dispute resolution centres,
- Automate IPR related judicial processes
- Adopt statutory damages in civil cases.
Stopping the supply of counterfeit products
The BASCAP-FICCI CASCADE report recommends:
- Customs prioritize trademark investigations and seizures and review parallel imports as a source of counterfeit imports;
- The customs registration process should be modified to accept a standing bank guarantee;
- Customs officials receive high-level training, including joint training sessions with officials from bordering states, and be allocated resources to conduct raids.
With respect to the domestic production of counterfeit goods measures include:
- Cancelling retailers' trade licenses when illicit products are found,
- Empowering government tax inspectors to check and account for genuine product licenses,
- Prioritzing the elimination of counterfeit goods that are dangerous to health and safety,
- Amending India's Trademark Act,
- Strengthening provisions that allow for the destruction of equipment used to produce counterfeits,
- Fully implementing the Madrid Protocol.