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A department store in Beijing which was selling fake handbags supposedly produced by designer Louis Vuitton has been ordered to pay the Frenchman 150,000 yuan (US$18,500) by a city court.

 

The Beijing No. 2 Intermediate People's Court ruled that Chaowai Men's Department Store had infringed the world-famous Vuitton trademark.

 

In addition the Shanghai No. 2 Intermediate People's Court will today hear a similar case in which Vuitton accuses a Shanghai supermarket of selling fake handbags.

 

In yesterday's case the designer stated that 22 stalls within the department store sold handbags bearing the Vuitton trademark without authorization.

 

A fake handbag was sold at the store for 100 yuan (US$12). The price of a genuine Vuitton handbag in Beijing is around 5,000 yuan (US$620).

 

Vuitton claimed one of the firm’s employees bought a fake handbag at the store in September last year.

 

The French company wrote to the store requesting that it stop selling the fake goods. The store responded quickly saying that it had taken the necessary steps.

 

But a month later the plaintiff bought 21 fake handbags at the same store and an advertisement using the Vuitton trademark was attached to a wall in the store.

 

Vuitton initially asked for compensation of 1 million yuan (US$125,000). However, store officials insisted the stalls where the fake handbags were being sold were rented out by them. "The store has fulfilled its obligations of supervision," the defense said.

 

Ding Ran, the store's attorney, refused to comment on the judgment. She also declined to say whether her client would appeal.

 

In yesterday's ruling the court said the department store was obliged to stop selling fake goods.

 

The local market watchdog forbid the store renting stalls to those selling goods with the illegal trademarks six months before it had actually opened, stated the judgment.

 

"The defendant obviously failed to fulfill its obligations of supervision. The store provided convenience to traders in pirated goods,” said the ruling.

 

But the court reduced the financial award in line with the plaintiff's losses and the defendant's errors, court sources said.

 

Vuitton won a case against the Silk Street Market last year for trademark infringement. Last December, the same intermediate court ordered the market which rents stalls, to pay 100,000 yuan (US$12,500) to Vuitton and four other international designers.

 

The Silk Street Market appealed to the Beijing High People's Court. A final judgment is expected today.

 

(China Daily April 18, 2006)