Telco
goes undercover to protect brand name
Midday — June 18,
2003
If
you thought it was only audio cassettes, T-shirts
and underwear that is duplicated then you are
in for a surprise. With automobile prices crashing,
competition increasing and car financing becoming
cheaper, authorities are finding that car components
are under attack. Investigations show that fake
products, duplicated to the extent of cartons,
holograms and even sealing tapes, are easily available
in the market.
The scale of counterfeit operations was significantly
high for Federation of Indian Chambers of Commerce
and Industry (FICCI) to add the automotive industry
under India Brand Protection Committee (IBPC)
recently. Mahindra & Mahindra Ltd, Bajaj Auto
Ltd and TELCO are some of the companies that have
launched an offensive under this banner.
"The total spares market for just Tata commercial
vehicles is approximately 2500 crore, and spurious
products account for a high 30 - 35 per cent of
these sales," said T N Jha, senior manager,
TELCO. The negative impact on the company’s sales
is clear. Moreover, increasing consumer complaints
about product failure, and the resulting negative
impact on Tata’s goodwill, made the company take
a relook at its strategy for combating the counterfeit
menace.
The last four months have seen Tata Engineering
get cracking on the issue. Eight raids have been
conducted across India since April itself. In
a recent raid conducted by the Crime branch on
June 4 in Mumbai, the police recovered spurious
auto spares worth over four lakh rupees from two
shops in the Grant Road and Lamington Road areas.
Another raid in Delhi on June 13 led to the seizure
of material worth five lakh rupees. However, loopholes
in law often allow wrongdoers to go scot-free.
"Conviction rates are very low, and even
where charges are proved the sentences are paltry,"
says Sujata Tiwari, coordinator, IBPC. The result
- Crawford Market and Ulhas Nagar have become
the counterfeit trading and packaging hubs in
Mumbai.
IBPC is also lobbying for changes in the Trademarks
Act of 1999, which has been passed (but not yet
implemented), which requires that prior permission
of the registrar of trademarks be obtained before
a raid can be conducted.
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