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31
July
2012

ebm-papst cracks down on intellectual property theft in China

The raid was a complete success. On Monday, 23 July 2012, officers of the Chinese State Administration for Industry and Commerce (AIC) carried out a raid of the premises of fan dealer Beijing Longwei Shengda Technology in the Chinese capital and found what they were looking for.
Despite the fact that the company is not an ebm-papst dealer, its warehouse contained a large number of cartons with counterfeit fans of various models. All of the fans bore the brand label of the German manufacturer.

At first, the owner claimed that the fans were originals. However, when ten thousand labels and the matching counterfeit printing plates were discovered, he admitted purchasing the fans from South China, labelling them himself and selling them as original ebm-papst fans in China and other countries. Since the ebm-papst brand is also protected in China, the agents confiscated the fans, labels and printing plates and gave the dealer a warning.

"We assume that counterfeits of our products are equivalent to a share of turnover of approximately 150 million EUR per year, which is 10% of our turnover," says Hans-Jochen Beilke, Chairman of the Board of Managing Directors of the ebm-papst Group. "The result of this raid proves once again that this estimate is quite accurate."

Beijing Longwei Shengda Technology is not the only Chinese company against which the German innovation leader is taking action. ebm-papst vigorously pursues those who counterfeit its fans, to protect its brand but mostly to uphold the quality promise it makes to its customers.

The German company combats product and brand piracy to protect consumers and uphold the trust they place in its products. "The low-quality counterfeits wear more quickly and cannot fulfil the stringent safety standards to which all ebm-papst products are subject," says Dr Bruno Lindl, ebm-papst Group Managing Director of Research and Development.

The raid demonstrates that German companies can now rely on the support of the Chinese government in combating brand and product piracy. "The central government in Beijing has recognised the value of intellectual property and is taking forceful action against counterfeiting, which also hurts Chinese companies," states Beilke.
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