Alibaba Group Holdings Ltd. sued two buyers, saying the latter used Taobao's counterfeit Swarovski watches. A few weeks before the incident occurred, Alibaba.com was just a second time the U.S. regulator was included in the blacklist of counterfeit goods.
Alibaba said in a statement on Wednesday that the lawsuit was the first legal action taken by the website against counterfeit goods sellers. Alibaba seeks compensation in the lawsuit of 1.4 million yuan. The case filed with the People's Court of Longgang District of Shenzhen was part of Alibaba's move to crack down on counterfeit goods on its e-commerce website. The company said it intends to take the same steps against other fake sellers.
Zheng Junfang, chief platform manager of Alibaba, said in a statement: "We want the counterfeiters to be given the punishment they deserve to protect the owners of the brand and we will make full use of the power of law to put pressure on counterfeiters to stop others from anywhere Engaged in such illegal activities. "
On Tuesday afternoon, Alibaba shares in the New York Stock Exchange rose 2% to 90.36 U.S. dollars. In the past 12 months, the stock has risen 9%.
Alibaba has been unable to get rid of fake problems. Last month, the U.S. Trade Representative's office called Taobao an "infamous" market, with complaints of counterfeit and pirated goods reaching unacceptable levels. Alibaba said it has stepped up its policy on copyright infringement and has streamlined the process of reporting and removing counterfeit goods. In a letter to the U.S. Trade Office, Alibaba said that in the one year ending in August, the company had cleaned up 380 million counterfeit goods on Taobao and closed 180,000 shops selling counterfeit goods .
Alibaba considers itself already struggling to combat fakes and is disappointed that the United States has blacklisted it again. Being re-joined to the blacklist undoubtedly undermined Alibaba's ability to expand abroad, making it more difficult to establish a relationship with local retailers, brands and entertainment companies.
In order to improve its credibility, Amazon has also stepped up efforts to combat counterfeit goods. In November, Amazon sued two sellers selling counterfeit goods through its e-commerce website. The lawsuit details how Amazon cracked down on counterfeit goods, including spending tens of millions of dollars a year on detecting wrongdoers and counterfeit goods.
Similar to Amazon, Alibaba said it is also using technologies such as machine learning and big data analytics to identify and remove counterfeit goods. Alibaba through technical means to monitor a suspect sale of fake Taobao merchants, and the information provided to the Shenzhen Luohu District police. Police raided the suspects on August 10, confiscating more than 125 counterfeit Swarovski watches. Another fake watch seller was also found in the same operation.
Last month, Alibaba sued Shatui.com. The latter will lead the coveted cheaper buyers fake sellers, and through the brush praise so fake sellers have top positions in the Taobao site.
The company said that from April to July last year, it cooperated with Chinese law enforcement agencies in investigating counterfeit goods worth more than 1.4 billion yuan, arresting 332 suspects and shutting down 417 counterfeit product lines.
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