On the morning of July 20, the Fengxian District People's Court of Shanghai made a public verdict on the Taobao lawsuit against the fake store on the platform. The court found that the defendant's counterfeiting behavior caused damage to Taobao's goodwill and asked the defendant to compensate Taobao RMB 120,000. It is reported that the case is the first case of a publicly verdict in the country for selling fake stores on e-commerce platforms. Zheng Junfang, chief platform governance officer of Alibaba , said that he will continue to send case clues to law enforcement agencies, and at the same time, he will pursue and kill through civil litigation within the framework allowed by law, continue to curb counterfeit elements and jointly promote "anti-counterfeiting like controlling drunk driving."

Taobao sues fake seller for compensation of 120,000 yuan
The defendant Yao has been selling pet food on Taobao since 2015. In May 2016, Taobao and Mars jointly discovered that the "Royalcanin" cat food it sold was suspected of being fake, so they purchased a bag of pet cat staple food at the store at a price of 99 yuan. After identification by the brand, the cat food was a fake, and Taobao then transferred the clues to the police. On October 12, 2016, Yao was arrested by the police.
Subsequently, Taobao sued Yao in court on the grounds of "violating the agreement that no for sale is allowed and infringing on the platform's goodwill." On April 25 this year, the case was tried publicly and was tried personally by Lu Weimin, president of Fengxian District Court.
At 9:30 on July 20, the verdict was announced publicly. After the trial, the court held that the defendant Yao continued to sell counterfeit goods on Taobao through adulteration . His behavior not only damaged the legitimate rights and interests of the rights holders related to the goods, but also reduced consumers' trust in Taobao and the public's good review of Taobao, and caused damage to Taobao's goodwill, so the defendant should compensate him for this.
When the first trial was held, Yao argued that it was the rise in costs that led to the sale of counterfeits. This statement was refuted by the court, and the judgment stated that the defendant cannot use this as an excuse to sell counterfeit goods, which infringes on the legitimate rights and interests of consumers. This behavior is contrary to honesty and trustworthiness, and the defendant should bear corresponding civil liability for his actions.
In view of the defendant's behavior of selling counterfeits caused damage to the plaintiff Taobao's goodwill, the court determined the defendant's compensation amount at its discretion, and finally sentenced the defendant Yao to lose the case and sentenced him to compensate Taobao 120,000 yuan within ten days from the date of the effectiveness of the judgment.
Alibaba invests 1 billion yuan per year to hunt down counterfeits
How much will the e-commerce platform lose when a fake item is sold in an online store? Is it true or false to fight against e-commerce?
Jack Ma once said in public that for every fake item sold, Alibaba will lose 5 customers. At the beginning of this year, Zhang Kaif, assistant professor of marketing at Carnegie Mellon University in the United States, also used purchase data from 603,000 Taobao consumers across five months to do an econometric analysis: purchasing a fake or inferior product of 1,000 yuan will lead to a consumer's consumption on the Taobao platform drop by 3,570 yuan in the next 12 weeks. The platform's goodwill loss caused by the personal behavior of counterfeiters is an unforgettable disaster for any e-commerce platform.
To this end, Alibaba has formed a professional anti-counterfeiting team of 2,000 people, investing more than 1 billion yuan each year, forming a four-dimensional anti-counterfeiting model of online interception, offline crackdown, rights holder co-construction and social governance. In 2016, Alibaba mined 1,184 clues of fraud through big data, providing powerful weapons for local public security to combat counterfeiting, and successfully assisted the police in arresting 880 criminal suspects, destroying 1,419 fake dens, and cracking the total amount involved in the case exceeds 3 billion yuan.
Taobao has sued three fake stores to set up funds for compensation
However, the current criminal judgment and punishment are too low, which is not enough to deter the lucrative counterfeiting and selling counterfeit industry chain. According to a set of data released by Alibaba, in 2016, the Alibaba Platform Governance Department found 4,495 production and sales clues with far greater sales than the starting point (50,000 yuan). As of now, only more than 30 cases have been confirmed through public information, and 46 people have been sentenced to probation, with a probation rate of as high as 82%.
To this end, while Alibaba is calling for "anti-counterfeiting like controlling drunk driving" and mobilizing the whole society to form a scope for everyone to attack counterfeit elements, it also launched a "chasing" counterfeit elements through civil litigation. Starting this year, Alibaba has continued to pursue compensation from three fake stores on the platform through civil litigation on the grounds of violating the contract agreement and infringing on goodwill. In addition to this case, the post-90s seller who sells fake Wuliangye in Shanghai and Taobao merchants who sells fake Swarovski watches in Shenzhen. These two cases are still under trial.
Zheng Junfang said that the victory of the first case made Alibaba more confident in chasing counterfeits. "We will set up a special fund to use all the compensation we earned to compensate and protect consumers," (Source: E-commerce Online)
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