India as a Safe Sourcing Destination for the Footwear Industry: Protecting Your Intellectual Property
The global footwear industry is rapidly growing, with an estimated worth of $365 billion by 2027. As demand for footwear continues to increase, manufacturers are seeking out sourcing destinations that offer a combination of cost-effective manufacturing options, skilled labor, and strong intellectual property protection measures. One country that has emerged as a leader in all of these areas is India.
India is rapidly becoming a top sourcing destination for the footwear industry, thanks in part to its highly skilled workforce, cost-effective manufacturing options, and favorable government policies. However,in the past, concerns have been raised about the country’s ability to protect the intellectual property rights of manufacturers, particularly when it comes to counterfeiting and piracy. On the contrary, India has taken significant steps to protect the intellectual property of manufacturers, making it a safe and attractive sourcing destination for the footwear industry.
India has a strong legal framework for intellectual property protection, with laws and regulations that govern trademarks, patents, and copyrights. The country has also established enforcement mechanisms that are available to manufacturers, including civil and criminal remedies, border enforcement measures, and cooperation with law enforcement agencies. According to the US Trade Representative’s 2021 Special 301 Report, India has made notable improvements in the protection and enforcement of intellectual property rights over the past year, such as,
Bata India, which is a subsidiary of the global footwear company Bata, filed a lawsuit against Chawla Boot House in 2014 for selling counterfeit Bata shoes. Bata India claimed that Chawla Boot House was infringing on its trademark and copyright by selling shoes that were nearly identical to Bata’s own designs.
In response, Chawla Boot House argued that it was not intentionally selling counterfeit shoes and that it had purchased the shoes from a third-party supplier. However, Bata India was able to provide evidence that the shoes sold by Chawla Boot House were counterfeit, including witness testimony and physical examination of the shoes.
The court ruled in favor of Bata India and ordered Chawla Boot House to pay damages of INR 1.5 lakhs (approximately $2,000 USD) for trademark and copyright infringement. In addition, the court ordered the destruction of all counterfeit Bata shoes that were in the possession of Chawla Boot House.
In 2019, Nike won a case against a retailer in Delhi for selling counterfeit Nike shoes. The court ordered the retailer to pay damages of INR 3 lakhs (approximately $4,000 USD) and to cease all production and sale of counterfeit Nike products.
Similarly, in 2021, Adidas won a case against two companies in Delhi for selling counterfeit Adidas shoes. The court ordered the companies to pay damages of INR 10 lakhs (approximately $13,000 USD) and to cease all production and sale of counterfeit Adidas products.
These cases demonstrate that companies are taking action to protect their intellectual property rights in India and that the courts are willing to enforce these rights. However, counterfeiting remains a significant problem, particularly in the retail and consumer goods sectors, as there are a diverse group of suppliers in India, the vetting process becomes complex and ambiguous.
