China is the largest source country for seized counterfeit goods, and apparel and accessories are the largest category of merchandise. Got a confidential news tip? However, alongside this, more fundamental methods of enforcing IP rights, such as sending regular cease and desist notices, should be used to establish an evidence trail, which could be used by law enforcement in future. The cornerstone for any anti-counterfeiting strategy is an online monitoring programme. Where possible, such notices should also be sent to the website owners themselves, ideally written in the local language. Then, within days, the company finds its products appearing online across multiple websites outside of its control. Most of these sweatshops are located in low-tier Chinese cities and the laborers are Chinese children, making it close to the hearts of people in China. It comes as no surprise that the largest city in South China is producing counterfeit LV goods; in May, 630,000 sets of fake Nike and Adidas track suits, worth $3.2 million were seized in Guangzhou. According to US Chamber of Commerce estimates, Greater China is the source of 86 percent of the world’s counterfeit goods, a portion valued at a staggering $397 billion. Place product images in your ads that are subtly different from the real … The laws regulating the infringement of IP rights have not been strong enough and there is no robust enforcement mechanism. In China, you can roam around in a fake luxury car, wearing fake clothes as well as shoes of expensive brands. It is important that brand owners review all options in order to deploy a well-structured but flexible strategy to tackling the wealth of online fakes. In a further new development, leading companies in China, such as Taobao, owned by the Alibaba Group, are taking steps to fight counterfeiters. Counterfeit goods manufactured and smuggled from China with a suggested value north of half a billion dollars, were intended to make its way into U.S. markets and into the hands of unsuspecting consumers,” said HSI Special Agent-in-Charge Melendez. [email protected], The Global Legal Post Belts, purses and bags made to … Luxury goods Counterfeit.com. Online counterfeiting appears in many forms. Strategies for operating in the Chinese market whilst navigating the prolific counterfeiting problem are more crucial than ever. In 2005, a survey of 450 members of the American Chamber of Commerce (AmCham) found that piracy is “so pervasive and serious” in China that 35 per cent of them said they were forced to “slow, decrease, or consider decreasing their investments in the country.”. Once the targets are identified, “cease and desist” notices should then be sent to the relevant players who are helping the websites to stay online, either by providing infrastructure or revenue streams. luxury goods brands such as Chanel, Gucci, Louis Vuitton and Prada, has been. Counterfeit luxury goods are displayed by customs and police officials following a record seizure at the customs headquarters in Hong Kong on August... Man tries to block a photo from being taken as he sells counterfeit luxury goods in a street of Hong Kong, 26 November 2004. The purpose of the MoUs is to establish cooperation mechanisms for IP protection and combatting online counterfeit transactions. Websites such as eBay and Facebook and Chinese sites, such as Alibaba and Taobao.com, tend to act quickly against the sale of counterfeit products through their websites. There are long term gains from keeping ongoing records of the websites whose illicit activities can be targeted. Han et al. In fact, the federal government recently seized nearly a half-billion dollars worth of counterfeit luxury goods in New York. The result is reputational damage and profit losses for luxury brands. Not only this, but you can also shop for fake branded products and drink even fake coffee. Yet, while it is promising to hammer down on infringing goods, the tech giant’s “streamlined notice and takedown” anti-counterfeit initiative has struggled to keep up with counterfeiters, who are adept at mimicking luxury and designer brands and selling them to Tmall and Taobao’s 874 million combined consumers in China. United Kingdom, Tel: +44 (0) 20 7193 5801 Small parcels accounted for 69% of total customs seizures by volume over 2014-2016 (57% via post and 12% via courier), up from 63% over the 2011-2013 period. The websites are offering counterfeit versions of the same goods, with similar logos and packaging, but sold at knockdown prices. Makers of expensive bags, clothes and watches are fighting fakery in the courts. London EC2A 4NE 86-90 Paul Street They also made some arrests in January in the southern province of Guangdong and eastern Jiangsu, Xinhua said. These include Internet Services Providers (ISPs), domain name registrars and advertisers. It also highlights the use of criminal enforcement mechanisms to deter IP infringement, particularly in the sale of counterfeit goods in cases involving foreign parties. Second hand sales of luxury brand goods are also creating new opportunities for legitimizing counterfeits. In fact, China as whole has an infatuation with luxury goods. What options do brand owners have to fight counterfeiting of goods? But they are now fighting back harder too, and if a recent lawsuit involving Louis Vuitton Moet Hennessy Group (LVMH) in Beijing is anything to go by, the China authorities are starting to lend more support, too.
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