Looks like the Paris-based luxury company Kering has gone after the Chinese e-commerce giant, Alibaba, yet again.
China's largest e-commerce business, Alibaba Group, is getting sued again by Keirng, a French luxury goods holding company that includes Yves Saint Laurent and Gucci, over alleged counterfeits on its popular e-commerce platforms. Alibaba Group has criticized the reported lawsuit filed Friday, May 15.
Kering had filed a similar lawsuit in the United States, but withdrew it within weeks after constructive dialogue with Alibaba.
Gucci, Yves Saint Laurent, as well as other brands owned by Kering SA, stated that the Chinese e-commerce giant consciously allows the sale of counterfeits on its websites.
A spokesperson for Alibaba, Bob Christie, said in a written statement that the company works in collaboration with several brands in order to help them protect their intellectual property. In the statement, the spokesperson noted that Alibaba has a strong track record of doing so. The e-commerce giant's spokesperson states that Kering Group elected the path of wasteful dispute, rather than the path of constructive cooperation.
The statement pointed out that the complaint is baseless and Alibaba will fight it actively, according to reports on Forbes.
That being said, a report in the South China Morning post claimed Alibaba and its entities offer the marketplace advertising along with other necessary services for counterfeiters to sell their bogus products to customers in the US.
The brands owned by Paris-based Kering seek damages and an injunction for purported violation of trademark and racketeering laws.
The lawsuit claims that Alibaba not only conspired to manufacture but also offered counterfeit products bearing their trademarks for sale and traffic without their acknowledgement.
The Chinese government charged Alibaba with ignoring illegal activity, and failing to police its online marketplaces earlier this year. Alibaba was far too lenient in its business operations, letting some merchants sell fake products ranging from designer bags to smartphones, according to the State Administration of Industry and Commerce (SAIC).
The Chinese e-commerce giant said it spent over 1 billion yuan ($161 million) in order to battle intellectual property infringement and upgrade consumer protection, according to records on CNN Money.
Alibaba attracted several top multinational sellers including Disney despite being long criticized for not doing enough to stop the sales of counterfeits on its websites.
