Lawsuit, Complaints Precede Massive Alibaba $20 Billion IPO

Counterfeit products are the top global criminal enterprise

Los Angeles, CA, August 12, 2014 - Several of the world's leading luxury brands filed suit against China e-Commerce giant Alibaba last month alleging "Alibaba knowingly make it possible for an army of counterfeiters to sell their illegal wares throughout the world" in the complaint obtained by The Counterfeit Report^®. Yet, China's Alibaba is still asking investors for a $20 billion injection into its e-commerce enterprise.

Alibaba is China's e-commerce giant, accounting for over 80% of China's online business, and 50% of parcels shipped in China. Alibaba conducts more online gross merchandise value business than Amazon and eBay combined. Alibaba's websites are an ideal and successful e-commerce platform for counterfeiters and dishonest sellers to distribute the $1 trillion (yes, trillion) in counterfeit goods, 90% of which originate in China.

"The Alibaba Defendants, facilitate and encourage the sale of an enormous number of Counterfeit Products through their self-described "ecosystem," which provides manufacturers, sellers, and buyers of counterfeit goods with a marketplace for such goods, and provides online marketing, credit card processing, financing, and shipping services that effectuate the sale of the Counterfeit Products" alleged plaintiff Kering SA, whose brands include popular Gucci, Saint Laurent and Bottega Veneta products.

To further facilitate the process, Alibaba sells "keywords" to counterfeiters. "When a customer types in the word "replica" in the search bar on the Alibaba.com website, the Alibaba Defendants' algorithm adds the term "wristwatches" and directs the customer to, among numerous other merchants selling counterfeits" -- adds the Kering complaint.

Alibaba is no stranger to counterfeit goods distribution, having only recently been removed from the US Government's 2013 "Notorious Markets" list which identifies select online and physical marketplaces that reportedly engage in, and facilitate substantial piracy and counterfeiting. The Office of The United States Trade Representative also named China to a watch list in April for not doing enough to fight intellectual-property crimes.

Alibaba subsidiary Taobao.com trumpeted its removal of approximately 15% of its 800 million website listings in 2013 as suspected infringing listings, but didn't identify just how many products were simply re-listed for sale. Well-known US brands still have hundreds to thousands of counterfeit copies of their authentic goods offered online, and manufactures are vocal that not enough is being done to stop counterfeiting and brand damage, for example;

"As nearly as we can tell, every Browning knife on this (Alibaba) website is counterfeit. Do your due diligence and make sure before you buy. Beware!" – Browning Sporting Goods website.

"99.5 percent of purported Monster products sold on Alibaba sites are fakes. We have received no cooperation from Alibaba to resolve this matter," -- Dave Tognotti, General Manager of popular headphone and electronics manufacturer, Monster Products.

It takes no sleuthing to find fake products on the e-commerce giants Alibaba, AliExpress, and Taobao.com websites says The Counterfeit Report^®, a popular consumer website that tracks counterfeit products and offending websites, educates consumers and regularly purchases counterfeit products from e-commerce sites including Alibaba, eBay and Amazon. Infringing e-commerce sellers simply continue, or if removed, they return under different or multiple identities while the websites transaction fees continue to roll in. Even products that simply never existed in a manufacturer's product line, yet still carry a fake manufacturer's brand, remain on the Alibaba websites.

Counterfeit products destroy jobs, ruin consumer confidence, damage legitimate manufacturer's reputations and may be dangerous or deadly. Counterfeit products account for about 10% of global trade, yet remain relatively unnoticed by US consumers who lose billions each year to these deceptive and dangerous products. Alibaba is now asking investors to invest in its websites irrespective of its dubious history and current practices.

A detailed investigation by the US International Trade Commission, US Trade Representative, and a close examination by the SEC is warranted before allowing investor financing and consumers exposure to unknowingly purchasing deceptive, hazardous or deadly counterfeit products, after all – it's US consumers who ultimately get hurt.

Website: www.TheCounterfeitReport.com

Facebook: https://www.facebook.com/pages/The-Counterfeit-Report/131568053660579
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The Counterfeit Report^® is the first and only website to provide consumers a free and informative visual guide to detecting counterfeit products and promote consumer awareness. Manufacturers can immediately list and update their counterfeit product information in a central venue for the greatest mass-consumer exposure, and benefit from enhanced brand protection and direct consumer education. The Counterfeit Report uses thousands of authentic and counterfeit product photos to show consumers the sophistication of counterfeiters and their ability to create visually identical counterfeit products and packaging specifically designed to deceive.  Consumers can also report seeing or purchasing counterfeit products and the source directly to the manufacturer on the website.