The production and trade of counterfeit goods severely affect authentic businesses, and violate the interests of consumers. However, too many people are unaware of the full extent of the impact of counterfeit goods on brands. Therefore, Da Nang’s relevant agencies should take stronger sanctions to combat the counterfeiting in a bid to protect the legitimate rights of consumers and operators as well as to maintain a fair and orderly market environment in the city.

A staff member from the Da Nang Market Management Bureau checking the origins of products on sale a store in Lien Chieu District

Fake famous brands

Clothes, shoes, cosmetics, and pharmaceuticals are among the most counterfeited items, and they are being offered for sale on such social networking sites as Zalo and Facebook, or at business locations of individuals and organizations, according to the Da Nang Market Management Bureau.

The trade of counterfeit products has caused loss to businesses and governments, whilst affecting the legitimate interests of consumers and creating profit for organised crime gangs.

In the first 8 months of 2021, the Da Nang Market Management Bureau levied a total amount of more than VND300 million in fines on 9 violation cases across the city on the trade in prohibited, fake, counterfeit and poor-quality items, acts going against the regulations on goods labelling and committing illegal trade activities.

During the months of implementing social distancing measures, Da Nang saw a significant decrease in the number of cases involved in the trade of counterfeit goods and intellectual property (IP) violations. The main reason was thought to be that, during that period, stores selling non-essential goods were not allowed to operate.

However, since the city eased its social distancing restrictions in mid-October, there has been an upward trend in counterfeit trade and intellectual property violations.

Most recently, on October 1, Lien Chieu District’s police officers busted a ring producing fake monosodium glutamate, broth mix and washing powder at a local resident’s rental property at K109 on Me Suot Street, Hoa Khanh Nam Ward. As a result, one ton of such powder packaged in bags printed with famous trademarks was temporarily seized by the police officers.

Between 2017 and 2020, the municipal Department of Science and Technology has received 25 complaints about trademark infringement from local businesses.

A need for cooperation among parties

IP is a multidisciplinary and complex field, so it is necessary to raise public awareness about the importance of IP, and IP-related information, knowledge and laws as well, with the aim of preventing the infringement of IP rights.

Mr. Le Van Thong, the Chief Inspector of the city's Department of Science and Technology, stressed the necessity for businesses to register the IPRs of their brand names, as well as protect their own IPRs by actively monitoring the market to detect infringement.

“If you have discovered that your intellectual property is being unlawfully used by competitors, taking action immediately is key. Specifically, you can directly request the infringing party to stop the violations, request law enforcement agencies in the locality where the violator's head office is located to stop the violation, and initiate a civil lawsuit at the provincial court where the violator is located to claim compensation for damage (if the infringement causes property damage). In case of emergency, enterprises can request the court or other law enforcement agency to take temporary emergency measures such as sealing and temporary seizure of goods before carrying out complaint procedures” added Mr Thong.

Ms. Vo Thi Thu Thuy, the Director of the Go! supermarket, said her unit always signs commitments with reputable business partners in a bid to protect the interests of consumers as well as the competitiveness of genuine goods.

She added her supermarket is always willing to coordinate with the competent authorities to inspect and handle organizations and individuals involving in the trade of pirated and counterfeit goods in the supermarket.

Mr. Tran Phuoc Tri, acting Director of the city’s Market Management Bureau, remarked that the trade and distribution of fakes is becoming increasingly sophisticated, and the trade routes for counterfeit and pirated products are complex and subject to dynamic change. Therefore, counterfeit products are made available at shops and supermarkets, as well as on social network sites and e-commerce platforms.

In the coming time, the municipal Market Management Bureau will issue regulations on boosting the coordination of e-commerce trading floors and management boards of markets, supermarkets and trade centers citywide in the fight against counterfeit goods, goods of unknown origin, and IP infringement.

In addition, traders will be encouraged to sign commitments not to trade in fake, counterfeit, illegally smuggled, and poor-quality goods.

Reporting by QUYNH TRANG - Translating by MAI DUNG