Combating Counterfeiting Trade Association Become Proactive

  • Published on

  • View

  • Download

Embed Size (px)


<ul><li><p>7/27/2019 Combating Counterfeiting Trade Association Become Proactive</p><p> 1/6</p><p>www.homai.org8</p><p>The Holography Times</p><p>Vol. 7, Issue 21</p><p>Combating counterfeiting:</p><p>Trade associationsbecome proactiveBy C S Jeena</p><p>Each and every product from a pencil to aircraft has a trade association</p><p>formed with an aim to facilitate the business environment for its member</p><p>companies.</p><p>Today, in India more than 300 State level industry-trade association exist</p><p>representing more than 7,00,000* companies.</p><p>While they are playing an important role in modern and global economies,</p><p>there are various hindrances which affect their industry / sector growth.</p><p>Product counterfeiting is one of them. It is affecting all categories of</p><p>products, but the impact is very high in sectors / product categories</p><p>like fast moving consumer goods (FMCG), pharmaceuticals, electronics,</p><p>automobile, aircraft parts, beverages, etc.</p><p>To address this issue, various trade associations have come forward and</p><p>are playing a proactive role in curbing this menace. This article highlights</p><p>their activities and the role trade association can play in curbing this</p><p>menace to a large extent.</p><p>* Ministry of Corporate Affairs</p><p>Introduction:Brand counterfeiting in India is</p><p>not a new phenomenon. Brands</p><p>are under attack in various forms</p><p>such as counterfeiting,piracy,</p><p>duplication, pilfering, tamperingand adulteration of product.</p><p>These attempts are nothing but</p><p>an attack on the brand and hence</p><p>a major risk to the value of the</p><p>company.</p><p>Brand attack has many ill effects,</p><p>the key ones being;</p><p>a) Reduces the brand value,</p><p>customers conidence,</p><p>market share and proitability</p><p>of a company.b) The brand attacker, who</p><p>supplies a duplicate or</p><p>counterfeit product, does not</p><p>pay any taxes. It is a loss to</p><p>the collection of taxes for</p><p>various governments.</p><p>c) There are reports in the</p><p>press mentioning that proits</p><p>from suchil legal activities</p><p>are going to terrorists and</p><p>banned organisations.</p><p>d) Counterfeiting also sometimes</p><p>results in the unfortunate lossof human lives.</p><p>Risk to the Brand must be</p><p>taken with all seriousness</p><p>The Government of India is</p><p>doing its best in developing</p><p>suitable laws, educating police</p><p>force and judiciary to deal with</p><p>litigation arising out of brand</p><p>attack. However, legal process</p><p>takes its own time and the</p><p>attacks on the brand continue.As brands are amongst the most</p><p>valuable assets of companies,</p><p>industry association can play a</p><p>vital role in providing effective</p><p>information and advising proper</p><p>anti-counterfeiting strategies to</p><p>their members.</p><p>Cover Story</p></li><li><p>7/27/2019 Combating Counterfeiting Trade Association Become Proactive</p><p> 2/6</p><p> 9</p><p>The Holography Times</p><p>Vol. 7, Issue 21Cover Story</p><p>Importance of industry</p><p>association in curbing</p><p>counterfeitingAccording to Eef de Ferrante,Director at Active &amp; Intelligent</p><p>Packaging Industry Association,</p><p>Well, irst off all a trade</p><p>association is a medium. A way</p><p>to get in contact with companies</p><p>in a certain industry. But also</p><p>trade associations can advise</p><p>their members, and play a role on</p><p>behalf of their members towards</p><p>governments. The ideal situation</p><p>is when membership to anassociation is a guarantee to the</p><p>quality and origin of a product.</p><p>In that way, associations need to</p><p>check and verify memberships.</p><p>Big trade associations such</p><p>as FICCI, CII and ASSOCHAM</p><p>have discussed and taken up</p><p>the ight against the menace of</p><p>counterfeit at various forums</p><p>highlighting the loss to the brand</p><p>owner, government, society andto consumers. There have been</p><p>seminars and meeting with</p><p>government for law enforcement.</p><p>These are all useful initiatives,</p><p>but, it is now imperative that</p><p>the work done so far is taken</p><p>up to a new level, keeping mind</p><p>the fact, that in this ight there is</p><p>also a need to continuously look</p><p>for new innovative solutions and</p><p>approach by each Brand owner/</p><p>company.</p><p>Proactive steps</p><p>Rather than wait and watch and</p><p>then a reactionary step in ighting</p><p>the menace, the associations</p><p>ought to educate their members</p><p>that Prevention is better than</p><p>Cure, and they could consider</p><p>taking the undernoted proactive</p><p>steps to help their membersprotect themselves against the</p><p>onslaught of counterfeiting.</p><p>1. Educating members about</p><p>menace</p><p>Association website can play vital</p><p>role in educating its members</p><p>through their website. For</p><p>example, National Electrical</p><p>manufacturers Association</p><p>(NEMA) , USA has taken the</p><p>menace very seriously and</p><p>considered anti-counterfeiting</p><p>as a matter of public policy and</p><p>classiied an special section</p><p>on anti-counterfeiting at their</p><p>website.</p><p>Policy/Anti-Counterfeiting/Pages/</p><p>default.aspx. Through this NEMA</p><p>have started various services</p><p>for its members such as anti-</p><p>counterfeiting news, assistance to</p><p>members, useful links etc.</p><p>In India, FICCI, which is one of</p><p>biggest industry associations, is</p><p>working on same line and has</p><p>recently formed a forum called</p><p>Committee Against Smuggling</p><p>and Counterfeiting Activities</p><p>Destroying Economy (CASCADE)</p><p>with an aim to generate awareness</p><p>on the impact of these menace</p><p>amongst consumers and citizens.</p><p>The forum has launched a (see</p><p>igure1) which clariies various</p><p>issues on counterfeiting. The</p><p>website educates its member</p><p>and consumer via industry</p><p>news, awareness brochure,</p><p>and discussion forum. The</p><p>Well, first off all a trade association is a medium. A way to get in contact</p><p>with companies in a certain industry. But also trade associations can</p><p>advise their members, and play a role on behalf of their members towards</p><p>governments. The ideal situation is when membership to an association is</p><p>a guarantee to the quality and origin of a product. In that way, associations</p><p>need to check and verify memberships.</p><p>- Eef de Ferrante</p><p>Director at Active &amp; Intelligent Packaging Industry Association</p></li><li><p>7/27/2019 Combating Counterfeiting Trade Association Become Proactive</p><p> 3/6</p><p>www.homai.org10</p><p>The Holography Times</p><p>Vol. 7, Issue 21Cover Story</p><p>website also updates latest</p><p>and articles and best practices</p><p>adopted by companies around</p><p>the world against counterfeiting.</p><p>According to Anil Rajput,</p><p>Chairman FICCI CASCADE,</p><p>Counterfeiting and Smuggling</p><p>are increasingly becoming a</p><p>hugely lucrative business causing</p><p>not only a great loss of revenue</p><p>to the industry but also posing</p><p>a serious threat to the security</p><p>of the nation. As a result huge</p><p>amount of investments goes in</p><p>dealing with anti- social elements</p><p>that is neither good for legitimate</p><p>industry, for government nor for</p><p>consumers. Efforts to counter this</p><p>menace needs highest priority and</p><p>calls for robust actions from all</p><p>stakeholders.</p><p>2. Educating consumersWhile educating the member</p><p>companies lies under the</p><p>responsibility of trade</p><p>association, mass consumers can</p><p>be educated in similar with the</p><p>help of consumers organisation /</p><p>associations.</p><p>3. Assistance to members</p><p>in adopting authentication</p><p>technologies</p><p>Today, there are over 100 product</p><p>security technologies (holograms,</p><p>digital watermarks, DNA taggants,</p><p>security inks, serialisation etc.)</p><p>used by manufacturer to combat</p><p>counterfeiting. Such solutions</p><p>can be applied on the primary</p><p>or secondary packaging. For</p><p>an individual manufacturing</p><p>company, it is challenging to</p><p>understand the scope and eficacy</p><p>of each of these technologies. The</p><p>technology has to be understood,</p><p>the right features have to be</p><p>identiied, the cost of adopting</p><p>the solution has to be looked as</p><p>also the logistics affecting the</p><p>deployment of the solution all</p><p>across the markets that the brand</p><p>is present in. Trade associationcan provide guidelines to their</p><p>members in order to reduce</p><p>this burden. For example,</p><p>Association such as Organisation</p><p>of Pharmaceutical Producers of</p><p>India (OPPI) have prepared and</p><p>uploaded anti-counterfeiting</p><p>Fig1: Screenshot picture of FICCI website</p><p>Efforts to counter this</p><p>menace needs highest</p><p>priority and calls for</p><p>robust actions from all</p><p>stakeholders</p></li><li><p>7/27/2019 Combating Counterfeiting Trade Association Become Proactive</p><p> 4/6</p></li><li><p>7/27/2019 Combating Counterfeiting Trade Association Become Proactive</p><p> 5/6</p><p>www.homai.org12</p><p>The Holography Times</p><p>Vol. 7, Issue 21</p><p>7. ISO Standards</p><p>The International Standards</p><p>Organisation has recently</p><p>introduced a new standard, ISO</p><p>12931 titled Performance criteria</p><p>for authentication solutions</p><p>used to combat counterfeiting of</p><p>material goods. This standard</p><p>sets out the overall strategya</p><p>brand owner should adopt to ight</p><p>the menace of counterfeiting.</p><p>These days ISO 9001 and ISO</p><p>14000 implementation are</p><p>widely adopted. Associations</p><p>of Industries that are prone to</p><p>counterfeiting should take a</p><p>lead in helping their members</p><p>understand this standard andalso implement this for the</p><p>overall beneit of the industry.</p><p>As a further initiative, the industry</p><p>associations should also build</p><p>an environment that respects</p><p>intellectual property. Members</p><p>should be encouraged to Patent</p><p>their innovations so that they are</p><p>able to reap the beneits of their</p><p>research and development.</p><p>In conclusions, it would be</p><p>apt to say that an industry</p><p>association is formed to serve</p><p>the cause of its members at</p><p>large and one of the greatest</p><p>threats today to any successful</p><p>products is the counterfeits and</p><p>lookalike products. An industry</p><p>association should look within</p><p>and decide whether it is doing</p><p>all that it can to protect its</p><p>members. In case any industry</p><p>association feels that it needssome additional information</p><p>and advice, the Hologram</p><p>Manufacturers Association of</p><p>India will be more than happy to</p><p>help in their endeavours to ight</p><p>counterfeiting. Please feel free to</p><p>write to us</p><p> Name of Trade Association Country Initiative</p><p>01. National Electronics Manufacturers Association USA Anti-counterfeiting guidelines issued on their website for(NEMA) members.</p><p>02. Federation of Indian Chambers of Commerce India Portal launched on sensitising consumers against counterfeiting.and Industries (FICCI)</p><p>03. Organisation of Pharmaceutical Producers of India Anti-Counterfeiting guidelines issued on their website forIndia (OPPI) members.</p><p>04. Indian Cellular Association India Adopted anauthentication technology on their handsets andeducated the consumers about the same through their websiteand mass media campaigns.</p><p>05. Silk Mark Organisation of India India Adopted an authentication technology on the products andeducated the consumers about the same through their websiteand mass media campaigns.</p><p>06. Electronic Retailing Association USA Updating member on counterfeiting news.</p><p>07. European Semiconductor Industry Association Belgium Awareness against counterfeit products.</p><p>08. International Electro technical Commission Switzerland Anti-Counterfeiting guidelines issued at website for members.</p><p>09. International Electronic Manufacturing Initiative Global Investigating possible projects related to counterfeit(iNEMI) components.</p><p>10. Semi-Conductors Industry Association USA The SIA Anti-Counterfeiting Task Force (ACTF) is working on avariety of fronts to stop counterfeits from entering the marketplace.</p><p>11. Counterfeit Intelligence Bureau UK Developed the innovative counterfeiting seizure maps, the liveseizure report, the news archive and the case studydatabase.</p><p>Table: Anti-counterfeiting initiative taken by some trade association</p><p>Cover Story</p></li><li><p>7/27/2019 Combating Counterfeiting Trade Association Become Proactive</p><p> 6/6</p><p> 13</p><p>The Holography Times</p><p>Vol. 7, Issue 21</p><p>Established in 1926, National Electrical Manufacturers Association</p><p>(NEMA), headquarter in Arlington, Virginia is world leading association</p><p>of electrical equipment manufacturers. Representing more than 450</p><p>members the worldwide annual sales of NEMA-scope products exceed</p><p>USD 120 billion. Its mission is As the voice for the electrical and</p><p>medical imaging industries, NEMA is a pacesetting champion for safety,</p><p>innovation, interoperability, environment, and market enhancement</p><p>through advocacy, business information, and standards for products,systems, and technologies.</p><p>IN 2002, Several NEMA member</p><p>companies began to recognize</p><p>the growing presence of</p><p>counterfeitelectrical products</p><p>in markets around the world.</p><p>These counterfeit products bear</p><p>the unauthorizedtrademark of a</p><p>genuine electrical manufacturerand the unauthorized mark of a</p><p>certiication or testorganization.</p><p>Some of them incorporate</p><p>unauthorized, patented technology</p><p>of NEMA members.</p><p>NEMAs anti-counterfeiting</p><p>program helps its member</p><p>companies understand and</p><p>exercisetheir intellectual property</p><p>rights. Because counterfeiting</p><p>is a global problem that affectscertiicationmarks as well as</p><p>manufacturer brand names and</p><p>trademarks, NEMA includes in</p><p>its programsuch certiication</p><p>organizations as Underwriters</p><p>Laboratories and the Canadian</p><p>StandardsAssociation. NEMA</p><p>secured the participation</p><p>of Canadian and Mexican</p><p>tradeorganizations representing</p><p>electrical manufacturers and</p><p>carries on a dialogue withEuropean</p><p>counterparts as well.</p><p>The NEMA Anti-Counterfeiting</p><p>Coalition program has three main</p><p>components:</p><p>Education and training:</p><p>This involves developing best</p><p>practices to assist members</p><p>in protectingtheir intellectual</p><p>property and enforcing their</p><p>legal rights, including working</p><p>with customs and otherlaw</p><p>enforcement authorities. Italso requires networking with</p><p>manufacturers and other trade</p><p>groupsmutually interested in the</p><p>counterfeiting problem.</p><p>Documenting and publicizing</p><p>the problem:</p><p>NEMA prepares reports and press</p><p>releases for distribution toinform</p><p>the public about counterfeit</p><p>electrical products.</p><p>Public policy advocacy:</p><p>Counterfeiting is an</p><p>internationally recognized</p><p>crime. It has been documented</p><p>that counterfeitelectrical</p><p>products present substantial</p><p>health and safety concerns.</p><p>NEMA is an advocate for greater</p><p>publicresources devoted to</p><p>combatting this crime, keeping</p><p>counterfeit goods out of the</p><p>marketplace, improvingcoordinationamong state and</p><p>national governments, and</p><p>strengthening law enforcement</p><p>programs.</p><p>For more visit</p><p>ighting counterfeiting</p><p>Figure : Ad campaign by NEMA</p><p>Effective Efforts</p></li></ul>


View more >