IndiaMART figures in US ‘Notorious Markets List’

INDIA'S popular e-commerce website IndiaMART.com and four other markets have figured in the latest annual list of the world's ‘notorious markets’ released by the US.

The 2021 Notorious Markets List released on Thursday (16) identified 42 online and 35 physical markets around the world that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy.

The four other Indian markets on the list are Delhi's Palika Bazaar and Tank Road, Heera Panna in Mumbai and Kidderpore in Kolkata.

US trade representative Katherine Tai said, “the global trade in counterfeit and pirated goods undermines critical US innovation and creativity and harms American workers.”

“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.

The USTR report said IndiaMART that connects buyers with suppliers, describes itself as the world's second-largest online business-to-business market. 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.

IndiaMART has a notice-and-takedown system but right holders report that it is slow and burdensome to use and the status of notices is not transparently communicated to right holders.

A major indoor market located at the heart of Mumbai, Heera Panna reportedly offers counterfeit watches, footwear, accessories and cosmetics.

A raid at Heera Panna in September 2021 resulted in arrests for selling counterfeit versions of premium watches.

Locally known as “Fancy Market”, Kidderpore allegedly sells counterfeit apparel and cosmetics, often in wholesale quantities.

Severe skin problems, rashes, irritation and eye diseases have reportedly been caused due to the poor quality of the counterfeits, the report said.

Palika Bazaar remained on the Notorious Markets List 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 low prices. The market is also a popular destination for tourists, the report noted.

Right holders report that Delhi's wholesale Tank Road market continues to sell counterfeit products, including apparel, footwear, watches, handbags, electronics, and beauty products.

Wholesale counterfeit goods are also reportedly supplied from this market to other Indian markets, including Gaffar Market and Ajmal Khan Road.

The USTR is an agency of the US government responsible for developing and promoting American trade policy.

It first identified “notorious markets” in the Special 301 Report in 2006 and has been publishing its list annually.