Alibaba sued by Gucci, Yves Saint Laurent and others over fake goods sold online - Sydney Sun

Alibaba sued by Gucci, Yves Saint Laurent and others over fake goods sold online

Sydney Sun Sunday 17th May, 2015

• Gucci, Yves Saint Laurent and others have opened a case in Manhattan against Alibaba

• Lawsuit alleged that Alibaba allows merchants to sell fake products

• Second lawsuit in as many years over counterfeit goods for Alibaba

NEW YORK, New York - A group of luxury goods manufacturers has opened a lawsuit against Alibaba Group Holding accusing the Chinese online shopping giant of knowingly making it possible for merchants to sell counterfeit products.

Gucci, Yves Saint Laurent and other brands owned by Paris-based Kering SA filed the lawsuit in Manhattan federal court, seeking damages and an injunction for violations of trademark and racketeering laws due to Alibaba's actions.

The luxury goods brands accuse Alibaba of conspiring to manufacture, offer for sale and ship fake products that are replicas of their catalogue and bear their logo, without the companies' permission.

A spokesman for Alibaba declined to comment, but accusations of selling fake products has surrounded the online retailer for years, especially with regards to its Taobao platform.

Taobao was added to a list of known counterfeit goods markets by the US several years ago, but was removed by US Trade Representative from its list of "notorious markets" in 2012 due to progress made in rooting out the practice.

This latest lawsuit is the second in less than a year from the Kering brands against Alibaba, accusing it of selling fake versions of their products.

According to court records, a lawsuit was filed in July last year, but was withdrawn that same month so that the brands could work out a resolution with the Chinese online retailer, the lawsuit contained a clause allowing a refile, however, but it is unlike if this latest lawsuit is a new one or a refile of the previous version.

That previous lawsuit alleged that Alibaba and its related entities "provide the marketplace advertising and other essential services necessary for counterfeiters to sell their counterfeit products to customers in the United States."

The lawsuit cited an alleged fake Gucci bag offered for US $2 to US $5 each by a Chinese merchant to bulk buyers seeking at least 2,000 units, while the real version of the bag retailers for US $795.

The lawsuit further alleges that Alibaba has allowed for counterfeit sales to continue even after being expressly informed that merchants were selling fake products.