Kering Group wins the battle against Alibaba Holdings
Makers of classy bags fought and won the case against Alibaba Group Holding Ltd in the court.
Alibaba Holding Group Ltd had been accused of selling counterfeit products of well-known brands such as Gucci and Yves Saint Laurent earlier this year in May. The Kering Group’s Fashion Companies have won their battle against Alibaba’s website. According to the news, the lawsuit stated that the company facilitated the selling of those counterfeit products.
These were basically illegal goods that the vendors at Alibaba group were selling. The U.S. District Court issued a restraining order to the Kering Group against the vendors who were selling their illegal products. According to Bloomberg, the court has barred the sale of fake goods by vendors on Alibaba holding’s platform. This case was won by Kering Group in Manhattan earlier on August 13, 2015.
The French based fashion company group, Kering owns brands such as Puma, Gucci, Brioni, Yves Saint Laurent and quite a few other popular brands. Kering accused Alibaba of selling replica products of the company and claimed that they were shipping these products to New York. A few of the vendors were selling these replicas on Alibaba’s online platform are Amy Luxury Goods, Brand Bag Boutique, Picasso Trend, Lehui Textile Behalf and a few others. Due to these allegations, Alibaba stocks have hit an all-time low this year. The company has been fighting these counterfeit product selling allegations since last year. According to Kering’s statement, the vendors at Alibaba Group Holding ltd were selling fake products with the original brands name. They were selling a Gucci bag worth $795 at as low as $2 a piece.
Alibaba Group Holding Ltd in its defense has earlier claimed that since it is such a large company and functions internationally now it is hard to keep a check on unlawful procedures that take place. But they have been improving their system to stop such kind of behavior. Since replicas of high end brands are easily available in China for surprisingly low prices it becomes difficult to manage the operations effectively.
This was the second time that Kering Group had filed a lawsuit against Alibaba Group because of the vendors selling fake goods in the brands names. The first lawsuit was filed in July 2014, but was taken back since the companies tried to solve their issues outside of court. This restraining order was issued by P. Kevin Castel, U.S District Judge along with the financial records which have to be given to Kering Group.