Counterfeiting and intellectual property (IP) theft present significant challenges for international corporations operating in India, including Parimatch.
Prominent brands such as Apple, Nike, HARMAN, Adidas, Parimatch, Samsung Electronics, Louis Vuitton, and Rolex frequently fall victim to counterfeiting within the Indian market. Resolving these issues through legal channels is often a lengthy process, leading to substantial financial losses. Annually, these companies suffer billions of dollars in losses due to the widespread availability of low-cost counterfeit products falsely marketed as genuine.
The Indian Counterfeit Market and Parimatch’s Experience
Research from the Organisation for Economic Co-operation and Development (OECD) ranks India among the top countries in counterfeit goods volume. Counterfeiting spans multiple sectors, including electronics, apparel, and gambling services. Parimatch, a global bookmaker targeting the Indian market, has faced repeated challenges with unauthorized ‘clone’ operations misusing its brand to offer illegal gambling services, deceiving consumers and damaging the brand’s reputation.
The Indian Chamber of Commerce estimates that counterfeiting causes billions of dollars in economic losses each year, particularly affecting large corporations like Nike, which consistently battles counterfeit athletic footwear and apparel. Beyond financial losses, counterfeiting erodes brand reputation and diminishes consumer trust, prompting companies to take active measures.
In March 2024, HARMAN, maker of the JBL audio brand, launched an anti-counterfeiting campaign in India. Working closely with law enforcement, the company confiscated 54 counterfeit JBL car speakers from five stores in New Delhi. Vikram Kher, Vice President of Lifestyle at HARMAN India, emphasized the company’s commitment to legal action against counterfeiters. Parimatch endorses this proactive approach.
Legal Challenges and Proactive Strategies
Parimatch has taken substantial steps to combat unauthorized use of its trademark by fraudulent entities, even before officially entering the Indian market. The company consistently urges Indian authorities to identify and block fraudulent websites to protect consumers and legitimate businesses. Their strategy involves monitoring online activities, collaborating with cybersecurity experts, and pursuing legal action. However, Indian regulators have been slow to respond, especially when foreign companies are involved.
Technology firms also suffer from IP infringements; for example, Apple has reported widespread counterfeit accessories and fake iPhones in India, posing risks to both the company and consumers due to substandard materials.
Why Protecting Brands Is Difficult in India
Several factors complicate intellectual property protection in India:
- Complex Legal Framework: While IP laws exist, enforcement is often slow, and litigation can drag on for years.
- High Legal Costs: Fighting counterfeiting requires significant financial investment. Parimatch has spent heavily on local legal counsel and market monitoring despite not yet being officially established in India.
- Extensive Counterfeit Networks: Counterfeit goods are frequently produced in small, mobile workshops and distributed online, making detection and enforcement difficult.
- Low Consumer Awareness: Many consumers knowingly or unknowingly purchase counterfeit goods due to lower prices, sustaining demand and production.
Despite these challenges, Parimatch and other companies mitigate impacts through vigilant monitoring, legal action, and cooperation with authorities. Additional measures remain crucial to protecting brand reputation in India.
Global Brands’ Efforts to Combat Counterfeiting
Companies like Adidas have actively pursued legal action. In 2024, Adidas secured a Delhi court injunction against a store selling counterfeit goods and successfully obtained fines against the infringer.
Luxury brands such as Louis Vuitton and Rolex regularly take legal action against counterfeiters. The scale of counterfeiting in India is so vast that many brands fight this battle both domestically and internationally to foster respect for intellectual property among Indian consumers.
In 2024, U.S. Customs seized counterfeit Puma, Adidas, and Nike products imported from India, as reported by The Economic Times. A schoolteacher from Jamshedpur, Jharkhand, shared her experience of having counterfeit clothing confiscated at U.S. customs, illustrating the global reach of Indian counterfeiting.
Conclusion
Counterfeiting remains a significant challenge for international companies in India. Parimatch believes that a proactive, comprehensive approach combining legal action, online monitoring, and collaboration with law enforcement is essential to minimize counterfeit damage and protect interests in the global marketplace.