Taylor Swift Counters Knockoffs in China
In an effort to thwart counterfeiters, singer to sell branded clothing with JD.com, Alibaba
Taylor Swift has battled Apple music and had dust-ups with Nicki Minaj on Twitter. Now she’s taking on counterfeiters in China. Photo: Getty
By Laurie Burkitt and Alyssa Abkowitz
Updated July 21, 2015 7:32 p.m. ET
Taylor Swift is the latest to take on counterfeiting in China.
As the American pop star’s popularity in China has exploded, so has a huge market of unauthorized Taylor Swift products, with e-commerce peddlers selling everything from fake perfume to pirated autographed guitars.
In an attempt to get rid of them, Ms. Swift is launching her own Taylor Swift-branded clothing with China’s two biggest e-commerce players, JD.com Inc. and Alibaba Group Holding Ltd. Her strategy is to use her star status to get them to stop selling products that don’t have rights to use her name, according to Heritage66Company, a Nashville-based branding company that is representing Ms. Swift and bringing her line to China.
Starting Aug. 8, JD.com and Alibaba’s Tmall marketplace site will carry Taylor Swift-branded $60 designer T-shirts, said Kate Liegey, chief operating officer of Heritage66. In September, she said, the singer will launch a women’s collection exclusively on JD.com, with clothing priced from $100 to $120. All products will have antipiracy hanging tags that enable customers to track their authenticity on the Web and offer an alternative to the plethora of fake Taylor Swift products available online, said Ms. Liegey.
Ms. Swift’s push comes ahead of her “1989” tour’s November dates in Shanghai. She joins an increasingly crowded bandwagon of U.S. companies and trade groups pushing China’s e-commerce players to halt the rampant selling of knockoffs. The American Apparel & Footwear Association, a trade group representing clothing makers, issued an open letter to the chairman of Alibaba last week, complaining about a lack of progress combating fake goods on its site.
Ms. Liegey said she has been working with JD.com and Alibaba to remove unauthorized goods from their sites. “It’s time for Chinese companies to say, ‘We don’t want to be known for piracy anymore,’” she said.
She said that she chose to work with JD.com because the site was responsive in addressing complaints about fakes. A spokesman for JD.com, Josh Gartner, said it investigated and removed problematic items at Heritage66’s request. “They understood where they would have guarantees of authenticity,” he said of the pact with the singer.
A spokeswoman for Alibaba said the company is “dedicated to the fight against counterfeits” and that it will work with Ms. Swift’s representatives to “protect her intellectual property rights as well as the rights of all stakeholders.”
Fakes are proving to be a tough war to win in China, where companies—from software to movies and luxury handbags—have long fought for intellectual property rights.
Ms. Swift will have to work hard to gain control of her brand, according to Benjamin Bai, a partner in the Shanghai office of law firm Allen & Overy LLP. Currently, there are nine trademarks in China registered under the name Taylor Swift, three of which are owned by individuals other than Ms. Swift, according to documents provided by Mr. Bai. Items that fall under trademarks not owned by her include purses, infant onesies, bathing suits, shoes and hats.
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Mr. Bai said trademark disputes are difficult to win in China, because the law is based on who files first, regardless of celebrity. If Ms. Swift were to launch branded bathing suits, Mr. Bai said, she would be infringing on someone else’s trademark under Chinese law.
“So even though you may be internationally famous if I’m the owner of your name in China you can’t get me,” Mr. Bai said.
Ms. Liegey said Ms. Swift is working with lawyers to recoup her trademarks.
Basketball legend Michael Jordan in 2012 sued sportswear company Qiaodan Sports, saying it built its business around his Chinese name, “Qiaodan.” In May, Mr. Jordan’s lawyers said they would appeal to the Supreme People’s Court after a lower court ruled in favor of the Chinese company.
On Taobao—an Alibaba platform that connects mostly small vendors with individual buyers—some sellers have sold millions of dollars in Taylor Swift goods in recent years, said Mark McDonald, chief executive of Heritage66.
Shoppers on Taobao can buy fake Taylor Swift Keds sneakers for as little as 65 yuan (about $11), Taylor Swift-branded watches and cellphone covers for around $10, and pollution masks with Ms. Swift’s picture on them for about $1.30.
Ms. Swift, known best for climbing the charts in country and pop music, is no stranger to disrupting industries and pushing big companies to change their sales tactics. She grabbed headlines recently for her public protest against Apple Inc.’s music-streaming service, objecting publicly to its decision not to pay royalties to artists in their three-month trial of Apple Music. Apple backed off that plan in response.
She also has shown to have leverage in China. Last year, the country’s top streaming platforms removed Ms. Swift’s music from any free components of their services after her agents sent removal requests on her behalf.
Heritage66, which works with country-music artist Keith Urban and other stars, approached Ms. Swift last year after estimating a total financial figure of unauthorized products tied to her brand. “We could see how much people sold on the site and it was a daunting number,” said Mr. McDonald, who declined to disclose precise financial estimates.
With most people in China not paying to download music, a fashion line is one of the ways Ms. Swift can make money with her brand in the country. Ms. Liegey said she believes Chinese consumers will pay $100-$120 for a Taylor Swift dress.
The China move isn’t Ms. Swift’s first clothing line. In 2009, the megastar launched a sundress collection, linking up with Jones Group’s L.E.I. brand that was sold exclusively at Wal-Mart Stores Inc. Ms. Swift also struck a deal in 2013 with shoe brand Keds selling a collection of canvas sneakers inspired by her style. Earlier this year, the company rolled out shoes that feature the city names on each of her “1989” concert tour stops.
—Gillian Wong contributed to this article.