US. LVMH-owned Louis Vuitton Malletier has won a court injunction against a number of landlords whose tenants have sold counterfeit leathergoods in New York City’s Canal Street.
Under the court order, which applies the vicarious liability principle, the property owners agree to take action to prevent the illegal sale of counterfeit Louis Vuitton goods by their tenants.
The owners of seven properties along the Canal Street Corridor – a haven for counterfeiters – have agreed to: post signs in and outside of all seven properties, stating that the retailer is not authorised to sell Louis Vuitton merchandise; provide full access to, and pay for, a court-appointed monitor to conduct frequent searches of the buildings to prevent the sale of any counterfeit Louis Vuitton goods; add a provision to lease contracts banning the sale of counterfeit goods on the premises; and move to evict any tenant found to be in possession of fake Louis Vuitton products.
Last year, Louis Vuitton entered into similar agreements with two landlords, and there are now 18 buildings along the Canal Street Corridor covered by the injunctions, which include frequent monitoring to prevent the possession and distribution of goods infringing on the brand’s intellectual property rights.
“The momentum we are gaining in our relentless fight against counterfeiting is tremendous, not only in the US but also in other marketplaces worldwide,” said Nathalie Moulle Berteaux, Director of the Intellectual Property Department for the Fashion & Leather Goods division of LVMH. “By working closely with law enforcement authorities and other trademark holders and compelling those aiding and abetting counterfeiters to accept responsibility for the counterfeiters’ criminal actions, we are putting a stranglehold on the distribution of fake goods.”
Berteaux said that the landlord scheme would be expanded internationally. “We’re expanding this programme globally and recently won a significant legal victory against the owner and operator of Beijing’s Silk Street shopping mall,” she said, adding: “Louis Vuitton is currently in discussions with the landlords in numerous other markets to prevent them from benefiting from the illegal activities of their tenants.”
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