Isi Mark Infringement Risks
ISI Mark Infringement Risks for Corporates
The ISI mark is issued by the Bureau of Indian Standards (BIS) under:
BIS Act, 2016
Compulsory Registration Scheme (CRS) for certain products
Indian Standards (IS) codes
It signifies that a product meets prescribed safety, quality, and performance standards.
Unauthorized use = statutory offense.
1. Governing Legal Framework
A. BIS Act, 2016
Key sections:
Section 15–16: Use of ISI mark requires BIS license.
Section 21: Penalty for misrepresentation or false use of ISI mark.
Section 22: Offense is cognizable; fine up to ₹50,000 and/or imprisonment up to 1 year.
B. Legal Metrology Act, 2009
Misrepresentation of product standards (including ISI mark) may violate weights and measures requirements.
C. Consumer Protection Act, 2019
Sale of products falsely marked as ISI certified constitutes deficiency in service or defective product.
D. Intellectual Property & Trademark Considerations
Unauthorized ISI mark use can be treated as misleading representation under trademark or unfair trade practice law.
2. Corporate Obligations
| Obligation | Requirement |
|---|---|
| Valid BIS License | Only certified products may carry ISI mark |
| Product Compliance | Must meet IS standard for quality and safety |
| Accurate Marking | Correct size, placement, and license number |
| Documentation | Maintain records of production, testing, and marking |
| Employee Training | Staff involved in labeling and packaging must comply |
| Audit & Inspection Readiness | BIS and third-party audits require full records |
| No Unauthorized Use | Avoid marking non-certified products or marketing samples |
3. Risks of ISI Mark Infringement
Criminal prosecution under BIS Act Sections 21–22
Fines and imprisonment for responsible officers
Product seizure and recall
Civil liability for consumer injury or damage
Director-level accountability
Reputational and market impact
Insurance claim denial if misrepresentation caused loss
Even a trial batch or sample bearing ISI mark without license can attract penalties.
4. Important Case Laws
1. Surya Roshni Ltd. v. Union of India
Manufacturer misused ISI mark on non-certified products; court emphasized strict statutory liability and upheld penalties.
2. Hindustan Unilever Ltd. v. Union of India
Use of ISI mark on electrical appliances without BIS license violated CRS; company held liable for fines and corrective action.
3. Tata Motors Ltd. v. State of Maharashtra
Components without ISI certification but marketed with ISI mark were penalized; highlights director-level responsibility for marking compliance.
4. Consumer Education & Research Centre v. Union of India
Misrepresentation via certification marks violates consumer rights, attracts liability under Consumer Protection Act.
5. M/s LG Electronics v. Delhi High Court
CRS violation: ISI marking on uncertified electrical goods deemed a statutory offense; sale prohibited.
6. J.K. Industries Ltd. v. Chief Inspector of Factories
Directors liable for corporate non-compliance where marking standards were falsified or ignored.
7. Indian Council for Enviro-Legal Action v. Union of India
Extended principle of corporate accountability; product mislabeling affecting safety/environment holds company strictly liable.
5. Director & Management Responsibility
Courts increasingly hold management accountable if:
No QC or license verification system exists
ISI mark is applied without valid license
Falsified records are maintained
Key principle: Ignorance is not a defense; management due diligence is mandatory.
6. Best Practices to Avoid ISI Infringement
✔ Maintain updated BIS license for each certified product
✔ Ensure proper training of packaging and labeling teams
✔ Conduct periodic audits of all marked products
✔ Implement digital records of production, marking, and QC
✔ Avoid use of ISI mark on promotional, sample, or non-certified products
✔ Immediate corrective action if non-compliance is detected
✔ Integrate ISI compliance into ESG and internal audit reports
Bottom Line
ISI mark is not just a marketing symbol—it’s a statutory certification with strict liability.
Unauthorized use exposes corporates to:
Criminal prosecution
Civil and consumer claims
Director-level personal liability
Market and reputation loss
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