Hologram Manufacturers Association of India

Government - Industry’s Fight against Counterfeiters

A Recommendation

Considering the havoc played by the counterfeiting, in terms of colossal economic loss to the industry, revenue loss to the Government and grievous injury inflicted on the consumers, a “zero tolerance” approach should be adopted by the Government and the industry to help jointly fight this menace. It is rather essential that certain statutory measures be taken at the earliest to keep the unscrupulous converters at bay before they bring disrepute to the new & widely accepted holographic anti-counterfeiting and security devices.

It is, therefore, suggested that:-

• BIS, DGS&D, DGFT, EXCISE Depts. and other Government agencies should make Holograms a compulsory mark of authentication on all taxable [Sales Tax, Excise/ Customs Duty, ….] products and related important documents/ certificates.
• They should have industry/segment-wise own holograms, and issue them to their respective certified manufacturers. Strict inventory of holograms received & issued should be maintained to tally their final applications — in contrast to the manufacturers having control on BIS stampings at present. The Manufacturers of substandard equipment attempt to fake the BIS Stampings in order to trick consumers into believing that their products are safe.
  Once convinced of the specific hologram-affixed products & value documents being genuine, the end consumer will start preferring hologram-authenticated products only.
• All security and the authenticating holograms — whether produced in India or imported — should be compulsorily registered in the Hologram Industry (HoMAI) authorized “Hologram Roster”
  Copyright Enforcement agencies can query the Hologram Roster to obtain evidence of first/original creation and other copyright issues. Unauthorised designing/ origination/ production of look-alikes of genuine/ original holograms can thus be checked — under the Copyright Law — at the first source itself.
• The Tax Enforcement & Police Authorities - with adequate number of officers at all states/ district level - should proactively police the integrity of products sold and search out offers/sale of fake products and eliminate them so as to cleanse the market.
  They should conduct surveillance visits and link the counterfeits to their exact manufacturing source
• Govt. laboratories should help in conducting quality tests & forensic analysis of the seized products on a priority basis.
• All ministries & govt. departments concerned with the counterfeiting crimes, in cooperation with all major commerce & industries chambers/ associations/ federations relevant to items that are susceptible to counterfeiting should accord a top priority to combat Counterfeiting and support an independently managed ‘Counterfeiting Prevention Bureau’ to:-
  • Study the extent of counterfeiting and its effect on the economy and conduct
  • Operate public education program on national TV channels & Radio stations throughout the country and broadcast the short interviews by
    • providing consumer tips on spotting fake merchandise, how to avoid buying them,
    • alerting them to the counterfeiting problem, mustering their support in gathering intelligence on counterfeits and their perpetrators.
  • Conduct Copyright Protection awareness programs to educate the field officers of Excise/Customs/ Sales Tax and Police authorities and food/ sanitary inspectors so as to help them for a practical prevention and effective enforcement
  • Give special recognition to media coverage for their thorough and insightful articles on counterfeiting in the specific sectors
  • Give support to the nationwide anti-fake campaign and the protection of legal copyrights of enterprises.
  • Support an annual “Product & Document Counterfeiting Protection conference”
  • Institute Annual Awards to recognize outstanding job in Fighting the Counterfeiting - a criminal problem and the human injuries that it often produces by developing/ offering innovative & successful anti-counterfeiting solutions
  • Coordinate with the law/ tax enforcement authorities (Economic Offences Wing, Excise Dept., Police, Court Receiver’s Representative) for surveillance & investigation/ raids of suspected counterfeiting sources and/or the organized criminals on the basis of complaints/information received from the brand owners under the applicable Acts –Trade Mark & Merchandise, Copyright, Drugs & Cosmetics, Food Adulteration, and Consumer Protection Act.

• World Customs Organization regularly uses Hong Kong Customs & Excise Department (Intellectual Property Investigation Bureau) experts to help train other Asian authorities on anti-counterfeiting programs.
• The Global Anti-counterfeiting Group - an association of all the world’s major anti-counterfeiting organizations - exists to raise public awareness of the costs and dangers of fakes worldwide and to co-ordinate IP rights owners support and networking with public authorities and other IP protection organizations.