Cause And Effect: Counterfeiting In The Cosmetic Industry

The importance of trademarks as a source identifier in commercial industries ranging from pharmaceuticals to apparel cannot be discounted. This is because a trademark enables consumers to recognize and associate with their preferred brands which in turn helps brand owners to develop their reputation and grow their business in a competitive market. However, when third parties in an unlawful and illegal manner misrepresent their goods as originating from another source mostly associated with a popular/famous brand in order to to ride on the goodwill and reputation associated with that brand, and to unjustly enrich from the same, such products/goods are termed as 'counterfeit goods' i.e. goods that are fake and do not originate from the legitimate brand owner. The Trade Marks Act, 1999, in this regard provides for imprisonment of three (3) years and a fine up to two lakh rupees (USD 2814.10) as penalties for counterfeiting under Section 103, in addition to Sections 102 and