In an annual report on ‘review of notorious markets for counterfeiting and piracy’ the United States Trade Representative (USTR) has cited five markets in India including online B2B marketplace IndiaMART apart from four physical markets, Palika Bazar and Tank Road in Delhi, Heera Panna in Mumbai and Kidderpore in Kolkata.

The Notorious Markets List highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy. “The global trade in counterfeit and pirated goods undermines critical U.S. innovation and creativity and harms American workers,” said Ambassador Katherine Tai, according to the report. “This illicit trade also increases the vulnerability of workers involved in the manufacturing of counterfeit goods to exploitative labor practices, and the counterfeit goods can pose significant risks to the health and safety of consumers and workers around the world.”

Counterfeit goods

In its report, USTR says about IndiaMART ‘an e-commerce website and mobile app that connects buyers with suppliers, describes itself as the world’s second largest online business-to-business market. Counterfeit goods can allegedly be found in large volumes on IndiaMART, including counterfeit pharmaceuticals, electronics, and apparel.’

It goes on to allege that ‘right holders are concerned with IndiaMART’s failure to adequately implement anti-counterfeiting best practices, including seller verification, penalties against known sellers of counterfeit goods, or proactive monitoring of infringing goods. IndiaMART apparently has a notice-and-takedown system, but right holders report that it is burdensome to use, the time-to-takedown is slow, and the status of notices is not transparently communicated to right holders.’

Delhi underground market

Commenting on the physical markets, the USTR report says that Palika Bazaar continues to remain on the NML in 2021. Stating that this underground market in Delhi is seemingly well-known for the trade of counterfeit products, such as mobile accessories, cosmetics, watches, and eyewear it says many shoppers are reportedly students and other young people who want trendy products at cheap prices with the market also being a popular destination for tourists.

On Tank Road, Delhi, the report says that right holders say that this market continues to sell counterfeit products, including apparel, footwear, watches, handbags, electronics, and beauty products. ‘Wholesale counterfeit goods are also reportedly supplied from this market to other Indian markets, including Gaffar Market and Ajmal Khan Road.” Right holders note that conducting enforcement actions at this location is challenging, as the market is located in a residential area and sellers often appear to have advanced knowledge of raids, limiting their effectiveness, it claim.

Heera Panna is a major indoor market located at the heart of Mumbai and the report says it offers counterfeit watches, footwear, accessories, and cosmetics. Right holders warn that counterfeit cosmetics sold at this market have health and safety risks. The USTR report also says that a raid at Heera Panna in September 2021 resulted in arrests for selling counterfeit versions of premium watches.

The last physical market highlighted in the report is Kidderpore, Kolkata Locally known as “Fancy Market.” The annual study claims that Kidderpore allegedly sells counterfeit apparel and cosmetics, often in wholesale quantities. Severe skin problems, rashes, irritation, and eye diseases have reportedly been caused due to the poor quality of the counterfeits; it adds.

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