The Notice of SAMR General Office on Improving the Crackdown on Counterfeiting and Other Related Illegal Acts

No. SAMR (2018) 40

The administrations for industry and commerce, quality and technical supervision, food and drug (market supervision departments) of different provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and sub-provincial municipalities, and the Market Supervision Bureau of Xinjiang Production and Construction Corps,

Recently, the shopping platform Pinduoduo alleged of selling IPR infringement and counterfeit goods was hotly debated among the public. In order to effectively fulfill the regulatory duties of market regulation department, protect the legitimate rights and interests of consumers and trademark holders, and maintain the market order of fair competition and a safe and secure consumer environment, the relevant matters concerning strengthening the crackdown on IPR infringement and counterfeiting are listed as follows:

I. launch the full-chain crackdown. In the special operations deployed by the State Administration for Market Regulation in 2018, the crackdown focuses on those illegal acts of counterfeiting, trademark infringement, false publicity and illegal advertisements, including "brand free-riding". If major illegal clues are found, then the relevant links such as production and sales should be under full-chain investigation and handling. The local regulatory authorities can start with the investigation of online trading platforms (websites), further discover the upper- and lower-reach illegal producers and operators, and transfer illegal clues to the regulatory authorities under relevant jurisdiction in a timely manner. The local regulation departments should investigate the case one by one, handle them in accordance with the law, and disclose the results to the public in a timely manner.

II. give a full play to the role of social supervision. The local regulatory authorities should give a full play to the role of its media supervision by promptly accepting and seriously investigating and handling the complaints and reports from trademark rights holders and consumers, stepping up the surveillance on relevant illegal advertisements, and expanding the sources of relevant clues about illegality through various channels.

III. Require business entities to implement their responsibilities. The operators of online trading platforms (websites) will be supervised to fulfill their legal obligations, the legitimate rights and interests of trademark owners and consumers will be effectively protected and the market regulatory authorities will be coordinated to carry out relevant special governance. Those platforms (websites) not fulfilling their statutory obligations shall be strictly investigated and dealt with according to the laws.

IV. strengthen regulatory coordination among departments. The role of joint meeting of the regulatory authorities for online market should be given a full play to make each part play its own duties and strengthen coordination. Those suspected of violating the laws or committing crimes shall be promptly transferred to the public security organs.

The work above constitutes the key part of the summary report about relevant special actions deployed by the State Administration for Market Regulation in 2018.

In case of major circumstances, please report promptly.   

SAMR General Office

August 1, 2018