Stepping up the fight

Renewed judicial resolve and coordinated efforts by industry bodies are reshaping India’s intellectual property battlefield.
Important victories have boosted IP owners’ morale, but the war is far from won

Raghavendra Verma reports from New Delhi

Brand piracy and other attacks on IP are rampant and widespread in India’s huge and disorganized retail market. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the country loses almost US$239 million annually to piracy in the IT sector alone. Another major target for counterfeiters is the fast moving consumer goods sector – items such as soap, shampoo and deodorant. According to Ameet Datta, a partner at Luthra & Luthra, products such as garments, pharmaceuticals, cosmetics and automotive parts are also highly prone to brand piracy.

The interests involved are diverse, with risks to IP troubling domestic and international companies and investors alike. The US embassy in New Delhi warns: “India has widespread piracy, which is a matter of grave concern for any organization wanting to enter the Indian market.” For example, says the embassy, 29% of the potential Indian market for movies produced by major US studios is currently lost to piracy.

It’s therefore unsurprising that India is included on the Priority Watch List of the Office of the US Trade Representative’s Special 301 Report on the adequacy and effectiveness of IP rights protection by US trading partners. According to the office, India – along with 11 other countries including China, Russia, Canada, Israel and Thailand – does not provide an adequate level of IP protection or enforcement.