Alibaba Group Holding Ltd chairman Jack Ma said that his recent comment that counterfeit goods were better than originals was taken out of context, and he reiterated that that his e-commerce platforms have "zero tolerance" for counterfeits.

"Counterfeit goods are absolutely unacceptable, and brands and their intellectual property must be protected," Ma said in an opinion piece published on Thursday in The Wall Street Journal. "Alibaba is only interested in supporting those manufacturers who innovate and invest in their own brands. We have zero tolerance for those who rip off other people's intellectual property."

Ma was responding to media reports that quoted him as saying in a speech he made at Alibaba's headquarters in Hangzhou that "fake products today are of better quality and better price than the real names. They are exactly the [same] factories, exactly the same raw materials but they do not use the names."

Those comments were viewed as giving legitimacy to the counterfeit industry, but Ma said in the opinion piece that his comments had been taken out of context, and "I feel compelled to set the record straight".

He said his comments were an observation that he was sharing with investors: that the dynamics between some brands and their manufacturing partners, and brands and their customers, are shifting due to economic and technological developments.

With exports declining due to weaker demand, Chinese manufacturers are resorting to the internet and setting up their own brands to woo customers, presenting a challenge to the business model of some established labels, Ma said. This has complicated efforts to root out fakes, which is why Alibaba is using real-time scanning of more than 10 million new product listings a day, he said.

"Failing to protect original designs, trademarks and technology is akin to thievery, and it is detrimental not only to innovation but also to the integrity of the marketplace," Ma said. "We do not and will never condone any act of stealing."

Ma said in January last year that the company has zero tolerance for fakes on its e-commerce markets.

Last month, Alibaba was suspended from the International AntiCounterfeiting Coalition, a global nonprofit that fights fakes. The suspension occurred after a number of top brands dropped out of the group, calling Alibaba their "most dangerous and damaging adversary".

aiheping@chinadailyusa.com

(China Daily 06/24/2016 page2)