Luxury brands sue Alibaba in US over counterfeit goods

BEIJING - Alibaba Holding Group Ltd is currently facing one of the biggest challenges in its global push since an historic IPO last September  - a group of luxury goods makers are sueing the Chinese online shopping giant on the grounds that it “knowingly made it possible for counterfeiters to sell their products throughout the world”.

The lawsuit, filed in Manhattan Federal Court by Gucci, Yves Saint Laurent and other brands owned by Paris-based Kering SA, seeks damages and an injunction for alleged violations of trademark and racketeering laws.

Alibaba spokesman 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 co-operation. We believe this complaint has no basis and we will fight it vigorously.”

This is not the first time Alibaba has faced allegations over fake products sold on its platforms. China’s State Administration for Industry and Commerce published a quality report in January, conducted between August and October of 2014, which concluded that less than 40% of Taobao goods that were tested were authentic.

Taobao complained in response that regulators at SAIC “abused power and ruined the reputation of Taobao’s online site as well as that of online vendors in China”. www.webershandwick.cn (ATI).