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Sunday, May 5, 2024

Chanel sues counterfeit sellers for intellectual property rights violations

Federal Court
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Markus Winkler/Unsplash

FT. LAUDERDALE — Chanel is suing more than a dozen counterfeit product sellers, claiming they are using Chanel's intellectual property.

Chanel claims that the defendants, which all sell counterfeit or "confusingly similar" items, are fully aware of Chanel's ownership of intellectual property, including the exclusive right to use and license the Chanel Marks, according to a complaint filed Oct. 26 in U.S. District Court for the Southern District of Florida.

The defendants are accused of promoting, advertising, distributing and selling counterfeit goods through various online platforms using domain names associated with Chanel. 

These counterfeit goods allegedly bear confusingly similar imitations of Chanel Marks, attracting online consumers to the defendants' e-commerce websites, according to the suit.

Chanel claims that the quality of the defendants' counterfeit goods is substantially different from genuine Chanel products, and the defendants are intentionally causing consumer confusion. The defendants allegedly employ similar advertising strategies, using counterfeits to enhance the visibility of their websites in online searches for both Chanel and non-Chanel goods.

Chanel claims the defendants' actions contributed to the creation of an unlawful marketplace parallel to Chanel's legitimate one.

Chanel claims harm to its reputation, increased marketing costs, and a degradation of the goodwill associated with the Chanel Marks. 

The defendants are accused of knowingly and intentionally infringing on Chanel's rights, using the Chanel Marks without consent, and engaging in cybersquatting activities, according to the suit.

Chanel is seeking a preliminary and permanent injunction to stop the defendants' counterfeiting and infringing activities, asserting irreparable injury and ongoing harm to both Chanel and the consuming public. Chanel is represented by Stephen M. Gaffigan, Virgilio Giganti, T. Raquel Wiborg-Rodriguez and Christine Ann Daley.

U.S. District Court for the Southern District of Florida case number: 0:23-cv-62047

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