India: Product piracy is rapidly increasing

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Within only two years trade in counterfeit products has increased by 44% in India. This is the alarming result of a new study, which also identified three economic sectors which are particularly affected by product piracy.

Overall, trade in counterfeit goods now makes up between 8% and 15% of the total Indian gross domestic product. The study, for which the Indian Federation of Industry and Commerce (FICCI) compared the years 2011/12 and 2013/14, thus confirms the poor positioning India currently holds in the International IP Index of the Global IP Center (GIPC) (we reported in 2016). The alcohol sector, the mobile communications sector and the tobacco industry are particularly affected by the negative effects of product piracy.

One possible cause the FICCI experts see for this dramatic development is India’s tax system: high consumer tax levels make it tempting for customers to buy plagiarised goods. The report therefore argues that the tax rates need to be re-regulated so as to ensure a balance between the interests of the state and those of the consumers.

Sadhan Pande, Minister of Consumer Affairs in West Bengal, meanwhile sees brand owners as responsible and during a FICCI event criticised the fact that many companies do not take the fight against product piracy seriously enough. Many companies are, however, faced with a very limited budget as well as a lack of proper regulations and support from the state in the fight against brand piracy, according to the GIPC.

The Indian Association of Industries and Chambers of Commerce therefore shared the results of its analysis with central government agencies such as the Ministry of Finance, the Cabinet Secretariat and the Office of the Prime Minister, but also encourages brand owners to take an active part in combating product and brand piracy.

Sources: WorldTrademarkReview, Zeebiz

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