Alibaba founder Jack Ma is being sued for allegedly allowing the sale of a counterfeit fire-extinguishing ball. (Photo : Getty Images)
Chinese e-commerce giant Alibaba is facing allegations after the firm and founder Jack Ma were taken to court for allowing the sale of a counterfeit fire-extinguishing ball, CNET reported.
According to Thai company Elide Fire Ball Pro, the manufacturer of the Elide Fire Ball that accused Alibaba, an AFO-branded knockoff of the said product was sold via Alibaba's AliExpress.
The report noted that the Alibaba-sold product is not actually capable of extinguishing fires, hurting Elide Fire Ball Pro's reputation. Damages are estimated to be at approximately $86 million.
The Elide Fire Ball, based on a company statement, has the Thai Patent No. 18966 and U.S. Patent No.6,796,382. It was invented by Phanawatnan (Woradech) Kaimart.
Meanwhile, an Alibaba spokesman told CNET that the e-commerce firm takes "reporting of alleged intellectual property violations seriously."
The Alibaba official also shared that the firm makes sure it takes the necessary "action against sellers which engage in activities that violate its Terms of Use and Intellectual Property Rights Protection Policy."
"We have not been served with the complaint and declined to comment further at this time," the spokesman commented about the counterfeit fire-extinguishing ball allegation.
The issue comes only a month after Ma emphasized his adamant desire to combat counterfeit goods in China. He dedicated a lengthy Weibo post about his concern, urging Chinese lawmakers to crack down on fake goods the way the legislative system goes after drunk drivers.
Ma also remarked that counterfeit products impede creativity and innovation. He further claimed that Alibaba is a victim of such goods.
Fake goods have been a long-standing concern in the country. According to the Organization for Economic Cooperation and Development, China was reported to be the largest exporter of counterfeit commodities, with more than 60 percent of the world's fake products coming from the world's second largest economy.
