Alibaba Responds to Industry Criticism of Anti-Counterfeiting Efforts
The Alibaba Group defended itself against charges by the American Apparel & Footwear Association and other groups that the company’s efforts to halt counterfeit listings on its online platforms regularly fall too short. “We routinely collaborate with brands, associations and regulators to maintain the integrity of our marketplaces,” an Alibaba spokesman said in an Oct. 25 email. “Our recent USTR submissions describe our steadfast efforts to fight counterfeiters online and the sources of such production offline. It also reflects our very strong commitment towards intellectual property rights protection.” AAFA (see 1610110035) and the Trademark Working Group (see 1610240028) were among those that recommended in comments to the Office of the U.S. Trade Representative that its 2016 Notorious Markets Report include Alibaba, whose platforms have stayed clear of the list since Taobao was designated in 2012. The Notorious Markets List includes marketplaces that may have been subject to enforcement action or may merit further investigation for possible intellectual property rights (IPR) infringement.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Alibaba said in its Oct. 21 filing with the USTR that the company is committed to building closer relationships with U.S. trade associations and companies that both expressed and did not express concern about the marketplace to USTR. Alibaba also said that several critical commenters never contacted Alibaba to discuss their issues or open a discussion. "All of the key indicators of our performance have improved dramatically over the past several years," the company said. "Add to that the innovative brand protection programs and practices Alibaba continues to implement and refine, and it is clear that Alibaba has put in place a robust, world class system to protect [intellectual property]." Alibaba also underscored activities such as Taobao's efforts over the past year to improve its counterfeit takedown system and its "Good Faith Program," which gives rights holders a presumption of good faith and provides streamlined takedown procedures.
Meanwhile, the AAFA doubled down on its criticism of the Alibaba marketplace, joining 17 other organizations in another letter (here) to USTR urging for addition of Alibaba to the list. The groups cited counterfeiting’s negative impacts on company sales, market access, employment and growth, as well as an Organization for Economic Cooperation and Development report finding that counterfeits account for more than 2.5 percent of global imports (see 1604180020). “Although the wide availability of counterfeits on ecommerce sites is not confined to Alibaba platforms, Alibaba has now become one of the largest ecommerce sites with hundreds of millions of subscribers and the ability to penetrate markets globally on a scale never before seen,” the letter says. “Moreover, the wide availability of counterfeits on Alibaba platforms has been extensively noted by many stakeholders, governments, and even Alibaba executives themselves.” Calling global counterfeits an “epidemic” at “crisis levels," the 18 companies charged that Alibaba made several public acknowledgements of its counterfeit problem, as well as several high-profile hires, but has shown little evidence that platforms themselves have improved.
Written by Brian Bradley
Email ITTNews@warren-news.com for a copy of Alibaba's filing.