Luxury Brands Take On Landlords

January 2006
Financial Times
John C. Leary, Patrick W. Ma

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A group of luxury brand owners recently secured a court ruling in Beijing that may open up a new strategy for foreign companies to combat counterfeiters.

Burberry, Chanel, Gucci, Louis Vuitton and Prada joined forces to bring a lawsuit against the landlord of Xiushui Building, home to vendors who previously hawked their wares at Beijing's Silk Market, an open-air bazaar notorious for the sale of counterfeit goods. The suit also named five of the stall operators in the building as defendants.

In a landmark decision, the number two intermediate people's court on December 20 ruled in favour of the lawsuit against the landlord, Beijing Xiushui Haosen Clothing Market Co.