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Global luxury brand Louis Vuitton slapped some stores in Jiangsu province with lawsuits claiming 500,000 yuan ($78,500) in compensation from each following a string of crackdowns on counterfeits.
The first hearing in the case against a shop in Nanjing Fashion Lady Shopping Plaza was held in Nanjing Intermediate People's Court on July 4.
Louis Vuitton said it recently found fake products being sold in the shop, which is in the bustling Xinjiekou commercial area. The company authorized a Beijing-based law firm to send a warning letter to the shopping plaza, requiring it to stop the sales within seven working days.
However, the products were still on shelves a month later, leaving the shop and the mall pointing fingers at each other.
The shop believed the mall had joint liability because it failed to curb the sales.
But the shopping mall emphasized its innocence as it signed an agreement with tenants barring counterfeit products.
"We prohibit illegal business and fake goods, and all the shops made their commitments by signing the agreement. So the shop should bear the responsibility alone," said a man from the executive office of the shopping mall, who declined to give his name.
Whether the shopping mall assumes responsibility may depend on whether it knows pirated goods are being sold, according to some experts.
"A company should inform the mall administrator which shop is selling fake products, because it's sometimes hard for the managers to scrutinize every shop," said Wang Qian, a professor at the Intellectual Property School of the East China University of Political Science and Law.
Huanbei Market and Taotaoxiang, two other shopping malls in Nanjing where Louis Vuitton is making accusations of counterfeit sales, have also been sued, but the court has not yet heard that case.
Fake Louis Vuitton purses and handbags disappeared from shops in the mall on Tuesday.
However, counterfeit luxury watches and cosmetics, such as Chanel and Armani, could still be seen in many shops.
Ye Boping, a judge in the intellectual property tribunal of the Nanjing court, said the Louis Vuitton case may trigger another upsurge of luxury companies suing sellers of fakes.
In May 2010, Louis Vuitton found fake products worth 3 million yuan during a raid of several shopping areas in Nanjing.
The company claimed compensation totaling 11 million yuan, sending 17 shops to court in Dalian, Liaoning province, in August 2011.
But some luxury experts said the actions have failed to solve the problem.
"A considerable number of counterfeits are manufactured and sold by internal workers of a company, which is widely known in the industry," said Zhou Ting, director of Fortune Character Institute, which researches luxury products.
Louis Vuitton says it has a department to fight against fake products, and their crackdowns are coordinated with government agencies.
Questions:
1. What luxury brand is suing sellers of counterfeits?
2. Where were the lawsuits filed?
3. Which malls are targeted?
Answers:
1. Louis Vuitton.
2. Nanjing.
3. Nanjing Fashion Lady Shopping Plaza in the Xinjiekou commercial area, Huanbei Market and Taotaoxiang.
About the broadcaster:
Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.