Silk Street Market closes 8 more stalls over fakes

Eight more shops in Beijing's famous Silk Street Market have been ordered to shut down for seven days after they were found selling fake goods.

It is the third time the management of the market, which is well known as a place to buy cheap designer knock-offs, has resorted to the punishment. General Manager Wang Zili told China Daily yesterday eight more shops will be closed on Sunday, taking the total punished to 22.

The move follows an agreement last December between market administrator the Beijing Silk Street Co Ltd and IntellecPro, a law firm representing Gucci, Louis Vuitton, Prada, Chanel and Burberry.

IntellecPro last year took 22 traders and the administrators to court over the sale of fake goods. Under the guidance of the Beijing Municipal No 2 Intermediate People's Court, the parties agreed to settlement, with the Silk Market bosses promising to close all shops dealing in fake branded goods identified by the law firm within six months.

On Jan 15, IntellecPro handed over a list of 30 rogue shops and demanded immediate action. But the traders on this list have strongly opposed the closures, denying they deal in fake products, and have raised questions over the law firm's evidence.

The eight shops closed on Sunday included one selling suitcases, bags and purses in the basement, and seven on the third and fourth floors selling watches and cosmetics.

In these cases, shop owners and their friends have fought hard to keep their stalls open, leading to conflicts with the authorities.

"If we are not allowed to sell our merchandise, what are we going to live on?" cried a woman in her 60s whose son sells suitcases and purses. The woman was persuaded to go home only when the police came to the scene.

In retaliation, 22 traders have taken the Silk Market administration and the law firm to Chaoyang district court demanding 161,000 yuan ($23,500) in compensation. Liu Yan, a publicity worker for Chaoyang district court, said it will hear the case soon.

According to the law, the market has no power to shut shops but can report infringements to industry and commerce authorities, while the traders have argued the evidence provided by the law firm is not conclusive.

Peng Dong, of IntellecPro, confirmed the company had received a summons but refused to reveal the date of the hearing.