China regulator ironically attacks Alibaba for not doing enough about counterfeits
China, home of the world’s counterfeiting industry has sent a letter to Alibaba accusing the company of not doing enough to fight counterfeits. According to estimates, 8% of China’s GDP is based on counterfeiting. So is it ironic that the regulators are attacking one company, but doing nothing on a nation wide scale. Nike left China years ago because the government would not enforce any intellectual property law.
The State Administration for Industry and Commerce(SAIC) said Alibaba had many products listed on its website that infringed on trademarks, were counterfeit, or was a danger to public safety. This is nothing new. Alibaba is filled with counterfeits. We have many posts on our blog here about how the company is doing nothing to fight counterfeits, except spend it’s IPO money looking like it cares. They had to spend this money to get off of the US Notorious Markets list.
The U.S. Securities and Exchange Commission has asked for more information from Alibaba regarding this report from China regulators.
China Regulators back down:
After the white paper was released from SAIC, Alibaba’s Jack Ma met with the regulators. Afterwords the report was removed from SAIC’s website.