Introduction
Pandabuy, a popular shopping agent used by those buying counterfeit goods from China, has recently been the subject of a significant police raid. The raid was initiated following legal action from 16 brand owners. This event has led to speculation within counterfeit communities about whether this is evidence of a China-wide crackdown on fake goods.
The Raid
The raids began on Thursday, April 11, at Pandabuy’s headquarters in Hangzhou and six warehouses operated by the company (and its network partner WeGoBuy). The operation involved nearly 100 people, including law enforcement and agents. The action followed legal action from 16 rights owners alleging that the company is harbouring and shipping counterfeit goods. The effort also involves ongoing activity in the United Kingdom, carried out by the City of London Police’s Intellectual Property Crime Unit (PIPCU).
This is believed to be the first time a Chinese shipping agent has faced such action. The scale of the investigation is significant – focused on six large warehouses totalling 110,000 square meters and an agent network employing more than 1,700 people. At present, the Pandabuy website remains online, although services are currently inactive, with an online message claiming “online channels are suspended for a while”.
The Aftermath
In the aftermath of the raid, the Pandabuy team released a statement to its users, acknowledging the legal issues they are currently facing. They assured their users that they are fully cooperating with the relevant departments in the investigation to ensure that all their business activities comply with legal regulations. They also committed to keeping their users informed of any developments and are taking all necessary measures to protect their interests and data security.
A Pandabuy partner also reassured the community that the staff is safe and that they will be back to answer questions. They emphasized that the situation was out of Pandabuy’s control.
Future Implications
The action was coordinated in large part by IP services business Rouse and its strategic partner in China, Lusheng. Chris Bailey, Rouse’s head of UK and EU enforcement, said the raids are “ongoing” and it is “early days”, but he is so far “excited about the result”. He states that access to Pandabuy’s records will allow investigators to pursue major sellers for future legal action. While the buyers are mostly individuals or in some instances small import businesses, the sellers – and there have been some quite prominent sellers identified already – will be the top targets.
The raid on Pandabuy marks a significant event in the ongoing battle against counterfeit goods. It serves as a reminder of the legal risks associated with the sale and distribution of counterfeit goods. As the situation continues to unfold, it will be interesting to see what further implications this will have on the counterfeit goods market.