Alibaba is suing two vendors who sold fake Swarovski watches on its ecommerce platform, in what it claims is the first such legal action in China.
Counterfeiters are a scourge for Alibaba, owner of China’s biggest ecommerce platform, triggering clashes with regulators at home and abroad. It was sued by Gucci and other brands in the Paris-based Kering stable in 2015 and, less than a fortnight ago, was put back on a US government blacklist of “notorious markets” known for selling fake goods.
Alibaba said yesterday that it provided sufficient leads to enable Shenzhen Luohu District police to raid one seller last August and confiscate more than 125 counterfeit Swarovski watches, valued at some Rmb2m ($288,000). It has now filed a lawsuit in Shenzhen against it and another vendor claiming Rmb1.4m in damages for contract and goodwill violations.
