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China Retail As Piracy Prevention.

By Dan Harris and Steve Dickinson

One of the things I love about being a lawyer is what I learn from clients. I recently started working with a company that makes a high end consumer good. In the US, this company sells its products to high end retail outlets, including department stores. It has no retail outlets. This company has been doing more and more of its manufacturing in China and, like so many, it has recently decided the time has come for it to sell its product line in China as well. They have told me that "in order to maintain exclusivity and to prevent piracy," it will be setting up retail stores in China and selling its product only from those stores. That way it will be obvious both to them and to consumers that any of its product that is not in these stores is not the real deal. Now I am sure this is nothing new to many of you (so go ahead and call me out if you wish), but this is actually the first time I have heard of a company going into China retail to protect product integrity. What do you think?

Full post as published by China Law Blog on August 14, 2009 (boomark / email).