Beijing retail markets join fight against counterfeit brands
10 Jun '06
3 min read
Urging landlords to crack down on piracy and counterfeit sales.
The agreement sets out a new framework for trademark owners and landlords to cooperate in the fight against sales and offers for sales of counterfeit goods under a proposed "Two-Strike Rule".
Upon receipt of evidence of first violation by a particular vendor, landlords will agree to suspend the operations of the vendor for a certain period.
Following a second report of the sale of counterfeits of any of the participating brands by the same vendor, that vendor's lease would be terminated and the vendor ejected from the market.
The landlords of major Beijing retail markets such as Silk Street, Hongqiao and others have also agreed to work with the brand owners to develop a new standard rental agreement which clarifies the obligations of vendors to respect intellectual property rights and sets out the potential consequences for counterfeiting in greater detail.
Regular market surveys in these major Beijing markets will test the "Two Strike Rule" and report the results directly to the landlords for their action.
As long as the landlords implement this agreement, brand owners will not litigate directly against them. Cooperation from landlords has also been encouraged by the Beijing Municipal Government's Administration for Industry and Commerce (AIC).
This agreement was made possible after five judgments issued by the Beijing Higher People's Courtagainst the landlord of the well-known "Silk Street Market" in response to complaints by five European luxury brands, Burberry, Chanel, Gucci, Louis Vuitton and Prada.
These decisions clarified the responsibility of landlords to take timely and effective measures to stop infringements, once they are brought to the landlord's attention. If successful, brand owners will pursue similar agreements with landlords of major markets in other major cities in China, including those in Shanghai, Guangzhou and Shenzhen.
marketing@alchempro.com
