Louis Vuitton Fake Bag

Fake purses, real money: Louis Vuitton's massive Canadian counterfeiting award

It has the makings of a prime-time TV drama, almost: A pair of undercover investigators approach the back alley entrance to a Vancouver-area warehouse. Once inside, they aren’t searching for drugs, terrorists, or illegal weaponry. They are looking for fake designer purses.

In 2009, private investigators working for Paris-based Louis Vuitton Malletier SA – a subsidiary of LVMH Moët Hennessy Louis Vuitton SA – entered the warehouse of Singga Enterprises (Canada) Inc., where they believed the importers and sellers of an array of counterfeit handbags were operating, according to court documents.

The investigators posed as potential customers and were greeted by a woman who showed them merchandise and handed them a catalogue listing handbags and other copied items bearing the trademarks of a laundry list of the world’s top luxury brands.

Two years later, the evidence the investigators found resulted in the largest anti-counterfeiting award ever imposed in Canada, as a Federal Court judge ruled last week that Singga and two other companies involved in the case must pay Louis Vuitton and its co-plaintiff Burberry Ltd. $2.48-million.

The summary judgment, issued without a full trial, is the latest victory in a global assault on counterfeit goods launched by Louis Vuitton – which has an entire department devoted to the cause and regularly employs private investigators and lawyers in its fight. In recent years, Louis Vuitton and other companies like it have taken it upon themselves to stem the flow of fakes, which experts say come mostly from China, to protect their recognizable brands.

They warn that the counterfeit business hurts more than just their bottom lines. Cheaper counterfeit goods are often made in sweatshops, they say. And the much-cheaper goods are often sold on the black market, costing Canadian and other governments tax revenue.

Louis Vuitton hailed the Federal Court judgment as a landmark, saying it showed Canada’s courts are increasingly taking counterfeit goods seriously. But Valerie Sonnier, the company’s global intellectual property director, said Canada needs to do more, including giving customs agents wider powers to seize suspected counterfeit goods at the border.

“We hope this decision will send a message to counterfeiters the world over that Louis Vuitton will aggressively implement its zero-tolerance policy against counterfeiting,” Ms. Sonnier said in a press release.

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