Chile and India have been highlighted in a European Commission piracy survey as international black spots for the counterfeiting of cosmetics and related products. Cosmetics companies “invoke frequent infringements of their design rights and utility models” in Chile, said the survey report, collated by the Commission's directorate general (DG) for trade.
While some of these fakes are imported, “most of the counterfeited and pirated goods are locally produced and are destined to domestic consumption”, said the study, which added that recently some counterfeits have been exported to neighbouring countries. Chile's federation of cosmetics importers has introduced holographic seals in a campaign against product fakes.
The survey was based on responses from companies, diplomatic missions and trade associations, and focused on all countries where intellectual property violations are common. In India, the Commission was told that: “Approximately 15% of consumables (soap, shampoo, toothpaste, perfume and cosmetics, etc) are counterfeits”. Indeed a recent study by A C Nielson estimated losses incurred to counterfeiters by big brand owners in the Indian cosmetics and related sectors as between 15% and 20% of their total turnover. The India survey report said that cosmetics were among a number of consumer products counterfeited in a thriving national black market sector.