IP PROTECTION IN CHINA ’ S E-COMMERCE INDUSTRY
review . In 2019 , this effort resulting in the removal of millions of infringing products from the Pinduoduo app .
Additionally , the company works with nearly 1,000 rights holders to check the authenticity of branded products , secretly buying potentially infringing products and checking their authenticity or sending them to the rights holder for evaluation . In 2019 , Pinduoduo carried out more than 60,000 test-buys , with infringing merchants forced to pay buyers in accordance with the platform ’ s harsh compensation rules .
Other platforms adopted some similar processes . Alibaba buys products secretly and analyzes product images , logos , keywords , user reports , consumer ratings and complaints from customers and rights holders to identify infringing products . And its behavior analysis engine detects abnormal listings and transactions to find offending sellers and see whether offending accounts are linked to each other .
The deployment of such measures is driven by the knowledge that being proactive is an order of magnitude more useful in combating counterfeits than simply reacting to complaints . In Pinduoduo ’ s case , for instance , over 97 % of the suspicious listings are intercepted and blocked through its proactive screening rules .
USER-FRIENDLY PORTALS The third aspect of INTA ’ s guidelines is the need for user-friendly portals for takedown requests and complaints about fraudulent products . This also forms a core element in the recent DHS report on combating trafficking in counterfeit goods . 22
The challenge for platforms in China and elsewhere is that some merchants use takedown procedures maliciously to undercut competitors . That means platforms need to strike a balance between protecting the legitimate interests of brands as well as those
Proactive measures : Mini-Programs
Pinduoduo has worked with brands to develop “ miniprograms ”, which allow customers to check whether the product they are buying is authentic .
Take the example of baby milk formula . Working with US firm Mead Johnson , Pinduoduo developed a mini-program that lets consumers track the company ’ s popular Enfamil formula from its factory to their doorstep .
The mini-program verifies manufacturing information and supply chain details such as logistics and delivery , and leaves little room for counterfeiters to switch the genuine article with fakes along the distribution chain .
Another mini-program allows consumers who have bought a well-known cosmetic brand to submit details and upload photos of lipsticks if they think they are suspicious . Brand experts then inspect them to determine authenticity and generate a report . If they cannot decide from the photo whether the product is authentic , consumers can mail it in for further examination .
Mini-programs , which are tailored to the unique features of each brand , mark another way that Pinduoduo works with brands to keep counterfeits at bay , as part of its continuous commitment toward building user trust by tracking and removing counterfeits .
Pinduoduo designs and maintains these mini-programs on WeChat while brand owners train Pinduoduo ’ s staff to conduct preliminary checks , and to promote these programs through their websites and social media channels , helping to raise customer awareness of these anti-counterfeiting measures . of merchants . That ’ s not always easy to do , though technological solutions can be helpful .
Pinduoduo ’ s online portal , which was launched in 2019 to communicate more efficiently with brand owners , allows rights holders to make takedown requests , and increased the number of infringement complaints that the firm could handle ten-fold . 23 The portal treats every rights holder equally and requires everyone to go through its unified procedures .
22
Combating Trafficking in Counterfeit and Pirated Goods : Report to the President of the United States , Department of Homeland Security ( 2020 ), op cit . 23
See : https :// www . pinduoduo . com / home / tousu
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