Active Steps to Protect Brands of Luxury Goods

On March 23, 2005, the Beijing Municipal Administration for Industry and Commerce (Beijing AIC) issued a bulletin, banning sale of goods with 23 high profile brand names in any of the city's garment markets or small commodity markets.

The brand names listed in this bulletin are well-known brand names for luxury goods, including MONTBLANC, DUNHILL, PIAGET, CHRISTIAN DIOR, VACHERON CONSTANTIN, OMEGA, BOSS, GUCCI, CARTIER, MONTAGUT, ESTÉE LAUDER and HERMES.

This was the second such bulletin issued by the Beijing AIC. In a bulletin issued by the Beijing AIC in July 2004, 25 brand names for luxury goods, such as PRADA, LOUIS VUITTON, FENDI, GIVENCHY and CHANEL, were listed. On October 25, 2004, the Shanghai AIC issued a similar bulletin with 40 brand names listed.

There are hundreds of garment markets and small commodity markets in Beijing. Each market usually has hundreds of vendors and some markets are famous tourist spots where counterfeit goods are readily available.

At the end of 2004, Xiu Shui Market, which was probably by far the most famous garment market in Beijing for selling counterfeit clothes, was closed down. In January 2005, an in-door market called New Xiu Shui Market was opened near the old market with same vendors. On the opening ceremony, the management of the market promised that it would not allow sale of counterfeit goods. However, local AIC has successfully taken raid actions in the market combating counterfeit goods.

According to the bulletin, goods with listed brand names sold in the markets shall be deemed counterfeit and be confiscated. Repeated offenders will be punished and required to leave the market. Managements of the markets may be punished if no efficient measures against counterfeiting were taken.

All of brand names listed in such bulletins are owned by foreign companies. However, there is no publicly available information as to the criteria for selecting brand names in the list.