Alibaba lobbies to stay off U.S. blacklist list for fakes

Sun Oct 18, 2015 12:26am EDT
 
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By John Ruwitch

SHANGHAI (Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd is lobbying hard to stay off the U.S. Trade Representative's blacklist after coming under renewed pressure this year over suspected counterfeits sold on its shopping platforms.

Re-inclusion on the USTR's annual list of the world's most "notorious markets" for sales of pirated and counterfeit goods, while not carrying direct penalties, would be a blow to the company's efforts to shed perceptions that its sites are riddled with fakes and that its anti-piracy policies are inadequate. It could also hurt Alibaba's beleaguered share price.

Two Alibaba sites - the business-to-business platform Alibaba.com and the hugely popular Taobao Marketplace - were on the USTR's "Notorious Markets" list from 2008. Alibaba.com was removed in 2011. Taobao was taken off in 2012 for its "notable efforts" to work with rightholders to clean up the site.

On September 10, the USTR called for public input as it formulates its latest list, expected in the coming months. At least three industry bodies have publicly responded with criticism of Alibaba, alleging counterfeits remain widespread on its sites and that the company is difficult to work with or inefficient when seeking redress.

The company's new government affairs chief, Eric Pelletier, who took up the post in June, has sent two formal letters to the USTR this month, including a rebuttal of the industry group criticism.

Last week, Pelletier and an Alibaba lawyer met with an inter-agency working group coordinated by the USTR to discuss Alibaba's anti-counterfeit efforts, a source with knowledge of the matter said.

In his letters, Pelletier says Alibaba has gone above and beyond in dealing with the problem, but that primary responsibility for policing and deterring infringements rests with brand owners, according to copies seen by Reuters.

He said the company had made it easier this year for brands to remove listings of suspected fakes while toughening penalties for merchants who violate company policies.   Continued...

 
People ride a double bicycle past a logo of The Alibaba Group at the company's headquarters on the outskirts of Hangzhou, Zhejiang province November 10, 2014.  REUTERS/Aly Song/Files