Recently, a number of Chinese government ministries and agencies jointly issued notice of a new crackdown on online sales of counterfeit goods. China's Ministry of Commerce, Ministry of Industry and Information Technology (MIIT), Ministry of Public Security (MPS), People's Bank of China, General Administration of Customs, State Administration for Industry and Commerce (SAIC), General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), General Administration of Press and Publication (GAPP) and State Intellectual Property Office (SIPO) are among the institutions involved in the campaign.
The notice called upon online shopping e-commerce platforms nationwide to step up monitoring efforts, with authorities in Zhejiang province, Shanghai, and Shenzhen in particular emphasizing the need for e-commerce platform operators such as Taobao, Eachnet and Tencent's (0700.HK) Paipai to introduce stricter measures toward detecting and dealing with instances of online storefronts suspected of selling either counterfeit or fake goods. E-commerce platforms found to be the source of serious intellectual property right violations will face measures aimed at enforcing legitimate operations, ranging from a legal warning by authorities to short-term closure for rectification. Platforms which fail to correct instances of intellectual property rights violation following a short-term closure will be dealt with harshly, including blocking access to the site by denying DNS resolution.
Editor's Note: For more background on this topic, please see "Chinese Government Cracks Down on Online Sale of Counterfeits" MD 1/04/11 issue.