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Apple's Anti-Counterfeiting Efforts in Asia Hampered by Uncooperative Authorities

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CNN reports on details of Apple's anti-counterfeiting efforts centered in China, noting that the company has had difficulty winning the cooperation of Chinese authorities to investigate and shut down those responsible for the fake Apple products. The details were revealed in documents from U.S. diplomatic cables published by WikiLeaks last week.
The technology giant eventually organized a team in March 2008 to curtail the explosion of knockoff iPods and iPhones, according to an electronic memo from the Beijing embassy dated September 2008.

Yet, three years after Apple moved to crack down on widespread counterfeiting and put pressure on China, progress has been slow. Gadget piracy isn't a high priority for the Chinese government, the U.S. reports and experts say.
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The reports note that Apple's efforts have been led by vice president for global security John Theriault, a former FBI special agent and Pfizer vice president who was hired by Apple after he led a campaign against production of counterfeit prescription drugs. Theriault was joined at Apple by his Pfizer associate Don Shruhan, who now serves as a director with Apple's security team in Hong Kong.

fake_apple_store_reuters.jpg



Counterfeit Apple store in Kunming, China​
Despite putting the anti-counterfeiting task force together, Apple has had only limited success as Chinese authorities have been reluctant to respond to Apple's requests for assistance. Apple has tried to convince authorities to take a more active role by citing the potential dangers of exploding batteries in counterfeit products and the loss of tax revenue associated with the knockoff products, but Chinese authorities have cited their own reasons for not pursuing the claims.
The arguments weren't very effective. China's government declined to investigate a facility in March 2009 that was manufacturing imitation Apple laptops because it threatened local jobs, says a cable dated April 2009. A different arm of China's government scrapped plans for a raid on an electronics mall in the Guangdong province because it could have driven away shoppers, the cable says.
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Last month, several counterfeit Apple retail stores in China gained significant publicity after being highlighted by a popular blog. Two of those stores were closed over permit issues, but dozens more stores have since been discovered. Apple has also sought to crack down on knockoff products in the United States, having recently filed suit against a pair of businesses in New York City selling such goods.

Article Link: Apple's Anti-Counterfeiting Efforts in Asia Hampered by Uncooperative Authorities
 
Article Link
https://www.macrumors.com/2011/08/30/apples-anti-counterfeiting-efforts-in-asia-hampered-by-uncooperative-authorities/
I imagine this will become much more prevalent when the iPhone's officially released there. (Sorry, I mean moving to the larger carrier officially)

I'd be pretty mad if this was happening to my company too, but hey, not a whole lot you can do quickly ya know?
 
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The article makes it seem these "counterfeit" Apple stores are selling KIRF, but it was reported they are selling genuine Apple products, they just aren't Apple authorised retailers.
 
While one can argue about the merits of the intellectual property patent suits, I think going after conterfeit merchandise which can cut into your bottom line and tarnish the brand name with substandard quality is reasonable.

Unfortunately not the first time the Chinese have turned a blind eye to counterfeiting or bootlegging.
 
I would think that the government there would be more worried about Apple pulling out it's manufacturing then protecting little knock off companies.
 
Here is a thought, why not bring the jobs to some of the right to work states here, that way you can keep the unions out and create some jobs here.
 
eawmp1 said:
While one can argue about the merits of the intellectual property patent suits, I think going after conterfeit merchandise which can cut into your bottom line and tarnish the brand name with substandard quality is reasonable.
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Except these stores again do not sell counterfeit merchandise, these are genuine products, just not authorised resellers (nor authorised to use Apple's branding like they do for the stores).
 
Apple needs to wake up and smell the coffee. Chinas policy on these things is quite clear. They will always look to their own people first (sounds strange, doesnt it?). This means that any consumer product not in reach for the average chinese customer will be FFA to copy. The only way to make the Chinese gov. care about claims such as this is to provide the chinese market with a product they can afford. Until you do, theyll just laugh in your face.

..and rightly so, i am inclined to say.
 
Apple just needs to put the type of money they would normally put into lawyers in the US into bribes of the local officials in China. That will get immediate crackdowns on those knockoff Apple products.
 
velocityg4 said:
Apple just needs to put the type of money they would normally put into lawyers in the US into bribes of the local officials in China. That will get immediate crackdowns on those knockoff Apple products.
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Yeah, for like a week... or two. The Chinese gov knows that their citizens want these products. The Chinese gov wants their citizens to be able to have these products (with restrictions of course). The Chinese government knows that the only way they can ever get these products is through KIRF. Ergo: They will allow it.
 
KnightWRX said:
Except these stores again do not sell counterfeit merchandise, these are genuine products, just not authorised resellers (nor authorised to use Apple's branding like they do for the stores).
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Wrong, this article is not about the stores, but the "counterfeit products". A solid glance at the actual material will confirm that. Why would Apple cite exploding batteries if they were their own products?

Anyway, this sounds like all the other stuff I read about the "authorities" in China: You scratch my back, I'll scratch my back, too.
 
KnightWRX said:
Except these stores again do not sell counterfeit merchandise, these are genuine products, just not authorised resellers (nor authorised to use Apple's branding like they do for the stores).
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Two different issues... one is counterfeit merchandise coming out of China... not hard to find in NYC... and the other is unauthorized Apple Stores in China.

Two different issues here.
 
This is the price one pays for building you stuff in China. If the Chinese company you hired can build an iPod then so can 50 others. The technic a design data is easy to copy and gets sold and resold.
 
sigma8 said:
Wrong, this article is not about the stores
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Counterfeit Apple store in Kunming, China

Last month, several counterfeit Apple retail stores in China gained significant publicity after being highlighted by a popular blog. Two of those stores were closed over permit issues, but dozens more stores have since been discovered. Apple has also sought to crack down on knockoff products in the United States, having recently filed suit against a pair of businesses in New York City selling such goods.
Click to expand...

Seems to be about the stores to me. There's 2 issues, but let's not get them mixed up. The article isn't clear that the "counterfeit" stores are selling genuine products.
 
It's going to be very hard for Americans to stop anything in China. First off they don't respect the U.S. They also see how much money can be made with these products like anything else that's in demand. Apple, as well as Gap and Nike just to name a few have had this problem in China. This is a price you pay when you short change Americans by shipping our jobs over seas. In the long run are you really saving.
 
"The article makes it seem these "counterfeit" Apple stores are selling KIRF, but it was reported they are selling genuine Apple products, they just aren't Apple authorised retailers."

read the article and a lot of other references..it's mainly about 'fake'...

"provide the chinese market with a product they can afford. Until you do, theyll just laugh in your face. ..and rightly so, i am inclined to say."

another silly response to theft, although maybe not silly to someone who has never created and developed and produced a product and then had it stolen. if it's too expensive, steal the damn thing...hello Katrina and LA riot looters...
 
Microsoft also has beef over there about piracy of Windows. Now it is Apple and hardware and probably apps. Not much can be done about it. Maybe there isn't much money to be made in that location of the world.
 
There are some fake stores as well in Hong Kong, when I was walking through the Night market a few places selling knock offs as well fake accessories (bumpers that cost $5 USD, didn't last and fit too tight).

I had to go online and verify that the iWorld store in Hong Kong was a authorized reseller. Haha, it was.

iWorld
Apple Premium Reseller
Shop 3B, MTR Level, iSQUARE,
35-79 Nathan Road, Tsim Sha Tsui,
Kowloon, Hong Kong
 
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