The sale of both fake goods, and genuine goods sold on the grey
market where goods intended for one country are bought in
another, taking advantage of differences in pricing and
availability – are a serious problem for trade mark holders looking
to sell their products in the far east, where intellectual property
protection is limited.
China has been under international pressure to deal with the
problem within its borders and recently launched a much-publicised
crackdown on piracy – mostly relating to the sale of fake CDs, DVDs
and software.
Commentators are sceptical as to the long-term impact of the
crackdown, but some fashion houses have now seen limited action
towards the protection of their brands.
According to the China Daily, goods
relating to approximately twenty brands, including Chanel, Fendi,
Givenchy and Louis Vuitton, are no longer allowed to be sold in
Beijing markets, but will only be available in authorised
shops.
Li Dongsheng, vice-director of the State Administration for
Industry and Commerce, confirmed that sellers who breach the new
rules could face criminal prosecution over the trade mark
infringements.
According to Li, in one market alone 40 businesses have been
forced to close down because they were selling goods in breach of
the new policy.
