After representatives from the Anti-Counterfeit Authority (ACA) took goods worth Ksh50 million from the location to look into charges of intellectual property infringement, the controversy surrounding China Square continued to escalate.
According to reports, a Kenyan business claimed ownership of the trademark finder, a term offered at China Square for products bearing the finder brand.
The local business claims that they are the sole distributor of Finder products in the nation as well as the owner of the domain name Finder.
Ibrahim Bule, regional manager for ACA, confirmed that a thorough examination was conducted to determine whether China Square had violated the trademark claims.
“We conducted a search in the place and investigations are still ongoing. They are quite merchandised products of different brands. We will be able to give a statement after we conclude our investigations,” Bule stated.
On their part, China Square’s legal team claimed they are working with the government and the Kenyan company to resolve the standoff.
“You’ve seen the officers from ACA have come to the premises to check on the goods. They have done the inspection and currently, investigations are ongoing,” Josephine Oyombe, China Square’s advocate stated.
In a statement dated Sunday, February 26, China Square management announced an indefinite closure and did not give a timeline on when they would resume operations.
Lei Cheng, the China Square proprietor, however, intimated to the press that the infringement claims were a plot to kick him out of business.
He added that the dispute was a misunderstanding from the manufacturer based in China and was already resolved.
“The issue was resolved by the brand company in China. It was just some misunderstanding. The complainant also submitted a document to anti-counterfeit to withdraw the case,” he stated while expressing concerns that the business would not reopen.
China Square has been at the centre of controversy since its launch on January 29, 2023, after Trade Cabinet Secretary Moses Kuria revealed his intentions of kicking the China Square owner out of business.
“I have given an offer to Prof Wainaina the VC Kenyatta University to buy out the lease for China Square, Unicity Mall and hand it over to the Gikomba, Nyamakima, Muthurwa l and Eastleigh Traders Association,” he stated.
The Trade CS later offered to assist the China Square owner to set up a manufacturing plant in Kenya.