Part of Kering's Counterfeit Claim Against Alibaba Dismissed

A US Judge has dismissed part of a claim relating to the sale of counterfeit goods brought against Alibaba by various brands, including Gucci and YSL, owned by Kering SA. The part of the claim which has been dismissed alleged that Alibaba promotes or encourages the sale, by fourteen other companies in particular, of counterfeit goods on the Alibaba online platform.

Earlier in 2016, The International Anti-Counterfeiting Coalition announced it was suspending Alibaba's membership in the wake of increasing publicity regarding the use of the Alibaba platform to sell fake merchandise.

However, according to the Judge in this case, the part of the claim that was dismissed was not backed up by evidence of fact by the Claimants, who could not show that a collaborative or encouraging relationship, so to speak, existed between Alibaba and the companies selling counterfeit goods.

Other trademark related aspects of the claim are ongoing, although no application has been made by Alibaba for their dismissal.

Jack Ma, the founder and owner of Alibaba, vowed to fight the claims against his company when they were issued in 2015, stating, as reported by Forbes, "I would [rather] lose the case, lose the money" and "gain…respect", presumably from the flocks of sellers who benefit from accessing a global market via the Alibaba platform.

Many UK business experience problems with counterfeit goods on Alibaba. McDaniel & Co. have been instructed several times in respect of products infringing, for example, our clients' design right and/or copyright on Alibaba. We have successfully asserted our clients' rights and sought the removal of infringing products on several occasions where our clients' had previously experienced difficulties.

If you have any questions on the above please do not hesitate to contact the team at McDaniel & Co. on 0191 2814 000 or legal@mcdanielslaw.com.