Alibaba Unveils New Counterfeit Reporting System

In a strengthened bid to crackdown on fake products, leading Chinese e-commerce firm Alibaba has rolled out a new counterfeit reporting system, the Intellectual (IP) Joint-Force System, crowd-sourced content service Seeking Alpha reported.

Through the new scheme, Alibaba gives brands greater capability to find and remove illegitimate items on their listings on the e-commerce giant's online platforms.

Alibaba will assign an account manager whom brands can directly work hand in hand with in eradicating counterfeit products.

As this tool allocates more control to the brands, the IP Joint Force System is aslo seen as a way to increase the trust levels -- both in Alibaba's clients and in its customers.

Earlier in May, Alibaba caught the world's attention anew when U.S.-based International Anti-Counterfeiting Coalition (IACC) rescinded the Chinese company's membership.

The news comes after high-end brands including Tiffany, Gucci and Michael Kors quit the coalition, expressing their protest against Alibaba's membership.

Apart from this, experts also see the growth in China's middle class as a pivotal reason for Alibaba to intensify its campaign against counterfeit goods. They claim that as this class grows, there will also be an increase in the demand of authentic quality products.

According to a Credit Suisse report, there are 109 million Chinese people whose net worth range from U.S.$50,000 and U.S.$500,000. This figure is expected to rise to more than 500 million by 2022.

Analysts also predict that although Alibaba holds the biggest share in China's e-commerce market, its status may be eroded if fake items are not eliminated.

In an column written by Alibaba founder Jack Ma on The Wall Street Journal, he emphasized that "counterfeit goods are absolutely unacceptable, and brands and their intellectual property must be protected."

"Alibaba is only interested in supporting those manufacturers who innovate and invest in their own brands," he further noted.