At PDD, we believe offline enforcement is an essential piece of its multi-layered IP protection system as it poses a powerful deterrent effect on counterfeit sellers and reduces counterfeits from their sources. PDD is committed to working together with rights holders and law enforcement to dismantle the supply chain of counterfeit products by rooting out the upstream distributors and manufacturers.
Each year, PDD provides an average of 1,000 leads on counterfeits to law enforcement, many of which have led to criminal convictions and seizure of fake products and manufacturing equipment. This year, despite the unprecedented pandemic hitting the brakes in many areas of our physical world, PDD has continued to support rights holders in offline enforcement cases.
Catching counterfeiters in offline cases can be a whack-a-mole game. It is common for them to operate intermittently on multiple platforms to avoid drawing attention on themselves. They will hide out for months before resurfacing to peddle counterfeits. Speed is the key to offline enforcement. To ensure a successful outcome, PDD works swiftly and closely with brands at every step, including conducting secret test-buys, authentication, providing findings and evidence to law enforcement, and tracking down the counterfeiters themselves.
One recent joint effort with Johnson & Johnson (J&J), the consumer-goods giant, resulted in the arrest of three suspected counterfeiters and seizure of over 50 cartons of suspected counterfeit J&J baby care products.
In July, PDD and J&J tracked a merchant selling suspected counterfeit J&J baby care products on the platform. The investigation unveiled a counterfeit operation across different e-commerce platforms. The Shanghai police, J&J, and PDD worked intensively in the past two months and successfully located the counterfeiters and their warehouses. On Sept. 14, the police raided the warehouses. Three suspects were apprehended at the site, which was filled with cartons of counterfeit J&J baby care products. Two PDD employees accompanied the police to the warehouses in Guangdong province to facilitate the operation and provide onsite support.
“The operation successfully dismantled an organized distribution channel of counterfeit products to merchants on various e-commerce platforms,” said a PDD spokesman of the raid. “We appreciate the collaborative efforts by the brand, the police and our platform, and are glad that they paid off. There are many more leads that we are developing with rights holders that we hope would achieve the same satisfactory outcome.”