Snapdeal & 4 Indian Physical Markets Appears in US Notorious Markets List

In the latest 2020 Review of Notorious Markets by the Office of the US Trade Representative, Snapdeal, which is one of India's largest e-commerce platforms, along with four Indian shopping complexes, two of them in New Delhi alone, have been listed for Counterfeiting and Piracy.

Heera Panna in Mumbai, Kidderpore in Kolkata and Palika Bazaar and Tank Road in Delhi are the four Indian markets that have been mentioned in the list. In the previous list of notorious markets, Aizawl's Millennium Center was also mentioned, but now it has been replaced by Palika Bazaar.

The US Trade Representative Robert Lighthizer said: "Holding intellectual property rights violators accountable and ensuring that American innovators and creators have a full and fair opportunity to use and profit from their work is critical for both physical and online markets."

Besides pointing out the role of e-commerce in simplifying the sale of pirated and counterfeit products, the 2020 Review of Notorious Markets identifies "39 online markets and 34 physical markets that are reported to be engaged in or have facilitated substantial trademark counterfeiting and copyright piracy."

For the first time a section included in the report which is addressing the role of internet platforms in facilitating the importation of counterfeit and pirated goods into the United States.

"Today, the greatest risk of importation of counterfeit and pirated goods, harming both US content creators and US consumers, is posed not by foreign flea markets and dark web sites but by inadequate policies and inadequate action by e-commerce companies that market and sell foreign products to American consumers," said Lighthizer.

The official said: "Combating piracy and counterfeits will require sustained effort by both the federal government and by companies that profit from the sale of such goods."

Despite the fact that 92% of the counterfeit goods confiscated by American law enforcement agencies originated in China and Hong Kong, the problem is global, with additional major points of origin, including India, Singapore, Thailand, Turkey, and the United Arab Emirates, the report said.

As the United States Trade Representative (USTR) said "Snapdeal remains a concern for right holders who report that the volume of counterfeit products on this platform has increased over the past year."

"According to a November 2018 survey, 37 per cent of purchasers reported that they had received a counterfeit product from Snapdeal. In July 2019, Snapdeal’s founders were accused of criminal conduct in India for selling counterfeit products there. Right holders have also sued Snapdeal for selling counterfeit goods," it said.

The USTR said: "Heera Panna, a major indoor market located at the midst of Mumbai, reportedly offers high quality counterfeit watches, footwear, apparel, accessories, and cosmetics. Right holders warn that counterfeit cosmetics sold at this market have health and safety risks."

"Locally known as "Fancy Market", Kidderpore in Kolkata reportedly sells counterfeit consumer electronics, apparel, cosmetics, and pirated software and media, often at wholesale quantities," said the report.

Palika Bazaar, which is an underground market in Delhi, is reportedly famous for the trade of counterfeit products; also it is said that many shoppers are students and other young people who want trendy products at cheap prices. The market is a popular destination for tourists, as well;" said the USTR.

As per the report, Tank Road continues the sale of counterfeit products, such as apparel and footwear. Wholesale counterfeit goods are also reportedly supplied from this market to other Indian markets, including Gaffar Market and Ajmal Khan Road. "Right holders report that conducting enforcement actions at this location is expensive and challenging, and sellers often appear to have advanced knowledge of raids, limiting their effectiveness," it reported.