Taiwan Police Bust Underground Factory Producing Counterfeit Luxury Watches; Infringement Value Exceeds 80 Million TWD

The Intellectual Property Rights Investigation Corps of the Criminal Investigation Bureau (CIB) announced today the bust of an underground factory producing counterfeit luxury watches. The authentic versions of these watches sell for between 300,000 TWD and several million TWD, with an estimated market infringement value exceeding 80 million TWD.

According to the preliminary investigation, the prices of genuine luxury watches range from 300,000 to millions of TWD, with the highest price reaching 4.5 million TWD. In contrast, the counterfeit versions were sold for only 8,000 to 26,000 TWD, significantly harming the interests of trademark owners.

The task force was established after reports surfaced of individuals selling unauthorized Rolex products on online platforms. These sellers claimed to provide 'original factory replicas' and 'customized modifications' to attract customers. After verifying the items as counterfeit through trademark representatives in Taiwan, the police launched an investigation.

Following long-term surveillance, the police identified a suspect surnamed Chen, who imported high-quality clones and parts from China to sell and perform repairs or modifications. In October last year, the first wave of raids took place in Taichung, leading to Chen's arrest. This led the police to a couple in Pingtung County, surnamed Su and Lei, who were handling orders for modifications from sellers across Taiwan.

A second raid in Pingtung resulted in the seizure of 61 luxury watches (including Rolex, Patek Philippe, and Richard Mille), over 300 components, and various modification tools. The suspects have been handed over to the Taichung District Prosecutors Office for violations of the Trademark Act.