January 2006
Chanel & Co Ensure Chinese Landlord is Landed with the Cost of Counterfeit Designer Goods
A host of famous designer labels have won a landmark case in their fight against brand piracy in China. Companies including Chanel, Prada, Burberry, LVMH (Louis Vuitton) and Gucci pursued the landlord of several outlets in Beijing’s infamous “Silk Street”.
In the past companies have attempted to pursue the vendors themselves however these individuals can be difficult to locate and to obtain damages from. This is the first known case of its kind where the companies have succeeded in pursuing the landlord on the basis that he was aware of the infringing goods
The Landlord, Beijing Xiushui Haosen Clothing Market Co, and the vendors were ordered to pay approximately £9,000 in damages by the Court.
The Beijing Second Intermediate People's Court held that by knowingly permitting the use of its premises the landlord has assisted in trade mark infringement. It is intended that this case will set a precedent throughout China that may prevent the illegal stores from opening in the first place once landlords get the message that they may be liable for damages.
BRIFFA Comment:
It is unlikely in the extreme that this case alone will put a stop to Chinese counterfeit designer goods however the precedent does provide one more weapon in the growing artillery against counterfeiters.
Counterfeit goods of luxury brands often not only bear trade mark infringements but can be infringements of iconic designs such as famous hand bag shapes. Equally, however, often trade marks are placed on very badly designed products that damage the real brand if consumers believe them to be real designs as quality of the product and design are often very low.
It appears that many of the luxury designer goods brands are also planning to discuss automatic lease suspension and/or termination with city officials as a further threat against infringers.
By having a registered trade mark or registered design in China the options for being able to quickly and effectively eradicate the counterfeits from the market are greatly increased. Briffa can advise you and work with our partners on the ground in China to fight against infringements.
Sarah Jeffery
sarah@briffa.com