Lok Sabha Question No. 2705 (UNSTARRED), answered on 2019-12-04
Subject: Counterfeit Market
Ministry: COMMERCE AND INDUSTRY
Asked by: Jaskaur Meena

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 2705.

TO BE ANSWERED ON WEDNESDAY, THE 04 TH  DECEMBER, 2019.

## COUNTERFEIT MARKET

## 2705.  SHRIMATI JASKAUR MEENA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether  the  domestic  economy  of  the  country  is  suffering  from  loss  of revenue  to  the  tune  of  over  one  lakh  crore  rupees  every  year  due  to counterfeit market in the country;
- (b) if so, whether the Government has gone through the report of Authentication, Solution Providers' Association (ASPA) published recently highlighting surprising facts regarding counterfeit products;
- (c) if  so,  whether  the  Government  is  taking  any  effective  measure  to  check production and sale of counterfeit products; and
- (d) if so, the details thereof?

## ANSWER

## वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a) & (b): No information is available with the Ministry.
- (c) & (d): Primary responsibility for investigating the complaints of manufacturing and  trading  of  counterfeit  products  rests  with  the  concerned  state police.  Adequate  provisions  exist  in  the  various  laws  for  dealing  with counterfeit  products  and  those  who  are  engaged  in  the  business  of pirated  goods.  The  Trade  Marks  Act,  1999  provides  for  penalty  for applying false trademarks & trade descriptions and for selling goods to which  a  false  trademark  or  trade  descriptions  is  applied.  It  also contains provisions for falsifying or the false application of trademarks, false trade descriptions, etc. under sections 101,102,103,104 & 105 of the  said  Act.  The  remedies  available  under  the  act  relate  to  the protection  of  the  Intellectual  Property  Rights  inherent  in  a  trademark and provide both civil and criminal remedies for registered trademark

owner. Action against piracy of product of registered brands, resulting in  infringement  of  rights  has  to  be  taken    in  appropriate  courts  for securing  civil  and  criminal  remedies.  The  onus  of  initiating  action against infringement of trademarks lies upon  the owner  of the registered  trademark  who  can  move  the  civil  and  criminal  court  for redressal. Section  101-105  of  the  Trade  Marks  Act,  1999  also  provides  for penalty for falsifying and falsely applying trademarks. Offences under sections 103,104 & 105 are cognizable and the period of imprisonment provided is not less than six months with a maximum 3 years and with minimum  fine  of  Rs.50,000  which  may  extend  to  Rs.2,00,000.  The court  may  also  grant  an  injunction  under  Section  135  of  the  Trade Marks  Act,1999  by  which  a  person  is  required  to  perform  or  is restrained  from  performing  a  particular  act  like  stopping  the  sale  of counterfeit product or destroying them etc. The  India  Penal  Code,  1860  also  contains  provisions  to  deal  with counterfeiting and piracy. The Consumer Protection Act, 2019 can also be  invoked  by  the  consumer  against  the  counterfeiters  by  filing complaints  in  the  appropriate  consumer  court.  The  Bureau  of  Indian Standards  Act,  2016  also  contains  penalties  those  who  use  the standards (ISI) Mark without obtaining the requisite license. The bureau investigates  and  detects  the  case  of  misuse  of  the  ISI  Mark  and

prosecutes the offenders wherever required.

In the case of food and drugs, the offence is cognizable and police on complaint of anyone can take action against the offenders.

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