October, 2017

Counterfeiting cases on the rise in China this year, SAIC says

Original article: IPR Action

China's State Administration for Industry and Commerce (SAIC) has released statistics for counterfeiting cases in the first half of 2017. A total of 24,815 counterfeiting cases were investigated from January to June, involving RMB 242 million worth of goods. 21,966 of the cases were closed. 

That's nearly as many counterfeiting cases as China handled for the entirety of 2016. Last year, there were 28,000 cases valued at RMB 350 million, down from 30,700 cases in 2015 and 37,200 cases a year earlier.


Counterfeiting is on the rise again in China after modest contractions in the previous two years. In recent months, TIPG has reported on a wide variety of cases. Athletic footwear, cosmetics, luxury clothing and accessories, cigarettes, alcohol, medicine, consumer electronics and auto parts have been among the most commonly counterfeited goods in China this year.  

In the statement SAIC published, Chen Haitao, Deputy Head of the Office of the Leading Group in the Fight against IPR Infringement and Counterfeiting, said: "Counterfeiting is still growing in volume in China. In recent years, counterfeiting has spread beyond luxury goods into goods and services that directly affect people's health and safety, such as food, drugs and other healthcare products." 

A report published in March by the International Trademark Association (INTA) and the International Chamber of Commerce, said counterfeiting could reach $2.3 trillion in economic value by 2022, up from $1.7 trillion in 2015. The US Chamber of Commerce's Global IP Center estimates China accounts for 86% of the world's counterfeit goods. 

Now that China's much-anticipated 19th Party Congress has passed, and President Xi Jinping is set to begin a second five-year term, consumers and brand owners alike will be watching to see if he takes concrete steps to address the PRC's counterfeiting prolificity. For China, the integrity of its ambitions to quickly move up the global value chain hangs in the balance. It's possible to be both the world's factory and the world's counterfeit factory, but not to be both an advanced manufacturing powerhouse and the world's counterfeit factory.