Ho Chi Minh City company investigated over nearly 50,000 alleged fake Nike shoes

Market surveillance authorities in Ho Chi Minh City are investigating MP Company for allegedly producing nearly 50,000 pairs of counterfeit Nike shoes. The investigation was initiated following intelligence provided by U.S. authorities, who suspected a network faking the U.S. brand's products. On July 16, market authorities, in conjunction with the police, raided a factory belonging to MP Company. Authorities stated that the fakes at the factory were highly sophisticated, making them difficult to distinguish with the naked eye. Even the authentication code on every pair seemed above board. Based on current market prices, they estimated the value of the seized goods at over VND100 billion ($3.8 million). A spokesperson for MP Company stated that the products had been manufactured under a contract with F.C.T Company, with feedstock sourced from abroad and finished products returned. MP also furnished processing contracts, email correspondence with the partner, and documents purportedly authorizing the use of Nike trademarks. Authorities have not clarified if MP was merely a victim of F.C.T Company or had a hand in the fraud. This year, F.C.T has exported 11 containers of Nike and Air Jordan shoes to the U.S. for more than VND25.46 billion. However, the DMS said Nike Vietnam has stated the company never granted any license to MP or its partner or authorized either organization to represent or act on its behalf. The DMS said the goods showed signs of being knock-offs and the case was one of the largest and most complex intellectual property infringement cases uncovered in recent years. The case involves cross-border elements linked to organizations and businesses in the U.S. and China, and indicates how international contract manufacturing and the use of documents purported to be legitimate but possibly forged work. Tran Huu Linh, director of the DMS, said the findings demonstrate the effectiveness of international cooperation in detecting and handling cross-border intellectual property infringements. "The discovery is significant not only because it addresses a violation, but also because it reveals a method of infringement that may still exist in the market, involving multiple parties and potentially even collusion."