Question

How does Alibaba deal with counterfeit goods and patents? What are the implications of this policy for Alibaba, the customer, domestic businesses, and any other stakeholders affected?

Answer 1

On September 19, 2014, Alibaba Group Holding Ltd made its presentation on the New York Stock Exchange. Esteemed at over $230 billion, it was the biggest IPO ever. In any case, if the greatest internet business website in the quickest developing economy on the planet had an Achilles heel, it would need to be the view of widespread duplicating that was unavoidable among its numerous postings. The dominant part of Baba's fake items originate from its Taobao arm, a client to-client online interface that encourages exchanges amongst people and private ventures. Taobao is the biggest internet business webpage in China, and according to Alibaba's first quarter 2015 filings, Taobao is in charge of 63.5 percent (381 billion RMB) of Alibaba's gross stock volume.

Alibaba had been occupied with a war against forging action on its stage, however its endeavors to shorten this action have detectably expanded since its IPO. A portion of the measures taken by the organization incorporate a committed group of 2000 representatives dedicated to finding and evacuating fake postings, with plans to include 300 more staff. As indicated by the organization's CEO Jonathan Lu, Alibaba spends more than $161 million a year battling fakes, and as of January this year, and according to their official articulation, participated with experts in the examination of more than 1000 cases, prompting the captures of 400 suspects. Alibaba has additionally as of late executed QR codes (the confound like codes that can be perused by PDAs), which can be utilized by venders to check and decide and item's validness. The organization has gone so far as to take a stake in the QR code organization, Visualead, as a feature of its sense of duty regarding the program. In addition, according to this official refresh from Baba on their progressing war against duplicating, Jack Ma has named Taobao as a casualty of fake, rather than a facilitator, and it was in light of a legitimate concern for society everywhere to battle against false things.

The Bottom Line: Although allegations of forging action have shaken Alibaba's notoriety, the online business monster has not sat inertly by as charges of intrigue and help of scholarly rights infringement were exacted against it. The truth will surface eventually if Alibaba will achieve a concurrence with Kering and pick up an unblemished picture of authenticity. Until further notice, it appears that Jack Ma and Co., are finding a way to demonstrate their skeptics off-base.