BRAND LICENSING IN INDIA

India is identified by the OECD as one of the world's leading nations for counterfeit goods volume. Counterfeit sports merchandise bearing international sports logos is widely available across street markets, e-commerce, and social commerce. Disney has conducted major Mumbai market raids; Adidas obtained a permanent injunction against a trademark-infringing retailer in 2024. According to CUTS International, illegal websites collected over 5.4 billion visits in FY2025 alone. For international sports brands without active enforcement, counterfeit penetration can exceed 40–60% of visible merchandise.

India's per capita income (~$2,500 USD) means licensed merchandise priced at international retail levels ($30–100+) is inaccessible to the mass market. The sweet spot for licensed merchandise is ₹299–999 ($3.50–$12). Competing with counterfeit products priced at ₹150–300 requires either a tiered "good-better-best" product strategy or a completely different unit economics model — which many international rights holders are neither structured nor willing to support.

India has relatively few specialist licensing agencies with deep international sports IP experience compared to markets like the UK, US or Australia. Many international rights holders struggle to identify qualified agents with retail distribution reach, compliance capabilities, and genuine IP understanding. The licensing value chain often breaks down at the manufacturer level due to MOQ constraints, quality compliance costs, and royalty reporting complexity.

Despite a robust legal framework, IP enforcement in India is slow and resource-intensive. Court cases can take 5–10 years to fully resolve. High legal costs mean that for many small-to-mid-size international rights holders, litigation is not commercially viable. The abolition of IPAB in 2021 introduced transitional uncertainty that continues to affect enforcement planning.

Cricket, and specifically the IPL, commands an estimated 80–85% of sports licensing mindshare and retail real estate. IPL generated approximately $10 billion across all revenue streams in 2025. Non-cricket sports brands face significant consumer awareness and retail shelf-space challenges. International rights holders must budget meaningfully for brand-building before expecting licensing revenue.

India's retail ecosystem includes over 13 million retail outlets, dominated by unorganised trade. Modern retail reaches primarily Tier 1 cities and represents only ~10% of total retail. There is no India equivalent of JD Sports or Dick's Sporting Goods operating at scale. E-commerce and D2C are increasingly the only commercially viable channels for international licensed products.

For gaming and esports IP holders, India's state-level regulatory patchwork is a significant barrier. Real-money gaming is governed differently across 28 states — banned in some, permitted with licensing in others. The government valued India's online gaming market at ₹23,200 crore in 2024 and projects ₹31,600 crore by 2027, but the lack of a unified national framework creates compliance complexity for international IP holders.

India's FEMA regulates royalty payments to international licensors. While royalty repatriation is generally permitted, it requires RBI compliance and withholding tax obligations (typically 10–25% depending on applicable tax treaty). Transfer pricing regulations apply to intra-group IP licensing arrangements.

Licensed products that succeed in Western markets often require significant adaptation for India — different sizing standards, colour palettes (brighter, more saturated colours resonate), bilingual labels, and different product category priorities (stationery, festive gifting, cricket crossovers). Rights holders who provide India-specific design assets to licensees consistently achieve 2–3x higher sell-through.

While Premier League, NBA, WWE and F1 have growing Indian audiences, many international sports leagues have low brand recognition outside major metros. Fan development investment for non-cricket IP is a genuine prerequisite to commercially viable licensing, not an optional marketing expense. India has 136 million avid sports fans — but the majority are focused on cricket.