Kering, the French group which owns a number of luxury brands, including Gucci and Yves Saint Laurent, and also controls Puma and other sports brands such as Tretorn, Cobra Golf and Volcom, is getting bullish about Alibaba allegedly not doing enough to combat the extensive offer of counterfeits on its websites.
As a result, Kering is now taking the Chinese internet giant to court in New York, where Alibaba is actually stock-listed. The suit, however, relates more to fake versions of Gucci and YSL items than sporting goods.
Kering argues that certain sellers on Alibaba’s platforms are offering fake Gucci bags for $2 while the original item retails for $795. As reported previously back in January, even the Chinese government has expressed disappointment that Alibaba is not doing enough to keep counterfeiting in check. Kering is going one stop further and says that Alibaba not only does little to protect intellectual property rights; it also argues that the group reportedly even encourages such practices on its websites. Alibaba, on the other hand, insists that the complaint “has no basis” and says that it regrets Kering’s legal actions.