Alibaba is back in the headlines this week as luxury brands Gucci, Yves
Saint Laurent and others from ther Kering group are suing Alibaba Group
Holding Ltd for promoting the sale of fake luxury goods. The Kering Group
brands are backing down from a threat to withdraw from the process after
Alibaba founder Jack Ma said that he would rather lose the case than
settle, stated WGSN.
The Kering-owned brands, which include Balenciaga and Bottega Veneta, have
accepted US District Judge Kevin Castel’s request to resolve their
differences through a mediator, their lawyer Robert Weigel said on
Wednesday.
Alibaba, the world’s largest online retailer, had been accused of trademark
infringement for letting 31 companies sell counterfeit goods, thereby
damaging the reputation of the luxury brands in question and affecting
their sales.
The lawsuit sought a put a halt to selling knockoff goods such as a tote
bag offered for 2-5 dollars that resembled a real Gucci bag costing 795
dollars.
Alibaba boss Ma was quoted by Forbes as saying: “I would (rather) lose the
case, lose the money, than settle. But we would gain our dignity and
respect.”
On learning of this, the Kering brands then asked the judge to relieve them
from being obliged to negotiate with Alibaba, saying Ma’s remark made it a
“futile exercise”.
However on Monday, the judge urged both sides to reconsider. Kering lawyer
Weigel then said that the brands “will proceed in good faith” to mediation,
while Alibaba spokesman Bob Christie said the company welcomed the decision
to “pursue good faith mediation as a constructive means of exploring a path
of cooperation – rather than litigation – in the fight against
counterfeiting”.