2014 Articles

Secondary Liability for Trademark Infringement Online: Legislation and Judicial Decisions in China

Ying, Du

Secondary liability in China for trademark infringement online can be best understood in the context of the three periods of e-commerce development that took place in the country. During the embryonic stage (1999 to 2002), there were very few netizens and online business operators, and a number of enterprises, including 8848—China’s e-commerce enterprise flagship—rose but then quickly fell. In the rising phase (2003 to 2007) that followed, small and medium-sized e-commerce platforms like Alibaba—an e-commerce company that eventually established Taobao.com and other businesses—began to make profits and a number of e-commerce providers, including E-Commerce China Dangdang and EachNet, rose rapidly. Throughout this period, the number of online vendors increased from 4 million to 35.5 million. An e-commerce boom began in 2008, and Alibaba, NetSun, Suning Appliance Company, GOME Electrical Appliances and other traditional retailers became publicly traded companies. Meanwhile, Redbaby and Beijing Jingdong Trading Co. entered into and started the competition of business-to-consumer (B2C) marketing.