Counterfeiting, piracy and smuggling: Growing threat to national security

BANGALORE, INDIA: FICCI CASCADE released a knowledge paper with Ernst & Young on "Counterfeiting, piracy and smuggling: Growing threat to national security". A detailed report in collaboration with Business Action to Stop Counterfeiting and Piracy (BASCAP) on "Counterfeiting, Piracy and Smuggling in India - Effects and Potential Solutions" was also unveiled.

The conference was organized by FICCI-CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) & Business Action to Stop Counterfeiting and Piracy (BASCAP) an initiative of the International Chamber of Commerce (ICC), with the aim of promoting a better understanding of the socio-economic consequences of counterfeiting, piracy and smuggling and the impact on national security.

Inaugurated by Jesudasu Seelam, Minister of State, Ministry of Finance, Government of India, the conference was addressed by Shri Saumitra Chaudhuri, Member, Planning Commission, Government of India, along with other leaders from government and industry.

FICCI CASCADE along with Ernst & Young has also taken another step in the direction of deepening its understanding of the extent of the illegal trade in counterfeit pirated and smuggled goods and its impact on the society. The organisations presented a knowledge paper dwelling on the nexus of terrorism and illegal trade in counterfeit, pirated and smuggled goods.

The report, titled, "Counterfeiting, piracy and smuggling: Growing threat to national security", highlights the drivers of financing of terrorism and how activities such as counterfeiting, piracy and smuggling have become channel for sustaining criminal and terrorist activities. It analyzes and provides insight into the links between counterfeiting, smuggling and financing of terrorism.

BASCAP, in partnership with FICCI CASCADE, also released a report at the conference titled "Counterfeiting, Piracy and Smuggling in India - Effects and Potential Solutions", which highlights the serious issues in India and recommends actions to be taken to stop the illicit trade in fake goods. The report calls on Government to strengthen enforcement of trademark and copyright laws and regulations. Enforcement was consistently cited by industry as the key element missing in developing a stronger national intellectual property strategy for India.

"Combating counterfeiting and piracy must become a public policy priority in India," said William Dobson, deputy director of BASCAP. "This effort must start with the government sending a clear message this activity will no longer be tolerated - backed up by increased enforcement of India's IP laws."

"India's leaders have recognized the importance of fostering creativity and innovation as a key to future economic growth," Dobson said. "However, the full value of such innovation can only be recognized if there is a clear legal and regulatory system that protects the intellectual property rights of the creators, inventors and innovators. India has a strong IP regime in place, but must do more to strengthen enforcement of these regulations."

FICCI CASCADE and BASCAP prepared the report to raise awareness of the serious consequences of the increase in counterfeiting, piracy and smuggling in India, and the need for more Government attention to the issues, at the Central, Regional and State levels.

The paper briefly reviews the economic and consumer consequences of trademark and copyright infringement; provides specific sector evidence of the scope of the problem in India; and finally, based on interviews with Indian rights holders and multinationals, provides specific recommendations to improve enforcement of IP protection laws and regulations in India.

Counterfeiting and piracy is a global problem, causing enormous costs and serious impacts Markets for illicit goods and services are an escalating problem that adversely impacts legitimate industries, public health and consumer trust, government revenues and economies as a whole. Counterfeit, pirated and smuggled goods contribute to the proliferation of diseases and accidents, generate revenue for organized criminal networks, and are a factor in regional instability, unfair competition and safety threats. This represents a significant threat to countries and in particular large emerging economies such as India.

It is estimated that 2 billion individuals in the world are directly affected by non-compliant consumer products, especially by fraudulent food and counterfeit medicines, causing injury, poisoning and, in many cases, death. This conference will explore the economic consequences of mass counterfeiting, piracy and smuggling and the policies needed to deter this activity. Discussions will contribute to an integrated vision of State security and public safety, providing an interdisciplinary dialogue which will attract industry regulators, state agencies, customs authorities, law enforcement, and major producers of consumer goods, consumer associations and NGO's.

Speakers from international and intergovernmental organizations, including the World Customs Organization (WCO), World Intellectual Property Organization (WIPO), Beiersdorf A.G., Germany, Microsoft, HP, HUL, Croplife International, Global Anti-counterfeiting Group, will be sharing their expertise and experiences with the delegates from India and other countries.