The Chinese ecommerce giant Alibaba Group Holding Ltd. (NYSE: BABA) is including a number of new tricks for keeping fake goods off the platform. This move is believed to significantly boost relations between Alibaba and different high-end retailers who aims to eliminate counterfeit products.
Alibaba now has a “Good Faith Takedown” system, which has up to 700 participating brands. These brands are given priority access to the counterfeit goods reporting and removal tools of Alibaba based on the skill of the brand when it comes to successfully reporting knock-off items on the websites of the Chinese ecommerce giant. The priority access to these reporting and removal tools makes sure that the reports of the brands are reviewed and processed much faster if the brands are effective in terms of spotting counterfeit.
The Chinese ecommerce giant expanded on the mentioned program and is unveiling a new “IP Joint-Force System.” Brands, which are highly concerned or susceptible to copyright infringement, will be assigned an account manager from Alibaba who will work directly with the brand to find counterfeit good all over the sites of the Chinese retailer.
According to the description provided by Alibaba, “The system will enable Alibaba to directly and efficiently seek information from rights holders regarding suspected counterfeit product listings, which Alibaba, as a third-party marketplace, is unable to authenticate on its own with full certainty.”
“The system allows brands to identify the authenticity of a product and easily notify Alibaba of the infringing listing. Alibaba will then initiate the Good Faith Takedown process and immediately remove the listing without required subsequent correspondence with the brand. This two-way communication stream is critical in creating a feedback loop that will continue to improve the speed and accuracy with which Alibaba is able to determine the authenticity of a product,” the company further stated.
As of the moment, it is not yet clear how many corporations will be participating in the new IP Joint-Force System. Apparently, the program is just intended for the larger brands and/or brands, which have the most biggest infringement issues on the Chinese ecommerce platform. In the future, Alibaba anticipates that all firms already engaged in the Good Faith Takedown system will also be able to be a part of the IP Joint-Force System.
The chief platform governance officer of Alibaba Jessie Zheng stated that, “As the internet sector continues to evolve, brands and online marketplaces alike face new IP enforcement challenges. As the leading online marketplace, we have a responsibility to all of our constituents to govern our platform and find innovative solutions.”
The Chinese ecommerce corporation was suspended from the International Anti-Counterfeiting Coalition during the month of May after the other brands’ threats and complaints that they would leave the coalition if the Chinese company was allowed to stay. Alibaba was alleged of failing to execute sufficient measures that will prevent the sale of knock-off goods on its online platforms.
As of the time of writing, the BABA stock is changing hands at $79.65, up by 0.15 percent or 0.12.