Monday 18 May 2015

Alibaba sued again by Kering SA



The Chinese e-commerce giant Alibaba  (NYSE: BABA) is facing serious problems because of a possible trade in counterfeits. The Paris-based holding company Kering SA, which owns the world famous brands like Gucci, Balenciaga and Yves Saint Laurent, has filed a lawsuit in a court in Manhattan against the Chinese corporation. The prosecution – the Internet company facilitates the business with illegal goods of numerous counterfeiters with its online shopping sites, marketing and payments.
Alibaba rejects the accusations as groundless. According to the company over the years, it has assisted various international brands in combating counterfeiting.
This is the second time that Kering brands sued Alibaba. In July last year there was a similar situation ,but a little bit later the suitcase was withdrawn. Then Kering and Alibaba announced that they intend to work together in the fight against counterfeits. But according Kering since then the things are in a deadlock.
Similar lawsuits emphasize financial risk for Alibaba. In September, the company raised 25 billion dollars from investors in record high IPO.The Internet company for a long time has to deal with allegations of distribution of a large number of counterfeit products on its shopping platform Taobao. The greatest danger for the Chinese is the possibility of damage to the reputation and image among investors and brand manufacturers.

Last year some manufacturers of luxury goods such as Burberry, which is now officially selling their products on the sites of Alibaba, received assurances that the Chinese will take serious measures to fight the illegal trade. However, Alibaba has not concluded such agreements with all affected manufacturers of luxury branded goods.

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