The famous Indian E-commerce website Indiamart used to connect buyers with suppliers and four physical marketplaces have been named in the annual list of the world’s notorious markets released by the Office of the United States Trade Representative (USTR). The report “2021 Review of Notorious Markets for Counterfeiting and Piracy” was released on Thursday. The USTR is responsible for developing and promoting American trade policy. The office started releasing its annual list of notorious markets in 2011 to help market operators and the government prioritize intellectual property rights and help spread public awareness on the issue.
According to the report, the list identifies 42 online markets and 35 physical markets reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy. Among those named were China’s Tencent Holdings Ltd and Alibaba Group Holding Ltd; some physical markets in China have had a constant appearance on the list, but it’s the first time two of the biggest companies in the country have ever shown up.
The four other Indian markets on the list are Heera Panna in Mumbai, Kidderpore in Kolkata, Tank Road in Delhi, and New Delhi’s famous Palika Bazaar.
The USTR report said that “Counterfeit goods can allegedly be found in large volumes on Indiamart, including counterfeit pharmaceuticals, electronics, and apparel. Right holders are concerned with Indiamart’s failure to adequately implement anti-counterfeiting best practices, including seller verification, penalties against known sellers of counterfeit goods, or proactive monitoring of infringing goods”. It also stated that Indiamart has a notice-and-takedown system,
but right holders report that it is burdensome to use, the time-to-takedown is slow. The status of notices is not transparently communicated to them.
They mentioned a major indoor market located at the heart of Mumbai, Heera Panna, which reportedly offers counterfeit watches, footwear, accessories, and cosmetics. In September last year, a raid at Heera Panna resulted in arrests for selling fake versions of premium watches. Right holders warn that counterfeit cosmetics sold at this market have health and safety risks.
Another market, Kidderpore in Kolkata, locally known as “Fancy Market,” sells counterfeit apparel and cosmetics, often in wholesale quantities. A USTR representative, Katherine Tai, expressed concern over the health risks of using fake cosmetics. They noted that skin problems, rashes, irritation, and eye diseases have reportedly been caused due to the poor quality of the counterfeits.
“This illicit trade also increases the vulnerability of workers involved in the manufacturing of counterfeit goods to exploitative labour practices, and the counterfeit goods can pose significant risks to the health and safety of consumers and workers around the world,” she said.
Palika bazaar, a popular tourist destination and a hub for students and young people, has remained on the notorious list since last year; the market is well known for its highly cheap counterfeit goods such as mobile accessories, cosmetics, watches, etc. eyewear.
Right holders have also reported that Tank Road, located in the nation’s capital, sells counterfeit products, including apparel, footwear, watches, handbags, electronics, and beauty products. They also pointed out that counterfeit goods from this location flow into other markets around the country through wholesale supply. The USTR report also said that right holders find it difficult to coordinate with authorities in conducting enforcement actions as this location is “challenging.” The market is located in a residential area, and sellers often have advanced knowledge of raids, limiting their effectiveness.
However, since the report was released, Indiamart responded in a written claim that it was a “law-abiding company” and had zero tolerance for any misuse of its website for illegal activities. It said that the USTR published the report without any prior notice and did not give it a chance to respond to the allegations.
Edited by- Subbuthai Padma
Published by- Radhika. N
