Shanghai Lianjia Supermarket Co Ltd was ordered to pay 300,000 yuan (US$37,037) to Louis Vuitton Malletier yesterday in compensation for selling fake LV handbags at a low price.

The Shanghai No. 2 Intermediate People's Court said that Lianjia, a joint-venture that operates the city's Carrefour hypermarkets, violated the trademarks owned by Louis Vuitton Malletier. The case was heard on Tuesday.

The plaintiff said the Wuning Carrefour sold fake LV handbags late last year and its employees bought three LV knockoffs carrying the Louis Vuitton trademark or similar patterns. Each was sold for 49.9 yuan.

The plaintiff then reported the discovery to the Putuo District Industrial and Commercial Administrative Bureau. The bureau confiscated 37 knockoffs in the supermarket.

Louis Vuitton Malletier sued for 500,000 yuan.

The defendant argued that the handbags were provided by Shenzhen Runquan Trade Co Ltd, whose employees, allegedly knowing nothing about the LV trademarks, bought the bags from a roadside vendor. Because the retailer didn't know the handbags were fake, it shouldn't be forced to pay compensation, the retailer said.

(Shanghai Daily April 21, 2006)