Kering, whose brands include Gucci and Yves Saint Lauren, claimed that merchants on Alibaba’s website were selling fake versions of their products for as little as $2. The retail price for an authentic Gucci bag, however, could be around $800.

An ‘ecosystem’ for fakes

Kering filed the trademark and copyright infringement complaint in May and specifically accused Alibaba, claiming it: ‘facilitates and encourages the sale of an enormous number of counterfeit products through its self-described ‘ecosystem’, which provides manufacturers, sellers, and buyers of counterfeit goods with a marketplace for such goods, and provides online marketing, credit card processing, financing, and shipping services that effectuate the sale of the counterfeit products.’

Not directly affected

US District Court Judge P. Kevin Castel said Kering is entitled to injunctive relief as it is ‘likely to succeed in showing that the defendants have used and are continuing to use counterfeits’. He ordered vendors Yun Mi’s Store, Picasso Trend and Brand Bag Boutique, among others, to stop selling counterfeit versions of any of the company’s marks on August 13^th. Although Alibaba has been accused of facilitating the sale of illegal goods, it is not directly affected by the temporary order. Sources: Bloomberg Business; IPPro The Internet