Business
A group of luxury goods makers sued Alibaba Group Holding Ltd, contending the Chinese online shopping giant had knowingly made it possible for counterfeiters to sell their products throughout the world, reports Reuters.
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.
A spokesman for Alibaba, Bob Christie, said in a statement: "We continue to work in partnership with numerous brands to help them protect their intellectual property, and we have a strong track record of doing so. Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation. We believe this complaint has no basis and we will fight it vigorously."
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.
The lawsuit marked the second time in less than a year that the Kering brands had sued Alibaba over the alleged sale of counterfeit products. An earlier lawsuit was filed in July only to be withdrawn the same month with the ability to refile it while the Kering units worked toward a resolution with Alibaba, according to court records.
