LV sues China firm for selling fakes

A Chinese court Thursday opened the trial of a Shanghai company which French luxury firm Louis Vuitton Malletier (LV) claims had been selling fakes of its products.

The three defendants are Wu Beiwen, shareholder of the Shanghai Zhongwen Trade Co.,Ltd, and her father and husband, who participated in the business.

The court said LV claimed the defendants violated the company's trademark rights by selling fake LV products. LV wants the court to stop the defendants selling products under its registered trademark and claims financial compensation of one million yuan ($146,200).

The court said on August 2, 2008, police found more than 230 leather products, watches and clothes under the international luxury brands such as Louis Vuitton, Gucci and Chanel among others at a store here owned by Zhongwen. The products were estimated to be worth some 1.63 million yuan.

The court heard that Wu Beiwen and her business partners started selling counterfeit international brand products in 2001 and they set up the Shanghai Zhongwen company to facilitate their illegal deeds. From September, 2002 to April, 2004, Wu and the company were punished by the police and the business administration department. However, they continued the wrong-doing for large profits, the court heard.

Earlier reports said the French luxury producer won a lawsuit last March against a hotel that leased space to a seller of knock-off LV products in southern Guangdong Province. The unnamed hotel was ordered to pay 100,000 yuan to the French firm and destroy any remaining counterfeit items.