Abstract

This case examines Alibaba's innovative approach to intellectual property (IP) protection in the rapidly evolving e-commerce landscape. It highlights the challenges faced by creators in safeguarding their original designs in the digital marketplace, as exemplified by the NUDE incident. The case explores how traditional IP protection methods and legal frameworks, such as patents and the "notice-and-takedown" rule, prove inadequate in addressing the unique challenges presented by contemporary digital technologies and e-commerce landscape. The case presents Alibaba's response to these challenges through the introduction of its Original Design Protection Program (ODPP). This initiative offers a swift, cost-effective alternative to conventional IP protection methods, particularly benefiting small and medium-sized enterprises. The case details the mechanics of ODPP, including its use of AI and blockchain technology, and its impact on fostering innovation and protecting original designs. This case offers a valuable perspective and a real world application regarding how technology companies can innovate to address complex challenges in the digital economy. It encourages critical thinking about the intersection of law, technology, and business strategy in the context of e-commerce and intellectual property protection.

 

Learning Objectives

After studying the case, students are expected to be able to:

1.   Compare the different types of IP infringement relevant to e-commerce.

2.   Understand the fundamental legal framework and key operating principles applicable to enforcing IPRs in online marketplaces.

3.   Analyze the emerging challenges associated with enforcing IPRs in online marketplaces, particularly through real-world examples such as “NUDE”.

4.   Analyze the importance of IP protection for all stakeholders involved in e-commerce and investigate the motivations behind IP protection for e-commerce platforms, such as Alibaba.

5.   Evaluate the key factors that influence the effectiveness of IP governance in e-commerce, considering the differences between online and offline infringement.

Company/Organization	Alibaba
Industry	e-commerce
Major Discipline	Information Technology
Geography	China
Case Nature	Field
Page count of the Case	13
Teaching Notes	15
Publisher	HKUST
Last Revision Date	30.09.2024