240,000 Taobao stores suspected of infringement have been closed, Alibaba released its annual report on anti-counterfeiting

　　Alibaba made historic breakthroughs in intellectual property protection and counterfeit governance in 2017. Only 1.49 out of every 10,000 orders are suspected counterfeits. 97% of the infringing links were immediately banned when they were launched. The source of offline counterfeit goods is not cured, and it is still necessary to fight counterfeiting like drunk driving.

　　240,000 Taobao suspected infringement stores were closed; of the suspected infringement links that were actively deleted, 97% were banned as soon as they were launched; against the background of the increase in the number of rights holders with Alibaba, the overall number of intellectual property complaints fell by 42%; only 1.49 out of every 10,000 orders were suspected counterfeit goods.

　　On January 10, Alibaba released the "2017 Alibaba Intellectual Property Protection Annual Report" (hereinafter referred to as the "Anti-Counterfeiting Annual Report").

　　一连串打眼数据表明：2017是阿里巴巴联合品牌、执法司法机关、消费者等社会各界在网络假货治理和知识产权保护上取得历史性突破之年。在数据技术助力下，社会各界共同参与，网络售假行为遭到严厉打击、显著遏制、极大震慑。

　　The report also pointed out that although Alibaba has made a historic breakthrough in the governance of online counterfeit goods, the source of offline counterfeit goods has not been eradicated, and counterfeiting is also characterized by cross-border sales, especially to micro-businesses and other platforms.

　　A year of historic breakthrough in counterfeit governance

　　In October 2017, consumer Mr. Xiao reported that he had bought a refurbished phone at a Samsung mobile phone store with high sales on Taobao. After receiving the report, Alibaba Platform Governance Department surveyed the merchant through "mysterious sampling" and other means and found that this was a merchant that was mixed with genuine products and refurbished machines. On the day of verification, Alibaba frozen more than 2 million yuan of funds in the merchant’s account and used them for consumer compensation. Meanwhile, the store was closed.

　　"More fakes have been sold out before they are sold." On January 10, Alibaba's chief platform governance officer Zheng Junfang said at the press conference that in recent years, complaints initiated by consumers, brand rights holders, law enforcement agencies and various parties on online fake sales have been decreasing year by year. Whether from the actual feedback from the customer service department or the data, it shows that this is a year of historic breakthroughs in Alibaba's counterfeit governance and intellectual property protection.

　　The "Anti-Counterfeiting Annual Report" disclosed that Alibaba currently uses nine major "black technologies" such as product brains, image recognition algorithms, and biological real-person certification, and is identifying nearly 2 billion products on the platform at all times, and the ability to identify and intercept fakes has been greatly improved.

　　Throughout 2017, consumers' confidence in shopping on Taobao was greatly boosted, and the proportion of returns initiated by consumers due to suspicion of buying fakes fell by 29% compared with last year. In other words, out of every 10,000 orders, only 1.49 are suspected of counterfeit goods.

　　"Under the background of the 17% increase in the number of rights holders in cooperation with Alibaba, the overall number of intellectual property complaints fell by 42%. Zheng Junfang also praised law enforcement agencies, brand rights holders and consumers at the release site: 2017 is the year when the whole society has reached consensus on "governing fake goods like controlling drunk driving".

　　During the 2017 National People's Congress and the Chinese People's Political Consultative Conference, Alibaba Group Chairman Jack Ma called for "control of counterfeit goods like drinking and driving", which triggered great discussions from all walks of life. Hundreds of National People's Congress deputies, CPPCC members, legal experts and entrepreneur representatives have also made remarks to increase the cost of counterfeiting and selling counterfeit products.

　　In 2017, Alibaba, as a platform, launched the first civil lawsuit against counterfeit sellers in China. The case was selected as one of the top ten civil administrative cases of the People's Court in 2017 and shortlisted for the "Top Ten Cases to Promote the Rule of Law Process" jointly carried out by the Supreme People's Court and CCTV.

　　"Many 'first cases' have obtained judicial judgments that "make the counterfeiters hurt" means that the online counterfeiter sales that have been criticized for many years have received unprecedented attention in judicial practice," said Zheng Junfang.

　　On the last day of 2017, the Ministry of Public Security sent the second letter of thanks to the Alibaba Platform Governance Department that year: With a big data thinking model, actively participate in the construction of similar crime monitoring models in the field of intellectual property infringement, and produce clues of fake crimes through model application...

　　Ministry of Public Security’s letter of thanks to Alibaba

　　Ye Zhifei, director of intellectual property protection of Alibaba Platform Governance Department, revealed that in the past year, the public security system has sent 30 such like letters. Behind this, data technology makes public security organs in many places feel like they have a powerful tool for counterfeit control.

　　The source of offline counterfeit goods has not been eliminated. Cross-border cross-platform flow

　　While transforming data technology into a huge driving force for combating counterfeiting, Alibaba has been jointly declared war on the source of offline counterfeiting.

　　The "Annual Report on Anti-Counterfeiting" shows that as of the end of 2017, Alibaba's anti-counterfeiting special forces have carried out offline anti-counterfeiting cooperation with 23 provinces across the country, and have pushed 1,910 fake clues to law enforcement agencies across the country, assisted in arresting 1,606 people involved in the case, destroyed 1,328 dens, and the amount involved is about 4.3 billion yuan.

　　Alibaba offline anti-counterfeiting cooperation map

　　"In the actual combat against counterfeiting, we found that the source of offline counterfeit production is still firm. Alibaba closed 180,000 suspected counterfeit stores in 2016, and this figure was 240,000 in 2017. Data analysis found that a considerable number of suspected counterfeit stores were closed in the first year, and then re-selling counterfeits." Ye Zhifei revealed.

　　"If the source of offline counterfeit goods is not eradicated, the counterfeit governance of the whole society will never be able to be truly completed." Ye Zhifei used the "fake LV series cases" as an example, saying that in November 2016, the Alibaba anti-counterfeiting special forces assisted the police in destroying the counterfeit LV production factory, and the boss behind the scenes Chen escaped. In 2017, Alibaba cooperated with the police to crack down on Chen's counterfeiting den in Foshan with more than 800 square meters. The police also followed the clues to remove another counterfeit LV gang in Yongzhou, Hunan and Guangzhou, Guangdong, and completely destroyed production plants, warehousing and logistics points and wholesale stalls. More than 10 criminal suspects were arrested, with the total amount involved in the case reaching 216 million yuan. At this point, the fake production and sales chain behind this fake LV case was completely cut off.

　　Offline anti-counterfeiting diagram of counterfeiting cases in fake LV series

　　Chen Jingkai, deputy captain of the Intellectual Property Detachment of the Economic Investigation Corps of the Zhejiang Provincial Public Security Department, said that on-site crackdowns by law enforcement agencies in many places also prove that the source of fake goods has not been eradicated, but the division of labor has become more and more detailed, and the anti-reconnaissance and concealment capabilities have been continuously strengthened.

　　Chen Jingkai shares his experience in combating counterfeiting in government and enterprises

　　Putian is an example. Although the local government has maintained a severe crackdown on counterfeiting production and sales for a long time, Putian's fake shoes production and sales belts have been constantly being used. In January 2017, some media exposed the Putian underground fake shoes market; then, local law enforcement agencies followed up in a timely manner and launched a targeted crackdown on fake production and sales gangs. However, at the end of 2017, when Alibaba's anti-counterfeiting special forces conducted on-site visits to Putian's fake shoes production and sales, it was found that every 10 o'clock in the evening, there were still a large number of counterfeit "Nike", "Adidas" and "Puma" sports shoes near a e-commerce mall in Putian to be sent to all parts of the country.

　　Chen Jingkai said that as Alibaba's "Anti-Counterfeiting Annual Report on Anti-Counterfeiting", in order to seize profits and evade crackdowns, the phenomenon of cross-border cross-platform traversal among counterfeiting gangs in various places has become increasingly serious: some counterfeiting and selling counterfeiting began to transfer to multiple social platforms such as friends circles, micro-businesses, and other e-commerce platforms such as JD.com; other counterfeiting and making counterfeiting has begun to build overseas websites and attract traffic and sell counterfeiting through social platforms such as Facebook and YouTube.

　　The media reported that the Wuzhong Branch of Suzhou Municipal Public Security Bureau cracked down on a gang that produced and sold counterfeit Herbalife health products in 2017. The main culprit Ding once opened a store on Taobao, but was later closed for selling counterfeits. He then turned to Pinduoduo and Gome.com and other online platforms to sell counterfeits.

　　At the end of December 2017, the Ministry of Public Security deployed a two-month "Spring Thunder Operation" to combat intellectual property infringement in response to the "stubborn disease" of regional fraud that has been repeatedly cracked down on in various places.

　　"Ali will cooperate with law enforcement agencies at all costs to promote the resolution of regional, industry and field problems of counterfeit goods, and make every effort to encircle and suppress the source of offline counterfeit goods." Zheng Junfang said.

　　Breaking the ice: "Taobao's first case of anti-counterfeiting" won the case

　　Since the Alibaba Platform Governance Department launched the "Chasing Three Thousand Miles" project in January 2017, Alibaba has filed civil lawsuits against sellers in 12 cases of fake sales, and all of them have been filed.

　　On January 9, 2017, Taobao filed a lawsuit against the Shenzhen Longgang District People's Court for an online store owner who had sold counterfeit Swarovski watches on the grounds that it "violated the agreement that the platform is not allowed to sell counterfeit goods or infringed on the goodwill of the platform", claiming RMB 1.4 million. This case is the first case of a domestic e-commerce platform suing a fake seller.

　　Since then, Alibaba has successively filed lawsuits in courts in Shanghai, Ningbo, Yiwu and other places, and filed lawsuits against the newly established Hangzhou Internet Court.

　　On March 8, 2017, Taobao sued Yao, who sold counterfeit Mars Royal Cat Food in court on the grounds of "violating the agreement that no counterfeits are allowed and infringing on the platform's goodwill", and claimed 2.67 million yuan in compensation and demanded that he apologize publicly. On July 20, the Fengxian District People's Court of Shanghai held that Yao's selling counterfeit goods on Taobao not only harmed the legitimate rights and interests of the rights holder, but also reduced consumers' trust in Taobao and the public's good evaluation of Taobao. Yao was ordered to compensate Taobao for losses and reasonable expenditures of 120,000 yuan. After receiving the compensation, Alibaba established a special consumer protection fund to support consumers to sue counterfeiters to protect their rights.

　　The Supreme People's Court commented on the case highly: "Filling the gap in trials of such cases, providing a valuable reference for the trial of future cases, and playing a good demonstration role; it is conducive to promoting the healthy and long-term development of e-commerce platforms; it clarifies the intensity and determination of judicial counterfeiting, which is conducive to consolidating a good social atmosphere with a clean and upright atmosphere, and has a significant positive demonstration role in the judicial community and society."

　　Alibaba's "Anti-Counterfeiting Annual Report" stated that although the "Taobao's First Case of Anti-Counterfeiting" has made a huge breakthrough in judicial promotion, there is still a long way to go to truly achieve "making counterfeiters hurt".

　　"The difficulty in combating counterfeiting is still difficult lies in the cost of illegal making and selling counterfeits is too low." On January 10, Zhu Zhengfu, a member of the National Committee of the Chinese People's Political Consultative Conference and vice president of the National Lawyers Association, said that overall, compared with developed countries such as the United States and Japan, China's penalties for criminals in making and selling counterfeits are too small, and the cost of crime is too low, which is the most important factor in the current social counterfeiting dilemma.

　　At the same time, in new types of Internet-related cases, due to the inconsistent judgment standards, different trial results of the same type of cases often occur. It is understood that the "Taobao Anti-Counterfeiting First Case" that has been sentenced in the first instance and the Taobao case of prosecuting counterfeiting Wuliangye sellers both Taobao won the lawsuit, but it is difficult to provide evidence to calculate due to the impact of goodwill loss, resulting in a considerable gap between the amount of the claim and the amount determined by the court.

　　"In comparison to the amount of compensation, we care more about the signals sent by the litigation results to the society and counterfeiters, and call on all parties to face up to the issue of counterfeit goods." said Zhang Yiwen, senior legal expert of Alibaba Group.

　　Zheng Junfang revealed that in 2018, Alibaba will continue to sue counterfeit sellers at any cost, causing counterfeit sellers to lose all their money. In addition to mass suing fake sellers, Alibaba will also join forces with rights holders, genuine sellers and consumers to crack down on them, calling on all parties to carry out social governance and promote Internet governance through judicial practice.

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