In a recent interview, the owner of Alibaba, Mr. Ma, explained that some Chinese factories, employed by companies owning well-known trademarks, are skillful enough to be able to make counterfeits of high quality. With the Internet and through online platforms such as Alibaba, there is almost no control over these infringers.

Mr. Ma explained that the major problem was that fake products are much cheaper and sometimes of better quality than genuine products. Alibaba therefore wants to collaborate with brands to protect their intellectual property rights. Ma further commented “We cannot fully solve the problem because it is fighting against human instinct. But we can solve the problem better than any government, any organizations, any people in the world.”

Last month, Alibaba was suspended from the International Anti-Counterfeiting Coalition, a global nonprofit organization that fights counterfeiting. The suspension occurred after various top brands dropped out of the group in protest, and reports surfaced of potential conflicts of interest between Alibaba and the group’s president. Even before 2014, the company was embroiled in many of lawsuits over counterfeiting.

Smuggling of counterfeit goods from China to other markets in nearby regions, especially in Vietnam and other South East Asia countries, have contributed to the dominance of counterfeit goods in the market, where it would not only harmed the economic environment, but also affect people’s health and limit their access to quality and genuine goods. [Source:VNExpress and CNN ]