Counterfeiting & the ways to tackle this menace in west bengal

©2017 ASPA www.aspaglobal.com
Counterfeiting
& the ways to fight this menace in
West Bengal
ASPA Press Meet
Kolkatta
11th April 2017
Disclaimer: This presentation is a part of ASPA series of presentation against counterfeiting in various sectors. These
presentations are intended for educational purposes only and do not replace independent professional judgment.
Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the
contrary, are not the opinion or position of the ASPA. ASPA does not endorse or approve, and assumes no responsibility
for, the content, accuracy or completeness of the information presented. The data used here are from various published
and electronically available primary and secondary sources. Despite due diligence the source data may contain occasional
errors. In such instances, ASPA would not be responsible for such errors.

AGENDA
1. Introduction about ASPA.
2. Counterfeiting – Global Problem
3. Scale of Counterfeiting in India
4. Forms of Counterfeiting - Examples
5. Situation in West Bengal.
6. Why it is important to fight counterfeiting?
7. Solution’s of Problem.
8. ASPA initiatives to fight counterfeiting
9. Conclusion.

1. ABOUT ASPA
• ASPA (Authentication Solution Providers’ Association) is a
non-profit organisation formed in 1998.
• Aim : To educate brand owners / authorities towards
importance of authentication solutions in order to fight the
problem of counterfeiting.
• ASPA has a strength of 50+ companies manufacturing
authentication solutions across the globe.
• Its member companies are protecting more than 15,000
brands across globe.
• Works very closely with industry association such as
International Hologram Manufacturers Association, UK,
Counterfeit Intelligence Bureau, UK, FICCI CASCADE, Indian
Beverage Association and others.

2. COUNTERFEITING – GLOBAL PROBLEM

3. SCALE OF PROBLEM IN INDIA
Loss of Sales to Industries INR Crores
Industry F.Y. 2013-14 F.Y. 2011-12
FMCG Packaged Goods 21957 20378
FMCG Personal Goods 19243 15035
Mobile Phones 19066 9042
Alcoholic Beverages 14140 5626
Tobacco 13130 8965
Auto Components 10501 9198
Computer Hardware 7344 4725
Total 1,05381 72969
The largest increase is seen in the alcoholic beverages and mobile sectors,
where losses have risen by 151 percent and 111 percent respectively.
Source: FICCI CASCADE

3. SCALE OF PROBLEM IN INDIA
Taxes Loss of Revenue to Government (INR Crore)
Industry F.Y. 2013-14 F.Y. 2011-12
FMCG Packaged Goods 6096 5660
FMCG Personal Goods 5953 4646
Mobile Phones 6704 3174
Alcoholic Beverages 6309 2511
Tobacco 9139 6239
Auto Components 3113 2726
Computer Hardware 1923 1234
Total 39237 26190
An increase of 49.8 percent in two years.
Source: FICCI CASCADE

3. SCALE OF PROBLEM IN INDIA- MEDICINES
2012 7% of anti-malarials are fake
2014
10.9% of antibiotics and TB
medicines failed basic quality
tests
2016
1 in 7 painkillers (diclofenac
sodium) tested found to be
substandard
2017
25% medicines in India are
fake, sub-standard or
counterfeit

4. COUNTERFEIT EXAMPLES
Sources: http://brandequity.economictimes.indiatimes.com/news/business-of-brands/why-make-in-india-when-you-can-
fake-in-india/52092245
http://indiatoday.intoday.in/story/bisleri-birseli-watch-before-you-buy-water-bottles-near-metro-stations/1/339742.html
http://timesofindia.indiatimes.com/city/mumbai/Bottled-water-manufacturer-association-approach-FDA-against-illegal-
plants/articleshow/51107066.cms
http://www.thehindu.com/news/cities/mumbai/news/beware-that-bottle-of-water-may-be-fake/article8255792.ece

4. COUNTERFIT EXAMPLES
Sources: http://www.onlineap.com/featured/counterfeit-drugs-threaten-india

Medicines
Sources:
http://www.pharmacyreviewer.com/forum/erectile-dysfunction-and-other-sexual-aid-drugs/16604-how-spot-fake-cialis.html

Imitation products of Chocolate drink seized in Malaysia
Sources: https://www.elitereaders.com/fake-milo-products/

5. SITUATION IN WEST BENGAL
CID arrests trader for manufacturing fake edible oil (900
drums of fake edible oil seized)
Those drums of oil were sold in the market under a famous brand
name. "Acting on a tip-off, we raided the factory. We seized 900
such drums from Sarkar's factory," said an investigator.
Malda, India's fake currency capital
(High Quality Counterfeit Notes of Rs. 2000 Seized In Bengal)
West Bengal youth arrested for submitting fake documents
at Guwahati University
India has 23 fake Universities,
Telangana, Uttar Pradesh, West Bengal, Maharasthra also have
considerable number of fake technical institutes.

6. WHY IT IS IMPORTANT TO FIGHT COUNTERFEITING?
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
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.

7. SOLUTION’S OF PROBLEM: AUTHENTICATION SOLUTIONS
Authentication
Physical
Authentication
Anti-
Counterfeiting
OVD’s
Security
Printing
Security Inks &
Coatings
Substrates –
Security Papers
Chemical &
molecular
taggants
Anti-Tamper
Tamper Evident
Labels /
Closures
Digital
Serialization
Track and
Trace

EXAMPLE : AUTHENTICATION SOLUTIONS - MEDICINES
Security
Hologram as
Excise Seal
Holographic
Component for
Visual verification
Code for
Digital
verification
2D Barcode
For scanning
convenience
These kind of high security label incorporating hologram with 2D code can be onto
each individual blister packs, bottle or injectable vial.
Regulatory labelling
Code printing on medicine
blister

EXAMPLE : AUTHENTICATION SOLUTIONS - LIQOUR
Security
Hologram as
Excise Seal
• More than 25 States & UT are
using security hologram to
protect consumers from illicit
liquor, easy identification of
genuine bottles and to protect
excise revenue.

EXAMPLE : AUTHENTICATION SOLUTIONS FOR
MARKSHEETS & CERTIFICATES
Certificates and Document can introduced hologram stickers on certificates
which contain counterfeit-proof holograms and a data matrix
code, increasing the security of certificates and virtually eliminating the risk
of counterfeiting.
Zoom view
Holographic
Component for
Visual verification
2D Barcode
For scanning
convenience
Code for Digital verification

EXAMPLE : HOW AUTHENTICATION SOLUTIONS WORK

ISO Recommendation for fighting counterfeiting
Authentication solutions recommended by ISO 12931 “Performance
criteria for authentication solutions used to combat counterfeiting of
material and goods”
Human
Senses
Authentication Tool Forensic
Analysis
Off the shelf Purpose
built
General audience
(Public)
OVERT COVERT - -
Restricted audience
(Enforcement
agencies)
OVERT COVERT COVERT COVERT
Characteristics of categories for authentication solutions
Track and trace technology when used alone is not considered to be an
authentication solution and as such is not covered by this international standard.
19

AUTHENTICATION SOLUTIONS LEVEL
Level 3
(Forensic
Level 2
(Covert features,
hidden information)
Level 1
(Overt features,
visual authentication)
Level 4
Digital

INTEGRATED SOLUTIONS TO MEET THE CHALLENGES
Security
solutions
OVD with
other non
optical and
special
security
features
Customised IT
solutions e.g.
track and
trace via SMS,
Web, Android
APP and
handheld
reader
High security
authentication
solutions
Authentication
Device
Authentication
Digital
verification
Complete
authentication
solutions
21

AN IDEAL SOLUTION / STRATEGY
An ideal solutions should provides basic characteristics
such as;
- Tamper Evident and difficult to copy
- Provide layers of security recommended by ISO &
Interpol (use-at least one level of overt authentication)
- Easy identification by users, facilitate product level
authentication
- Combination of physical and digital
- Focus on ethical vendor who provide multi layered
security solution instead just one technology
- To select technology take help of published standards
such as ISO 12931 and NASPO

8. ASPA INITIATIVES AGAINST COUNTERFEITING
 Working very closely with Industry bodies such as FICCI
CASCADE (Committee Against Smuggling and
Counterfeiting Activities Destroying the Economy),
Automotive Component Manufacturers Association (ACMA),
Confederation of Indian Industries (CII) and looking
forward for work with others such as IBA, OPPI and others
prominent industry association.
 Start a Nation wide campaign “MAKE SURE INDIA” with
an aim to create awareness amongst industry, government
and brand owners on importance of authentication
solutions against counterfeiting.

8. ASPA INITIATIVES AGAINST COUNTERFEITING
 Organised first of its kind International Authentication Conference in New
Delhi, scheduled on 8-9 February 2017. The event provides an
opportunity to brand owners to review all the available authentication
technologies across the globe.

9. SUMMARY
• Counterfeiting is a serious problem and need proactive
approach from industry, Government and Society by large.
• Authentication Solutions are a must to curb counterfeiting.

THANK YOU…..
For more information, please contact
Secretary
Authentication Solution Providers’
Association
21-Ground Floor, Devika Tower 6,
Nehru Place, New Delhi 110019, India
Email: info@aspaglobal.com
Website: www.aspaglobal.com

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