Luxury brand awarded millions in compensation
In a significant case before the US District Court for the Northern District of Georgia, French luxury goods company Louis Vuitton has obtained a default judgment against the operator of an indoor flea market, Westgate Discount Mall Inc. of Atlanta, at the end of September. According to a report by industry news outlet The Fashion Law, the luxury brand, which is part of the LVMH group, was awarded around 584 million US dollars (slightly over 504 million euros). The court also issued an injunction prohibiting Westgate and its executives from selling counterfeit goods on the premises.
The court largely followed Louis Vuitton's arguments that the operator of the indoor flea market would profit from the rental and visitor structure created by stalls selling counterfeit goods. Louis Vuitton also explained that it had already sent numerous notices to Westgate about counterfeiting activities.
According to the report, the indoor flea market had also been found to sell counterfeit goods in the past – for example including a single raid in 2021, during which 18 tractor trailer loads of goods were seized. Of the more than 250,000 counterfeit products confiscated at that time, around 72,000 bore Louis Vuitton trademarks.
The ruling could send a strong message, and the damage award is one of the highest ever awarded in favor of a luxury brand in a US counterfeiting case, according to The Fashion Law. The case also highlighted the willingness of courts to impose penalties on marketplaces that enable such infringements. However, the report also points out that it seems rather unlikely that Louis Vuitton will actually receive a meaningful portion of the $584 million in the end.
Sources:
The Fashion Law | Article in co-operation with Anti-Piracy Analyst
