ARTICLE
14 April 2025

Counterfeiting And IP Enforcement: Challenges In The Indian Fashion Market

Ka
Khurana and Khurana

Contributor

K&K is among leading IP and Commercial Law Practices in India with rankings and recommendations from Legal500, IAM, Chambers & Partners, AsiaIP, Acquisition-INTL, Corp-INTL, and Managing IP. K&K represents numerous entities through its 9 offices across India and over 160 professionals for varied IP, Corporate, Commercial, and Media/Entertainment Matters.
The fashion industry over the years have grown largely which created a separate sector, boosting the economy at large.
India Intellectual Property

Introduction

The fashion industry over the years have grown largely which created a separate sector, boosting the economy at large. The creativity of the designers is exposed worldwide for recognition, which acts as ananywhere doorovercoming territorial boundaries. However, this worldwide exposure also has a default setting in the society where copying of work is very prevalent leading to the lessening of credibility of the designer's work. This is where Intellectual property rights dives in and offer various legal protections like that of copyrights, trademarks, designs and in certain cases geographical indications.

Fashion is a creative field, which requires a lot of labour, which gives us a reason to create a safe environment in order to provide recognition for the creator's work. Individuals use fashion as an artistic medium to describe who they are. In an effort to keep up with societal trends, creating room for fashion legislations. Fashion designers, distributors, photographers, media outlets derive protection from such legislations. It includes a wide range of tasks like that of dissolving company entities, promoting brand growth, intellectual property monetisation.

In India fashion law arrived with the view to service protection to traditional textile designs and skills. Since ancient times, Indian culture has taken pleasure and pride in its indigenous textile designs and innovative creations. At one time around early 1990s the country had over 1000 handloom weavers which decreased to just 30 by 2002, as a result of lack of protection offered by the government. Fashion law and intellectual property rights go hand in hand. Intellectual property rights are a separate field of law that highlights how creation arising out of human intellect deserves protection. Fashion is inclusive of such creations. However, the prescribed legislations available to them in India is very low of a bar. The limitations are very tricky and creates confusion among the designers ultimately leading to disputes

The line generally goes like 'PEOPLE ARE WHAT THEY EAT' but in contemporary world the apt line is 'PEOPLE ARE WHAT THEY WEAR'.

In order to understand the dilemma faced by IPR in Indialet's begin with example of the controversy of Bulgari's serpenti necklace and the sculpted boning technique of Gaurav Gupta brings into light the challenges ingrained in India's intellectual property rights highlighting the complexities and nuances attached to it, particularly in the field of design rights and copyrights

The issue of dual protection. Indian legal framework has barred dual protection under copyright act and designs act, exclusively mentioned under section 15(2) of the copyright act 1957. However, over the decades, the cases portrayed that such limitation can be dodged when the bar under the provision is not applicable due to the existing criterion of 50 replications is not reached or when handcrafted goods are used. This in turn creates a legal ambiguity that permits luxury designers or small-scale craftspeople to take advantage of copyright protection without registering their designs under the designs act

The duplication or replicas of Sabyasachi's designs in local markets like the infamous Chandni chowk helps in keeping the head over water by making affordability an option to people in this economy aka making luxury bridal pieces available to middle-class brides and grooms. However, such replicas act as a catalyst in violating the designer's intellectual property rights. While many designers including Sabyasachi Mukherjee acknowledges such replications in local markets by taking it as flattery and confirm that in this way the ultimate fame is received by them, others are hesitant about their deigns being copied, as it undermine the exclusivity.1 The conflict between accessibility and intellectual property (IP) protection in the Indian fashion sector is exemplified by the abundance of fake designer jewellery and wedding dresses in markets like Chandni Chowk. This issue presents serious questions about justice, law enforcement. and a double standard in fighting piracy, even though some designers like Sabyasachi and Amrapali view these reproductions as free publicity that boosts brand recognition.

The main problem that lies with such replication is that it reduces the client base who are willing to pay a huge amount in order to receive a classic piece of designer clothing that is not easily available to all. Hence counterfeit markets corrode this particularity, decreasing the client's willingness to pay the premium amount for originality.2 This phenomenon destroys the perceived reputation in multiple ways.

The current legal framework available to Indian designers, does provide protection to original designs but the challenge arises due the difficulty in implementing them unregulated local markets like Chandni chowk. The existing large scale and informality of such markets has made it quite impractically difficult to adequately monitor or prevent piracy.

The pragmatic approach taken by Sabyasachi Mukherjee regarding replication of his work by local markets is commendable for viewing it as publicity, but at the same time raises questions whether replication by locals is being normalized leading to an ethical dilemma.

On the other hand, the conflict between Sabyasachi Mukherjee and H&M emphasized the weaknesses of the fashion industry to protect the intellectual property (IP). The insufficient protection of the fashion inventions under the intellectual property laws of India is revealed in Sabyasachi's case to H&M, which claims. That retailers copy the design with detail which caused tension about the caution of the premium design business. It is also a representative of a bigger fight with many productions.

The Designs Act of 2000 serves as India's primary legislative basis for layout safety. Although this Act allows the registration of recent and creative designs, it is regularly tricky due to the ever-converting nature of favour developments. Deeply ingrained in Indian person and subculture, Sabyasachi's designs can be eligible for protection furnished they fulfil the originality requirement. However, considering the cyclical nature of fashion trends, demonstrating that H&M's designs constitute unlawful copying as opposed to simply concept poses a tremendous prison hurdle.

This case is similar to the famous Ralph Lauren V. USPA, which the court decided to protect the outstanding trademark. Previously, emphasizing how important the use of certain design components the court should consider that the numbers and embroidery works are specific to the protection of merit in the case of Sabyasachi-H & M

Resolving this case should strike a harmonious balance between market forces and artistic rights. Ruling in favour of Sabyasachi could strictly enforce Indian IP laws and encourage designers to protect their work. On the other hand, the decision in favour of H&M may reduce the value of uniqueness by allowing specific designs to be replicated.

From the above two scenarios relating to Sabyasachi's design and the designer's approach towards it raises multiple questions. The difference in attitude regarding local markets and H&M conveys us one thing that it is easier to raise a dispute by a high-end designer against other high-end brands for copyright but the same is not done when the question is of local markets. This is due to the factor that there is lack of rules and laws that can regulate the markets in a such a way, leading to curbing of counterfeiting. In many local shops the specific route taken by shopkeepers is to not display the replicas but show it to consumers directly when requested by them. The common tactic is to first find if the consumers are willing to pay the price and the second is to not allow them to click pictures of the pieces.

Another example where local markets have infiltrated the originality is of Lucknow chikankari, which has received GIand only few designers have access to make clothing in chikankari, but the same clothing is widespread available in local markets and e-commerce platforms which brings down the authenticity. Due to cybersquatting most of the clothing that are only found in stores are now available online, which is purely a scam and sell consumers unauthentic items in the name of being authentic.

Protecting the intellectual property rights of its designers is a major problem for the creative and culturally rich Indian fashion industry. Geographical indications, the Designs Act, and the Copyright Act all offer some protection, but they fall short of fully meeting the particular requirements of a dynamic and quickly changing business. Problems like the exploitation of traditional handicraft, unregulated local marketplaces like Chandni Chowk, and the presence of counterfeit markets underscore how urgently the present legal system has to be changed.

References

  1. From Runway to Courtroom: The Sabyasachi & H&M Design Controversy Unveiled, Mondaq (Sept. 27, 2023), https://www.mondaq.com/india/trademark/1510730/from-runway-to-courtroom-the-sabyasachi-hm-design-controversy-unveiled.
  2. Document on Intellectual Property Issues in Fashion Industry, Manupatra (last visited Jan. 25, 2025), https://docs.manupatra.in/newsline/articles/upload/dfd5d01c-e3a6-4833-9c2b-b1b06464c354.pdf
  3. Samta Mehra & Radha Khera, Indian Fashion Industry: Intersection of Copyright and Design Law, MONDAQ (July 16, 2024), https://www.mondaq.com/india/copyright/1493464/indian-fashion-industry-intersection-of-copyright-and-design-law.
  4. Demystifying Fashion Law in India, MONDAQ (Nov. 15, 2021), https://www.mondaq.com/india/trademark/1126284/demystifying-fashion-law-in-india.
  5. Anushka Sharma's Wedding Lehenga Takes Over Delhi's Bridal Market, The Times of India (Sept. 12, 2018, 12:23 AM), https://timesofindia.indiatimes.com/city/delhi/anushka-sharmas-wedding-lehenga-takes-over-delhis-bridal-market/articleshow/65783313.cms.
  6. Sabyasachi Designs Duplicate at Chandni Chowk Delhi, INDIA TV NEWS, https://www.indiatvnews.com/lifestyle/news/sabyasachi-designs-duplicate-at-chandni-chowk-delhi-3287.html.
  7. Neha Sah &Ezhilanban J J, IPR and Indian Fashion Industry: Challenges and Possibility, 28 J. INTELL. PROP. RTS. 432 (2023), https://doi.org/10.56042/jipr.v28i5.1422.
  8. Fashion Industry and IPR Dilemma, BASKARAN'S LEGAL BLOG (July 6, 2020), https://baskaranslegal.com/blog/2020/07/06/fashion-industry-and-ipr-dilemma/.
  9. Role of Copyright for the Fashion Industry in India, LEGAL RESEARCH & ANALYSIS, https://legalresearchandanalysis.com/role-of-copyright-for-the-fashion-industry-in-india/

Footnotes

1 Anushka Sharma's Wedding Lehenga Takes Over Delhi's Bridal Market, The Times of India (Sept. 12, 2018, 12:23 AM), https://timesofindia.indiatimes.com/city/delhi/anushka-sharmas-wedding-lehenga-takes-over-delhis-bridal-market/articleshow/65783313.cms.

2 Sabyasachi Designs Duplicate at Chandni Chowk Delhi, INDIA TV NEWS, https://www.indiatvnews.com/lifestyle/news/sabyasachi-designs-duplicate-at-chandni-chowk-delhi-3287.html.

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