Introduction of JD COM IPR Protection Ellen LIN

Introduction of JD. COM IPR Protection Ellen. LIN Senior Legal Director JD. com April 7, 2018

Overview 1 Introduction of JD. COM 2 JD IPR Protection 3 Q&A

Introduction of JD. COM 3

Our Milestones Jdlaser. com, the earliest predecessor of JD. com was launched. JD Mall began selling general merchandise products online, creating an JD Fintech was JD. com became the established as an first Chinese independent business group. integrated e- 2007 2008. 10 The company began developing its own logistics network. 2010. 12 NASDAQ with the ticker “JD. ” commerce provider. 2004. 01 JD. com listed on 2013. 10 2014. 03 2014. 5 JD launched its JD. com formed a third-party strategic partnership marketplace with Tencent, launching platform. a new business model combining social networking and ecommerce. 2016. 6 Internet company on Fortune Global 500 List. 2016. 7 2017. 4 JD Logistics JD. com and Walmart formed a strategic alliance. Walmart currently holds a ~10% stake. was established as a new business group under JD. com 4

Fortune Global 500 Largest Retailer in China ▲ ▲ First Chinese internet company to make the Fortune Global 500 list. online or offline Source: JD. com financial reports * Fastest growing company among top 5 e-commerce companies. 5

GMV has increased at a compound annual rate over 150% during the last 13 years Active Customer Accounts GMV (Billion) Employee Numbers (Million) USD 157, 831 187. 6 292. 5 136. 1 22. 2 29. 3 12. 6 2014 68, 109 96. 6 44. 1 2013 105, 963 155. 0 87. 9 2012 120, 622 226. 6 2015 2016 2017 2012 27, 952 47. 4 2013 2014 2015 2016 2017 2012 28, 325 2013 2014 2015 2016 2017 6

Unparalleled Speed – Core Competitiveness Largest e-commerce logistics infrastructure in China covering 99% of the country’s population. JD. com has achieved rates of over 92% of orders being delivered same- or next-day. The only e-commerce platform in the world to provide small-to-medium sized warehousing, oversized warehousing, cross border, cold chain delivery, frozen and chilled warehousing facilities, B 2 B and crowdsourcing logistics. Source: JD. com financial reports 7

Strict “zero-tolerance” policy toward counterfeit goods. “ JD. com can help big and small companies achieve success by operating ethically. It is our responsibility to achieve success while upholding the highest standards, behaving in a dignified way, and working with partners who are thoughtful, compassionate and respectful. ” --Richard Liu 8

JD IPR Protection 9

Guaranteeing Product Quality & Authenticity JD. com has a strict zero-tolerance policy toward counterfeit goods. We source products directly from world-leading global brands, and work tirelessly to eliminate counterfeits. Strict criteria for approval Independent research JD Six Quality Control Measures Strict control of supply channels Random sampling inspection Strict penalties system Guaranteed return policy

JD. com has strict rules in place for both merchandise sourcing for direct sales, and also for third party sales. Direct Sales Qualification Verification Onsite Visit Inspection before warehousing Notice-andtake-down Procedure Third Party Sales Qualification Verification Notice-andtake-down Procedure Routine Inspection Test Purchase Every measure listed above includes complex rules, criteria, and required steps. Qualification Verification, for example, requires not only meeting the general qualifications applied to all the suppliers and third parties, but also passing a review of additional documents applicable to enterprises or products of specific industries.

Type Corporation Qualifications General Qualifications Documents for trademark right and product source Industry No. 　 1 2 3 4 5 1 Business License Enterprise Organization Code Tax Registration Certificate Account Permit Taxpayer Qualification Certificate Trademark Registration Certificate 2 Authorization documents ( should trace back to the trademark holder) 3 QC Inspection Report (within 1 year) 4 Customs Declaration (within 1 year) No. 1 Health-care food Qualifications for different Industries or Products (Examples) Automobile accessories 2 Documents Enterprise Hygienic Permit Food Hygienic Permit (for every link in the production) 3 Consigned processing agreement 4 Health Products Permit and Specification Certificate for China Compulsory Product Certification (3 C Certification) Approval for Type of the Fire Extinguishing Products Certificate for China Compulsory Product Certification (3 C Certification) 1 2 1 Home furnishings & Kitchenware Documents Scope of Application All Imported products Scope of Application Chinese manufacturers 　 Brand holders and Manufacturers are different Special type of products Product listed in the Catalog of Mandatory Products Fire extinguishing products Products listed in catalog of mandatory products 2 Certificate for Special Labor Protection Products Special labor protection products 3 Industrial Production License 4 Hygienic Permit for Disinfection Product Industries listed in the Catalog of Industrial Production License Disinfection product

Qualification verification All the suppliers and third party vendors are subject to mandatory background checks and some will be paid an on-site visit. Routine Inspection A Qualification Control team conducts the webpage information audit on a routine basis. Technology Measures Test Purchase Penalty System notice-and -take-down procedures JD has developed her own system (J-Shield) that analyze huge streams of data to identify and block suspected offers of counterfeit products. When high risk product is located, the QC team will purchase it anonymously and send it to authorized organizations for inspection. Vendors who are identified selling counterfeits will be ordered to close down and monetary penalties will be imposed. JD accepts IPR complaints and notices via an online system – IPR. JD. COM, as well as at ipr-help@jd. com. Obvious infringing content will be removed as soon as possible and certainly within 3 -5 days.

IPR Protection IPR Complaint System (On-line) E-mail Constantly Optimizing IPR Complaint System ipr-help@jd. com • Gradually increasing the complaint disposal efficiency • Good-faith Brand Owner Alliance Setup • VIP Brand Owners with Good-faith will enjoy Ø 48 hrs Taken Down Ø Complaint Database Sharing Ø Special Clearance Action on JD. COM

Cooperation with IPR owners Brand Introduction Product Verification Training High-risk Keywords Filter Price Survey Test Purchase & Verification Anti-counterfeiting Information Sharing

Cooperation with Government JD signed Memorandum with “Beijing Intellectual Property Office” and “China Patent Protection Association” respectively in Y 2015 and Y 2017, for jointly promoting the Intellectual Property (Patent) Protection in the E-Commerce.

Cooperation with PSB JD investigated a criminal scam of buying authentic goods from the company and returning fakes. JD located the criminal group and cooperated with PSB for the criminal investigation. Incident Received Widespread Media Attention

Cooperation with Brand Owner Item Detail Date September, 2017 Date June - October, 2017 Source JD located a distributor was distributing suspect counterfeit “Penforlds” wine. Source JD located a distributor was distributing “KENZO” clothes at rather low price. Brand Owner TWE Brand Owner LVMH Action Criminal raid taken, 6 suspects caught Action Criminal raid taken, 1 suspect caught

Q&A 19

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