Alibaba's Counterfeit Goods Lawsuit gets dismissed

11 January, 2017 | By Aapt Dubey

Case No. 15-03784. Gucci America Inc et al. v/s Alibaba Group Holdings Ltd et al. , U.S. District Court, Southern District of New York.

Last year, top luxury brands sued Alibaba Group Holding Ltd. and some merchants on its platform. They accused AGHL of promoting the sale 0f counterfeit goods. In a recent hearing, US Judge P. Kevin Castel in Manhatten dismissed a part of the lawsuit. Mr Castel dismissed racketeering claims stressed by Paris-based Kering SA. He says the facts failed to sustain the allegation.

The lawsuit claimed that Alibaba formed an enterprise with 14 other counterfeit selling companies. Also, the initiative was seeking profit from the products of these luxury brands.

Mr Castel stated that the suit failed to claim the existence of any such undertaking. He said this under the federal racketeering laws. He says that the merchants weren't aware of each other. Moreover, they even doubted that the Alibaba would agree to act with them.

Quoting Mr Castel- "The fraud perpetrated by each merchant defendant could be accomplished without any help from any other dealer defendant."

The above ruling doesn't affect other charges on Alibaba. The court will still prosecute the charges related to some trademarks in the same lawsuit. The Judge dismissed only a single part of the trial on the racketeering.

It's been years that the Alibaba is facing such claims. We heard constant allegations of inclusions of fake and copyright-breaching goods by the company. Alibaba claims that it's sweating to upgrade monitoring and enforcement of rules against counterfeits.

On a side Alibaba is pleased with court's decision on the other, Kering's attorney is reluctant to make any statement.


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