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Ruyan's Channel Supplier May Sue Taobao.com

September 29, 2008
Law & Policy

Maxtv.cn, the only authorized online general agent of Ruyan, says it will sue the Chinese online auction website Taobao for illegally facilitating the sale of Ruyan's products.

According to reports from Sina.com, some dealers are selling Ruyan's products on e-commerce websites such as Taobao.com. Miao Nan, vice president of Ruyan, says that the Ruyan products sold on Taobao.com are divided into two categories — counterfeit products and products sold secretly by Ruyan's dealers without the permission of Ruyuan. In July 2007, Maxtv.cn and Ruyan jointly announced an online sales notice of Ruyan's products. According to this, Maxtv.cn is the only authorized online general agent of Ruyan.

Ruyan is a smoking cessation products maker. Designed as mechanical cigarettes, cigars and pipes with associated replaceable cartridges, Ruyan's products provide the pleasures of smoking without the associated dangers, so as to help smokers quit the nasty habit of smoking.

Wang Zhe, vice president of Maxtv.cn, says that only online dealers that have signed an agreement with Maxtv.cn can sell Ruyan's products on the Internet. However, these products are now found sold on Taobao.com without authorization. Wang says as an online trading platform, Taobao.com should play the role of a manager and protect the rights of brand companies. To protect its own interests, Maxtv.cn will take actions to safeguard its rights and that includes lodging a case in court against Tabo.com, which is owned by the Alibaba Group.

A representative from Taobao.com told Sina.com that Taobao.com is only a platform. If anyone can prove that the products sold on its website are counterfeit and inferior ones or these products are sold illegally, the company will assist the investigation of relevant department.

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