MUMBAI: Counterfeit and spurious products today pose a serious threat to manufacturers and are having an impact across sectors and industry representatives are of the opinion that more stringent laws and deterrents are essential to tackle the menace.

"It is not just a loss to the government in terms of taxes or industry in terms of revenues, but ultimately it is the consumer who is paying for poor quality and spurious products,'' said Bharat Patel, Chairman, Procter and Gamble India, while addressing a seminar on `Counterfeiting and Pass-offs' here on Tuesday organised by the Brand Protection Committee of the Federation of Indian Chambers of Commerce and Industry (FICCI).

A study conducted by AC Nielsen shows that the government loses Rs. 900 crore annually from counterfeiting in the fast moving consumer goods (FMCG) sector alone. Also, nearly Rs. 4,000 crore of spurious drugs are sold every year, ten per cent of major soft drink brands sold are spurious, 10-30 per cent of cosmetics, toiletries and packaged foods are counterfeit and the revenue loss to industry as a result is around Rs. 10,000 crore annually.

Speaking at the seminar, Amitabh Chandra, Commissioner, Food and Drug Administration (FDA), said there were issues relating to punishing counterfeiters. "For prosecution, surprisingly, it takes 15-20 years for a verdict and the conviction is only around 5 per cent. The FDA on its part can suspend or cancel the licence of the counterfeiter.''

The laws applicable are the Prevention of Food Adulteration Act and the Drugs and Cosmetics Act but these talk only about `misbranded' products or `spurious' products and not counterfeit products. Mr. Chandra suggested that FICCI should move to set up special courts, "since prosecution in these cases take unduly long.''

Ramesh Priyolker, Managing Director, Enforcers of IPR, said, counterfeiting took place on a massive scale in computer accessories, automobile parts and accessories and in the FMCG sector.

"These three account for around 60 per cent of all counterfeit products in the country. A new trend that has been noticed is in counterfeit international luxury brands and also the surge in Chinese counterfeit products available here, largely on the back of the Chinese government cracking down on counterfeiters there.''

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