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Viewing cable 09CHENGDU40, SOUTHWEST CHINA ENTREPRENEURS BUILD COUNTERFEIT STORE

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Reference ID Created Released Classification Origin
09CHENGDU40 2009-03-05 02:07 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Chengdu
VZCZCXRO9965
RR RUEHGH RUEHVC
DE RUEHCN #0040/01 0640207
ZNR UUUUU ZZH
R 050207Z MAR 09
FM AMCONSUL CHENGDU
TO RUEHC/SECSTATE WASHDC 3095
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHGV/USMISSION GENEVA 0049
RHMFIUU/DHS IP BP WASH DC
RUCPDOC/USDOC WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUEHCN/AMCONSUL CHENGDU 3767
UNCLAS SECTION 01 OF 02 CHENGDU 000040 
 
SENSITIVE 
SIPDIS 
 
EAP/CM - PPARK AND EB/IPE - DBUBMAN 
EB/TPP - EMAGDANZ AND INL - JVIGIL 
EB/CIP - WWITTEMAN AND RDALEY 
USTR FOR CHINA OFFICE - AWINTER; IPR OFFICE - RBAE; 
AND OCG - SMCCOY, JRAGLAND, AND KALVAREZ 
COMMERCE FOR NATIONAL COORDINATOR FOR IPR ENFORCEMENT 
COMMERCE FOR MAC ESZYMANSKI 
COMMERCE FOR MAC SWILSON, JYOUNG 
LOC/COPYRIGHT OFFICE - STEPP 
USPTO FOR INT'L AFFAIRS - LBOLAND, EWU, STONG 
DOJ FOR CCIPS - MDUBOSE AND SCHEMBTOB 
FTC FOR BLUMENTHAL 
FBI FOR LBRYANT 
DHS/ICE FOR IPR CENTER - DFAULCONER, TRANDAZZO 
DHS/CBP FOR IPR RIGHTS BRANCH - GMACRAY, PPIZZECK 
ITC FOR LLEVINE, LSCHLITT 
 
E.O. 12958: N/A 
TAGS: ECON EIND ETRD KIPR PGOV CH
SUBJECT: SOUTHWEST CHINA ENTREPRENEURS BUILD COUNTERFEIT STORE 
 
CHENGDU 00000040  001.2 OF 002 
 
 
1. (U) This cable contains sensitive but unclassified 
information - not for distribution on the internet. 
 
 
 
2. (SBU) Summary: Entrepreneurs in Sichuan's provincial capital 
Chengdu have, in at least one case, moved from selling copyright 
infringing products to copying a company's entire product line 
and brand identity.  Congenoff confirmed with a company 
representative that a group of Chengdu stores purporting to be 
part of the Hong Kong snack food chain "Aji Ichiban" have no 
legitimate connection to the brand.  The possible breadth and 
depth of counterfeiting may make it difficult for some 
consumers, shopkeepers, and possibly even store employees to 
determine the authenticity of a retailer.  End Summary. 
 
 
 
Walking and Quacking, but Still Not a Duck 
 
------------------------------------------ 
 
 
 
3. (SBU) Some businessmen in Chengdu have apparently decided to 
mimic the look and feel of a legitimate brand's retail outlet 
and product line rather than start their own business.  At first 
glance, even those familiar with the Hong Kong confectionary 
chain Aji Ichiban would likely judge that the Chengdu stores are 
authentic Aji Ichiban retailers.  The signs on the outside of 
the store appear to be identical to some of those seen in Hong 
Kong.  Inside, the stores have a similar layout, offer a similar 
variety of products, and even have similar-looking bags for bulk 
purchases.  The promotional posters in one of the retail outlets 
had an authentic look as well.  One of the Chengdu Aji Ichiban 
retail stores is located along a very popular, upscale tourist 
street and surrounded by presumably legitimate retailers. 
 
 
 
4. (SBU) Congenoff checked Aji Ichiban's official website, 
however, and found no listing for stores in Chengdu or Sichuan 
province.  In mid-February, Congenoff called the contact number 
listed on Aji Ichiban's official website (www.ajiichiban.com.hk) 
and was told that the company has no stores in Chengdu.  When in 
stores in Chengdu, it is only the small details that suggest 
that they may not be official franchise or company stores.  One 
retail location stocked an assortment of Mickey Mouse snack 
containers that appeared to be counterfeit Walt Disney products. 
 Some of the stencil cut signs on the inside of stores look 
slightly out of place, and of lower quality than exterior signs. 
 
 
 
 
Fooling Employees and Customers? 
 
-------------------------------- 
 
 
 
5. (SBU) Employees at two Aji Ichiban stores in Chengdu told 
Congenoff that their respective stores were part of the Hong 
Kong chain of stores ("lian suo gong si").  Congenoff is 
uncertain from his conversations if the employees actually 
believe the Chengdu stores are part of the Hong Kong group, or 
if they are simply telling customers that they are part of the 
company.  A website for the Chengdu-based company that 
presumably owns the Chengdu Aji Ichiban stores (www.yzlp.com) 
implies that the Chengdu and Hong Kong retailers are part of the 
 
CHENGDU 00000040  002.2 OF 002 
 
 
same company. 
 
 
 
6. (SBU) Some customers suspect that the stores may be fake, 
however.  A message posted on the popular website Baidu.com 
asked last year if there was a relationship between the 
Chengdu-based Aji Ichiban and the Hong Kong company.  Four 
respondents within a few days all said that there is no known 
relationship between the stores.  The answer flagged as most 
authoritative also asserted there was no relationship, but that 
many businessmen "played games" with branding.  A user posting 
on another website, Douban.com, also says that the Chengdu 
stores are not related to the Hong Kong stores.  The post states 
that products in the Chengdu stores are merely copies of those 
in the real stores. 
 
 
 
Fake Stores Potentially a More Pervasive Problem 
 
--------------------------------------------- --- 
 
 
 
7. (SBU) Chengdu store fronts sporting professional-looking 
signs with logos of famous brands like Nike, Reebok, Kappa, and 
Adidas do not necessarily signify that the store is a legitimate 
retailer.  Sign-makers in Chengdu manufacture or sell signs for 
famous brands.  Window, exterior, and display case signs are all 
available.  Some less intricate logo signs appear to be stencil 
cut, and may even be finished at the retail location.  Standing 
near an "Apple authorized retailer" sign at the computer market, 
Congenoff noticed small plastic shavings around portions of the 
sign that suggest it may have been cut onsite.  From a short 
distance, however, the sign appeared no different from those 
seen in the U.S. 
 
 
 
8. (SBU) Some Chengdu stores that use authentic-looking signs 
and logos may also be selling counterfeit products, but 
Congenoff could not determine the authenticity of the products. 
Near the Chengdu Sport Center, Congenoff saw a store that 
appeared to be an authentic Nike retailer.  Signs, posters, 
displays, and products all appeared similar to Nike retailers in 
the U.S.  The store immediately next door also claimed to sell 
Nike products.  It had the Nike Swoosh logo on the front of the 
store, but it lacked the Nike promotional material.  The design 
of the shoes suggested they were not legitimate, but Congenoff 
could not determine the product's authenticity. 
 
 
 
9. (SBU) COMMENT:  Post will continue to try to monitor the 
piracy situation on the streets of Chengdu and raise our 
concerns with local authorities.  End Comment. 
BOUGHNER