Fraud in the fashion industry-India

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Fraud has been rampant in the fashion industry for as long as one can remember, but it can be said to have exploded in the same mainstream since the “big brands” became popular at the turn of the 20th century. The media and the ease of access to information has cemented fake products in the fashion industry, and it has actually become a sub-industry in itself! Most recently, the popular movie of 2021 #viewersHouse of Gucci (played by Adam Driver and the beautiful Lady Gaga) exposed for broadcast Imitation In the fashion industry as well as the attitude towards him in the 20th century – in the visual scene, the actors noticed that GUCCI fakes are of very good quality and that GUCCI fakes may not be widespread in the market. one thing!

However, in the last few years, the views of fashion behemoths have definitely changed, especially for reasons such as the easy access to the Internet and social networks (please see our previous articles on the subject. Imitation of fashion And Luxury Goods Fraud – Guccio Gucci SPA v. Intiyaz Sheikh).

Although the close relationship between the fashion industry and the counterfeiting world is understandable. The fashion industry is a creative expression that captures the imagination of one and all and importantly touches almost every human being and is an integral part of day to day life. Therefore, in the fashion industry, there is nothing more important than labels that show brand names, and the names of these products are their own heritage. Fashion is known in all regions of the world for its cultural heritage, beauty and color. In the fashion industry, before brands were created and widely used, consumers were more concerned about quality, comfort, value and design, but the same has changed over time. Nowadays, a person would rather spend $50 on a fake high fashion brand item than spend $70 on a brand that has a better product, but isn’t very popular/in demand.

However, the fashion industry is becoming increasingly threatened by its gradual evolution, and essentially, the transition to economies of scale similar to the mass production of clothing that began in the mid-nineteenth century. An as yet unknown amount of counterfeiting

Currently, the fashion industry is one of the most popular and profitable industries in the world, and the industry is an integral part of everyday life.

IP in the fashion industry

Intellectual property rights are used to protect the originality of ideas (and the expression of ideas) as well as to protect people’s intellectual creations from those who steal or exploit them. In the context of the fashion industry, branding and reputation form the backbone of the industry – names like GUCCI, Louis Vuitton, etc., carry a sense of gravitas and respectability that few other industries can match. In addition to trademarks/branding, designs/industrial designs and copyright, members of the fashion industry are also part of the IP portfolios.

Cheating can be defined as copying something of another with intent to deceive. People are selling popular brands in local markets with slight variations but very similar to the original in pattern, design and color schemes. In addition, as mentioned at the beginning of this article, fake factories can be of high quality, which actually increases the risk of counterfeit products in the industry.

Arguably the most popular counterfeit market is clothing, followed by items such as watches, shoes, handbags and jewellery. Among the most copied names are H&M, Gucci, Burberry, Hermes, Nike, Puma, Adidas, Blackberry and Cartier, etc. Nowadays, in many bazaars or markets, you can hear many salesmen shouting to customers that we really sell. Copy (or “Original Copy”) of ABC Brands. What is worse is that one can easily see such fake jobs online and get the same delivered to their home.

Hence, the legal action being taken against counterfeiting in the fashion industry in India is increasing day by day. For example, in March 2021, the police arrested a huge number of famous brands, including Fatal, Mufti, Allen Solly, Louis Philippe. They also carry a huge range of popular clothing brands and labels. The value of the seized items has exceeded INR 20,000,000 (20 million) Social media and online platforms. A case under Section 63 of the Indian Penal Code Copyright Act, 1957 and 420 of the Indian Penal Code was filed against the two men for selling fake clothes with different trade names.1.

Fraud in the fashion industry in India – recent trends

Some of the recent trademark infringement and counterfeiting cases are:

Guccio Gucci SPA v. Intiaz Sheikh2

Global luxury giant Gucci has secured relief from an earlier division of the Tis Hazari District Court in Delhi, which barred a local manufacturer from using the brand’s logo on its products. The suit was brought by the plaintiff to enjoin the defendant from infringing its trademark and copyright by selling substandard socks under the GUCCI branding. The plaintiff found that the defendant was illegally manufacturing socks using the registered trade mark and the logo of the plaintiff and accordingly sought a temporary restraining order along with the application to the local commissioner for appointment of the same in addition to the permanent injunction. to conduct a raid on the premises of the accused.

Apart from passing a permanent injunction in Gucci’s favour, the court ordered the accused to pay INR 200,000 as compensation and INR 166,000 as costs.

Hermes International & Anr. v McKee Lifestyle Private & Ann3

Hermes International & Anr (Defendant) sued the defendants for infringement, passing off, dilution, mutilation, account transfer, loss, transportation, fair competition, misappropriation etc. of the registered trademarks and copyrights.

Hermès International is the adopter and registered owner of the trademark(s) of the famous three-dimensional shape and therefore has exclusive rights to the “Birkin” bag shape and the trademarks “Hermès” and the style mark “HERMÈS” for its products – including luxury bags and accessories.

A few months ago in December 2021, Hermes obtained an interim injunction from the Hon’ble Delhi High Court, restraining the defendants from advertising the infringing goods on their website or any other third party websites.

M/s Blue Sky Cosmetics Pvt Ltd vs Shivani Cosmetics by its partners Vinod Monga and Nishant Monga4

Blue Sky Cosmetics (Plaintiff) filed a suit in Delhi High Court against Shivani Cosmetics through its partners Vinod Monga and Nishant Monga (Defendant) for registered trademark / trade dress / copyright / style / color combination / label / packaging. / Transfer of goods, conveyance, transfer of surplus accounts and other ancillary reliefs.

The plaintiff has encountered the defendant’s product (eye protection) which is the plaintiff’s registered trade mark / copyright / trade dress / color combination / style / packaging / label / generally raised. Aggrieved by the use/infringement of the defendants’ registered trade dress / logo / copyright / style / color combination / packaging rights by “Blue Sky”.

In the year On December 23, 2021, the Hon’ble High Court stated that the defendant has not only infringed the trademark but also the trade dress / copyright / style / color combination / label / packaging / in general from the plaintiff’s mark. Accordingly, the court restrains the defendant from using trade dress/copyright/writing style/color combination/label/packaging/general design or in any way directly or indirectly registered trade dress/color combination/writing style of the plaintiff/applicant. / packaging / label / copyright in “blue sky”.

Relaxo Footwears Ltd. vs. Nikhil Footwears and Anr5

RELAXO FOOTWEARS LIMITED (the Plaintiff), an ex-party of a popular Indian footwear brand, filed a suit in the Delhi High Court against Nikhil Footwear (the Defendant), seeking an interim injunction. This suit concerned the registered designs of Relaxo, as the defendant sells shoes of the same design.

The Plaintiff alleges that the Defendants are believed to be part of the Action Group of Companies engaged in the manufacture and marketing of footwear products under the trade mark “ACTION”. The plaintiffs allege similar counterfeiting of the product marketed under the “ACTION” brand. The plaintiffs issued two cease and desist notices to the defendants who replied that they were not making any similar/identical product as mentioned. The defendants stated that the accused products use the trade mark ‘ACTION’ and the email id of Domer Actionshoes.com and are manufactured by M/s. Nikhil shoes. The plaintiffs have stated that the defendants are using the shield of various organizations/properties/companies to carry out their illegal activities to escape liability and legal action. The plaintiffs claimed to have registered designs for certain of their products.

In the year On September 10, 2021, the Hon’ble High Court of Delhi enjoined the defendants from manufacturing, selling, offering for sale, advertising, importing, etc., the products concerned, by blatantly or fraudulently copying the registered designs of the plaintiff and increasing the amount. To infringe and/or circumvent the plaintiff’s designs.

Conclusion

The fashion industry is very fascinating, and completely fascinating to mankind. Innovation is the backbone of the industry and it has taken years to build a reputation and goodwill. In addition, consumer trust in the fashion industry takes years to build and is one aspect that can easily be lost – after all, it is very easy to change given the huge number of brands of amazing quality and similar prices. Brands. Therefore, the invasion of fakes is something that must be eradicated from the fashion industry.

For this, consumer awareness is more important than ever because more consumers are now willingly and knowingly parting with their hard-earned money for counterfeits. However, in recent years, brands in the industry have been on fire, as can be seen from the recent events described above, and it is hoped that the number of counterfeit products in the fashion industry will gradually decrease in the coming years.

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