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Shanghai's market watchdog is cracking down on online stores that sell counterfeit goods as a growing number of such stores have popped up in cyberspace.

The Shanghai Industrial and Commercial Administrative Bureau will also keep a close eye on residential areas around the Xiangyang Road Fashion and Gift Market, which was home to many warehouses for fake goods, to prevent the illegal business spreading from the soon-to-be-closed market to other downtown areas.

The bureau said yesterday it has closed 24 stores selling fake products this year and confiscated nearly 190,000 counterfeit goods, ranging from clothing, bags, and leather belts to glasses and watches involving big names like LV, Gucci, and Prada. The 24 stores were assessed more than 2.1 million yuan (US$259,259) in fines.

"Some illegal vendors have chosen new ways that are more difficult to find and crack down in response to our intensified efforts to stop counterfeit deals," said bureau Vice Director Chen Xuejun.

Last month, the bureau shut down the online version of the Xiangyang Market with assistance from authorities in other provinces as the Web server was based outside Shanghai. It also shut down two stores near the actual Xiangyang Market following tips found on the Website.

The Xiangyang Market on Huaihai Road M. will close by June to make way for subway construction and a possible commercial project.

The market closure might slow sales of counterfeit goods, but the bureau says it won't stop the problem. Last week, the bureau's branch in Putuo District located two storage rooms in a high-end residential area that housed more than 11,000 pieces of counterfeit LV, Armani and Gucci clothing.

To better protect the foreign trademark holders' rights, the bureau has updated its list of foreign trademarks this year. The list, which is given to market inspectors, now includes 47 new brand names, such as Armani, Zegna and Levis.

(Shanghai Daily April 21, 2006)