THE REAL DEAL: WHAT ALIBABA'S MEMBERSHIP IN THE IACC MEANS FOR COUNTERFEIT GOODS

Stroll through the Chinatown or center square of any large city around the world and you will probably see cheap Louis Vuitton bags and Chanel wallets. Yet, what may seem to be a convenient, inexpensive way to get your luxury fix has turned into some designers’ worst nightmare.

In April, Alibaba, one of the world’s top marketplaces for knockoff and counterfeit designer goods, became a part of the International Anti-Counterfeiting Coalition (IACC) in their effort of “building bridges and bringing together partners from all sides to develop and implement innovative, practical solutions to counterfeiting and piracy,” according to an IACC press release.

While this does make sense, it is confusing to hear that a company historically known for counterfeiting Burberry handbags now wants to become direct partners with the brands they undercut. Alibaba’s addition to the IACC would make them directly involved in solving the counterfeiting problem. Their inclusion could also make them more accountable to luxury brands.

“Alibaba is committed to protecting intellectual property rights,” said Matthew Bassiur, Head of Global Intellectual Property Enforcement at Alibaba Group. “In joining the IACC, a recognized global leader in anti-counterfeiting, we strengthen our continued efforts in tackling this problem head-on.”
 

In response to Alibaba’s membership to the coalition, both Gucci and Michael Kors have dropped out. What does this say about these two luxury brands? What does this say about the brands who have remained in the coalition? What does this say about the IACC as a group?

It appears that the IACC had the best intentions when deciding to include Alibaba as a general member. They are trying to make the conversation with brands more open. Gucci and Michael Kors’ exit could mean they believe there is no way to stop the issue other than making it illegal and highly monitored. At the same time, this also shows that they are unwilling to make compromises, which is not always the best solution in solving such wide-spread issues.

Other brands staying in the IACC, like Ralph Lauren and Burberry, should not be seen as weak. These compromises are how change happens. It is important for Alibaba to be a part of an anti-counterfeiting conversation, even if they are a part of the issue.