IP PROTECTION IN CHINA ’ S E-COMMERCE INDUSTRY
Proactive measures : Brand Care Program
Pinduoduo ’ s “ Brand Care Program ”, which was launched in 2019 , is a key plank in its proactive strategy to combat counterfeiting , safeguard customers and uphold the rights of brand partners .
Given that counterfeiters are attracted to brands that are popular with consumers , Pinduoduo selected 1,000 of the brands that are best known to consumers in China to take part in its Brand Care Program . The platform reviews and adds brands each year .
Rather than employing a one-sizefits-all policy , Pinduoduo uses a bespoke approach incorporating made-to-measure technology that weeds out infringing products with precision and efficiency . This involves designing and maintaining customized screening rules for each brand that proactively detect and block counterfeit listings , and that are automatically applied to each new listing .
In developing these rules , Pinduoduo studied the patterns of infringements particular to each brand , and undertook market surveys and brand interviews to understand the conditions unique to each brand .
Pinduoduo also uses an AI authenticity rating that incorporates machine learning to detect counterfeit products and their merchants . The idea is that feeding the system enough information will help it to evolve and better understand the tricks that such vendors use .
The consequence is that consumers won ’ t see most counterfeit listings because the firm ’ s algorithmic wall automatically blocks listings that run afoul of these custom-built rules .
And those counterfeiters who manage to bypass these rules must contend with post-list screening models that use a range of other criteria including buyer ratings and feedback to flag counterfeit listings for takedown .
This combination of pre-listing rules and post-listing screens , aided by machine learning , has helped Pinduoduo block and remove millions of suspicious or confirmed counterfeit or infringing product listings . 35 with products sent to brands and labs for verification . 33 It also has a points system to regulate merchants ’ operational behavior , with violators of its rules losing points – the more serious the offense , the more points are deducted . Penalties range from ordering goods removed from the store ’ s shelves to closure . 34
COLLABORATION The next element in INTA ’ s best practice guidelines involves working with stakeholders and law enforcement : subject to applicable privacy laws , helping brands and the authorities to access information about who is selling counterfeits and what they are selling .
Each of China ’ s leading platforms works with brands and rights holders to help uphold their IP , though their approaches tend to differ based on their business model ( see box above ).
Pinduoduo also reaches out to brand owners through business councils and trade bodies , such as the Beijingbased Quality Brands Protection Committee ( QBPC ), the Paris-based Union des Fabricants and the Milan-based INDICAM . And it works with law enforcement to provide information on counterfeits . In the year to October 2019 , the firm provided more than 1,000 leads to enforcement authorities , aiding the arrest of over 200 suspects in cases worth more than RMB100 million ( US $ 14 million ). 36
Alibaba has an alliance with more than 150 brands , 37 and partners with rights holders and associations to carry out test-buys and combat counterfeiting . 38 It has also signed agreements to combat counterfeits with 33
In-Depth Report : How JD Tackles Counterfeits Part Two : The Quality Guarantee , JD . com , op cit . 34 Ibid . 35
Consumer Protection Annual Report , Pinduoduo ( October 2019 ), op cit . 36 Ibid . 37
Comments for 2019 Special 301 Out-of-Cycle Review of Notorious Markets : Docket No . USTR-2019-0013 – PUBLIC VERSION , Alibaba , op cit . 38 Ibid .
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