Kering sues Alibaba for the sale of counterfeit goods

London - Luxury conglomerate Kering, parent company of labels such as Gucci, Alexander McQueen and Yves Saint Laurent has taken another step in its fight against counterfeiting and those who profit from it by launching a lawsuit against Chinese Internet giant Alibaba.

Kering accuses the ecommerce group of encouraging the sale of counterfeit goods on its platform for its own profit, claiming that Alibaba is complicit in the sale of false handbags, watches and other products sold through its online marketplace in a manner known as "racketeering", according to the lawsuit filed in New York. The lawsuit also claims that Alibaba had conspired to manufacture, promote and traffic in false goods bearing the brand trademarks without Kering's permission.

"We continue to work in partnership with numerous brands to help them protect their intellectual property, and we have a strong track record of doing so," commented Bob Christie, a spokesman for Alibaba in a statement to Reuters. "Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation. We believe this complaint has no basis and we will fight it vigorously."

It is the second time in less than a year that Kering and its luxury labels have sued Alibaba for the sale of counterfeit goods. The French conglomerate filed a lawsuit against Alibaba in July, but withdrew its case in order to try to work out a resolution with the Chinese ecommerce group according to court records. The current lawsuit is seeking a court order which would block Alibaba from offering or helping facilitate the sale of false products.