The Chinese e-commerce group Alibaba received a lawsuit from various luxury brand companies which includes Gucci and Yves Saint Laurent, wherein they claim that Alibaba intentionally allowed the sale of counterfeit luxury product in its e-commerce site.

Like Us on Facebook

The suit was filed in the U.S. federal court of Manhattan. Gucci and the other luxury brand companies are asking for the payment of damages and an injunction on the alleged trademark and anti-racketeering laws violation.

Alibaba has responded to the alleged lawsuit through its spokesperson Bob Christie and he said that Alibaba has continued to help the luxury brand companies in the protection of their intellectual property. He adds that Alibaba has a "strong track record in doing so." The Chinese company believes that the lawsuit does not have any basis and will fight the suit. 

This is the second time in less than a year that a suit against Alibaba has been filed by the Paris-based luxury brand companies. The first suit was filed in July 2014 but was withdrawn as the Kering companies and Alibaba tried to work it out.    

The suit this year against Alibaba specifically stated that it allegedly granted counterfeiters access to vital services such as "marketplace advertising," and said that most of the alleged counterfeit products were sold to buyers living in the United States.

The suit claims that counterfeiters were allegedly selling a Gucci bag for only $2 to $5, wherein, according to the complainants, an original Gucci bag sells for $795 retail. The suit also contends that even when Alibaba was informed that one of its users were selling counterfeit goods, it did nothing to stop it.

The suit is asking the federal court to compel Alibaba to stop offering its services to alleged counterfeiters and to pay damages that could possibly include a fine of $2 for every counterfeit item.

TagsGucci, Counterfeit, counterfeiters, luxury brands, e-commerce, trademark infringement, intellectual property