IPR thieves beware! EIPR is on the prowl

Like their software counterparts, hardware vendors are having a tough time controlling the proliferation of counterfeit products. The Enforcers of Intellectual Property (EIPR) is an anti-piracy organisation that helps the IT ndustry stamp out fakes. Chitra Padmanabhan reports

Zaheer Khan

A police jeep pulls into the by-lanes of Mumbai’s hardware hub, Lamington Road and comes to a screeching halt outside a dilapidated building. A burst of frantic activity follows as people run helter-skelter. Seconds later, counterfeit products worth crores of rupees are seized and offenders are taken into police custody. This is a day in the life of Enforcers of Intellectual Property Rights (EIPR), an organisation that helps companies crack down on product counterfeiters.

The IT industry has been combating piracy and counterfeiting for some time now. That said, catching offenders in the act can be tricky. From fake cartridges to pirated software, fakes in each and every product category do brisk business in the grey market. For instance, makers of retail software complain that piracy levels stand at over 70 percent.

Intellectual property is protected for a reason—the idea is that creators should be rewarded for their ideas so that they continue to innovate and contribute to the improvement of society in general and business in particular. When Intellectual Property Rights (IPRs) are violated, companies lose out on revenues and reputation. In the long term, it discourages innovation and users suffer. Even in the short term, there is no warranty on spurious products and some can seriously damage your hardware.

Companies such as Canon, Epson and HP regularly find themselves fighting against clones of their products, particularly toner or ink cartridges, but also printers and other hardware. “IT peripherals and other devices seized during raids look similar to originals. A customer would find it extremely difficult to differentiate between the genuine and counterfeit products,” says Zaheer Khan, director for EIPR (India).

Detecting fake products

Every company offers value-added services and warranties to customers. Obviously they have no reason to provide the same to customers using counterfeit products. When a customer who has been mislead and cheated by the clone market approaches the company, it is a sign that counterfeiters are at play. To counter this, companies conduct awareness campaigns and put up advertisements in newspapers requesting customers to refrain from buying counterfeit products.

“Though such awareness campaigns serve the purpose of educating the customer, they are passive strategies,” says Khan. Passive measures can do little to contain the proliferation of counterfeit products.

Catching them red-handed

The rampant spread of piracy and product cloning requires a proactive approach. This is where EIPR plays a crucial role. The modus operandi is simple; companies approach EIPR with the details of counterfeit products and it tracks down the location where these activities are going on. After EIPR zeroes in on a unit manufacturing fakes, it seeks the help of the police to conduct raids and take legal action. “We have received great support from the police as we document our findings and present them as required by the law,” says Khan.

Whenever an independent agency carries out activities that have legal implications, there will always be nagging doubts as to the legal status of the complaint the firm files against manufacturers or dealers of counterfeit products. The flip side is that such cases need to be expedited. EIPR keeps the police department in the loop and ensures that such cases are prosecuted in a speedy and above-board manner.

The value of counterfeit products seized from manufacturing units varies making it tough for EIPR to charge a fixed sum from its clients. “Our fee-sharing agreement varies from client to client and is dependent upon factors such as the number of people employed, the value of the raids and of course, their effectiveness,” says Khan. The company’s client list includes the likes of Epson, Canon and Intel.

EIPR’s staff consists of a mix of retired police officers, technical staff and people who have made the protection of IPRs their preferred career choice. Retired police officers are well versed with legal procedures concerning IPRs and know how to deal with the police. The technical team trains staff to identify counterfeit products and the investigating team guides them in carrying out raids. “India has some of the best IPR laws in the world but we don’t make the mark when it comes to implementation,” says Khan.

EIPR has carried out about 500 raids over the past four years. “Setting up an investigative agency does not require any regulatory clearance from the government since every activity is undertaken within the purview of the law,” says Khan. Legal authorities pick up the threads once EIPR completes its investigation. As EIPR presents all the necessary evidence and proof before the court, prosecution is as good as guaranteed in most cases.

The judicial process in India tends to be a long and drawn out affair and parallel agencies such as EIPR can help unclog the process by aiding in investigation and conviction.

Advantage EIPR

It is the only non-governmental organisation in India that has been formed to control the proliferation of counterfeit products. EIPR involves the police at all levels ensuring that the prosecution of IPR infringment cases is legal and above-board, and most important of all, conducted promptly. It has conducted over 500 raids to date.

All about EIPR
Business	It helps IT vendors protect their intellectual property. In the process, it protects consumers from spurious goods.
Founded in	1990
Top Management	A A Khan: Founder & CEO Zaheer Khan: Director Edward Rodrick: Director, operations
Human Resources	EIPR has about 150 employees. The staff is drawn from the civil services (retired IAS, IPS and IFS). A team of lawyers and legal advisors backs its investigations. The organisation works closely with law enforcement agencies such as the local police and the customs and excise departments to name a few.
Corporate Office	Mumbai
Branch Offices	Delhi, Bangalore, Kolkata and support staff in over 20 Indian cities.
Partial Client List	Epson, Canon, Intel, Daimler Chrysler, Tata Motors, Bajaj Auto, Mahindra & Mahindra, Procter & Gamble, Marico, Century Textiles, Adidas, Gillette, Louis Vuitton, Asian Paints and Reuters
EIPR Services	Specially-designed IPR solutions IPR infringement investigation, litigation support, multi-jurisdiction raids, pretext purchases, advice on IP registration, grey market evaluation Advisory services Corrupt practice identification, due diligence, market intelligence, surveillance and electronic countermeasures

chitra@expresscomputeronline.com