AIC Offer Special Protection to Foreign

 Well-known Trademarks at Beijing Markets

 

The Beijing Municipal Administration for Industry and Commerce (“AIC”) published two official notices on “Prohibition to the Sales of Commodities Passing off Foreign Well-known Brands”,  in July 2004 and in February 2005 respectively. This is a rather encouraging gesture made by the Beijing authorities in curbing the rampaging counterfeit problems in those popular shopping spots in the capital.

It has become an open secret in Beijing that some wholesalers and retailers in places like the Silk (Xiushui Street) Market and Hongqiao Market are selling fake luxury goods. Shoppers, some of them being tourists, flock into the busy alleys in the capital and buy watches, leatherware, sports shoes and garments of well-known foreign brands at outrageously low prices.

The two Notices prohibit the sales of commodities bearing those brands as set out in the attachments, be they genuine or fake, at locations other than those of the licensed dealers. This measure certainly improves brand protection at wholesale and retail levels (or in PRC’s terminology: “rectify and standardize the order of the market economy”). The Notices apply not only to wholesalers and retailers but also operators of the wholesale and retail markets where goods bearing the prohibited brands are found. Law enforcement officers find it easy and convenient to take raid actions in the wholesale and retail markets as there is no longer the need to prove the suspected goods are indeed fake.

We understand that the Beijing Municipal AIC has been under pressure from different foreign brand owners to take the unprecedented action. We hope this measure will bring about a positive effect on intellectual property protection for famous foreign brands in China. Using these two Notices as a basis, we may also endeavour to seek assistance from the Beijing Municipal AIC in providing similar protection for other brand owners should they be interested.

Prepared on 28 May 2005.

北京市工商行政管理局 - 通告

北京市工商行政管理局 - 第二號通告