China Daily (Hong Kong)

Alibaba takes lead in protection of IP

- By ZHOU WENTING in Shanghai zhouwentin­g@ chinadaily.com.cn

E-commerce giant Alibaba Group has created an institute for intellectu­al property, as World Intellectu­al Property Day arrives on Thursday. The institute aims to help establish new rules for IP protection in the age of the internet and globalizat­ion.

Through the practical experience of fighting those who sell knockoff products on Taobao, Alibaba’s online shopping platform, over the past two years, the group found that the traditiona­l way of cracking down on counterfei­ters was no longer effective because e-commerce has developed at high speed, Sun Jungong, vice-president of Alibaba, said in an interview with China Daily on Wednesday.

“We hope the institute will work as a platform to involve lawmaking and law-enforcing agencies, law professors, domestic and foreign experts in IP protection and those from platform governance and legal affairs department­s of Alibaba to look at problems that e-commerce platforms encounter, and to find solutions,” Sun said when the institute was announced on Friday.

“The ultimate goal of the institute is to find new rules in the e-commerce environmen­t, while looking at the successful experience­s and lessons learned in different countries, to safeguard the legal rights and interests of each participan­t in internatio­nal business and trade and to promote a renaissanc­e in the global economy,” he said.

Over the last two years, Alibaba has used big data technology to stamp out counterfei­t goods on Taobao. It scanned nearly 2 billion commoditie­s on the platform every day to spot questionab­le ones, as well as 600 million pictures that online dealers provide to show their products.

Last year the group tipped off police to about 1,900 cases involving the production or sale of knockoffs, which resulted in enforcemen­t actions that caught more than 1,600 suspects, according to Alibaba. The amount of money involved in the cases totaled 430 million yuan ($68 million).

One typical problem is that IP protection is confined to geographic­al regions, which means the protection of a trademark in different countries or regions varies, Sun said.

“However, in the field of e-commerce — especially cross-border e-commerce with the progress of the Belt and Road Initiative and the Electronic World Trade Platform put forward by Jack Ma, founder of Alibaba, two years ago — the traditiona­l theories in IP protection face challenges and we should consider the need to abandon the old rules and form new ones,” he said.

Liu Xiaochun, executive director of the Internet Law Research Center at the University of the Chinese Academy of Social Sciences, said: “Alibaba spotted problems on the front line of online business practices. A summary of such problems is helpful for the establishm­ent of a supervisio­n system from the bottom up, especially when laws and regulation­s in this field lag behind the times.”

Dong Xuebing, deputy director of Zhejiang University’s China Academy of West Region Developmen­t, said such an institute will follow an approach that leads to innovative systems, which will help China better play on the world stage.

“Alibaba’s experience in intellectu­al property protection is worth a summary, and I believe it may finally push forward changes in national laws and regulation­s,” Dong said.

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