Sam Oliver
The stores were allegedly not in trouble for copyright infringement, but only because they did not have the proper business licenses, according to Reuters. Three other counterfeit Apple stores that operate without Apple's authorization remain in Kunming.
The city's investigation was prompted by Internet attention that began last week, when it was revealed that knock-off Apple retail stores even feature employees wearing blue t-shirts, just like a real Apple Store. Officials in Kunming reportedly verified that the five self-branded "Apple Stores" sold official Apple products without the Cupertino, Calif., company's authorization.
A spokesman for the city's government said they went to "great steps" to ensure that the stores were not selling counterfeit Apple products. They also said they are investigating whether Apple applied with the Chinese government to have the design of its stores protected by law.
The report noted that Chinese law does prohibit companies from copying the "look and feel" of other retail stores, but added that enforcement and trademark protection in China are "often spotty." While piracy is a known rampant problem in China, the idea of a counterfeit store — one so believable that some employees believe they actually work for Apple — is new.
Credit: BirdAbroad
After the news broke, some customers began returning to the counterfeit Apple stores with their recent purchases, demanding proof that the products are genuine and not knock-offs. The city's investigation reportedly found that all five Apple stores in Kunming sell genuine Apple products bought from other authorized resellers.
There are a total of just four official Apple retail stores in China, but the company plans to open a total of 25 in the next few years. The company has focused its efforts on the region, growing its Greater China revenues — which include Hong Kong and Taiwan — to $3.8 billion in the June quarter, a massive six-fold increase.
AppleInsider Staff
Malcolm Owen
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35 Comments
So, wouldn't the warranty be void if a product us purchased from an unauthorized source? ...not that Apple would want to anger their customers that way, though.. Just wondering.
Two fake Apple retail stores in the city of Kunming, China, have been ordered to close because they do not have official business permits.
The stores were allegedly not in trouble for copyright infringement, but only because they did not have the proper business licenses, according to Reuters. Three other counterfeit Apple stores that operate without Apple's authorization remain in Kunming.
So, in China, it's OK to steal others' intellectual property as long as you pay the government their cut. Got it.
If the store is getting it's products from other authorized resellers, what price are they paying? Apple usually has strict policies not letting their dealers undercut prices. The store needs to make a profit, pay employee salaries, etc. So either these fake stores are selling Apple products at higher prices, or the authorized dealers they are getting their products from are likely in violation of their contract with Apple and selling product to the fake stores at lower than retail price.
I wouldn't be surprised to find that the authorized dealers are in collusion with the fake stores.
At it's best. No worry about oppressive government interference in raping the customers - not like her in the US.
IMO western retailers are going to have major problems selling their products in china. Especially companies like Apple that have to protect their IP. Am I the only one who sees big problems for the west in China overall? The potential for relationships to be strained and American companies leaving seems high at this point. Not unlike businesses that attempted to move into Russia. The system for buyouts, payoffs, bribery, corruption and threats was cited by a personal friend of mine (who's job it is to asses these problems) as the reason Western companies were leaving. Doesn't seem much different in China to me.