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13 May 2016

Tiffany becomes third member to exit IACC after Alibaba joins

Luxury brand Tiffany has left the International AntiCounterfeiting Coalition (IACC), the latest company to depart the organisation since Alibaba was allowed to join.

The jewellery maker is the third company to redact its membership in recent weeks following in the footsteps of Gucci and Michael Kors.

Gucci ended its membership on Saturday, May 7, while fashion company Michael Kors rescinded its membership last month.

Last month WIPR’s sister publication TBO reported that Alibaba had joined a new IACC membership programme available for companies and intermediaries.

Companies that join the new category are known as general members and it is for companies that are not “directly or substantially impacted by counterfeiting”.

Tiffany has not cited a reason for its departure but previous reports suggested Gucci’s departure was down to Alibaba joining.

Geoffrey Potter, partner at Patterson Belknap Webb & Tyler, said Alibaba was generally considered “the single largest seller of counterfeits in the world”.

“It is not surprising that many of the largest consumer, pharmaceutical and luxury goods companies are upset that Alibaba has been permitted to join the IACC,” he said.

He added: “They are concerned that Alibaba will tout its membership as part of a propaganda campaign to falsely persuade regulators, prosecutors, consumers and investors that it is fighting counterfeiting when in fact it is perhaps the world’s largest counterfeiting bazaar.”

Earlier this week, Alibaba Group’s online shopping marketplace Taobao promised to clamp down on counterfeits being sold on its platform.

Starting later this month, entities using Taobao to sell luxury brands will be required to upload proof that the goods are genuine. Proof could be an invoice or authorisation letter from the luxury brands stating that the purchased products are genuine.

A spokesperson for Alibaba told WIPR it is committed to being a leader in the fight against counterfeits and has a “proven track record” of creating and implementing programmes that produce results.

“We applaud the IACC’s approach to include market intermediaries in the fight against counterfeits. We are committed to working with brands and industry associations through cooperation rather than resorting to unproductive tactics," the spokesperson said.

It added: “However, those that have a financial interest in IP litigation would rather pit the brands against Alibaba, using public relations tactics that are not in the interest of anyone except themselves.”

A spokesperson for Tiffany said: "Tiffany resigned its seat on the IACC board of directors and withdrew its membership due to its concerns related to certain governance matters. The decision was not made in protest of Alibaba’s membership in the IACC."

This was first published on  Trademarks and Brands Online.

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More on this story

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9 May 2016   Luxury brand Gucci has terminated its membership with the International Anticounterfeiting Coalition in what is an alleged protest at Alibaba joining one of the organisation’s new membership categories.
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15 April 2016   The International AntiCounterfeiting Coalition has created a new membership category that is available to companies and intermediaries, with Alibaba joining as the first member.