ipr: Ensuring Intellectual Property protection: A multifaceted approach to Border…


The Hon’ble Delhi High Court in its order and judgement dated 18th April, 2023, imposed a cost of over Rs 9.5 lakhs on three individuals for infringing the trademarks of a French luxury company and failing to appear before the court. Earlier, a February 2022 report by the FICCI estimated the negative impact of illicit trade, counterfeiting, and piracy on the economy, highlighting the gravity of the issue. The study attempts to quantify the tax loss to the Government of India because of the illicit trade for 5 key industries – Alcoholic Beverages, Mobile Phones, FMCG-Household and Personal Goods, FMCG-Packaged Foods and Tobacco Products. Undoubtedly, such illicit practices also pose substantial threats to public health and safety, and therefore it is imperative to take measures to curb them.

Broadly speaking, IPRs are private rights applied for and enforced by the owner of the concerned IP, and these rights can be safeguarded by both civil and criminal mechanisms. Counterfeiting and piracy are criminal offenses under Indian laws, including the Indian Penal Code, Trademarks Act, Copyright Act, and Information Technology Act. The importation of infringing goods is a major concern for Indian businesses and policymakers alike.

Ensuring the protection of intellectual property rights (IPR) is critical to promote economic growth and development through innovation, competitiveness, and technology transfer. This legal safeguard is also vital to attract foreign investment, which is essential for initiatives like Make in India to establish India as a global hub for design, manufacturing, and innovation. India values innovation and protects intellectual property. The literature around the Arthashastra indicates that artisans acquired exclusive rights to sell their wares if they shared production methods with the government. This was similar to the current patent system. Then again in that there also appear to be regulations relating to trade and commerce by using marks to identify goods’ origin and quality, which is an early form of trademark protection.

India has made significant changes to its IPR laws since 1999, and with recent implementations like the National IPR Policy, National (IP) Awareness Mission (NIPAM), Kalam Program for Intellectual Property Literacy and Awareness Campaign (KAPILA), and as a result of certain procedural simplifications, has further strengthened the IP regime. These have translated in faster patent examination times and increased patent filings. As a consequence, India has climbed steadily on the World Intellectual Property Organization’s Global Innovation Index, currently occupying the 40th position, which demonstrates growing confidence in the efficacy of India’s IP-related changes.

India has implemented measures to strengthen its border protection efforts in accordance with the provisions outlined in Articles 50-60 of the TRIPS Agreement, which pertain to Border Measures. This includes introducing a range of legal and regulatory measures in the form of the Intellectual Property Rights (Imported Goods) Enforcement Rules to prohibit the import of foreign-made goods intended for sale or use in India that have a false trade mark, trade description, or false geographical indication or copyrighted designs under the Designs Act of 2000. Such goods include fraudulent or obvious imitations of such designs, and those that have been prohibited from importation by an Order of the Registrar of Copyrights. The rules outline the procedures for lodging claims by the Right Holder and the suspension of clearance of goods suspected to be infringing intellectual property rights at Indian ports of entry. Customs officers are authorized to suspend clearance of allegedly infringing goods upon receiving notice from a right holder. By completing a straightforward process and paying a nominal fee of Rs 2000/-, Rights holders can secure their intellectual property rights. This can all be accomplished through the user-friendly portal https://ipr.icegate.gov.in/IPR/homePage.

To elucidate the stance on ‘parallel imports’, a Customs circular was released on May 8, 2012 after consultation with the administrative Ministry. Additionally, export of notified goods lacking proper indications of origin or manufacturer; and the export of goods that necessitate specific stamping as mandated by the Trade Marks Act, but lack it – are prohibited.

The key to successfully stopping counterfeiting and piracy through border measures lies in the collaboration between rights holders and the customs authority, which requires ongoing efforts to strengthen and maintain the partnership to keep producing significant results. The provision of precise and comprehensive information, submission of pertinent documents and materials, and active participation in proceedings by the right holder to ascertain the nature of imported goods are pivotal factors in attaining success. Furthermore, leveraging cutting-edge technologies such as blockchain to establish the transfer of goods across supply chains and addressing illegitimate trade associated with e-commerce and online marketplaces could also prove to be invaluable in safeguarding intellectual property rights.
The author is an IRS (C&IT) officer and the views expressed are personal.



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