Know-how lead innovation is the reply to the US $500 billion Counterfeit Items Market
Quantifying the affect of counterfeiting at present
Globally, counterfeit items account for greater than US $500 Billion in commerce. A good portion of products detained by customs authorities is pirated or counterfeit merchandise. For thousands and thousands of individuals worldwide, proudly owning items like Nike sneakers or a designer purse is a standing image. Because of this, the demand for cheap variations of such items has fuelled the expansion of the multi-billion-dollar counterfeit business.
Counterfeiting, the place unauthorised copies of merchandise are bought as authentic merchandise, is often perceived as a victimless crime. Nevertheless, counterfeiting impacts a number of key stakeholders – from the buyer to companies and the federal government itself. Shoppers are duped into shopping for sub-standard merchandise, companies turn into much less prone to put money into product innovation, and the federal government suffers immense loss in income from customs obligation and import taxes. Commerce affiliation FICCI estimates the worldwide financial and social value of piracy and counterfeiting to be upwards of US$1 Trillion 2022.
Current anti-counterfeit measures are falling quick
India has a complete authorized regime to forestall and punish counterfeiting. However regardless of having these measures unfold throughout IP, shopper safety and customs regulation, counterfeit items proceed to flood each offline and on-line markets in India. It is because the dimensions of the problem within the Indian context requires modern options. The demand for counterfeit items is just not prone to diminish anytime quickly. For each profitable raid ensuing within the arrest of a counterfeiter, a number of sellers are ready to fill the hole left by this arrest. Subsequently, the perfect method is to chop off the availability of counterfeit items on the supply. However finding this supply is troublesome in India on account of its sheer dimension, which permits for a number of leakages within the provide chain.
To deal with the problem of counterfeiting, enforcement actions have to be stronger. The shortage of ample sources on the bottom implies that a number of suppliers are sometimes capable of slip by the cracks or navigate the system undetected. The federal government ought to discover modern tech options like scannable codes on packaging, AI/ML and blockchain applied sciences to automate investigative processes and enhance the pace and effectivity of regulation enforcement.
Know-how ought to inform enforcement actions and complement anti-counterfeit measures
On-line retailers are taking the lead in deploying modern anti-counterfeit measures and have already begun implementing inside measures to root out faux listings in partnership with manufacturers who’re motivated to guard their IP. AI/ML applied sciences are being utilized by these platforms to scan procuring listings for faux items. This enables giant batches of listings to be scanned in real-time, making the method extra environment friendly and quick than doing it manually.
The federal government, too, ought to formalise the usage of rising know-how to determine counterfeit items, expedite investigations and catch unhealthy actors. It ought to discover partnerships with know-how service suppliers and e-commerce entities to implement tech options at scale and conduct coaching for its officers. Related partnerships have been cast in Dubai – which is a distinguished procuring vacation spot for vacationers worldwide.
In 2019, the Dubai Division of Financial Growth signed an MoU with a product authentication know-how supplier to deal with commerce in counterfeit merchandise in Dubai. The supplier makes use of algorithms to rapidly determine counterfeit items to match photos of a suspected faux product in opposition to a database of client-submitted markers of authenticity akin to microscopic logos. Equally, India can enter into mutually useful partnerships with model house owners, retailers and tech-based start-ups to strengthen anti-counterfeit measures.
One other answer is to discover the usage of blockchain know-how. It’s a extremely safe digital document of knowledge analogous to a ledger. It’s an rising know-how which is now additionally getting used to safe the availability chains of multinational conglomerates like Coca-Cola and Unilever. Counterfeiters generally try to cross off faux items as authentic objects, and tracing the supply of those leaks will tremendously enhance enforcement. Tampering with a cargo will get logged on the blockchain and will be simply traced again to the originator. This can enable regulation enforcement to precisely hint the supply of a leak within the provide chain, akin to stolen product shipments or stolen packaging.
The attract of proudly owning branded items is simply rising every day, feeding the billion-dollar counterfeiting business. There may be ample alternative for the federal government to nurture Indian expertise by boot camps and hackathons to develop modern tech-based options to strengthen enforcement measures. Establishing a powerful IP enforcement regime will sign to the world that India is a secure haven for IP safety. This can appeal to international funding and produce the nation nearer to assembly its objectives of changing into a producing hub within the close to future.
The appropriate technique to deal with counterfeit items lies within the early adoption of tech options, and pooling the perfect practices of established gamers on these measures may help fasten the method.
Views expressed above are the creator’s personal.
END OF ARTICLE