Coach awarded $257 million in counterfeiting case

02/11/2012
Leathergoods company Coach has won $257 million in a lawsuit filed against counterfeiters, and been awarded the ownership of 573 internet domain names used to sell fake Coach goods.

It is one of the largest sums awarded to a retailer in a counterfeit case, however it is unlikely to be able to extract the money from businesses and individuals as their locations would be difficult to track down.

"The magnitude of this judgment underscores the severity and illegality of counterfeiting, and sends a clear message that our courts will enforce the law. This judgment should serve as a warning to everyone involved in any aspect of trafficking in counterfeit goods that Coach will find you and will seek to impose the harshest penalties available against you," said Todd Kahn, executive vice-president and general counsel of Coach.

The US company launched its campaign against counterfeiters in 2009 and has since filed lawsuits and obtained monetary awards against manufacturers, wholesalers, retail operators and those operating websites, as well as flea market operators and landlords who provide a location to sell counterfeit merchandise.

Nancy Axilrod, vice-president and deputy general counsel of Coach, added: "In addition to the award, obtaining the domain names used by defendants in this case is a tremendous achievement. All the illegal websites operated by defendants include the word Coach in the domain name, which potentially confuses consumers into believing that they are purchasing genuine Coach merchandise."