Market pays penalty for selling fake brand labels

The North Face, a US-based outdoor apparel maker, has won a trademark infringement lawsuit against the owner of Beijing's Silk Market Plaza, a popular tourist market.

The Beijing Xiushui Clothing Company was ordered "to stop infringement practices, post a statement in the market to mitigate influences, and pay 40,000 yuan (US$5,300) in damages and lawsuit fees to the North Face," according to a ruling from the Beijing No.2 Intermediate People's Court.

The North Face claimed its representatives found a large quantity of goods with fake "The North Face" trademarks being sold by tenants of the market in November last year.

It later took the market owner to court, and demanded a hefty compensation of 500,000 yuan.

The market-owner, however, argued that most of the fake brand clothing was specifically ordered by individual customers, and not for general sale. It said the "fakes-on-order" practice was very difficult to detect. The company claimed it had fulfilled its duty as a market supervisor.

The court ruling said evidence showed that some "The North Face" counterfeits were indeed publicly presented and sold to all buyers, and the Xiushui company failed to check the source of the goods or whether the tenants were authorized.

The Silk Street market, or Xiushui market in Chaoyang District, has been popular with overseas tourists and expatriates who have flocked there for copies since 1985.

Last September, five global name brands - Burberry, Chanel, Gucci, Louis Vuitton and Prada - won 100,000 yuan in compensation from a joint lawsuit against the Xiushui company and five tenants.