On 10 February 2006, Shanghai's Second Intermediate People's Court convicted Xie Fu Ping, a golf retailer in Shanghai of selling counterfeit products bearing registered trademarks of members of the U.S. Golf Manufacturers Anti-Counterfeiting Working Group, which is comprised of Acushnet Company, Callaway Golf, Cleveland Golf, Nike, PING and TaylorMade Golf Company.
Xie was sentenced to 1 year's imprisonment (suspended for 1 year) and ordered to pay a fine. The criminal conviction followed enforcement conducted by the Chinese authorities in August 2005 when the police raided Xie's store and seized counterfeit golf inventory valued at US$57,682.
Loo Shih Yann, a principal with the international law firm of Baker and McKenzie and who is co-ordinating efforts on behalf of the U.S. Golf Manufacturers Anti-Counterfeiting Working Group in China said that this is the first criminal conviction against a counterfeit golf retailer in China and represents focused determination by the Golf Industry Group to pursue counterfeiters to the fullest extent of the law. It also shows a determination by the Shanghai authorities to clean up the city.
Following the criminal conviction, the U.S. Golf Manufacturers Anti-Counterfeiting Working Group assisted law enforcement authorities in Beijing and Shanghai, where further city wide raids were conducted. In Beijing, the authorities raided 19 retail shops and associated storage locations of counterfeit golf equipment operating in Beijing's Central Business District and popular tourist areas. Approximately 5,000 pieces of counterfeit golf equipment were seized in the operation.
In Shanghai, investigations by the U.S. Golf Manufacturers Anti-Counterfeiting Working Group led officers to 12 retail shops where over 7,000 items of fake golf equipment ranging from counterfeit golf clubs, bags, balls, shoes and clothing were seized. The estimated retail value of the seized fakes exceeds $3 million. Many of the counterfeit golf clubs seized during the raids were counterfeit copies of some of the best selling golf club models belonging to well known brands including Callaway, Cleveland, Cobra, Nike, Odyssey, PING, TaylorMade and Titleist.
The U.S. Golf Manufacturers Anti-Counterfeiting Working Group is working closely with police authorities to bring more criminal prosecution and convictions, and more arrests are expected as investigations continue.
Rob Duncanson, an attorney representing the U.S. Golf Manufacturers Anti-Counterfeiting Working Group in the United States commented that “The Group is very pleased with the progress that has been made over the past two years. Counterfeiting in general continues to be a very damaging problem both to consumers and the U.S. economy. The Department of Commerce has been very instrumental in promoting the protection of U.S. interests in China, and the active enforcement efforts by Chinese authorities is certainly appreciated. However, counterfeiting remains a very serious problem for the golf industry. Industry representatives know more can be done and are committed to encouraging and assisting the appropriate authorities to promote greater enforcement efforts and results.”
