Can Alibaba Group Holding Ltd (BABA)’s War Against Fakes Succeed?

Alibaba Group Holding Ltd (NYSE:BABA) is taking a step in the right direction as it revealed how much it is fighting fakes on its sites, Olivia Sterns, Julie Hyman and Brendan Greeley said in a report on Bloomberg’s In The Loop.

Alibaba Group Holding Ltd (NYSE:BABA) Chief Risk Officer Polo Shao revealed recently that his company took off 90 million listings in the period leading up to its IPO that may be infringing on intellectual property that other people or organizations owned.

According to Shao, the company has spent a substantial $160.7 million since 2013 in its fight against counterfeits on its online marketplaces.

Sterns said that Alibaba Group Holding Ltd (NYSE:BABA) has been facing scrutiny for the proliferation of fake goods on its website. She added that it looks like the company is realizing that its reputation risk is important.

Alibaba Group Holding Ltd (NYSE:BABA), the world’s largest online retailer, according to Hyman is showing what may be a precursor to what Chinese companies and what the country of China itself needs to do as it opens up more and more to the global economy.

Greeley, on the other hand, pointed out that this move is actually partly because of the U.S. Trade Representative’s office. He noted, however, that the most effective step the U.S. has made to counter counterfeiting was to show companies that if they wanted capital from the U.S., they should abide by laws which includes those regarding intellectual property.

Greeley said, however, that he is encouraged by what Alibaba has done and is doing.

Alibaba Group Holding Ltd (NYSE:BABA) shareholders includes Dan Loeb’s Third Point which owned 7.2 million shares in the company by the end of the third quarter.