25. Effective Anti-Counterfeiting Strategies for Luxury Brands in China

Within a few years China has become one of the most important markets for luxury brands. After years of continuous double-digit growth, the cooling of China’s economy – as well as political campaigns against excessive spending and gift-giving practices – has finally limited a success story that seemed like it might never wane. Yet the biggest challenge for luxury brands in China is actually the ever-growing counterfeiting industry. Not only is China’s counterfeiting industry the largest in the world, but it is also becoming more and more sophisticated and export oriented. Counterfeiters quickly adapt to new technological and logistical opportunities in the surging world of e-commerce. They have organized themselves into professional work-sharing networks and developed methods to copy without infringing upon registered IP rights.This article offers a comprehensive overview of the current trends and developments in China’s evolving counterfeiting industry and provides a wide range of corresponding countermeasures. Not only rather conventional online and offline combat strategies are outlined, but also advanced legal concepts such as trade dress protection under China’s Anti-Unfair Competition Law as well as the advantages and details of the well-known trademark status are discussed in detail.