Lazada 2022 IPR

I. Foreword

For the last 11 years, Lazada has been accelerating progress in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam through commerce and technology. As part of that journey, we understand that the protection of brands and their intellectual property rights ("IPR") forms the foundation for the growth of vibrant and innovative enterprises across the region. To do this, Lazada is committed to the protection of IPR and our efforts are a testament to our ongoing mission to foster a healthy and safe e-commerce environment that supports fair and sustainable commercial activity for all participants across Southeast Asia.

For the last three years, the Covid-19 pandemic has fundamentally changed the world. Lockdowns and restricted mobility across the globe saw a flood of consumers and retailers online, leading to unprecedented e‑commerce growth. As a leading digital commerce player in the region, Lazada observed increased activities on our platform during the pandemic, as people rely on e-commerce for their shopping and essential needs. On the other hand, this also brings about new challenges to ensure a safe and reliable online shopping environment. This highlighted the need and importance of partnerships in e‑commerce, to create a safe and sustainable ecosystem for all stakeholders. Behind the scenes, Lazada has quickly put into action the insights and lessons learned during the pandemic and pursued closer collaboration with rights holders and stakeholders in the IPR protection ecosystem to collectively tackle new trends and activities by bad actors.

As Southeast Asia emerged from travel restrictions in 2022, the IPR Protection Team actively hosted and participated in conferences, roundtable discussions, workshops and one-on-one meetings with rights holders. Lazada deepened its IPR Protection efforts and here are several high points.

1

Initiated the formation of the Southeast Asia E-Commerce Anti-Counterfeiting (SeCA) Working Group dedicated to e‑commerce anti-counterfeiting.

2

Invited to dialogues with government bodies in Southeast Asia, touching on Lazada's commitment to IPR protection and sharing best practices to empower the entire ecosystem.

3

One of three E-Commerce Platforms recognised by the Ministry of Home Affairs in Singapore with the highest safety ratings for our efforts in making the platform trusted and safe.

4

Engaged with more than 1,200 IPR stakeholders in Southeast Asia through our collaborative efforts with stakeholders and outreach events.

5

Supported 8 enforcement actions that were conducted across 4 countries, with an estimated total value exceeding USD 700,000.

II. Synergistic Stakeholder Collaboration

Formation of an E‑Commerce coalition to tackle counterfeits

Lazada initiated the formation of the Southeast Asia e‑commerce Anti-Counterfeiting (SeCA) Working Group. In September 2022, a consortium of e‑commerce platforms and brand owners with interests in the region came together to launch the Southeast Asia e‑commerce Anti-Counterfeiting Working Group (also known as the SeCA Working Group).

The SeCA Working Group is the first in the region dedicated to e‑commerce anti-counterfeiting. It seeks to provide a platform to facilitate open and constructive dialogue and information exchange between IPR owners and e‑commerce platforms.

Engagement with Government Agencies and IP Offices

Lazada has also constantly sought to bridge any information or communication gap through regular engagements and public-private collaborations with IP-focused governmental agencies involved at various levels of the policy-making or law enforcement lifecycles.

DGIP INDONESIA

7 Jun. 2022

Lazada hosted the Directorate General of Intellectual Property (DGIP), Ministry of Law and Human Rights, as the government body expressed efforts to step up IPR protection in Indonesia as the nation works to exclude itself from the United States Trade Representative’s Special 301 Report and Priority Watch List.

DIP Thailand

29 Jun. 2022

Visiting and sharing Lazada’s IPR Protection efforts with Department of Intellectual Property (DIP), Ministry of Commerce, Thailand. Lazada has been working with SME sellers and supporting Thailand's effort to promote local Thai businesses selling products with Thai geographical indications.

“Lazada recognizes that the continued collaboration under the MOU on the Protection of IPR on the Internet between brand owners, relevant government agencies and e‑commerce platforms is the key success in combating IPR online infringement, which supports legitimate e-commerce businesses in the country.”

Mr. Vuttikrai Leewiraphan, Director General, DIP

IP Viet Nam, DMS Vietnam, IDEA Vietnam

26-27 Sep. 2022

Lazada met with the Intellectual Property Office of VietNam (IP Viet Nam), Vietnam Directorate of Market Surveillance (DMS) and e‑commerce and Digital Economy Agency (IDEA) to present Lazada’s efforts and best practices in IPR protection in e‑commerce. The meetings provided a good opportunity for dialogue as sentiment on the ground was shared with Lazada and ambiguity addressed to reinforce Lazada's commitment to IPR Protection.

Speaking Opportunities to Move the Needle Forward

US Patent and Trademark Office (USPTO)

In 2022, Lazada was invited to speak at 2 USPTO workshops in Thailand (August) and Vietnam (September) to explain how Lazada combats counterfeits on our platform.

JETRO International Intellectual Property Protection Forum (IIPPF)

In February, Lazada was honored to be a speaker at JETRO’s International Intellectual Property Protection Forum (IIPPF). The forum provided an avenue to explain its IP protection programme offerings to Japanese brands and rights holders and best practices for filing against infringing content on Lazada.

CAPACITY-BUILDING WORKSHOP

DGIP Indonesia

18 Oct. 2022

In October 2022, Lazada collaborated with the DGIP, to co-organise a capacity-building workshop titled “Advancing Intellectual Property Rights (IPR) Protection in Indonesian e‑commerce” for the Indonesian IP Task Force and various other governmental agencies. Speakers from governmental agencies outside Indonesia such as the Department of Intellectual Property Thailand (DIP), Korea Intellectual property Protection Agency (KOIPA) and INTERPOL, and from international brand protection agencies such as Indonesian Anti-Counterfeiting Society (MIAP), Pharmaceutical Security Institute (PSI) and REACT, were gathered at the workshop to share best practices on IPR protection.

Strengthening Cooperation with MOU Partners

1

Lazada and KOIPA Intellectual Property Protection with Online Platforms

21 Sep. 2022

Lazada was one of two overseas online platforms that participated in a workshop for invited Korean export companies and Korean government agencies held in September 2022. The meeting sought to share Lazada’s IP protection programme to Korean brands and rights holders and created an avenue for export companies to share concerns on IP protection in the region.

2

Pharmaceutical Security Institute (PSI) and Lazada jointly organized LazMed Seminar

As an affirmation of the partnership between PSI and Lazada's commitment to protecting public health against counterfeit medicines, Lazada co-organized with PSI the second run of the LazMed Seminar, a forum for pharmaceutical companies to learn trends and collaborate with Lazada going forward.

3

REACT Annual Assembly

In November 2022, Lazada strengthened its partnership with REACT and participated in REACT’s Annual Assembly to support brands and IP owners. The Annual Assembly gathered Custom Officials, Enforcement Authorities, Intellectual Property Rights Holders and legal practitioners from around the Asia region. At the event, Lazada was one of two platforms to be awarded a token of appreciation for the support and exemplary work in protecting consumers from counterfeit goods.

In Recognition of Lazada’s Top-in-Class Efforts

In May 2022, Lazada was one of the e‑commerce platforms who received the highest safety ratings by the Ministry of Home Affairs in Singapore. This award recognizes Lazada’s efforts in making the platform trusted and safe.

The criteria studied was based on the following.

Verification of seller identity
Use of in-platform secure payment solutions
Maintenance of transaction records and user data
Reporting and dispute resolution mechanism

III. Events & Highlights

Held our IPR Annual Seminar & launch of 2021 Year In Review

22 Feb.
2022

Invited as speaker at JETRO's International Intellectual Property Protection Forum (IIPPF)

28 Feb.
2022

Celebrated World IP Day (WIPD) with a video submission to a World Intellectual Property Organization (WIPO) WIPD competition. Made in collaboration with Singapore start-up “SimplyGood”, it was short-listed as a finalist among 140+ global entries.

26 Apr.
2022

Hosted DGIP Indonesia at Lazada One to share our IPR Protection initiatives

7 Jun.
2022

Spoke at an event conducted by the Indonesian Anti-Counterfeiting Society (MIAP)

15 Jun.
2022

Invited to be part of a panel organised by Proctor & Gamble (P&G), sharing from an e‑commerce perspective

Presented Lazada's IPR Protection initatives to DIP Thailand

29 Jun.
2022

Participated in the USPTO Indo-Pacific Regional Workshop on Enforcement against Trade in Counterfeit Goods held in Bangkok, Thailand

30 Jun.
2022

Participated in IP Week @ SG and many activities including the launch of the SeCA Working Group

6-7 Sep.
2022

PSI and Lazada jointly conducted its LazMed Seminar with pharmaceutical industry players in Bangkok, Thailand

5-6 Oct.
2022

DGIP and Lazada jointly organized a capability workshop on "Advancing Intellectual Property Rights (IPR) Protection in Indonesian e‑commerce"

18 Oct.
2022

Invited as speaker at IPOS International's GRIT Webinar on "How to Manage Your IP Online"

20 Oct.
2022

Participated as a speaker at the ASEAN x USPTO Indo-Pacific Regional Workshop on Handling, Storage, Disposal and Destruction of Counterfeit Goods

25 Oct.
2022

Spoke at the Asia Security Conference & Exhibition held in KL, Malaysia

8 Nov.
2022

React and Lazada continued its collaboration and support for React's Annual Assembly conducted in Penang, Malaysia

21-22 Nov.
2022

IV. Technology-driven Governance

NOTICE & TAKEDOWNS

1,500+

(15% growth YoY)

Number of active users in 2022 filing takedown requests on the IPP Platform across Lazada’s 6 countries, a 15% user growth year-on-year.

+6.5%

Increase in takedown requests year-on-year, in spite of user growth.

>95%

Takedown requests processed within 72h, with a median processing time under 24h.

Top complained categories

11.4%
Beauty
11.2%
Men’s shoes &
clothing
8.9%
Watches,
sunglasses,
jewelry
68.5%
Others
This year, to improve the overall experience for users on the IPP Platform, we implemented the following updates:

Notifications to users have been refined with clearer explanations on takedown request rejections and to aid users in successful takedown requests.

Lazada’s IP Protection Guide has been updated to further support users. The guide includes step-by-step instructions and a comprehensive overview of navigating the takedown submission process on Lazada. The guide can be found on the IPP Platform.

IPP PLUS PROGRAMME

Lazada's IPP Plus Programme offers enhanced service support and expedited takedown processing for participants selected based on relevant notice and takedown criteria, including reporting volume and accuracy. IPP Plus is intended to strengthen collaboration between rights holders and Lazada by facilitating the increase of qualified takedown requests and expedited enforcement.

Established Relationship

Has an existing working relationship with Lazada IPR Protection Team.

High Volume

Volume of over 500 takedown requests submitted monthly for the past 3 continuous months.

Low Rejection Rate

Rejected take down requests attribute to 5% or less of the monthly volume for the past 3 continuous months.

Low Appeal Passing Rate

Appeals Passed attribute to below 1% of overall takedown requests for the past 3 continuous months.

~100

Brands on IPP Plus

>90%

Takedown requests processed within 24h.

<12h

Median removal time for a successful takedown request.

PROACTIVE MEASURES

Lazada introduced its proactive measures of counterfeit removals as a pilot programme in March 2020. The measures use technology and data from rights holders (such as product-specific information) to detect listings of suspected counterfeit goods. Proactive takedowns aid a rights holders to take down the listings even before having to report it.

As our technology is progressively optimized and capabilities strengthened, one area we will be experimenting with is image recognition technology to better detect suspected counterfeit goods and copyright content infringements on our platform.

90

brands gradually included to be part of Lazada's proactive programme at the end of 2022.

96%

maintained rate of proactive removal before a transaction takes place

6

proactive removals have occurred before a reactive listing is reported by a participating rights holder.*

*This technological feature has greatly reduced the burden of filing on participating brands.

Online-to-Offline Enforcement Actions

As we make great strides in preventing IPR infringement on our platforms, Lazada is dedicated to supporting rights holders and local law enforcement agencies in offline investigations and enforcement actions targeting the entire supply chain.

In 2022, we worked with many brands to analyse more than 200 potential leads. Lazada is proud to have supported brands in 8 enforcement actions with an estimated total value exceeding USD 700,000, and importantly blocking the entrance of counterfeit goods into the sales market to protect consumers.

Through close collaboration with timepiece maker Casio, we strengthened our partnership in 2022 by providing support for raids that were carried out in Malaysia, Indonesia and Vietnam. Through Lazada’s support, a total of more than 13,400 articles were seized from the raids and were prevented from being sold.

At the start of 2022, Lazada supported global safety science leader, UL Solutions, in an enforcement raid that resulted in the seizure of 900 units in Malaysia.

Lazada worked closely with automobile player BMW in the analysis of a potential lead in Thailand. In Oct, BMW joined forces with another automobile player in a raid that culminated in a seizure of over 200 units of counterfeit brake pads, ball joints, filters and sensors.

Lazada aided skincare brand Bio Oil in successful raids in Malaysia that apprehended close to 600 units of counterfeits.

V. Reflections

As we reflect on the past year, Lazada has relentlessly contributed to the fight against counterfeits, improving governance with technology and collaborating closely with government bodies, brands and rights owners, associations and brand representatives. Looking ahead, the IPR Protection Team remains steadfast in its mission and strives to make deeper progress in the reduction of infringing listings by working with rights holders and the constant optimization of our technology.

Collaborative efforts with stakeholders and the IPR protection community remain pivotal for Lazada to advance its IPR protection efforts. We continue to keep our channels open to engage with relevant stakeholders to effectively advance our efforts in IPR protection.

With the ever-evolving e‑commerce landscape, it is essential for stakeholders to work together. As more businesses look to leverage opportunities in the digital economy in the next phase of growth, industry-wide cooperation is critical to building a safe and trusted digital space. Together, we can build a sustainable and fair e‑commerce ecosystem for all participants across Southeast Asia.

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