Counterfeiting and intellectual property (IP) theft pose significant challenges for global companies operating in India, including Parimatch.
Renowned brands such as Apple, Nike, HARMAN, Adidas, Parimatch, Samsung Electronics, Louis Vuitton, and Rolex frequently fall victim to counterfeiting in the Indian market. Pursuing legal remedies is often protracted, causing substantial financial losses. Annually, these companies lose billions of dollars due to the widespread availability of low-cost counterfeit goods masquerading as authentic products.
The Counterfeit Market and Parimatch’s Experience
Research by the Organisation for Economic Co-operation and Development (OECD) places India among the countries with the highest volume of counterfeit goods. Counterfeiting affects various sectors—from electronics and apparel to gambling and sports betting services. Parimatch, a global bookmaker targeting the Indian market, has repeatedly faced issues with ‘clones’—unauthorized operators misusing its trademark to offer illegal gambling services, misleading consumers and harming the brand’s reputation.
The Indian Chamber of Commerce estimates counterfeiting causes several billion dollars in annual economic losses. Major companies like Nike constantly combat counterfeit production of athletic shoes and apparel. Beyond financial harm, counterfeit goods damage brand reputation and erode consumer trust, prompting companies to take decisive action.
In March 2024, HARMAN, maker of the popular JBL audio brand, launched an anti-counterfeiting campaign in India. Working with law enforcement, HARMAN seized 54 counterfeit JBL car speakers from five stores in New Delhi. Vikram Kher, Vice President of Lifestyle at HARMAN India, emphasized the company’s commitment to legal action against counterfeiters. Parimatch endorses this proactive approach.
Legal Actions and Challenges
Parimatch has taken significant measures to combat trademark infringement by fraudulent websites, even though it has not yet officially launched in India. The company urges Indian authorities to identify and block these sites to protect consumers and legitimate businesses. This includes continuous online monitoring, collaboration with cybersecurity experts, and legal proceedings. However, Indian regulators have been slow to act, especially concerning foreign entities.
Technology firms also face IP violations. Apple, for instance, has reported widespread sales of counterfeit accessories and fake iPhones across India, posing risks to both the company and consumers due to inferior product quality.
Challenges in Brand Protection
Several factors complicate IP protection in India:
- Complex Legal Framework: Though India has IP laws, enforcement is often slow and litigation lengthy.
- High Legal Costs: Fighting counterfeiting demands substantial resources. Parimatch has invested heavily in legal counsel and market surveillance despite not yet being legally established in India.
- Widespread Counterfeit Networks: Counterfeits originate from small, mobile workshops and proliferate via online sales, making enforcement difficult.
- Low Consumer Awareness: Many consumers knowingly or unknowingly buy counterfeit goods due to lower prices, sustaining demand.
Despite these hurdles, Parimatch and other companies mitigate impacts through vigilant monitoring, legal action, and government cooperation. Additional measures remain critical to protecting brand reputation in India.
Global Brands Fighting Counterfeiting
Companies like Adidas have actively pursued legal actions in India. In 2024, Adidas secured a Delhi court injunction against a store selling counterfeit products and successfully obtained fines.
Luxury brands such as Louis Vuitton and Rolex also regularly litigate counterfeiters. Given the scale of counterfeiting, many brands combat this issue both domestically and internationally to promote respect for IP among Indian consumers.
In 2024, U.S. Customs seized counterfeit Puma, Adidas, and Nike products imported from India, per The Economic Times. A schoolteacher from Jamshedpur, Jharkhand, recounted having her clothing confiscated by U.S. customs under suspicion of counterfeiting, illustrating the international reach of Indian counterfeits.
Conclusion
Counterfeiting remains a substantial challenge for foreign companies in India. Parimatch believes that a proactive, multifaceted strategy—combining legal action, online monitoring, and law enforcement collaboration—is essential. Such efforts are the best means to reduce counterfeit damage and protect interests in the global market.