More volume and less taxes, best way to counter counterfeiting: Joint Commissioner, Delhi Police (Tech, Cyber & Licensing)

B Shanker Jaiswal, Joint Commissioner of Police (Tech, Cyber & Licensing), Delhi Police today said that counterfeiting must not be permitted to become an activity of low risk and high gain for counterfeiters. The most effective strategy to combat this menace is to invert this dynamic, making counterfeiting a high-risk, low-reward venture. “Achieving this entails increasing the volume of heavily counterfeited goods in the market and imposing reduced taxes on such products. By doing this we can deter counterfeiters and safeguard both consumers and legitimate businesses and the overall economy,” he added.

Addressing the FICCI CASCADE (Committee Against Smuggling and Counterfeiting Destroying the Economy) stakeholder consultation ‘Securing the Digital Frontier: Cooperation, Collaboration, and Best Practices’, Jaiswal added, “Counterfeiting in the physical and the digital space has become pervasive and affects consumers, government revenue, companies and even researchers alike who spend time and effort in creating new products. The digital space has become complicated and complex with counterfeit activities proliferating from fake profiles to fraudulent domain names. To effectively combat this trend, advancements in technology, such as blockchain, are crucial. By enhancing and making technologies like blockchain more accessible, affordable, and compute friendly, we can streamline processes like contract management and strengthen our defences against digital counterfeiting.”

Dr G R Raghavender, Senior Consultant, CIPAM (Cell for IPR Promotion and Management) and Former Joint Secretary, DPIIT said, “To safeguard the Make in India initiative against digital counterfeiting, strengthening enforcement measures and implementing robust civil and criminal remedies are also essential steps to dissuade counterfeiters. Additionally, to shield our growing start-up ecosystem, similar initiatives must be extended. This includes the establishment of a modernized and comprehensive design law framework to safeguard the innovations and creations of start-ups from counterfeit infringement.”

Amit Goyal, Deputy Commissioner of Police - Crime, Delhi Police said, “Counterfeiting, one of the oldest known crimes, has been affecting virtually every sector, from life-saving drugs to consumer goods. In the digital world, counterfeiters have grown increasingly organized, posing formidable challenges in identifying counterfeit products. This not only jeopardizes lives but also undermines the economy at large. To combat this threat effectively, prioritizing technology training for law enforcement is crucial. Embracing technological tools for counterfeit detection is also essential along with raising awareness among the public to prevent deception. Platforms such as today’s event in facilitating consultations and uniting stakeholders to share information and knowledge can play a pivotal role in addressing this issue comprehensively.”

Anil Rajput, Chairman, FICCI CASCADE said, “FICCI CASCADE is honoured to host this crucial discussion on the occasion of World Anti-Counterfeiting Day 2024. Counterfeiting poses a significant threat not only to consumers but also to the health, progress, and development of nations worldwide. Addressing counterfeiting requires a multifaceted approach including legal actions, robust enforcement measures, consumer awareness and industry collaboration. It is heartening to note that the government is bolstering its capabilities to combat counterfeiting through collaborative efforts, technological advancements and proactive measures. The ultimate objective for all stakeholders is to safeguard consumers and legitimate enterprises along with the preserving the reliability of global supply networks.”

During the event, an Open House Discussion on Technological Innovations & Best Practices in Combating Counterfeiting Online was held to foster cooperation and collaboration among stakeholders to strengthen anti-counterfeiting efforts and protect consumers from the risks associated with counterfeit goods in the digital era. The session was attended by different stakeholders such as cyber-law experts and representatives from - USPTO, JETRO, British High Commission India, Embassy of Denmark in India, Proctor & Gamble, Amazon, HUL, Diageo India, Marico, Pernod Richard, Asian Paints and Western Digital.

As per FICCI’s (CASCADE) recent report titled ‘HIDDEN STREAMS: LINKAGES BETWEEN ILLICIT MARKETS, FINANCIAL FLOWS, ORGANISED CRIME AND TERRORISM’ perfume and cosmetics in India have the highest propensity for counterfeiting or illicit goods. Notably, products like toys, games, clothing, leather goods, handbags, and footwear have comparatively low counterfeiting indices.

According to the report, cigarettes are among the most heavily taxed products; making contraband cigarettes the preferred choice for consumers because of the lower price factor. Global estimates place illicit cigarette consumption at 600 billion sticks or 10% of the total cigarette market. There is evidence of ties between terror groups that used cigarette smuggling in various regions to fund their militant activities. Apart from cigarettes, alcohol is another significant segment within the broader illegal market.