Three companies have been ordered to pay a combined amount of $2.5 million to luxury retailers Louis Vuitton and Burberry for selling knock-offs of their high-end purses, in what's being hailed as the largest counterfeiting judgment in Canadian history.
Vancouver-based companies Singga Enterprises Inc. and Carnation Fashion Company, along with Altec Productions of Toronto, were accused of manufacturing and selling handbags featuring the company's trademarked logos, including the Louis Vuitton ‘LV' fleur monogram print, and Burberry signature brown and red check.
Federal Court Judge James Russell concluded that all of the defendants knowingly stole the signatures of the brands, importing mass quantities of the accessories from China and selling them over a span of several years.
In his decision, Russell described Singga and Altec as "sophisticated operators" that were working together, and pointed out that representatives for both failed to show up for court proceedings. He said Altec continued to sell the fake goods even after litigation against the company had begun.
Singga has been ordered to pay $480,000 to the two luxury companies, while Altec must pay $1.2 million.
Russell said Carnation owner Jessie Guo learned her lesson from participating in the hearings. She must pay $390,000 in damages.
During court proceedings Guo admitted selling the bags but claimed she wasn't aware of Canadian trademark and copyright laws.
Guo said she saw similar products for sale at the Richmond Night Market and sold hers for $20 to $30 in a back room of her store.
The case against the companies began in 2008, when Louis Vuitton hired private investigators to find out who was distributing fake products bearing its trademarks.
The probe led them to the Singga warehouse in Vancouver, where owner Kenny Ko said he could provide bulk purchases and discounts for orders of 200 or more items.
Singga staff provided the investigators with samples of the counterfeit bags, and even admitted that the designer handbags in their catalogues "were not real."
When asked specifically about "Louis Vuitton lookalikes," Ko showed the investigator an alleged "real one," which was a high quality counterfeit handbag bearing one or more of the Louis Vuitton trademarks.
"Ko warned the investigator that such a bag could not be displayed for selling, but sold only to people the investigator knew," Russell wrote.
Louis Vuitton's adoption of a "zero-tolerance" policy in 2004 against fakers has led to over 13,000 legal actions, 6,000 raids and approximately 950 arrests, according to the company's website.
A crackdown against stores in Vancouver-area shopping malls led to a successful 2008 lawsuit in which Louis Vuitton claimed $980,000 in damages and about $50,000 for court costs.
With files from The Canadian Press
