Gucci, Balenciaga, Yves Saint Laurent and other luxury brands owned by Kering SA filed a lawsuit in federal court in New York contending that Alibaba Group Holding Ltd., the online shopping giant based in China, is knowingly helping counterfeiters sell fake goods throughout the world.
Kering says it is unsatisfied with Alibaba's efforts to address the problems of counterfeiting brands, and that the company, together with its associates, "knowingly encourage, assist, and profit from the sale of counterfeits on their online platforms," according to a copy of the filing reviewed by The Wall Street Journal.
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," according to the Independent.
This is the second lawsuit that Kering has brought against Alibaba, and both were for the issue of counterfeit products. The first one was filed in July and was withdrawn while Kering and Alibaba attempted to reach a resolution.
In the lawsuit, a court order is sought that will block Alibaba from facilitating the selling of counterfeit products. Kering seeks damages including a $2-per-counterfeit-item payment.
