Beats Electronics has revealed that it is suing multiple Chinese companies involved in the production and sale of counterfeit Beats headphones. Counterfeit items are a major problem in the technology industry, and China unfortunately remains a safe haven for many counterfeiters. This lawsuit alleges that many of the counterfeiters have created websites purportedly selling genuine Beats headphones. Even though some customers may recognize that the sites are not legitimate, the counterfeiters use Beats trademarks and logos to convince others that they are really being sold Beats products.
The defendants named in this case have all worked together, according to the lawsuit, and they could be making large amounts of money from the sale of fake Beats products. Beats hopes it will stop the counterfeiters from using registered logos and designs while also protecting some customers who may be more easily tricked by the fake websites and products.
It is difficult to figure out who the counterfeiters actually are, but Beats thinks there are just a few groups behind potentially thousands of fake websites. Those websites could be pulling in as much as $135 billion in annual online sales, but it is not currently possible to determine just how profitable the counterfeit Beats business is.