Coach Inc. Sues Counterfeit Production and Retail Businesses

Luxury accessory and handbag giant Coach Inc. is suing local businesses in Cumberland and Robeson counties in North Carolina for selling counterfeit products.
Coach Inc. Sues Counterfeit Production and Retail Businesses
Coach handbags in a shopping mall in Pasadena, California. Luxury accessory and handbag giant Coach Inc. is suing local businesses in Cumberland and Robeson counties in North Carolina for selling counterfeit products. (David McNew/Getty Images)
3/27/2011
Updated:
10/1/2015
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Coach handbags in a shopping mall in Pasadena, California. Luxury accessory and handbag giant Coach Inc. is suing local businesses in Cumberland and Robeson counties in North Carolina for selling counterfeit products.  (David McNew/Getty Images)
Luxury accessory and handbag giant Coach Inc. is suing local businesses in Cumberland and Robeson counties in North Carolina for selling counterfeit products.

The U.S.-based luxury goods company filed a lawsuit last Friday in U.S. District Court.

There is one lawsuit between Coach Inc. and Coach Services against The Hair Villa Salon located at 4808 Ramsey St., Fayetteville, N.C., run by Jamie Taylor of Linden. Another case is against Clothing and Such Warehouse, which has three stores in Fairmont and Lumberton, N.C., and is operated by Ray and Edna Seals of Fairmont, N.C.

Court filings revealed that an undercover agent responded to a complaint whereby the Fairmount store referred to Clothing and Such Warehouses alternative locations based on instructions by its stores staff. Also the complaint claims that Hair Villa Salon had promoted the availability of the counterfeit products and received regular shipments.

New York-based Coach is seeking statutory damages of up to $2 million for every breach to its trademark. The court case is requesting a federal judge to ban the businesses from selling the products and compensate Coach for lost revenues.

Also, recent reports indicate that targeting dealers in Canada may be having some success in the crackdown on counterfeit products, such as Louis Vuitton handbags. Vuitton has been one of the most aggressive in the industry in suing distributors of fake handbags and other accessories.

According to a legal representative from Louis Vuitton and Burberry, the companies are suing Markham, Ontario-based Altec Productions and Vancouver-based Singga Enterprises Inc. and Carnation Fashion Company. The lawsuits allege that the three companies have apparently violated Vuitton’s renowned logo and Burberry’s notable tartan designs.

The luxury brand makers are seeking up to $3 million in damages for breach of their trademarks and copyright, and this could mark the “largest anti-counterfeiting judgment in Canadian history,” lawyer Michael Manson told Canadian courts in early March.

The origins of counterfeit products are in China, and Singga and Altec are implicated in a long-term and vast counterfeit chain, which disseminates fake goods around Canada, at trade shows as well as on the Internet, according to the plantiff’s lawyer. A ruling of this case is due soon and yet to be announced at this stage.

The “zero tolerance” principle of Paris-based Vuitton for fake products since 2004 has resulted in 13,000 cases of litigation, 6,000 raids, and around 950 arrests globally, according to the company’s website.