Luxury brands mount suit against Alibaba over counterfeit goods

A group of luxury goods makers sued Alibaba Group Holding on Friday, contending the Chinese online shopping giant had knowingly made it possible for counterfeiters to sell their products throughout the world. The lawsuit was filed in Manhattan federal court by Gucci, Yves Saint Laurent and other brands owned by Paris-based Kering SA seeking damages and an injunction for alleged violations of trademark and racketeering laws. The lawsuit alleged that Alibaba had conspired to manufacture, offer for sale and traffic in counterfeit products bearing their trademarks without their permission.

(Alibaba) provides the marketplace advertising and other essential services necessary for counterfeiters to sell their counterfeit products to customers in the United States.

Lawsuit filed against Alibaba

The lawsuit cited, for example, an alleged fake Gucci bag offered for $2 (£1.27) to $5 each by a Chinese merchant to buyers seeking at least 2,000 units. The authentic Gucci bag retails for $795, the complaint said. Concerns over fake products on Alibaba’s platforms, including online marketplace Taobao, have dogged it for years, although the U.S. Trade Representative removed Taobao from its list of “notorious markets” in 2012 in light of progress made.

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