Besides IndiaMart, described as the world’s second largest online market, it lists markets in Mumbai Kolkata and Delhi
The United States has put five Indian markets on its Notorious Markets List highlighting online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy.
“The global trade in counterfeit and pirated goods undermines critical US innovation and creativity and harms American workers,” said United States Trade Representative (USTR) Katherine Tai releasing 2021 Review of Notorious Markets for Counterfeiting and Piracy Thursday.
“This illicit trade also increases the vulnerability of workers involved in the manufacturing of counterfeit goods to exploitative labor practices, and the counterfeit goods can pose significant risks to the health and safety of consumers and workers around the world,” she said.
Read: USTR proposes retaliatory action on India’s Digital Services Tax (April 5, 2021)
The 2021 Notorious Markets List also identifies 42 online markets and 35 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy.
Besides IndiaMart, an e-commerce website and mobile app, four physical Indian markets on the list are located in Mumbai Kolkata and Delhi.
IndiaMART that connects buyers with suppliers describes itself as the world’s second largest online business-to-business market, according to the report.
“Counterfeit goods can allegedly be found in large volumes on IndiaMART, including counterfeit pharmaceuticals, electronics, and apparel,” it said.
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, the report said.
IndiaMART apparently has a notice-and-takedown system, but right holders report that it is burdensome to use, the time-to-takedown is slow, and the status of notices is not transparently communicated to right holders, USTR said.
Heera Panna, Mumbai, is a major indoor market located at the heart of the city. It reportedly offers counterfeit watches, footwear, accessories, and cosmetics.
Right holders warn that counterfeit cosmetics sold at this market have health and safety risks, USTR said. A raid at Heera Panna in September 2021 resulted in arrests for selling counterfeit versions of premium watches.
Kidderpore, Kolkata, which allegedly sells counterfeit apparel and cosmetics, often in wholesale quantities is locally known as “Fancy Market.”
Severe skin problems, rashes, irritation, and eye diseases have reportedly been caused due to the poor quality of the counterfeits, according to USTR report.
Palika Bazaar, New Delhi remains on the NML in 2021. This underground market in Delhi is seemingly well-known for the trade of counterfeit products, such as mobile accessories, cosmetics, watches, and eyewear.
Many shoppers are reportedly students and other young people who want trendy products at cheap prices. The market is also a popular destination for tourists, according to USTR.
Tank Road, Delhi continues to sell counterfeit products, including apparel, footwear, watches, handbags, electronics, and beauty products, according to the report.
Wholesale counterfeit goods are also reportedly supplied from this market to other Indian markets, including Gaffar Market and Ajmal Khan Road in Delhi.
Read: USTR Releases 2021 Review of Notorious Markets for Counterfeiting and Piracy (February 17, 2022)
Right holders note that conducting enforcement actions at this location is challenging, as the market is located in a residential area and sellers often appear to have advanced knowledge of raids, limiting their effectiveness, the report said.
USTR first identified notorious markets in the Special 301 Report in 2006. Since February 2011, USTR has published annually the Notorious Markets List separately from the Special 301 Report.