Expert Speak

The Menace of Counterfeits and Parallel Imports

Parallel Imports

Some issues refuse to get resolved. Counterfeit goods are a significant menace in India. Nothing much happens to correct this except feeble attempts sporadically through vendor organized raids.

p____p Sujata Tiwari of FICCI-BPC (Federation of Indian Chambers of Commerce and Industry- Brand Protection Commitee )tells me that in India, it is a case of the lack of enforcement and implementation. For a long time, we have seen sporadic raids by companies in the hardware sector on piracy, counterfeit goods etc. However, not much is achieved and the evil is not weeded out.

p____p It is most likely that there is a collusion of vested interests to keep up this chor-police game on perpetually like the soap opera �Tom and Jerry�. This is a vicious circle of many players in the supply chain.

p____p My source tells me that it is common to find counterfeiting in goods as common as common salt in this country. And sometimes, shopkeepers deliberately keep imitation goods specifically for the gullible villagers. So counterfeiting is not thus limited to high tech goods and is very pervasive.

p____p What can be done under such circumstances?

p____p The menace of counterfeits cannot go on unchecked and has to be curbed for the benefit of all parties concerned. Some players cannot make the quick buck at the expense of others who play by the book.

p____p The vendors do have to protect their investments in the country in terms of trademark, advertising, branding, partner business etc.

p____p For this, the raids have to be organized but the modus operandi will have to be well thought out and executed with the help of trader and industry associations, taking them into confidence. This could avoid instances of harassment and also the opposition, once the authenticity of the cases are established.

p____p On the other hand, parallel imports is a different ball-game. The goods which come through an unauthorized channel come under this categorization. These circumvent the system and make huge gains. The excuse is that under the existing system, there are very slim margins. It is perhaps a known fact that some vendors do actually hoodwink this known menace because they either see a good prospect for further revenues to the company or because they do not want to antagonize the concerned parties. In either case, they are losers in the long run.

p____p It is a challenge to all parties concerned to correct this menace that threatens the way business is done in the country and this needs the cooperation of all.

Leave a Response