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www.homai.org
Brand Counterfeiting and solutions
for its prevention
By:
Chander Shekhar Jeena
Secretary: Hologram Manufacturers Association of India
FICCI Cascade conference, Lucknow, April 11, 2013
www.homai.org
 Counterfeiting not limited to luxury goods.
 Counterfeiting has now become global business
and one of the fastest growing business in world.
 India counterfeit market for the present year is
valued well above $ 5 billion
 FICCI survey estimated the loss of taxes worth
Rs 1000 crore p.a. to Indian exchequer
Brand Counterfeiting in India
www.homai.org
Brand are under attack in various forms however
main four are;
 Tampering
 Replication (75-80% of brand attack)
 Stage I is a look alike
 Stage II is pass off
 State III is duplication
 Stage IV is counterfeiting
 Diversion
 Recirculation (mainly happens in IMFL, auto and
bottled water industry)
Forms of Brand Counterfeiting in India
www.homai.org
Brand are under attack in various forms however
main four are;
 Tampering
 Replication (75-80% of brand attack)
 Stage I is a look alike
 Stage II is pass off
 State III is duplication
 Stage IV is counterfeiting
 Diversion
 Recirculation (mainly happens in IMFL, auto and
bottled water industry)
Forms of Brand Counterfeiting in India
www.homai.org
EffecttoGovt.
• Reduction in
public health crisis
/ illness / life
• Loss of tax
revenue
• Increased
enforcement cost
• Funding of
criminal activity*
• Loss of
Government
image
Effecttomanufacturer
• Lost revenue
• Liability
crippling law
suit as incident
of
counterfeiting
increasing
health and
security
problems for
public
• Brand integrity
*According to Interpol, the illicit trade money further leads to human trafficking, money laundering and increase in terrorism
activities.
Impact of Brand Counterfeiting
Effecttoconsumer
• Loss of life /
illness:
According to
WHO a fifth of
the one million
annual death
from malaria
could be
prevented if all
medicines for it
were genuine
and taken
properly.
www.homai.org
Brand are under attack in various forms however
mainly three are;
 Brand owner related issues
 Lack of proper anti-counterfeiting strategy
 Non-adoption of anti-counterfeiting technology
 Difference in cost / short supply of genuine
products etc. etc.
 Channel related issues
 Consumers related issue
Brand attack – Why ?
www.homai.org
How to block brand counterfeiting ? Solutions
Security Technologies
Authentication solutions
Logical
Structure
analysis
Cryptographic
Physical
Inks / Taggants
Printed
OVDs and
Hologram
Serialisation
Track and
Trace
Identification
www.homai.org
What is an ideal solution ?
Solution should be selected on basic
parameters like :
- Should provide easy visual authentication
- Tamper solution and difficult to copy
- Tamper evident solution
- Provide three layers security Overt, covert
and forensic
www.homai.org
Why Hologram ?
• Simple tool for layman to distinguish an original product from fake
• Cannot be effectively scanned, photocopied or photographed
• Proven track record in deterring counterfeiters
• Provide tamper evident solution
• Easy to apply and incorporate
• It has been used because industry is doing continuous R&D
• Provide multi level security and verification options
www.homai.org
How hologram help in identification,
authentication and arresting counterfeits
Level of Security features / Authentication:
Security level Security Hologram
features
Assisting / Inspection level
Level
1
When the product / brand will
be viewed by consumer / junior
level officer’s at various points
during inspection
Level
2
When the product / brand will
be subject to inspection by
senior officials
Level
3
When the product / brand is
subject to forensic
examination / in case of fraud
OVERT
COVERT /
FORENSIC
www.homai.org
Consumer Education
www.homai.org
Summing Up
 There is a need of authentication + tracking solutions to be used with
proper communication to consumers’.
 Zero brand attack is an utopia. Brand owner can only take action in
reducing the overall impact of brand attack.
 Better management and use of effective brand protection solutions
can result in brand owners getting better sales and market share;
consumer getting the right products at the right price, government
getting better revenues and a satisfied and loyal channel.
 Counterfeiting can be curb to a large extent, But for that, first of all
brand owners will have to show a strong will to fight the menace.
www.homai.org
Thank You
For more information, please
contact
C S Jeena
Secretary
HOMAI

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Brand counterfeiting and solutions for its prevention

  • 1. www.homai.org Brand Counterfeiting and solutions for its prevention By: Chander Shekhar Jeena Secretary: Hologram Manufacturers Association of India FICCI Cascade conference, Lucknow, April 11, 2013
  • 2. www.homai.org  Counterfeiting not limited to luxury goods.  Counterfeiting has now become global business and one of the fastest growing business in world.  India counterfeit market for the present year is valued well above $ 5 billion  FICCI survey estimated the loss of taxes worth Rs 1000 crore p.a. to Indian exchequer Brand Counterfeiting in India
  • 3. www.homai.org Brand are under attack in various forms however main four are;  Tampering  Replication (75-80% of brand attack)  Stage I is a look alike  Stage II is pass off  State III is duplication  Stage IV is counterfeiting  Diversion  Recirculation (mainly happens in IMFL, auto and bottled water industry) Forms of Brand Counterfeiting in India
  • 4. www.homai.org Brand are under attack in various forms however main four are;  Tampering  Replication (75-80% of brand attack)  Stage I is a look alike  Stage II is pass off  State III is duplication  Stage IV is counterfeiting  Diversion  Recirculation (mainly happens in IMFL, auto and bottled water industry) Forms of Brand Counterfeiting in India
  • 5. www.homai.org EffecttoGovt. • Reduction in public health crisis / illness / life • Loss of tax revenue • Increased enforcement cost • Funding of criminal activity* • Loss of Government image Effecttomanufacturer • Lost revenue • Liability crippling law suit as incident of counterfeiting increasing health and security problems for public • Brand integrity *According to Interpol, the illicit trade money further leads to human trafficking, money laundering and increase in terrorism activities. Impact of Brand Counterfeiting Effecttoconsumer • Loss of life / illness: According to WHO a fifth of the one million annual death from malaria could be prevented if all medicines for it were genuine and taken properly.
  • 6. www.homai.org Brand are under attack in various forms however mainly three are;  Brand owner related issues  Lack of proper anti-counterfeiting strategy  Non-adoption of anti-counterfeiting technology  Difference in cost / short supply of genuine products etc. etc.  Channel related issues  Consumers related issue Brand attack – Why ?
  • 7. www.homai.org How to block brand counterfeiting ? Solutions Security Technologies Authentication solutions Logical Structure analysis Cryptographic Physical Inks / Taggants Printed OVDs and Hologram Serialisation Track and Trace Identification
  • 8. www.homai.org What is an ideal solution ? Solution should be selected on basic parameters like : - Should provide easy visual authentication - Tamper solution and difficult to copy - Tamper evident solution - Provide three layers security Overt, covert and forensic
  • 9. www.homai.org Why Hologram ? • Simple tool for layman to distinguish an original product from fake • Cannot be effectively scanned, photocopied or photographed • Proven track record in deterring counterfeiters • Provide tamper evident solution • Easy to apply and incorporate • It has been used because industry is doing continuous R&D • Provide multi level security and verification options
  • 10. www.homai.org How hologram help in identification, authentication and arresting counterfeits Level of Security features / Authentication: Security level Security Hologram features Assisting / Inspection level Level 1 When the product / brand will be viewed by consumer / junior level officer’s at various points during inspection Level 2 When the product / brand will be subject to inspection by senior officials Level 3 When the product / brand is subject to forensic examination / in case of fraud OVERT COVERT / FORENSIC
  • 12. www.homai.org Summing Up  There is a need of authentication + tracking solutions to be used with proper communication to consumers’.  Zero brand attack is an utopia. Brand owner can only take action in reducing the overall impact of brand attack.  Better management and use of effective brand protection solutions can result in brand owners getting better sales and market share; consumer getting the right products at the right price, government getting better revenues and a satisfied and loyal channel.  Counterfeiting can be curb to a large extent, But for that, first of all brand owners will have to show a strong will to fight the menace.
  • 13. www.homai.org Thank You For more information, please contact C S Jeena Secretary HOMAI