IP PROTECTION IN CHINA ’ S E-COMMERCE INDUSTRY
including proactive monitoring , data analysis , the use of AI , fast-tracking online complaints mechanisms for rights holders , and test purchasing .
“ We are also aware that many platforms – like Alibaba , JD . com and Pinduoduo – have been working with law enforcement authorities as well as rights holders to do offline investigations against counterfeit goods ,” she said .
The CBBC works with platforms on such investigations and enforcement , and also collaborates with brands to share intelligence and build a data analysis model that smaller platforms could use to upgrade their systems to tackle counterfeits .
Bo Yu noted brands and platforms work better together now – with each realizing they need the other . “ Some platforms are much better because they communicate with brands more ,” he said .
He added that China ’ s e-commerce platforms have taken a leading role in implementing a range of measures to protect IP , but urged them to improve how they communicate with brand-owners and trade associations , and tell them what they are doing .
“ Do a better PR job , if I can put it that way ,” he said .
Turning to the e-commerce law , he said it places significant responsibility on platforms , which are responding by not just meeting requirements but exceeding them by taking action online and offline . Previously , platforms would delist counterfeit listings , pass the information to brand owners and leave them to get on with the offline pursuit of criminals . Now , some platforms work directly with the authorities to target counterfeiters .
“ They are doing some work traditionally done by the brand owners themselves and enforcement authorities . That ’ s a very strong message to whoever wants to sell products that are infringing or counterfeit ,” Bo Yu said .
This view was echoed by a China-based brand manager of a major western luxury brand who said that in recent years the major platforms have worked with the authorities and brands using big data to locate and tackle the sources of counterfeit goods . 45 That is an important change , “ and highlights how China ’ s platforms are different from overseas platforms .”
“ Before , a lot of brands chose to use legal actions against platforms to push them to devise better policies ,” he said . “ The new trend is to work with them .”
China ’ s leading platforms also came in for praise from a member of the brand protection team of a leading multinational that sells in both China and the US . 46 “ Proactive actions by these e-commerce platforms are particularly effective ,” she said , adding that cooperation with rights holders and enforcement institutions , such as the police and the courts , is also key .
AN UNRELENTING CHALLENGE Although proactive actions have an immediate impact , offline cooperation remains the biggest challenge , said the member of the brand protection team of a leading multinational . Success requires investing to cooperate with rights holders , spending on technology , and cooperating with other platforms to shut out criminals – particularly on social media .
“ I haven ’ t seen good cross-platform cooperation ,” she said . “ Criminal gangs are selling counterfeits over different social media platforms , not just one . If e-commerce platforms and social media platforms can be more united – share data and blacklist – it would be very helpful to us rights holders .”
To that end , CBBC is working with platforms on possible solutions , according to Zhang . “ For example , sharing a blacklist of infringers , or intelligence-sharing ,” she said . “ This needs to be done with a third party , maybe government , because there are also concerns on data protection … and of a commercial nature .”
Zhang added that the goal is a mechanism that provides a secure , trusted way for companies to share information to tackle cross-platform infringement , but admitted : “ There ’ s still a long way to go .”
To that end , the brand manager of the major luxury brand added that one aspect that is rarely discussed is the involvement of intermediaries such as logistics firms or cloud services that allow counterfeiters to upload their infringing posts . Large courier companies often do a creditable job helping to prevent counterfeits being transported , he said , but smaller players must do more .
“ When people send a parcel , the courier requires their actual ID and phone number – but in reality , we find a lot of fake IDs and names , and that makes them hard to track … to connect the dots between the buyer and the seller .” 45
This interviewee requested anonymity in order to speak openly . 46 This interviewee requested anonymity in order to speak openly .
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