Massive Crackdown on Counterfeit Goods Trade
In a significant crackdown on the global trade of counterfeit goods, Chinese authorities have raided the offices and warehouses of the popular online sales platform Pandabuy. The operation, which took place on April 11, 2024, involved over 200 law enforcement personnel and resulted in the arrest of more than 30 key suspects and the seizure of millions of parcels containing allegedly fake products.
Cantoop IP Services Plays Crucial Role in Investigation
The investigation into Pandabuy began in November 2023, following a tip-off from a renowned global footwear brand's Asia-Pacific intellectual property team. Cantoop IP Services, a China-based intellectual property protection firm, played a crucial role in exposing the vast network of counterfeit goods sales. The firm deployed 70 investigators to assist local authorities in conducting an in-depth investigation into Pandabuy's operations.
Pandabuy's Extensive Infringing Activities Exposed
The investigation revealed that Pandabuy's infringing activities had expanded to over 20 cities across China, involving more than 2,200 employees and warehouses spanning an area equivalent to 20 football pitches. The company allegedly directed millions of overseas customers to its platform through social media channels, inducing them to purchase counterfeit footwear from dozens of domestic online stores.
Staggering Revenue from Counterfeit Businesses
Preliminary audits by law enforcement suggest that in 2023 alone, Pandabuy's revenue from operating counterfeit businesses overseas amounted to RMB 39.6 billion (approximately $5.7 billion), involving over 50 million pairs or pieces of counterfeit goods. Authorities have frozen assets totaling RMB 230 million ($33 million) belonging to Pandabuy and its affiliates.
International Collaboration in the Investigation
The raid on Pandabuy was a collaborative effort involving Chinese authorities, UK police, and international trademark agencies. The City of London Police's Intellectual Property Crime Unit, under Operation Ashiko, focused on online intellectual property crime and counterfeit sales, played a significant role in the investigation.
Pandabuy's Response to the Raid
Pandabuy has issued a statement acknowledging the legal issues and stating that they are fully cooperating with the relevant authorities to ensure compliance with legal regulations. The company has also assured customers that their team and the authorities are taking necessary measures to protect their rights and ensure data security.
Industry-Wide Impact and Ongoing Investigations
The enforcement action against Pandabuy has sent shockwaves through the intellectual property industry in China and has garnered significant attention from overseas countries and regions. Many well-known brand owners have described this as the largest online and offline cross-border infringement of intellectual property case handled by Chinese law enforcement agencies in recent years.
As the investigation continues, law enforcement agencies are expected to spend several months inspecting the contents of the raided warehouses and identifying infringing products. The crackdown on Pandabuy serves as a strong message to those involved in the global trade of counterfeit goods and highlights the importance of collaboration between brand owners, law enforcement, and intellectual property protection firms in combating such crimes.
