The Growing Threat of Counterfeit Goods
India’s fast-growing consumer economy and technological advances have led to an unprecedented influx of fake and infringing goods. Counterfeiters target industries ranging from luxury products and electronics to pharmaceuticals and apparel. This damages brand reputation, poses risks to consumers, and erodes legitimate market share.
Customs Recordal: Proactive IP Enforcement
Customs Recordal is a pre-emptive strategy available under the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007. Rights holders notify the Customs Commissioner of their trademark, copyright, or patent supplying proof of ownership and product details. Once registered, customs actively monitor shipments, using the provided product data to identify suspect consignments and suspend clearance of infringing goods on arrival.
Bond and Indemnity Requirements
To protect authorities and importers, rights holders must execute a financial bond and indemnity undertaking, covering costs and compensating for potential wrongful detention or destruction. Recent procedural updates now allow centralized bonds, valid at multiple ports, streamlining national enforcement. If the value of goods exceeds the bond, supplementary bonds are required promptly.
Notice, Suspension, and Participation
When infringement is suspected, customs suspend clearance and inform both importers and IP owners. The rights holder must act swiftly typically within 10 to 15 days to join proceedings, inspect goods, and substantiate the infringement claim. Failure to respond leads to release of the goods. If confirmed as infringing, customs destroy or dispose of items under official supervision, with destruction costs borne by the rights holder. Samples can be retained for evidence in litigation.
Restrictions and Exceptions
Customs enforcement does not apply to personal baggage items or small consignments intended purely for personal use these are exempt from IP scrutiny to balance enforcement with consumer rights and logistical efficiency.
Seizure of Infringing Imports: Enforcement in Action
R.K. Dewan & Co. has spearheaded anti-counterfeiting raids and border seizure actions in sectors like automobiles, luxury goods, consumer electronics, pharmaceuticals, tobacco, and apparel. The firm’s track record over 2,000 successful raids illustrates the real-world impact of robust border controls, combining:
- Collaboration with customs, law enforcement, and market surveillance teams
- Filing and prosecution of criminal complaints under the Trademark Act and Copyright Act, securing both imprisonment and financial penalties
- Civil litigation, including injunctions and Anton Piller/John Doe orders, barring further circulation of fake goods
Show-cause & Bond Procedures: Ensuring Due Process
After customs suspend clearance, the importer may submit a “show-cause” response defending the legitimacy of their goods. Authorities adjudicate based on presentations and evidence from both sides. Financial bonds ensure customs are indemnified for action taken in good faith, and the process is kept fair and transparent for legitimate traders.
Brand Protection: Surveillance, Litigation, and Market Response
R.K. Dewan & Co. integrates border recordal with ongoing market and online surveillance. Their team monitors e-commerce platforms for counterfeit listings, conducts strategic covert investigations, organizes raids at manufacturing hubs, and provides comprehensive legal advice for integrated brand protection. This multi-pronged strategy ensures maximum coverage from physical borders to digital platforms.
