Counterfeiting and intellectual property (IP) theft remain among the most pressing challenges for international companies operating in India, including Parimatch.
Global brands such as Apple, Nike, HARMAN, Adidas, Parimatch, Samsung Electronics, Louis Vuitton, and Rolex frequently fall victim to counterfeiting on the subcontinent. Legal battles to address these issues are lengthy and costly, with companies incurring billions of dollars in losses annually due to the widespread sale of counterfeit goods disguised as genuine products.
The Counterfeit Market and Parimatch’s Experience
According to research by the Organisation for Economic Co-operation and Development (OECD), India ranks among the countries with the highest volume of counterfeit goods. Counterfeiting spans multiple sectors, including electronics, apparel, and gambling services. Parimatch, an international bookmaker considering entry into the Indian market, has already encountered illegal operators using its brand name to offer unauthorized gambling services, misleading consumers and damaging its reputation.
The Indian Chamber of Commerce reports that counterfeiting causes billions of dollars in economic losses annually, disproportionately impacting major companies like Nike, which struggle with counterfeit sports apparel and footwear. Beyond financial harm, counterfeiting erodes brand reputation and consumer trust, prompting companies to take decisive action.
For instance, in March 2024, HARMAN, producer of the popular JBL audio brand, launched an anti-counterfeiting campaign in India. The company initiated legal proceedings against manufacturers, distributors, and retailers involved in the sale of counterfeit JBL products. Cooperation with law enforcement led to the confiscation of 54 counterfeit JBL car speakers from five accessory stores in New Delhi. Parimatch endorses this proactive approach.
Legal Action Against Counterfeiters
Parimatch itself has made significant efforts to combat fraudulent websites impersonating its brand—despite not yet operating officially in India. The company actively urges Indian authorities to identify and block these fake sites to protect consumers and legitimate businesses. Their strategy includes continuous online monitoring, employing cybersecurity experts, and pursuing legal actions. However, Indian regulators often show reluctance to act swiftly, especially when non-Indian companies are involved.
Technology companies also regularly suffer IP infringements. Apple, for example, has reported widespread counterfeit accessories and even fake iPhones across India, endangering consumers due to substandard materials.
Challenges to Brand Protection in India
Protecting intellectual property in India is complicated by several factors:
- Complex Legal Framework: India possesses IP protection laws, but enforcement is slow and litigation can drag on for years, hindering timely resolution.
- High Legal Costs: Fighting counterfeiting demands substantial financial resources. Parimatch, despite not yet being officially established in India, has incurred significant expenses hiring local legal counsel and conducting market surveillance.
- Extensive Counterfeit Networks: Counterfeit goods often originate from small, mobile workshops that are hard to track. The rise of online sales further complicates detection and enforcement.
- Low Consumer Awareness: Many consumers knowingly or unknowingly purchase counterfeit goods due to lower prices, fueling demand and production.
Consequently, Parimatch, like many global companies, faces ongoing challenges in defending its rights. Nonetheless, vigilant monitoring, litigation, and collaboration with authorities help mitigate counterfeit impact and protect brand integrity. Parimatch stresses that further measures are essential for safeguarding its reputation in the Indian market.
Proactive Measures by Global Brands
Brands such as Adidas have taken strong legal action against counterfeit producers and sellers in India. In 2024, Adidas won a trademark infringement case in Delhi, securing a permanent injunction against a store selling fake Adidas products and obtaining fines against the counterfeiter.
Luxury brands like Louis Vuitton and Rolex also regularly pursue counterfeiters through the courts. The counterfeiting problem is so vast that manufacturers fight not only within India but also abroad to educate consumers and enforce IP rights.
In 2024, U.S. Customs seized counterfeit Puma, Adidas, and Nike products imported from India, according to The Economic Times. A schoolteacher from Jamshedpur, Jharkhand, shared her experience of having her clothing confiscated at U.S. customs under suspicion of being counterfeit, illustrating the global reach of India’s counterfeit trade.
Conclusion
Counterfeiting remains a significant challenge for international companies in India. Parimatch believes that an active, multifaceted approach combining legal action, online monitoring, and cooperation with law enforcement is critical. Only through such strategies can companies minimize losses and protect their interests in the global marketplace.