Hologram Manufacturers Association of India

COUNTERFEITING affects us all:

• Permeates almost all of legitimate businesses & industry
• Among the fastest growing global economic crimes — second only to drug trafficking or dealing in illicit firearms. The commercial crime is growing faster than international trade.
• Virtually a parallel market — growing 8-10% yearly - faster than int’l trade.
• Frequently plays a part in laundering of drug money.
• Has developed into a sophisticated network of organized crime & terrorism.
• Often leads to human tragedies

COUNTERFEITING RESULTS INTO A HUGE LOSS:

• Of jobs in the genuine segments
  - Auto industry could employ thousands of new workers, if the counterfeit products could be eliminated.
• Of huge Tax Revenue to Govt.
  - Rs 900 Crores in FMCG sector alone
  - Counterfeiters may charge customers excise/ sales tax, but generally retain it.
  - Counterfeiters pay only a fraction of true income tax liability, if they pay any at all.

COUNTERFEITING:

• Associates genuine producers with substandard or dangerous products
  - Manufacturer’s good name is damaged
• Demolishes the brand image - Customers shun brands being counterfeited - if there is any adverse publicity - 85% of those who stopped using a famous brand of bearings did so due to the prevalence of their counterfeits, which adversely impacts their decision to purchase even other brands now — according to the recent market survey.
• Destroys the industry on which it preys, and rips it off by a massive loss of sales to the genuine producer. - Is like cancer - slow & unnoticeable at first.

COUNTERFEITS :

• Endanger public health & safety
• May not comply with Safety Standards.
• Hurts Consumers
  - Consumers risk inferior performance, dangerous/fatal consequences - including equipment failure, shock/ fire risks

• Air crashes & Motor accidents with disastrous consequences attributed to duplicate/ spurious parts.
• Counterfeit or spurious medicine, baby foods, liquor, cosmetics, detergents, spices, tea, edible oils & other items of human consumption fatally affect people.
  – They have caused stomach ulcers, blindness, paralysis, deaths.
• Counterfeit toys have caused serious problems for children.
• Counterfeit shampoo has caused hair loss
• Counterfeit clothing is generally quite shoddy and could even be dangerous
  -”Replica” kids clothing is usually not flame retardant & can present a fire hazard.
• Counterfeit sunglasses are generally not shatterproof & often have no ultraviolet protection.
• Counterfeit household electrical appliances & parts pose greatest potential risk of fire and shock hazards. Light strings, electrical decorations & accessories, other electronic goods, fans, extension cords, lamps, light fixtures, night-lights, and computer power supplies etc.
• Issuing authorities of genuine documents often unable to honour their own valuable documents due to their counterfeiting. For example: Bills of Lading, Documentary Credits, Cheques/ Drafts or other written contracts, Certificates of Origin, Academic Degree/ Diploma/ Marks Sheets, Tax Certificates, etc.

The fast moving brand products, important trade documents, and the academic certificates are amongst the worst affected by the counterfeiting menace, which affects the society in general.