Chinese Landlord Infringement Liability Ruling Appealed

According to a January 9, 2006 report from the Kyodo News service, the management of Beijing's famed Silk Alley market near the U.S. embassy in Beijing has appealed a December ruling ordering payment of 200,000 yuan (about $24,700) for allowing merchants to sell knock-offs on its premises. "Silk Alley Haosen argues in its appeal that trademark infringement policing is the government's responsibility. The appeal could take three months to a year."

According to a January 7, 2006 report from Muzi News, Silk Alley was recently refurbished to become more of a five-story mall than a street market. "Most vendors believe that the campaign will merely force them to sell their wares more discreetly," notes the latter article. "Many of the goods are produced in factories in the provinces, often with local government backing, so production is unlikely to slow."

The monthly rent for a stall in the new facility reportedly varies from 4,000 yuan to 40,000 yuan for a street-level space. "People crowd on the first floor, while on other floors there are few customers," said one vendor.