One example of counterfeiting in China involved Hermes and the Chinese company Shenzhen Minghui. The French luxury brand accused Shenzhen Minghui of producing and selling fake Hermes bags, leading to a lawsuit and ultimately an $8.9 million settlement in favour of Hermes.

Meanwhile, Chinese shoe manufacturer Aokang filed a lawsuit against New Balance in 2017, claiming the American company had copied its “N” logo. New Balance denied the allegations, but the case was settled out of court with an undisclosed payment made to Aokang.

In 2019, Versace found itself in hot water for producing a t-shirt that depicted Hong Kong and Macau as separate countries from mainland China. This design caused a backlash on social media, leading to severed ties with Chinese celebrities and an investigation by the Chinese government. Versace apologized and withdrew the t-shirt from the sale, highlighting the potential risks for foreign companies operating in China.

Stop counterfeiting in China

Another notable case in 2019 saw luxury brand Kering suing Alibaba for allegedly allowing the sale of counterfeit goods on its platforms. Kering, which owns brands such as Gucci and Balenciaga, claimed that Alibaba had not done enough to prevent the sale of fake products on its websites. After years of complaints, Alibaba agreed to pay $2.8 billion to settle the lawsuit and improve its anti-counterfeiting measures.

Are you looking into how to stop counterfeiting in China? Maybe you found your products in an e-commerce store in China, and you want them removed.

If you are willing to invest some money in one of our lawyers in China, there is an extremely high chance that the lawyer can get the products removed. The first step is for a paralegal at the law to register your trademark and IP in China.

The next step is for a demand letter to be sent to the company selling fake goods. A demand letter will also be sent to the e-commerce website in China.

If you need a lawyer in China to help you with counterfeiting, contact our legal consultant on Wechat: alistairvigier

The demand letter might say something like the below.

Demand Letter For Copywrite and IP In China

“My name is Mr. Steve Xu, a lawyer with ClearWay Law in Beijing. Our law office has filed and won many intellectual dispute lawsuits in the Beijing area. In 2019, we won a lawsuit against Fake Goods Inc for the amount of 2 million RMB.

It has come to my attention that your company is selling products that are counterfeit goods. My client, Big Teddy Inc, created the product back in 2018 and has the Copywrite to the products. Please see “Attached A” for proof of the copy write. You will also find proof of the China IP registration.

This is a takedown request to avoid legal action through the courts. Our law office has the ability and instructions to file a lawsuit in the court of Beijing if needed. We need to remove the products and confirm you have done so, within 30 days of this letter.”

How Does Counterfeiting in China Work?

Counterfeit goods are basically fake products. Someone might sell luxury goods using social media platforms. These same counterfeits can be sold in online stores, or in places like Hong Kong. Intellectual property is not a big deal in places like China.

The customers and border protection in China will not protect foreign companies. Brand protection is your responsibility. You must take legal action against counterfeits, or your brand is worthless. Your intellectual property is worth nothing. If authentic products cost a hundred times what a fake product that looks the same does, you are in trouble. Spend the money on a Chinese lawyer, and keep the value in your brand.

Counterfeiting in China

You need to register your copyright or trademark in places where counterfeiting is common, like China. This is true even if you are not doing business in China right now. If people can easily buy your products for cheap in China, they might export the fake products to places like the United States, Australia, New Zealand, or Canada.

Don’t assume your border police will have enough time to examine all the products that come through the port. You are now competing with companies that sell fake goods on your own products. Legal action over counterfeits is just a business expense. It’s not an option, you must do it.

Quickly Get The Fake Products Taken Down

If the counterfeits are on a large website like JD.com or Alibaba, there is a procedure to take down fake products. If it’s a small website, a threat from a lawyer is much better. Even if a company like JD gets a letter from a lawyer, they will likely speed up the process.

Every day your products as fake are for sale online, the less valuable your brand is. The lawyer will do all the work for the websites so that it’s easy for them to make the decision to ban that supplier.

The website can then watch to see if those products show up on another account using artificial intelligence. If the company does not know they are fakes, its artificial intelligence won’t learn.

You will also need to continue to watch for your products. The products will be removed eventually if you hire a lawyer. However, you will need to have all your documentation really to go. For example, you must show that you are the owner of intellectual property. It normally takes around seven days for the products to be removed.

Some law firms have express accounts with companies like Alibaba. Since Alibaba knows the lawyer is part of a law firm, there is trust. This quickly speeds up the approval process.

Sometimes the company wants a power of attorney signed between the client and the law firm. This is silly in our option, but we often do whatever speeds up the process.

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Protecting Your Business: Tips for Stopping Counterfeiting in China