France-based luxury brand company Kering has sued e-commerce giant Alibaba Group Holding for allegedly abetting and profiting from the sales of counterfeit goods on its platform.
In a statement to Marketing, an Alibaba Group spokesperson said: “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 Reuters, the lawsuit was filed in a New York federal court by Gucci, Yves Saint Laurent and other brands owned by Kering seeking “damages and an injunction for alleged violations of trademark and racketeering law,” the article said.
The lawsuit reportedly alleged that Alibaba and its entities “provide the marketplace advertising and other essential services necessary for counterfeiters to sell their counterfeit products to customers in the United States.”
It also made assertions about Alibaba’s conspiracy to “manufacture, offer for sale and traffic in counterfeit products bearing their trademarks without their permission.”
This is the second time that Alibaba’s credibility has been challenged by Kering. The luxury goods maker had sued the e-commerce giant in July 2014 over the alleged sale of counterfeit products. The two companies are said to be working towards a resolution.
Marketing has also reached out to Kering for comments.