Copycat industry in China made legitimate by the courts

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By Tony

The world has been onto China’s counterfeit industry for some time. It has been no secret that you have to be careful when buying name brand items in China- and even abroad. And chances are that if you do happen to end up with fake goods that product probably originated in China.

The Organization for Economic Co-operation and Development (OECD) released a report in mid-April entitled Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact. In it, the non-governmental organization (NGO) analyzed customs seizures all over the world between 2011 and 2013. The results of the study found mostly what you would expect. The brands copied the most were American, Italian, and French, with Rolex, Nike, Ray Ban, and Louis Vuitton being knocked off the most. In addition to that, most fake goods were manufactured in middle income or emerging economies. 

But one country is the king of counterfeit, and again it’s no surprise which country that is. China is responsible for an astonishing 63% of the world’s counterfeit goods. Turkey and Singapore were the second and third largest, but still trailed far behind China with 3.3% and 1.9% respectively. (Source: Forbes)

Counterfeit culture

Why does China have a stranglehold on the US $461 billion (3 trillion yuan) counterfeit market? The answer lies in intellectual property laws and the court’s attitude towards counterfeit goods. China respects the date when the patent or trademark was first filed above most other factors. This has led to several major companies losing major cases in recent years when trying to protect their brands in China. 

Jordan

In 2012, Michael Jordan, widely hailed as the best basketball player of all time, filed a lawsuit here in China against a Fujian Province company called Qiaodan (乔丹). ‘Qiaodan’ is the transliteral translation of ‘Jordan’ and is what the player has been referred to since the start of his career in the 1980s. Not only did they use the Chinese equivalent of ‘Jordan’ but Qiaodan also used his jersey number- 23- and a logo that looks similar to Jordan’s ‘jump man’ logo.

Three separate courts ruled in favor of Qiaodan, the lawsuit concluded in the Beijing Municipal High People’s court in July of last year. The final verdict said (source: Qz.com):

“Qiaodan” is not the only name that corresponds to “Jordan,” and “Jordan” is only an ordinary surname of American people, not a full name. So the current evidence is not enough to prove that “Qiaodan” determinedly points to Michael Jordan. The image of the disputed trademark is a human body in a shadowy design, which does not clearly reflect the major appearances of the figure. It is hard for the relevant public to recognize the image as Michael Jordan."

The case wasn’t a total loss for Jordan though. The publicity caused by the lawsuit has shamed the Qiaodan name which is now widely thought of as a knockoff brand.

Apple

Apple has lost 2 major cases in recent years.

First the iPad. A company called Proview Technology in Shenzhen trademarked IPAD in several Asian countries beginning in 2000. When Apple wanted to use the IPAD name, Proview Electronics (Taiwanese affiliate) agreed to sell the “global trademark” to Apple for a measly £35,000 (350,000 yuan).  

However, when Apple applied to take ownership of the trademark the trademark office rejected it, saying it still belonged to Proview. Apple then sued Proview Technology for the trademark saying that Proview “misled” Chinese courts when it initially sold the trademark. When the dust settled in July of 2012 Apple dished out an additional $60 million US (390 million yuan).

Then in March of this year, apple lost another case regarding the iPhone. Although Apple registered the iPhone trademark in 2002 for computer products, another company, Xintong Tiandi, registered the iPhone name in 2007 for other products including purses, passport cases, and phone cases. Despite multiple appeals the courts ruled against Apple. (Source FT.com)

With these lost cases and Apple’s iTunes movies and iBooks Store recent blockage in China I’m sure apple only wishes it could turn its back on one of the largest markets in the world. 

There is no shortage of big name brands that have been scorned by the Chinese. Adidas, New Balance, and numerous others all have copycats here in China that operate legally.

But at a fraction of the price, and sometimes comparable quality, I have no problem buying a pair of New Barlun over New Balance.

熊猫外教

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