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Taobao Loses Cosmetics Suit

Shanghai Business, 8/05/08

The Shanghai Xuhui District People's Court has ruled that C2C e-commerce site Taobao needs to provide information on 65 online stores who were claiming to be selling cosmetics from Shanghai Faith Cosmetic.

In 2006, Faith Cosmetic discovered that these online stores were selling what they stated were Faith Cosmetic products on Taobao, at prices significantly reduced from the standard retail price. It requested Taobao to hand over information regarding the identification of the sellers, however Taobao refused. Faith Cosmetic then sued Taobao for the information, an apology, RMB 100,000 in compensation, and an end to infringement of its trademarks and rights.

The court has ruled that Taobao needs to hand over the information regarding the sellers, and post a notice of the ruling on its website to dispel any misleading information. The court also stated that once it had obtained information regarding the identity of the sellers, Faith Cosmetic could bring suit against them to protect its rights.

Keywords: penalty C2C e-commerce Internet Shanghai Xuhui District People Taobao IPR infringement law litigation

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