(Publ. 25 SEP 2018) China has introduced a new legislation that will hold e-commerce platforms responsible for counterfeit goods sold by third parties on their site. The proposed legislation was adopted on August 31, 2018, and is due to be implemented on January 1, 2019.

Under the new legislation, e-commerce operators, such as Alibaba and Pinduoduo, will be required to act quickly when a violation has been reported. The law also applies to non-traditional shopping channels, such as the social media app WeChat. Failure to take “the necessary measures” in “a timely manner” will lead to a fine of between RMB50,000 ($7,328) and RMB500,000 ($73,282).

Many of the Chinese e-commerce platforms have lately launched initiatives to tackle piracy. For example, in January 2017, the largest player, Alibaba, launched the Alibaba Anti-Counterfeiting Alliance (AACA) to fight piracy and counterfeit goods on all of its platforms. This alliance consists of over 100 brand owners, including Adidas, Estee Lauder, Levi’s, L’Oréal, Ralph Lauren, Apple, Bose and P & G. Pinduoduo and WeChat have also recently set up IP protection programs to protect intellectual property rights and combat piracy.