Alibaba

I read an article that mentioned that company has an appalling rate of counterfeit knockoff goods. The company has tried to curb it in, but it seems they ban some huge number of 'users' daily for the typical Chinese copies of western goods. The article mentioned China, but I'm sure there were other suppliers in their list from other locations as well. The problem a few months ago was so bad there were debates about how much this would hurt the potential IPO.
 
I read an article that mentioned that company has an appalling rate of counterfeit knockoff goods. The company has tried to curb it in, but it seems they ban some huge number of 'users' daily for the typical Chinese copies of western goods. The article mentioned China, but I'm sure there were other suppliers in their list from other locations as well. The problem a few months ago was so bad there were debates about how much this would hurt the potential IPO.

I was surprised they took the IPO out of Hong Kong for that reason. If I ran Alibaba I’d be staying far, far away from potential lawsuits. Maybe this is a sign that the knockoff dealers will disappear soon.
 
Yeah, i think everyone is afraid of investing in something that becomes the next intellectual property infringement. The liability implications for the corporation are huge when they go global and public. Think many people would invest in Napster or File Storage/Share services that are used for illegal file sharing today? I think people learned that lesson a while ago. I'm guessing the main focus at the Alibaba headquarters is eliminating any trade dress infringers STAT. I wonder how long that will last, with a company based in a country that historically doesn't respect trademark/trade dress claims.
 
Yeah, i think everyone is afraid of investing in something that becomes the next intellectual property infringement. The liability implications for the corporation are huge when they go global and public. Think many people would invest in Napster or File Storage/Share services that are used for illegal file sharing today? I think people learned that lesson a while ago. I'm guessing the main focus at the Alibaba headquarters is eliminating any trade dress infringers STAT. I wonder how long that will last, with a company based in a country that historically doesn't respect trademark/trade dress claims.

I really don't think anyone is all that concerned except for those being infringed upon. All Alibaba/ebay/etc have to do is make a reasonable effort to remove infringing items as they are identified and they are in compliance. Nudge nudge wink wink. Shareholders? profit baby....especially in the era of institutional shareholders.
 
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