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 it 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 strengthened management, and
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 company failed to take its responsibilities as a market
manager, and facilitated the tenants' infringement practices," it
said.
The Silk Street market, or Xiushui market in Chaoyang District,
has been popular with overseas tourists and expatriates who have
flocked there for knock-offs since 1985. In March 2005, the outdoor
market moved to a multi-storey building next to the Xiushui
Street.
The controversial market is bogged down in another lawsuit filed
in July by French brand Lacoste. A final verdict has not been
issued.
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.
It was the first case in China where a market manager was found
culpable. It has encouraged more foreign firms to resort to Chinese
courts to seek compensation from local retail market owners for
allowing the sale of fake brand goods on their premises.
The North Face, a subsidiary of VE Corp., is based in San
Leandro California.
(Xinhua News Agency October 30, 2007)
