BigShinyThing

Clearly imitation is no longer the sincerest form of flattery for luxury brands. The International Herald Tribune reports that both the landlord and vendors at the Beijing Xiushui Haosen Clothing Market have been ordered to pay $13,000 in compensation to six luxury goods companies after being found guilty of selling pirated goods, or preventing the sale of them.

According to the US Commerce Department, international companies lose more than $60 billion a year because of piracy in China. The case is believed to be China’s first copyright verdict successfully upheld against a shopping mall landlord and is only part of a huge crackdown into counterfeiting that began last July. China prosecuted 158 people for counterfeiting and imposed 376 million yuan in fines in the 15 months sending September 30th, 2005, according to the State Adminstration for Industry and Commerce. The agency has also investigated 6.77 million business entities and 283,000 markets nationwide resulting in the closure of 6,273 places that made and sold fake goods.

Bizarrely, Vogue is now reporting that Chanel is being sued by one of its own suppliers for counterfeiting. The fashion house faces charges of counterfeiting and “abusive termination of [ongoing] contractual relations” by World Tricot, which is seeking £1.3 million for breach of contract and £2.3 million for counterfeiting. Chanel is, of course, countersuing, claiming that the action is a publicity-seeking stunt. Vogue reports on the vagaries of proving style theft:

After nearly four hours of testimony during which the commercial court’s presiding judge, Jean-Pierre Lucquin, struggled to compare unusual evidence comprising a sample of white crochet and a crochet Chanel vest, he proposed that the complex case be tried in front of a mediator. Both companies must now agree to the mediation before January 20 or the case will have to be tried again.

See previous post, ‘The end of the line for cheap chic?’