Merged 65910 - 1-1408576976

Robert L.
Weigel
Howard S. Hogan
Alison L. Wollin
Anne M. Coyle
GIBSON, DUNN & CRUTCHER, LLP
200 Park Avenue
New York, New York 10166
(212) 351-4000
Attorneys,f or Plaintif f s Gucci Af ~ ier-ica, Inc.,
Balenciaga S.A., Balencic~ ga America, Inc.,
Bottega Veneta S.A., Bottega Veneta liic.,
Yves Saint La~ ~ rentAine~ ica, liic.,
Lux ~ ~ ry Goods Interliati.onal (L.G.I.) S.A.,
and Keying S.A.
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
GUCCI AMERICA, INC.; BALENCIAGA S.A.;
BALENCIAGA AMERICA, INC.; BOTTEGA
VENETA S.A.; BOTTEGA VENETA INC.; YVES
SAINT LAURENT AMERICA, INC.; LUXURY
GOODS INTERNATIONAL (L.G.I.) S.A.; and
KERING S.A.,
Plaintif f s,
-against-
ALIBABA GROUP HOLDING LTD.; .
ALIBABA.COM HONG KONG LTD.; .
ALIBABA.COM LTD.; ALIBABA.COM .
INVESTMENT HOLDING LTD.; ALIBABA.COM .
INVESTMENT LTD.; ALIBABA (CHINA)
TECHNOLOGY CO., LTD.; ALIBABA.COM, Ilr1C.; .
TAOBAO HOLDING LTD.; TAOBAO CHINA
HOLDING LTD.; TAOBAO (CHINA) SOFTWARE
CO., LTD.; ALIPAY.COM CO., LTD.;
HANGZHOU YANBEI TRADING CO., LTD.;
YIWU BOTHWINER FASHION ACCESSORY
CO., LTD.; GUANGZHOU YONGXING LEATHER:
GOODS MFG.; DONGGUAN HUAWANG
LEATHER CO., LTD.; SHEN ZHEN AIERS
WATCH CO., LTD.; SHENZHEN MEIGEER .
WATCH CO., LTD.; SHENZHEN BABYLON
T ~ ~ ,
~ - ' `
~
~ ` a~ t' I
a~ c~ t~
~ ' ~ ~ P
~ ~ ~ ,
~ R~
~ ,
2014 Civ.
COMPLAINT
Case 1:14-cv-05119-PKC Document 9 Filed 07/24/14 Page 1 of 75
WATCH CO., LTD.; VANCS WHERE BOUTIQUE;
SPRING RAIN LEATHER GOODS; CELEBRITY
SHOE; JINLONG LUXURY CITY; GUCCI
FASHION SHOP; LADYLIDY SHOP; COCO
FASHION STYLE; HUIMING LEATHER MALL;
HONG KONG LONGITUDE AND LATITUDE
INTERNATIONAL TRADING; FASHION ZONE
LTD.; STAR FACTORY; XIAOHUI JIN'S STORE;
and JOHN DOES,
Defendants.
----------------------------------------------------------- ------ X
TABLE OF CONTENTS
Page
NATUREOF THE ACTION
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
PARTIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
JURISDICTIONAND VENUE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5
FACTUALBACKGROUND
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
I. Pl ai n t i f f s ' Bus i n es s an d Marks
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
II. Co un t erf ei t i n g an d t h e In t ern et
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
III. Def en dan t s ' Bus i n es s
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
IV. Th e Sal e o f Co un t erf ei t Pro duct s Th ro ugh t h e Al i baba Market pl aces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
A. Al i baba. co m
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
B. Tao bao . co m
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
C. Al i Expres s . co m
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
V. Th e Al i baba Def en dan t s ' Un aut h o ri zed Sal e o f Pl ai n t i f f s ' Marks as Keywo rds . . . . . . . . . . . . . 81
VI. Al i pay' s Pro ces s i n g o f Co un t erf ei t Sal es Th ro ugh t h e Al i baba Market pl aces . . . . . . . . . . . . . . . . . 84
VII. Th e Al i baba Def en dan t s Are an In di s pen s abl e Part o f t h e En t erpri s e t o Sel l t h e
Co un t erf ei t Pro duct s , Res ul t i n g i n Co n s umer Co n f us i o n an d Harm t o Pl ai n t i f f s . . . . . . . . . . . . 88
VIII. Th e Al i baba Def en dan t s ' Un wi l l i n gn es s t o Ref rai n f ro m Trademark In f ri n gemen t . . . . . . . . 93
IX. Co n s umer Co n f us i o n an d Harm t o Pl ai n t i f f s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 00
A. Pl ai n t i f f s ' Marks As Keywo rds
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 00
B. Sal es o f Pro duct s Beari n g Pl ai n t i f f s ' Marks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 02
FIRST CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 04
SECOND CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 06
THIRD CAUSE OF ACTION AGAINST THE ALIBABA DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . 1 07
FOURTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1
FIFTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2
SIXTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 4
SEVENTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 33
EIGHTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 35
NINTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 36
TENTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 36
ELEVENTH CAUSE OF ACTION AGAINST ALL DEFENDANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 36
i
P l a i n t i f f s Gucci Ameri ca , I n c. ("Gucci") , Ba l en ci a ga , S. A. a n d Ba l en ci a ga Ameri ca , I n c.
("Ba l en ci a ga") , Bot t ega Ven et a I n t ern a t i on a l S. A. a n d Bot t ega Ven et a I n c. ("Bot t ega Ven et a") ,
Yves Sa i n t La uren t Ameri ca , I n c. a n d Luxury Goods I n t ern a t i on a l (L. G. I . ) S. A. ("YSL") , a n d
Keri n g S. A. ("Keri n g") (col l ect i vel y, "P l a i n t i f f s") , by t h ei r a t t orn eys , Gi bs on , Dun n & C rut ch er,
LLP ("Gi bs on Dun n") , f or t h ei r compl a i n t a ga i n s t Def en da n t s Al i ba ba Group Hol di n g Lt d.
("Al i ba ba Group") , Al i ba ba . com Hon g Kon g Lt d. ("Al i ba ba . com Hon g Kon g") , Al i ba ba . com
Lt d. ("Al i ba ba Lt d.") , Al i ba ba . com I n ves t men t Hol di n g Lt d. ("Al i ba ba I n ves t men t Hol di n g") ,
Al i ba ba . com I n ves t men t Lt d. ("Al i ba ba I n ves t men t") , Al i ba ba (C h i n a ) Tech n ol ogy C o. , Lt d.
("Al i ba ba Tech n ol ogy") , Al i ba ba . com, I n c. , Ta oba o Hol di n g Lt d. ("Ta oba o Hol di n g") , Ta oba o
C h i n a Hol di n g Lt d. ("Ta oba o C h i n a Hol di n g") , Ta oba o (C h i n a ) Sof t wa re C o. , Lt d. ("Ta oba o
Sof t wa re") , a n d Al i pa y. com C o. , Lt d. ("Al i pa y") (col l ect i vel y, "Al i ba ba Def en da n t s") ,
Ha n gzh ou Ya n bei Tra di n g C o. , Lt d. , Yi wu Bot h wi n er Fa s h i on Acces s ory C o. , Lt d. , Gua n gzh ou
Yon gxi n g Lea t h er Goods Mf g. , Don ggua n Hua wa n g Lea t h er C o. , Lt d. , Sh en Zh en Ai ers Wa t ch
C o. , Lt d. , Sh en zh en Mei geer Wa t ch C o. , Lt d. , Sh en zh en Ba byl on Wa t ch C o. , Lt d. , VANC S
Wh ere Bout i que, Spri n g Ra i n Lea t h er Goods , C el ebri t y Sh oe, J i n l on g Luxury C i t y, Gucci
Fa s h i on Sh op, La dyl i dy Sh op, C oco Fa s h i on St yl e, Hui mi n g Lea t h er Ma l l , Hon g Kon g
Lon gi t ude a n d La t i t ude I n t ern a t i on a l Tra di n g, Fa s h i on Zon e Lt d. , St a r Fa ct ory, Xi a oh ui J i n ' s
St ore, a n d J oh n Does (col l ect i vel y, "Merch a n t Def en da n t s") , a l l ege a s f ol l ows :
NATURE OF THE AC TI ON
C on s umers i n s t a n t l y recogn i ze t h e va ri ous t ra dema rks us ed t o i den t i f y t h e i t ems
merch a n di s ed or ma n uf a ct ured by or un der l i cen s es f rom P l a i n t i f f s Gucci , Ba l en ci a ga , Bot t ega
Ven et a , a n d YSL (col l ect i vel y, t h e "P l a i n t i f f s ' Ma rks") . For deca des , t h es e f a mous , a rbi t ra ry,
a n d f a n ci f ul ma rks h a ve recei ved en ormous expos ure i n t h e ma rket pl a ce. Over t h e yea rs ,
mi l l i on s of con s umers h a ve been expos ed t o t h e P l a i n t i f f s ' Ma rks t h rough ext en s i ve a dvert i s i n g
campaigns, in f ash io n magazines and o t h er per io dical s, as depict ed o n t el ev isio n and in mo t io n
pict u r es, and in o t h er f o r ms o f u nso l icit ed media co v er age. As a r esu l t , t h e P l aint if f s' Mar ks ar e
amo ng t h e mo st w idel y -r eco gnized t r ademar ks in t h e Unit ed S t at es, as w el l as amo ng t h e mo st
po pu l ar w it h co nsu mer s, w h ich adds eno r mo u s v al u e t o t h e au t h ent ic pr o du ct s t h at b ear t h e
P l aint if f s' Mar ks (" P l aint if f s' P r o du ct s" )
2 . Th e I nt er net h as o pened t h e do o r f o r u nau t h o r ized mer ch ant s t o r each a w ide
r ange o f co nsu mer s in t h eir ef f o r t s t o sel l co u nt er f eit v er sio ns o f t h e P l aint if f s' P r o du ct s, w h ich
b ear t h e P l aint if f s' Mar ks ev en t h o u gh t h ey ar e no t manu f act u r ed, l icensed, o r appr o v ed b y
P l aint if f s (" C o u nt er f eit P r o du ct s" ). To ensu r e t h at co nsu mer s make t h e asso ciat io n b et w een t h e
C o u nt er f eit P r o du ct s and t h e P l aint if f s' P r o du ct s f r o m w h ich t h ey w er e co pied, t h e sel l er s o f
su ch pr o du ct s no t o nl y co py t h e designs, pat t er ns, and co l o r sch emes asso ciat ed w it h P l aint if f s'
P r o du ct s, b u t al so ex pr essl y u se P l aint if f s' Mar ks in t h eir adv er t ising and mar ket ing and o n t h e
C o u nt er f eit P r o du ct s t h emsel v es.
Th e Mer ch ant Def endant s, w it h o u t au t h o r izat io n o r l icense f r o m P l aint if f s, h av e
w il l f u l l y and int ent io nal l y u sed, r epr o du ced, and/ ar co pied P l aint if f s' Mar ks in co nnect io n w it h
t h eir manu f act u r ing, dist r ib u t ing, ex po r t ing, impo r t ing, adv er t ising, mar ket ing, sel l ing, and/ o r
o f f er ing t o sel l t h eir C o u nt er f eit P r o du ct s. Th e Mer ch ant Def endant s h av e sh ipped cer t ain
C o u nt er f eit P r o du ct s t o New Yo r k.
4. Th e Al ib ab a Def endant s h av e cr eat ed an o nl ine gl o b al mar ket pl ace o n t h eir
w eb sit es Al ib ab a.co m, Al iEx pr ess.co m and Tao b ao .co m (co l l ect iv el y , t h e " Al ib ab a
Mar ket pl aces" ) f o r t h e sal e o f w h o l esal e and r et ail pr o du ct s o r iginat ing f r o m C h ina. Th e
Al ib ab a Def endant s, f acil it at e and enco u r age t h e sal e o f an eno r mo u s nu mb er o f C o u nt er f eit
P r o du ct s t h r o u gh t h eir sel f -descr ib ed " eco sy st em," w h ich pr o v ides manu f act u r er s, sel l er s, and
2
buyers of c oun t erfei t goods w i t h a market plac e for suc h goods, an d prov i des on li n e market i n g,
c redi t c ard proc essi n g, fi n an c i n g, an d sh i ppi n g serv i c es t h at effec t uat e t h e sale of t h e C oun t erfei t
P roduc t s.
5. Th e Ali baba Defen dan t s, a si n gle busi n ess un i t c ompri si n g t h e subsi di ari es an d
relat ed c ompan i es operat i n g sev eral w h olesale an d ret ai l global on li n e market plac es an d v ari ous
an c i llary serv i c es, kn ow i n gly make i t possi ble for an army of c oun t erfei t ers t o sell t h ei r i llegal
w ares t h rough out t h e w orld, i n c ludi n g t h e Un i t ed S t at es, an d are c ompen sat ed by t h e
c oun t erfei t ers for en abli n g t h e i llegal sale of C oun t erfei t P roduc t s.
6. As set fort h more fully i n t h e body of t h e C omplai n t , t h e Ali baba Defen dan t s
kn ow i n gly en c ourage, assi st , an d profi t from t h e sale of c oun t erfei t s on t h ei r on li n e plat forms.
For example, t h e Han gzh ou Yan bei Tradi n g C ompan y i s a "Gold S uppli er" an d "Assessed
S uppli er"a st at us Han gzh ou Yan bei Tradi n g C ompan y pai d t h e Ali baba Defen dan t s t o at t ai n
an d a desi gn at i on t h at req ui res t h e merc h an t 's fac t ory t o be i n spec t ed by t h e Ali baba Defen dan t s
or t h ei r agen t s. Despi t e i t s "Gold S uppli er" an d "Assessed S uppli er" st at us, t h e merc h an t open ly
sells w h olesale q uan t i t i es of obv i ously fake Guc c i produc t s. S et fort h below i s an i mage of a
c oun t erfei t "Guc c i " bag offered for sale by Han gzh ou Yan bei Tradi n g C ompan y on t h e Ali baba
Defen dan t s' plat form:
~ ; h v ~
c h ya
3
7 . The a u t hen t i c Gu c c i ba g r et a i l s f o r $7 95. Ha n gzho u Ya n bei Tr a di n g Co mpa n y i s
o f f er i n g i t s c o u n t er f ei t ba g w i t h Gu c c i 's t r a dema r ks c l ea r l y v i s i bl e f o r $2$5 per u n i t . Thi s
s el l er r eq u i r es a mi n i mu m pu r c ha s e o f 2,000 u n i t s per o r der a n d c a n s u ppl y u p t o 50,000 u n i t s
per mo n t h.
8 . When a c u s t o mer t ypes i n t he w o r d " r epl i c a " i n t he s ea r c h ba r o n t he Al i ba ba . c o m
w ebs i t e, t he Al i ba ba Def en da n t s ' a l go r i t hm a dds t he t er m " w r i s t w a t c hes " a n d di r ec t s t he
c u s t o mer t o , a mo n g n u mer o u s o t her mer c ha n t s s el l i n g c o u n t er f ei t s , t he Shen zhen Mei geer Wa t c h
Co . , L t d. , w hi c h i s a l s o a " Go l d Su ppl i er " a n d " As s es s ed Su ppl i er " a n d i s o pen l y s el l i n g r epl i c a
w r i s t w a t c hes w i t h Gu c c i 's r egi s t er ed t r a dema r ks , i n c l u di n g t he w a t c h s ho w n bel o w w i t h Gu c c i 's
r egi s t er ed t r a dema r k i n t er l o c ki n g n o n -f a c i n g " GG" des i gn a n d gr een -r ed- gr een s t r i pe.
ME61R
Shen zhen Mei geer Wa t c h Co . , L t d.
N o a ~ . r ~ o a ~ a c + u o o . . eo mo r r r r o ~ u a n r et i
w . > a o a a c . ~ . ~ :~ v mn w . d. . . . u u w . w . n . w h. . yr a . r + a c ,u . M. ~ u . . t r F
Al l a f el n l es a s t eel ba n gl e c ha i n edv er t i s i r
~ 4Mr a l ~ R`
UMl ~ o ~ y~ x~ c u ~ *AODb M1Fa . ~ IRes Sn a 'F
M t t t r
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P a i l Sl w Mmw Hw i p Ko n g
w ~ . ~ ,,. ~ a a . a ,~ ey xo r . ~ . s w . . .
N :~ ~ g~ " d ~ . ~ 41A1 9a GP N f i b. ]WOO~ P w N w t O~ r l bn M
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9. Shen zhen Mei geer Wa t c h Co . , L t d. s el l s i t s c o u n t er f ei t w a t c h f o r $10$8 0 per
pi ec e. Thi s s el l er r eq u i r es a mi n i mu m pu r c ha s e o f 300 pi ec es per o r der a n d c a n s u ppl y u p t o
200,000 pi ec es per mo n t h. The a u t hen t i c Gu c c i w a t c h r et a i l s f o r $960.
10. Thes e a r e j u s t t w o exa mpl es o f t he n u mer o u s s pec i f i c Mer c ha n t Def en da n t s
i den t i f i ed i n t he Co mpl a i n t . The Al i ba ba Def en da n t s pr o v i de t he ma r ket pl a c e, a dv er t i s i n g, a n d
o t her es s en t i a l s er v i c es n ec es s a r y f o r t he c o u n t er f ei t er s t o s el l t hei r Co u n t er f ei t P r o du c t s t o
c u s t o mer s i n t he Un i t ed St a t es .
11. The Alibaba Defendants permit and encourage numerous counterfeiters to
continue to operate on the Alibaba Defendants' various platfarmseven when the Alibaba
Defendants have been ex pressly and specifically informed that the merchants are selling
counterfeits, and even when the merchants themselves state openly that they are selling
counterfeits. The Complaint specifically identifies a small fraction of the counterfeiters openly
selling Counterfeit Products on the various marketplaces run by the Alibaba Defendants. The
Alibaba Defendants know that these specifically identifiable Counterfeit Products could not be
sold without their assistance, but instead of shutting down the counterfeiters, the Alibaba
Defendants seek to profit from the counterfeiters' blatant violations of the Lanham Act.
12. The Alibaba Defendants knowingly assist these counterfeiters in virtually all
aspects of their illegal operations. As the Alibaba Group states in its June 16, 2014 Amendment
No. 1 to Form F- 1 R egistration Statement ("Form F- 1"), "sellers not only build their storefronts
and product catalogues on our marketplaces; they also rely on our platform for a range of
essential support services to operate their businesses."' Among other essential support services,
the Alibaba Defendants provide "Web based and mobile interfaces to manage listings, orders and
customer relationship as well as cloud computing services for their enterprise resource planning .
..and client relationship management ...."
13. The Alibaba Defendants assist the counterfeiters' business operations by
providing marketing and logistical services for the counterfeiters' illegal enterprises. The
Alibaba Defendants cause the sales to take place by directing customers to the illegal counterfeits
through their "proprietary algorithms."' Alibaba Group states in its F- 1 that "[ o] ur data analy tic
~ F- 1 at 148.
~ F- 1 aC 182.
and management c ap ab i l i C i es al l ow us to anti c i p ate b uyer needs and tai l or p roduc t of f eri ng
di s p l ays matc hi ng b uyers wi th the mos t rel ev ant merc hants ."3 The Al i b ab a Def endants al l ow the
c ounterf ei ters to "extend thei r c ons umer reac h through [ the Al i b ab a Def endants '] ec os ys tem of
marketi ng af f i l i ates ."4 The Al i b ab a Def endants hel p the c ounterf ei ters attrac t c us tomers b y
mai ntai ni ng enormous datab as es c ontai ni ng "trans ac ti onal and us er b ehav i or data generated on
[ thei r] marketp l ac es " that enab l e the Al i b ab a Def endants "to c ons truc t a p owerf ul s earc h engi ne
that generates p ers onal i z ed res ul ts ."s The Al i b ab a Def endants us e thei r "onl i ne marketi ng
tec hnol ogy" to "c onti nuous l y i mp rov e the ef f ec ti v enes s of our onl i ne marketi ng s erv i c es f or
[ Al i b ab a Group s '] s el l ers through the us e of aggregated b ehav i oral targeti ng data and anal yti c s ."`
14. The Al i b ab a Def endants s el l keywords to c ounterf ei ters , i nc l udi ng P l ai nti f f s '
worl d f amous trademarks and words s uc h as "rep l i c a." The keywords enab l e the Merc hant
Def endants to attrac t c us tomers to b uy C ounterf ei t P roduc ts b eari ng P l ai nti f f s ' Marks . The
Al i b ab a Def endants al s o add p hras es s uc h as "s yntheti c l eather" to s earc h terms and s ugges t
terms s uc h as "c uc c i " and "guc hi " when "Guc c i " i s typ ed i nto the s earc h b ars on thei r v ari ous
p l atf orms to i ntenti onal l y dri v e c us tomers to merc hants of C ounterf ei t P roduc ts . The Al i b ab a
Def endants p rof i t f rom keyword s al es ev ery ti me a c us tomer c l i c ks on an adv erti s er's s tare.
5. The Al i b ab a Def endants us e "c l oud-b as ed deep l earni ng" to enab l e s el l ers of
c ounterf ei ts to know what keywords and other adv erti s ements to b uy i n order to attrac t
c us tomers . The Al i b ab a Def endants us e thei r ab i l i ty to anal yz e terab ytes of data to enab l e the
c ounterf ei ters to "i mp rov e c ons umer targeti ng ef f i c i enc y and enhanc e the return on i nv es tments
3 r-1 at 147.
a F-1 at 148.
5 F-1 at 182.
~ F-1 at 182.
6
f o r o n l i n e m a r k e t e r s ."' In s h o r t , t h e Al i ba ba De f e n da n t s p r o v i de t h e m a r k e t p l a c e , t h e s e a r c h
e n gi n e , a n d t h e a dv e r t i s i n g t h a t a l l o ws t h e c o u n t e r f e i t e r s t o s u c c e s s f u l l y s e l l C o u n t e r f e i t Pr o du c t s
be a r i n g Pl a i n t i f f s ' Ma r k s i n v i o l a t i o n o f t h e La n h a m Ac t .
1 6 . Th e Al i ba ba De f e n da n t s a l s o p r o c e s s p a y m e n t s f o r t h e s a l e o f t h e C o u n t e r f e i t
Pr o du c t s , i n c l u di n g a l l o f t h e C o u n t e r f e i t Pr o du c t s de s c r i be d i n t h i s C o m p l a i n t . Th e Al i ba ba
De f e n da n t s , s p e c i f i c a l l y Al i p a y , a c c e p t c u s t o m e r s ' c r e di t c a r ds a n d p r o c e s s t h e s a l e s t h r o u gh t h e
v a r i o u s c r e di t c a r d s y s t e m s . Pu r s u a n t t o t h e r u l e s o f Ma s t e r C a r d a n d V i s a , t h e Al i ba ba
De f e n da n t s a r e o bl i ge d t o k n o w t h e bu s i n e s s o f t h e m e r c h a n t s f o r wh i c h t h e y p r o c e s s c r e di t c a r d
s a l e s . Th e Al i ba ba De f e n da n t s a l s o p r o v i de l o gi s t i c s s e r v i c e s t o t h e c o u n t e r f e i t e r s t o e n a bl e
t h e m t o s h i p t h e i r p r o du c t s .
1 7. Fr o m t h e de s i gn o f t h e o n l i n e s t o r e f r o n t t h r o u gh t h e s e l e c t i o n a n d s a l e o f
k e y wo r ds a n d o t h e r m a r k e t i n g t o a t t r a c t c u s t o m e r s , t o p r o c e s s i n g t h e c r e di t c a r d p a y m e n t s t o
c o n du c t t h e s a l e , t h r o u gh t o t h e s h i p m e n t o f go o ds , t h e Al i ba ba De f e n da n t sc o l l e c t i v e l y a s e l f -
de s c r i be d "e c o s y s t e m"e n a bl e a n d e n c o u r a ge t h e c o u n t e r f e i t e r s t o s e l l t h e i r i l l e ga l p r o du c t s t o
c u s t o m e r s i n t h e Un i t e d S t a t e s i n v i o l a t i o n o f t h e La n h a m Ac t a n d t h e Ra c k e t e e r In f l u e n c e d a n d
C o r r u p t O r ga n i z a t i o n s Ac t .
1 8 . To ge t h e r , t h e Al i ba ba De f e n da n t s a n d t h e Me r c h a n t De f e n da n t s a r e a n e n t e r p r i s e
wh o s e i n t e n t i o n a l a n d r e p e a t e d s a l e s o f C o u n t e r f e i t Pr o du c t s i n t o t h e Un i t e d S t a t e s c o n s t i t u t e a
p a t t e r n o f r a c k e t e e r i n g p u r s u a n t t o l 8 U. S . C . 1 9 6 2 ( c ) . De f e n da n t s ' p a t t e r n o f r a c k e t e e r i n g h a s
c a u s e d s e r i o u s da m a ge t o Pl a i n t i f f s .
Id.
7
PARTIES
1 9 . Gucci is o r g a n iz e d a n d e x is t s un d e r t h e la ws o f Ne w Yo r k, wit h it s p r in cip a l p la ce
o f b us in e s s lo ca t e d a t 685 F ift h Ave n ue , Ne w Yo r k, Ne w Yo r k 1 0022. Gucci is t h e s o le a n d
e x clus ive d is t r ib ut o r in t h e U n it e d St a t e s o f it e m s b e a r in g t h e Gucci Ma r ks ( a s d e fin e d h e r e in ) o n
le a t h e r g o o d s , clo t h in g , j e we lr y , a cce s s o r ie s , h o m e p r o d uct s , a n d r e la t e d it e m s ( co lle ct ive ly ,
"Gucci Pr o d uct s") .
20. B a le n cia g a S. A. is o r g a n iz e d a n d e x is t s un d e r t h e la ws o f F r a n ce , wit h it s
p r in cip a l p la ce o f b us in e s s a t 1 5 Rue C a s s e t t e , Pa r is , F r a n ce 75006. B a le n cia g a Am e r ica , In c. is
o r g a n iz e d a n d e x is t s un d e r t h e la ws o f De la wa r e , wit h it s p r in cip a l p la ce o f b us in e s s lo ca t e d a t
50 Ha r t z Wa y , Se ca ucus , Ne w J e r s e y 0709 4, a n d a Ne w Yo r k o ffice lo ca t e d a t 542 We s t 22n d
St r e e t , Ne w Yo r k, Ne w Yo r k 1 001 1 . B a le n cia g a S. A. a n d B a le n cia g a Am e r ica , In c. a r e r e fe r r e d
t o co lle ct ive ly h e r e in a s ` B a le n cia g a . " B a le n cia g a a n d it s lice n s e e s a n d a ffilia t e s a r e t h e s o le a n d
e x clus ive d is t r ib ut o r s in t h e U n it e d St a t e s o f it e m s b e a r in g t h e B a le n cia g a Ma r ks ( a s d e fin e d
h e r e in ) o n le a t h e r g o o d s , a p p a r e l, fr a g r a n ce s , j e we lr y , a cce s s o r ie s , h o m e p r o d uct s , a n d r e la t e d
it e m s ( co lle ct ive ly , t h e ` B a le n cia g a Pr o d uct s")
21 . B o t t e g a Ve n e t a S. A. is o r g a n iz e d a n d e x it s un d e r t h e la ws o f Swit z e r la n d wit h it s
p r in cip a l a d d r e s s a t Via In d us t r ia 1 9 , 681 4 C a d e m p in o , Swit z e r la n d . B o t t e g a Ve n e t a In c. is
o r g a n iz e d a n d e x is t s un d e r t h e la ws o f Ne w Yo r k, wit h it s p r in cip a l p la ce o f b us in e s s lo ca t e d a t
50 Ha r t z Wa y , Se ca ucus , Ne w J e r s e y 0709 4, a n d a Ne w Yo r k o ffice lo ca t e d a t 69 9 F ift h
Ave n ue , Ne w Yo r k, Ne w Yo r k 1 0022. B o t t e g a Ve n e t a S. A. a n d B o t t e g a Ve n e t a In c. a r e
r e fe r r e d t o h e r e in co lle ct ive ly a s "B o t t e g a Ve n e t a . " B o t t e g a Ve n e t a a n d it s lice n s e e s a n d
a ffilia t e s a r e t h e s o le a n d e x clus ive d is t r ib ut o r s in t h e U n it e d St a t e s o f it e m s b e a r in g t h e B o t t e g a
Ve n e t a Ma r ks ( a s d e fin e d h e r e in ) o n le a t h e r g o o d s , a p p a r e l, j e we lr y , a cce s s o r ie s , h o m e p r o d uct s ,
a n d r e la t e d it e m s ( co lle ct ive ly , t h e "B o t t e g a Ve n e t a Pr o d uct s")
~ 3
22. Yves Saint Laurent America, I nc. is organized and ex ists under th e laws of New
York, with its p rincip al p lace of b usiness located at 3 East 57th Street, New York, New York
10022. Th e registered owner of th e YSL Marks as defined h erein is Lux ury Goods I nternational
(L.G.I ) S.A. ("LGI"), wh ich is organized and ex ists under th e laws of Switzerland with its
p rincip al p lace of b usiness at Via I ndustria 19, 6814 Cademp ino, Switzerland. YSL and its
licensees and affiliates are th e sole and ex clusive distrib utors in th e United States of items
b earing th e YSL Marks (as defined h erein) on leath er goods, ap p arel, jewelry, accessories, h ome
p roducts, and related items (collectively, th e "YSL Products"). LGI and YSL are referred to
collectively as th e "YSL Plaintiffs."
23. Kering, S.A. is organized and ex ists under th e laws of France, with its p rincip al
p lace of b usiness located at 10 Avenue Hoch e, Cedex 08, Paris, France 75381.
24. Alib ab a Group Holding Ltd. ("Alib ab a Group") is organized and ex ists under th e
laws of th e Cayman I slands, with its p rincip al address at 969 West Wen Yi Road, Yu Hang
D istrict, Hangzh ou 311 121, Peop le's Rep ub lic of Ch ina ("PRC"). Alib ab a Group h as a
registered agent for service of p rocess, Corp oration Service Comp any, at th e following address:
1 180 Avenue of th e Americas, Suite 210, New York, New York 10036.
25. Alib ab a.com Ltd. ("Alib ab a Ltd.") is organized and ex ists under th e laws of th e
Cayman I slands, with its p rincip al address at 699 Wang Sh ang Road, Binjiang D istrict,
Hangzh ou 310052, PRC.`' Alib ab a Ltd. is a wh olly-owned sub sidiary of Alib ab a Group and th e
" F-1 at 11, 71.
h ttp : / /investing. b ~ isi nessweek. com/ research stocks/p rivate/ snap sh ot. asp? p ri vcap ld=428457.
i n d i r e c t hold i n g c ompan y of t he PRC s u b s i d i ar i e s r e lat i n g t o Ali b ab a Gr ou p's Ali b ab a.c om,
1688.c om, an d Ali Expr e s s b u s i n e s s e s .'o
26. Ali b ab a.c om Hon g Kon g Lt d . ("Ali b ab a.c om Hon g Kon g") i s or gan i ze d an d
e xi s t s u n d e r t he laws of Hon g Kon g, wi t h i t s pr i n c i pal plac e of b u s i n e s s at 25/F J u b i le e Ce n t r e ,
18 Fe n wi c k S t r e e t , Wan Chai , Hon g Kon g. Ali b ab a.c om Hon g Kon g i s wholly own e d b y
Ali b ab a Lt d . Ali b ab a.c om Hon g Kon g ope r at e s t he we b s i t e s www.ali b ab a.c om an d
www.ali e xpr e s s .c om.
27. Ali b ab a.c om In ve s t me n t Hold i n g Lt d . ("Ali b ab a In ve s t me n t Hold i n g") i s
or gan i ze d an d e xi s t s u n d e r t he laws of t he B r i t i s h Vi r gi n Is lan d s , wi t h an ad d r e s s at Tr i d e n t Tr u s t
Co. (B .V.I.) Lt d ., Tr i d e n t Chamb e r s , P.O. B ox 146, Road Town , Tor t ola, B r i t i s h Vi r gi n Is lan d s
VG1 l 10. Ali b ab a In ve s t me n t Hold i n g i s a d i r e c t , wholly-own e d s u b s i d i ar y of Ali b ab a Lt d . an d
a lowe r-le ve l hold i n g c ompan y of t he PRC s u b s i d i ar i e s r e lat i n g t o Ali b ab a Gr ou p's
Ali b ab a.c om, 1688.c om, an d Ali Expr e s s b u s i n e s s e s .i l
28. Ali b ab a.c om In ve s t me n t Lt d . ("Ali b ab a In ve s t me n t") i s or gan i ze d an d e xi s t s
u n d e r t he laws of t he B r i t i s h Vi r gi n Is lan d s , wi t h an ad d r e s s at Tr i d e n t Tr u s t Co. (B .V.I.) Lt d .,
Tr i d e n t Chamb e r s , P.O. B ox 146, Road Town , Tor t ola, B r i t i s h Vi r gi n Is lan d s VG1110. Ali b ab a
In ve s t me n t i s t he pr i n c i pal hold i n g c ompan y for Ali b ab a's s t r at e gi c i n ve s t me n t s .~ ~
29. Ali b ab a (Chi n a) Te c hn ology Co., Lt d . ("Ali b ab a Te c hn ology") i s or gan i ze d an d
e xi s t s u n d e r t he laws of, n n i n for mat i on an d b e li e f, PRC, wi t h an ad d r e s s at 600 Wan g S han g
10 F-1 at 7h.
~ ~ It l.
i 2
/c l.
10
Road, Binjiang D is t r ic t , Hangzhou 310052, PRC. Alibaba Tec hnology is an ent it y p r im ar ily
engaged in t he op er at ions of Alibaba Gr oup 's wholes ale m ar ket p lac es .'
30. Alibaba.c oin, I nc . ("Alibaba I nc .") is or ganized and ex is t s under t he laws of
D elawar e, wit h it s p r inc ip al addr es s at 3945 Fr eedom Cir c le, S uit e 600, S ant a Clar a, Califor nia
95054. Alibaba I nc . is a s ubs idiar y of Alibaba Lt d. and op er at es as a "B2B e-c om m er c e
c om p any" and als o foc us es on t ec hnology m aint enanc e, m ar ket ing and adm inis t r at iv e s er v ic es .14
31. Taobao Holding Lt d. ("Taobao Holding") is or ganized and ex is t s under t he laws
of t he Caym an I s lands , wit h an addr es s at Tr ident Tr us t Co. (Caym an) Lt d., One Cap it al Plac e,
P.O. Box 847, Gr and Caym an KY1-1103, Caym an I s lands . Taobao Holding is a wholly-owned
s ubs idiar y of Alibaba Gr oup and t he indir ec t holding c om p any of t he PRC s ubs idiar ies r elat ing
t o t he Taobao Mar ket p lac e and Tm all p lat far m s . ~ 5
32. Taobao China Holding Lt d. ("Taobao China Holding") is or ganized and ex is t s
under t he laws of Hong Kong, wit h an addr es s at 26/F Tower One, Tim es S quar e, 1 Mat hes on
S t r eet , Caus eway Bay, Hong Kong. Taobao China Holding is t he dir ec t wholly-owned
s ubs idiar y of Taobao Holding. Taobao China Holding is a dir ec t holding c om p any of t he PRC
s ubs idiar ies r elat ing t o t he Taobao Mar ket p lac e and Tm all p lat for m s , and is t he op er at ing ent it y
for t he ov er s eas bus ines s of Taobao Mar ket p lac e and Tm all.~ ~
33. Taobao (China) S oft war e Co., Lt d. ("Taobao S oft war e") is or ganized and ex is t s
under t he laws of, on infor m at ion and belief, PRC, wit h it s r egis t er ed addr es s , on infor m at ion
~ F-1 at F-37.
~ ` ~ ht t p://inv es eingbus ines s week.c om/r es ear c h/s t oc ks/p i7v at e/s nap s hot.as p? p r iv c ap I d=38707079.
15 F-1 ~ t 75.
~ ~ , I d.
11
and b e l i e f , at Ji ngf e ng V i l l age , Wuchang S ub di s t r i ct , Yuhang D i s t r i ct , Hangzhou, PRC. Taob ao
S of t war e i s e ngage d i n t he op e r at i ons of t he Taob ao Mar ke t p l ace ."
34. Al i p ay.com Co., Lt d. ("Al i p ay") i s or gani ze d and e x i s t s unde r t he l aws of t he
PRC, wi t h i t s r e gi s t e r e d addr e s s , on i nf or mat i on and b e l i e f , at Uni t 103, Bui l di ng C, No. 525
Xi x i Road, Xi hu D i s t r i ct , Hangzhou 310007, PRC. Al i p ay i s a comp any r e l at e d t o t he Al i b ab a
Gr oup and has al ong-t e r m cont r act ual r e l at i ons hi p wi t h t he Al i b ab a Gr oup t hr ough whi ch i t
p r ovi de s p ayme nt p r oce s s i ng s e r vi ce s f or t he Al i b ab a Mar ke t p l ace s .'
35. D e f e ndant s Al i b ab a Gr oup , Al i b ab a.coi n Hong Kong, Al i b ab a Lt d., Al i b ab a
Inve s t me nt Hol di ng, Al i b ab a Inve s t me nt , Al i b ab a Te chnol ogy, Al i b ab a Inc., Taob ao Hol di ng,
Taob ao Chi na Hol di ng, Taob ao S of t war e , and Al i p ay ar e col l e ct i ve l y r e f e r r e d t o he r e i n as t he
"Al i b ab a D e f e ndant s ." The Al i b ab a D e f e ndant s ar e al l p ar t of as e l f -de s cr i b e d "e cos ys t e m."
36. Hangzhou Yanb e i Tr adi ng Co., Lt d. i s a whol e s al e me r chant l i s t e d as a "Gol d
S up p l i e r " and "As s e s s e d S up p l i e r " on Al i b ab a.com, at ht t p ://chyanb e i .e n.al i b ab a.com.
Hangzhou Yanb e i Tr adi ng Co., Lt d. of f e r s f or s al e whol e s al e Count e r f e i t Pr oduct s b e ar i ng t he
Gucci Mar ks .
37. Yi wu Bot hwi ne r Fas hi on Acce s s or y Co., Lt d. i s a whol e s al e me r chant l i s t e d as a
"Gol d S up p l i e r " and "As s e s s e d S up p l i e r " on Al i b ab a.com, at ht t p://s huangme i .e n.al i b ab a.com.
Yi wu Bot hwi ne r Fas hi on Acce s s or y Co., Lt d. of f e r s f or s al e whol e s al e Count e r f e i t Pr oduct s
b e ar i ng t he Gucci Mar ks .
38. Guangzhou Yongx i ng Le at he r Goods Mf g. i s a whol e s al e me r chant l i s t e d as a
"Gol d S up p l i e r " and "As s e s s e d S up p l i e r " on Al i b ab a.com, at ht t p ://yx p j .e n.al i b ab a.com.
~ ' F1 at F-37.
~ ~ F-I at 11, 25.
12
Guangzhou Yongxing Leather Goods Mfg. offers for sal e whol esal e C ounterfeit Products
bearing the Gucci Marks.
39. Dongguan Huawang Leather C o., Ltd. is a whol esal e merchant l isted as a "Gol d
Suppl ier" and "Assessed Suppl ier" on Al ibaba.com, at http://hw-l eather.en.al ibaba.com.
Dongguan Huawang Leather C o., Ltd. offers for sal e material s adv ertised for use in
manufacturing C ounterfeit Products, incl uding "2014 top q ual ity beautiful ostrich pu l eather for
gucci bags," "high q ual ity &fashion pu l eather for gucci bags," and "fashion pu shoe l ining
material for gucci."
40. Shen Zhen Aiers Watch C o., Ltd. is a whol esal e merchant of "repl ica" watches
l isted as a "Gol d Suppl ier" and "Assessed Suppl ier" on Al ibaba.com, at
http://aiers.en.al ibaba.com. Shen Zhen Aiers Watch C o., Ltd. offers for sal e counterfeit
wristwatches bearing the Gucci Marks.
41. Shenzhen Meigeer Watch C o., Ltd. is a whol esal e merchant of "repl ica" watches
l isted as a "Gol d Suppl ier" and "Assessed Suppl ier" on Al ibaba.com, at
http://meigeer.en.al ibaba.com. Shenzhen Meigeer Watch C o., Ltd. offers for sal e counterfeit
wristwatches bearing the Gucci Marks.
42. Shenzhen Baby l on Watch C o., Ltd. is a repl ica wristwatch merchant l ocated in
Guangdong, C hina. Shenzhen Baby l on Watch C o., Ltd. is l isted as a "Gol d Suppl ier" on
Al ibaba.com, at http:/
/szbaby l on.en.al ibaba.com. Shenzhen Baby l on Watch C o., Ltd. offers for
sal e C ounterfeit wristwatches bearing the Gucci Marks.
43. VANC S Where Boutiq ue (VANC S/JL~ ~p p ~, ~'~' Q) is a retail merchant on
Taobao.com, at 35hl .taobao.com/?spm=2013.1.0.0.pSul EF&v =1, where it sel l s C ounterfeit
Products.
13
44. Spring Rain Leather Goods ( I ~ ~ 7 ~ . f ~ c ~ T 7 " T B p~ ,~ i~ ~ ~ ~ ) is a retail merc hant on
T aobao.c om, at http://1347 80267 91.taobao.c om/, where it sel l s C ou nterf eit Produ c ts.
45. C el ebrity Shoe ( ~ , ~ ~ ~ ~ L ~ ~ ~ -~ , ~ ) is a retail merc hant on T aobao.c om, at
http: //minren.taobao.c om/?spm=2013.1.0.0.HwNXgF&v=1, where it sel l s C ou nterf eit Produ c ts.
46. Jinl ong Lu xu ry C ity ( %`~ ~ ~ ~ ~ I ~ ) is a retail merc hant on T aobao.c om, at
http: //888845.taobao.c om/?spm=2013.1.0.0.Sy e1 c s, where it sel l s C ou nterf eit Produ c ts.
47 . Gu c c i Fashion Shop ( gu c c iH~ J~ ~ A I ,~ ) is a retail merc hant on T aobao.c om, at
http: //shop100180349.taobao.c om/?spm=2013.1.0.0.agsg7 K&v=1, where it sel l s C ou nterf eit
Produ c ts.
48. Lady l idy Shop is a retail merc hant on T aobao.c om, at
http: //l ady l il y shoess.taobao.c om/?spm=2013.1.0.0.ZggXl o&v=1, where it sel l s C ou nterf eit
Produ c ts.
49. C oc o Fashion Sty l e ( C oc o~ ~ l ~ ~ ~ ~ ) is a retail merc hant on T aobao.c om, at
http: //shop1007 2257 5.taobao.c om/?spin=2013.1.0.0.A 2e3y N&v=' I , where it sel l s C ou nterf eit
Produ c ts.
50. Hu il ning Leather Mal l ( ~ C ~ f ~ c ~ ~ I ~ ) is a retail merc hant on T aobao.c om, at
http: //t8288.taobao.c om/?spm=2013.1.0.0.bI t50v, where it sel l s C ou nterf eit Produ c ts.
51. Hong Kong Longitu de and Latitu de I nternational T rading ( ~ f i~ ~ z ~=~ Q~ T n ~ ~ ) is
a retail merc hant on T aobao.c om, at
http: //shop1052653"17 .taobao.c om/?spm=2013.1.0.0.nVYT Kn&v=1, where it sel l s C ou nterf eit
Produ c ts.
14
52. Fashion Zone Ltd. is a r etail mer chant on Al iExpr ess.com, at
http://www.al iexpr ess.com/stor e/1083367, wher e it sel l s C ou nter f eit Pr odu cts.
53. S tar Factor y is a r etail mer chant on Al iExpr ess.com, at
http://www.al iexpr ess.com/su ppl ier-f m/whol esal e-pr odu cts/?31075537-pr odu ctl ist.html , wher e it
se11s C ou nter f eit Pr odu cts.
54. Xiaohu i J in' s S tor e is a r etail mer chant on Al iExpr ess.com, wher e it sel l s
C ou nter f eit Pr odu cts.
55. J ohn Does ar e indiv idu al s whose identities ar e not yet known, bu t who ar e a
mov ing, activ e, consciou s f or ce behind the inf r ingement and cou nter f eiting activ ities al l eged
her ein becau se they ar e consciou sl y engaged with the Def endants in dir ecting, contr ol l ing,
r atif ying, f acil itating, or other wise par ticipating in the manu f actu r e, distr ibu tion, sal e, and
adv er tisement of C ou nter f eit Pr odu cts, or who consciou sl y and dir ectl y benef it f inancial l y f r om
the manu f actu r e, distr ibu tion, sal e, and adv er tisement of C ou nter f eit Pr odu cts, bu t whose identity
and nu mber ar e pr esentl y u nknown.
J URIS DIC TION AND VENUE
56. This is an action ar ising u nder the Tr ademar k Act of 1946, I S U.S .C . 105' 1, et
s~ (the "Lanham Act") , the Racketeer Inf l u enced and C or r u pt Or ganizations Act, 18 U.S .C .
1962(c) , et se . ("RIC O") , and the l aws of the S tate of New Yor k.
57. This C ou r t has f eder al q u estion j u r isdiction ov er this action u nder 15 U.S .C .
~l l 21(a) (acr ion ar ising u nder the Lanham Act) , 28 U.S .C . 1331 (f eder al q u estion) , 1338(a)
(any Act of C ongr ess r el ating to patents or tr ademar ks) , and 1338(b) (action asser ting cl aim of
u nf air competition j oined with a su bstantial and r el ated cl aim u nder the tr ademar k l aw) . This
C ou r t has su ppl emental j u r isdiction ov er al l other cl aims asser ted her ein u nder 28 U.S .C .
15
1367(a) because those claims ar e so closely r elated to the f ed er al claims br ought her ein as to
f or m p ar t of the same case or con tr ov er sy .
58. Per son a] j ur isd iction is p r op er ov er all Def en d an ts in this d istr ict p ur suan t to
N. Y. C. P. L. R. 302(x)(1) an d 302(x)(3), or , in the alter n ativ e, Rule 4(k) of the Fed er al Rules
of Civ il Pr oced ur e, by v ir tue of the f ollowin g f acts:
a. Def en d an ts r egular ly con d uct, tr an sact, or solicit busin ess within this Distr ict,
en gage in other p er sisten t cour ses of con d uct, an d/ or d er iv e substan tial r ev en ue
f r om good s an d/ or ser v ices used ar con sumed within this Distr ict; Def en d an ts
r egular ly an d sy stematically d ir ect electr on ic activ ity in to the S tate of New Yor k
with the man if est in ten t of en gagin g in busin ess within this Distr ict; Def en d an ts
con d uct, tr an sact, an d solicit busin ess in this Distr ict an d d er iv e substan tial
r ev en ue f r om good s an d / or ser v ices used or con sumed within this Distr ict in
con n ection with the un lawf ul con d uct comp lain ed of her ein ; an d the un lawf ul
con d uct en gaged in by Def en d an ts, comp lain ed of her ein , caused an d con tin ues to
cause in j ur y to Plain tif f s within this Distr ict.
b. Def en d an ts d er iv e substan tial r ev en ue f r om in ter n ation al an d in ter state
commer ce, in clud in g with the Un ited S tates, in r etur n f or the ser v ices they
p r ov id e to legitimate an d illegitimate I n ter n et mer chan ts:
i. Def en d an ts gen er ated $780 million in in ter n ation al commer ce in the y ear
en d ed Mar ch 31, 2014. ' ` '
c. Alibaba. com, an En glish-lan guage wholesale mar ketp lace f or global tr ad e own ed
an d op er ated by the Alibaba Def en d an ts, hosts buy er s an d seller s f r om the Un ited
~ ` ' F-1 at 94.
16
S t a t e s . Unit e d S t a t e s ma nufa ct ure rs a nd dis t rib ut o rs s e l l t h e ir pro duct s o n
Al ib a b a . co m a nd t h e unit e d S t a t e s is o ne o f t h e t h re e b ig g e s t ma rke t s fo r b uye rs
o n Al ib a b a . co m. 2 o
d. Al iExpre s s . co m, a g l o b a l co ns ume r ma rke t pl a ce a nd Eng l is h -l a ng ua g e s it e o wne d
a nd o pe ra t e d b y t h e Al ib a b a De fe nda nt s , s e l l s pro duct s fro m wh o l e s a l e rs a nd
ma nufa ct ure rs in Ch ina t o co ns ume rs in t h e Unit e d S t a t e s . I n t h e t h re e mo nt h s
e nde d Ma rch 31, 2 014, t h e Unit e d S t a t e s wa s o ne o f t h e t h re e b ig g e s t ma rke t s fo r
b uye rs o n Al iExpre s s . co m. ~'
e . Go o ds purch a s e d o n Al ib a b a . co m a nd Al iExpre s s . co m a re re g ul a rl y s h ippe d int o
t h e Unit e d S t a t e s , incl uding int o t h e S t a t e o f Ne w Yo rk.
f. Go o ds purch a s e d fro m Ta o b a o . co m, a Ch ine s e -l a ng ua g e we b s it e o wne d a nd
o pe ra t e d b y t h e Al ib a b a De fe nda nt s , a re re g ul a rl y s h ippe d int o t h e Unit e d S t a t e s ,
incl uding int o t h e S t a t e o f Ne w Yo rk.
g . Ta o b a o Ma rke t pl a ce a ut h o riz e s a g e nt s t o ma ke purch a s e s o n b e h a l f o f b uye rs
fro m t h e Unit e d S t a t e s a nd t o s h ip g o o ds int o t h e Unit e d S t a t e s , incl uding int o t h e
S t a t e o f Ne w Yo rk.
h . Ta o b a o Ma rke t pl a ce a dv e rt is e s a n " I nt e rna t io na l Fo rwa rding S e rv ice " t o s h ip
g o o ds purch a s e d fro m Ta o b a o . co m int e rna t io na l l y. Ta o b a o Ma rke t pl a ce no t e s
t h a t ce rt a in g o o ds a re pro h ib it e d fro m int e rna t io na l s h ipme nt , incl uding
" re a ct io na ry" o r " o b s ce ne " ma t e ria l s , b ut no t a b l y do e s no t s t a t e a ny pro h ib it io n
a g a ins t co unt e rfe it g o o ds .
2 0 F- 1 a t 168.
'` ~ F- 1 a t 166.
17
i . Ali baba. com and Ali Express. com t arg et cust omers i n t h e U ni t ed S t at es t h roug h
onli ne mark et i ng and adv ert i si ng for example and w i t h out li mi t at i on, t h roug h
pop-up adv ert i sement s t arg et ed t o I nt ernet users i n t h e U ni t ed S t at es, i ncludi ng
users i n t h e S t at e of New York .
j . Taobao. com di splay s a pop up ad di splay i ng an Ameri can flag and a messag e i n
Ch i nese ch aract ers w h i ch , t ranslat ed, reads "Dear, now y ou can sh op on
Taobao. com from t h e U S . " Th ere i s a li nk t h at reads "more i nformat i on" i n
Ch i nese and nav i g at es t h e brow ser t o a pag e w i t h more i nformat i on about
sh i ppi ng and sh oppi ng t i ps, emph asi zi ng h ow easy i t i s t o sh op from t h e U . S .
~, ~~~~c~~~i
k . On i nformat i on and beli ef, mi lli ons of w eb users from t h e U ni t ed S t at es
( i ncludi ng t h e S t at e of New York ) v i si t Defendant s' mark et places ev ery day .
i . Approxi mat ely 1 0 . 1 I o of Ali baba. com's v i si t ors are from t h e U ni t ed
S t at es. Ali baba. com i s t h e 1 5 4 t h most v i si t ed si t e i n t h e U ni t ed
S t at es. 2 2
i i . Approxi mat ely 7. 4 % of Ali Express. com's v i si t ors are from t h e U ni t ed
S t at es. Ali Express. com i s t h e 2 4 4 t h most v i si t ed si t e i n t h e U ni t ed
S t at es. Z 3
Z Z
h t t p: / / w w w . alexa. com/ si t ei nfo/ ali baba. com. Th e Alexa. com st at i st i cs ci t ed h erei n reflect i nformat i on av ai lable
i n June 2 0 1 4 .
2 3
h t t p: / / w w w . alexa. com/ si t ei nfo/ ali express. com.
i i i . Taobao. com has approxi mately 25 mi lli on v i si tors per day.
Approxi mately 1% of v i si tors on Taobao. com, or 250,000, are from the
Un i ted S tates. 2a
i v . There are approxi mately 2. 9 mi lli on Chi n ese speakers i n the Un i ted S tates,
i n cludi n g more than 500,000 Chi n ese speakers i n New York.
v . Taobao. com i s the 381st most v i si ted si te i n the Un i ted S tates. 25 By
compari son , popular si tes such as Myspace. com, Trav eloci ty. com, an d
Abc. go. com (ABC's offi ci al si te) , ran k 380th, 385th, an d 388th,
respecti v ely.
1. Taobao. com's offi ci al mobi le app i s av ai lable for down load i n the Un i ted S tates.
m. Defen dan ts mai n tai n places of busi n ess i n the Un i ted S tates, i n cludi n g at least the
followi n g offi ces i n the Un i ted S tates:
i . Ali baba Group mai n tai n s data cen ter an d logi sti cs faci li ti es i n the Un i ted
S tates. 2C
i i . S peci fi cally, Ali baba. com, I n c. has an offi ce i n S an ta Clara, Cali forn i a,
wi th i ts address li sted as 3945 Freedom Ci rcle, S ui te 600, S an ta Clara,
Cali forn i a 95054. 27 The Ali baba Defen dan ts refer to Ali baba. com, I n c.
an d thei r Cali forn i a address as thei r "U. S . Headquarters. "
i i i . Ali pay has an offi ce i n S an ta Clara, Cali forn i a, wi th i ts address li sted as
3945 Freedom Ci rcle, S ui te 600, S an ta Clara, Cali forn i a 95054.
24 http: / / www. alexa. com/ si tei n fo/ taobao. eom.
z 5
http: / / www. alexa. com/ si tei n fo/ taobao. com.
z c,
I d.
~ ~ http:// www. bbb. org/ san j osE / busi n ess-rev i ews/ i n tern et-serv i ces/ ali baba-i n -S an ta-clam- ca-230194
19
i v . Ali baba I n c . has a r e g i st e r e d ag e n t at 160 Gr e e n t r e e Dr i v e , Dov e r ,
De lawar e 19904.
v . As of Jun e 11, 2014, t he Ali baba De fe n d an t s laun c he d I lmai n . c om, a
Un i t e d S t at e s i n v i t e-on ly c on sume r mar ke t plac e an d En g li sh-lan g uag e
si t e . ~ ~ Un i t e d S t at e s spe c i alt y shops an d bout i que s wi 11 se ll t he i r pr od uc t s
on 1 lmai n . c om t o Un i t e d S t at e s buye r s. ` ' l lmai n . c om i s he ad quar t e r e d i n
C ali for n i a, wi t h i t s ad d r e ss li st e d as 360 East 6t h S t r e e t , C hi c o, C ali for n i a,
95928.
n . Ali baba Gr oup has mad e subst an t i al i n v e st me n t s i n c ompan i e s i n t he Un i t e d
S t at e s:
i . I n Mar c h 2014, Ali baba Gr oup pur c hase d a 20/ o e qui t y i n t e r e st (on a
fully-d i lut e d basi s) i n Tan g oMe , I n c . , "a le ad e r i n mobi le me ssag i n g
se r v i c e s base d i n t he Un i t e d S t at e s" for $200 mi lli on . ' 0 I n Apr i l 2014,
Ali baba Gr oup i n v e st e d an ad d i t i on al $17 mi lli on i n Tan g oMe , I n c . t o
mai n t ai n i t s 20% e qui t y i n t e r e st . "
i i . I n Mar c h 2014 (an d an n oun c e d on Apr i l 2, 2014) , Ali baba Gr oup
par t i c i pat e d i n a $250 mi lli on fun d -r ai si n g r oun d for L yft , "on e of t he bi g
playe r s i n t he n asc e n t-but-boomi n g r i d e-shar i n g i n d ust r y" an d a mai n
c ompe t i t or of Ube r . ~ 2
Z x hops:// I lmai n . c om/ pr e v i e w.
` ` ' ht C p:// www. for be s. c om/ si t e s/ r yln mac /2014/ 06/ 11/ ali baba-lun c he s-ll- mai n-t o- g r ow-~ i-s- pr e se n c e-be for e-i t s-
r e c or d -am~ r i c an-i po/ .
i 0 F-1 at 99.
si
I d .
~ ` ht t p:// d e alhook. n yt i me s. c om/ 2014/ 04/ 02/ lyfl-r ai se s-250-mi lli on -fr om-ali baba-t hi r d -poi n t-an d-e t he r s/ .
20
i i i . In January 2014, Ali baba Group i nv e s t e d $15 m i lli on i n ls t d i bs , a "Ne w
York bas e d luxury e -com m e rce s i t e " t h at "li nks m ore t h an 1,500
i nt e rnat i onal d e ale rs of h i gh- e nd ant i q ue s , v i nt age furni t ure and d e s i gn,
art , je we lry, fas h i on and h om e s t o cons um e rs ."' ~
i v . In t h e ni ne m ont h s e nd e d De ce m be r 31, 2013, Ali baba Group acq ui re d
s h are s i n Sh opRunne r, a U. S. com pany wh i ch "ope rat e s an onli ne
plat form for buye rs ."34 Ali baba Group i nv e s t e d $202 m i lli on fora 39%
e q ui t y i nt e re s t i n t h e com pany. ~ ~
o. On May 6, 2014, Ali baba Group fi le d i t s Form F- 1 wi t h t h e U. S. Se curi t i e s and
Exch ange Com m i s s i on for an Ini t i al Publi c Offe ri ng ("IPO") of i t s s h are s i n t h e
Uni t e d St at e s . Th e Form F- 1 s t at e s t h at Ali baba Group plans t o rai s e $1 bi lli on
from t h e s ale of i t s s h are s i n t h e Uni t e d St at e s , alt h ough ne ws re port s e s t i m at e
t h at t h e offe ri ng m ay rai s e $20$26 bi lli on and m ay be t h e large s t IPO i n Uni t e d
St at e s h i s t ory. `
p. Th e Ali baba De fe nd ant s are all alt e r e gos of e ach ot h e r:
i . Th e Ali baba De fe nd ant s ope rat e as a s i ngle uni t , s h ari ng com m on
owne rs h i p, t h e Ali baba Group, and a uni t y of i nt e re s t , "t o m ake i t e as y t o
d o bus i ne s s anywh e re ."" Ind e e d , accord i ng t o Ali baba Group' s Form F- 1,
Ali baba Group "ope rat e [ s ] our Int e rne t bus i ne s s e s and ot h e r bus i ne s s e s i n
~ ~ h t t p://www. av cj. com/av cj/ne ws /2325087/ch i na-s -ali baba-group- m ake s - us d l5- m i lli on-i nv e s t m e nt -i u- Is t d i bs .
~ ` ' F- 1 at F- 57.
35 F- 1 at 57, 58.
~ ~ h t t p://m one ym orni ng. com /2014/07/01/wh y-ali baba- i po-v alue -e s t i m at e s-ke e p-cli m bi ng-i ap- t o-221-bi lli on/.
~ ~ F- 1 at 1.
21
which f o r e ig n in ve stme n t is r e str icte d o r p r o hib ite d in the PRC thr o ug h
who lly-f o r e ig n o wn e d e n te r p r ise s, ma j o r ity- o wn e d e n titie s a n d va r ia b le
in te r e st e n titie s ...The se co n tr a ctua l a r ia n g e me n ts co lle ctive ly e n a b le us
to e x e r cise e f f e ctive co n tr o l o ve n , a n d r e a liz e sub sta n tia lly a ll o f the
e co n o mic r isk s a n d b e n e f its a r isin g f r o m, Che va r ia b le in te r e st e n titie s." 3 "
Alib a b a Gr o up d e f in e s the te r ms " we , " " us, " " o ur co mp a n y, " a n d " o ur " a s
in clud in g " Alib a b a Gr o up Ho ld in g Limite d a n d its co n so lid a te d
sub sid ia r ie s a n d its a f f ilia te d co n so lid a te d e n titie s, in clud in g o ur va r ia b le
in te r e st e n titie s a n d the ir sub sid ia r ie s." ~ ` ' As se t f o r Ch in Alib a b a Gr o up ' s
Fo r m F- 1 , the Alib a b a De f e n d a n ts co n stitute " a sin g le o p e r a tin g a n d
r e p o r tin g se g me n t, n a me ly the p r o visio n o f o n lin e a n d mo b ile co mme r ce
a n d r e la te d se r vice s" a n d Alib a b a Gr o up d o e s " n o t a llo ca te o p e r a tin g co sts
o r a sse ts to its b usin e ss un its." 40 Acco r d in g ly, the Alib a b a De f e n d a n ts
o p e r a te a s a sin g le un it a n d e a ch o f the Alib a b a De f e n d a n ts is a n a g e n t o f
the o the r Alib a b a De f e n d a n ts.
ii. The Alib a b a Gr o up co n tr o ls the o the r Alib a b a De f e n d a n ts, i.e ., the ir
ma r k e tin g a n d o p e r a tio n a l p o licie s.
iii. Ce r ta in Alib a b a De f e n d a n ts ma in ta in co mmo n o f f ice sp a ce a n d a d d r e sse s,
i.e ., Alib a b a .co m a n d Alip a y.41
~ ~ F- 1 a t 1 0.
~ ' F- ] a t 1 2.
40 F- 1 , No te 2(~ to Aud ite d Fin a n cia ls a t F- 1 8.
41 Se e scr ~ p r cz 9 [ 9 [ 6 1 .m.ii- m.iii.
22
i v . On i nf o r m a t i o n a nd b e l i e f , t h e Al i b a b a De f e nda nt s u b s i di a r i e s a r e
f i na nc i a l l y de pe nde nt o n t h e i r pa r e nt , t h e Al i b a b a Gr o u p.
q . Al i b a b a Gr o u p h a s t a k e n s u b s t a nt i a l s t e ps t o e ns u r e t h a t t h e s t o c k o f f e r e d i n i t s
IPO w i l l b e l i s t e d o n t h e Ne w Yo r k St o c k Exc h a nge .
r . Al i pa y r e gu l a r l y pr o c e s s e s t r a ns a c t i o ns m a de t h r o u gh t h e Al i b a b a Ma r k e t pl a c e s
t h a t i nv o l v e b u y e r s l o c a t e d i n t h e Uni t e d St a t e s ( i nc l u di ng Ne w Yo r k ) a nd
c o m m u ni c a t e s w i t h t h o s e U. S. b u y e r s a nd c o nf i r m s t h e i r pu r c h a s e s v i a SMS t e xt
m e s s a ge . In a ddi t i o n, Al i pa y s e nds SMS t e xt m e s s a ge s t o b u y e r s f r o m v a r i o u s
U. S. c e l l ph o ne nu m b e r s , i nc l u di ng a nd w i t h o u t l i m i t a t i o n nu m b e r s f r o m Ne w
Yo r k , Ge o r gi a , Il l i no i s , Te xa s , C a l i f o r ni a , No r t h C a r o l i na , Te nne s s e e , a nd
L o u i s i a na .
s . Th e Al i b a b a De f e nda nt s k no w i ngl y o pe r a t e a m a r k e t pl a c e f o r C o u nt e r f e i t
Pr o du c t s w i t h t h e k no w l e dge a nd i nt e nt t h a t s u c h C o u nt e r f e i t Pr o du c t s ( i ) w i l l
u l t i m a t e l y b e o f f e r e d t o c o ns u m e r s i n Ne w Yo r k a nd t h r o u gh o u t t h e Uni t e d
St a t e s ; ( i i ) i nf r i nge t h e r i gh t s o f i nt e l l e c t u a l pr o pe r t y o w ne r s i n Ne w Yo r k a nd
t h r o u gh o u t C h e Uni t e d St a t e s , i nc l u di ng b u t no t l i m i t e d t o Pl a i nt i f f s ; ( i i i ) c a u s e
s u b s t a nt i a l c o ns u m e r c o nf u s i o n a m o ng c o ns u m e r s i n Ne w Yo r k a nd t h r o u gh o u t
t h e Uni t e d St a t e s ; a nd ( i v ) c a u s e t h e h a r m a l l e ge d h e r e i n t h a t r e s u l t s f r o m s a l e s o f
C o u nt e r f e i t Pr o du c t s i n Ne w Yo r k a nd t h r o u gh o u t t h e Uni t e d St a t e s , i nc l u di ng b u t
no t l i m i t e d t o t h e h a r m c a u s e d t o Pl a i nt i f f s w h o h a v e t h e i r pr i nc i pa l pl a c e o f
b u s i ne s s o r s u b s t a nt i a l o pe r a t i o ns i n Ne w Yo r k .
t . On i nf o r m a t i o n a nd b e l i e f , t h e Al i b a b a De f e nda nt s a r e a w a r e t h a t e v e n t h o u gh
m a ny o f t h e C o u nt e r f e i t Pr o du c t s t h a t a r e s o l d t h r o u gh t h e Al i b a b a Ma r k e t pl a c e s
23
a r e pur cha se d by custome r s who ma y r e si de i n Chi n a , the ul ti ma te de sti n a ti on f a r
a substa n ti a l n umbe r of those sa l e s a r e r e -se l l e r s a n d con sume r s i n the Un i te d
S ta te s. On i n f or ma ti on a n d be l i e f , the Al i ba ba De f e n da n ts kn ow tha t a substa n ti a l
pe r ce n ta ge of on l i n e me r cha n ts tha t of f e r Coun te r f e i t Pr oducts to U. S . con sume r s
suppl y a n d ma i n ta i n the i r i n v e n tor y of Coun te r f e i t Pr oducts by pur cha si n g the m
thr ough the Al i ba ba Ma r ke tpl a ce s.
u. Al l De f e n da n ts a r e a wa r e tha t Pl a i n ti f f s ma i n ta i n pr i n ci pa l pl a ce s of busi n e ss
a n d/ or substa n ti a l ope r a ti on s i n Ne w Yor k a n d tha t the tr a de ma r k i n f r i n ge me n ts
a n d coun te r f e i ti n g a l l e ge d he r e i n wi l l ca use i n j ur y to Pl a i n ti f f s i n Ne w Yor k.
59. Ve n ue i s pr ope r i n thi s Di str i ct un de r 28 U. S . C. 1391(b)(2) be ca use a
substa n ti a l pa r t of the e v e n ts or omi ssi on s gi v i n g r i se to the cl a i ms he r e i n occur r e d i n thi s
Di str i ct.
FACTUAL BACKGROUND
I . Pl a i n ti f f s' Busi n e ss a n d Ma r ks
60. The Gucci , Ba l e n ci a ga , Botte ga Ve n e ta , a n d YS L br a n ds a r e e n or mousl y popul a r
wi th the ge n e r a l publ i c. Pl a i n ti f f s' a dv e r ti si n g, pr omoti on a l , a n d ma r ke ti n g e f f a r ts ha v e r e sul te d
i n wi de spr e a d a n d f a v or a bl e publ i c a cce pta n ce a n d r e cogn i ti on of the i r r e spe cti v e br a n ds. As a
r e sul t, Pl a i n ti f f s' Ma r ks ha v e be come f a mous a n d hi ghl y v a l ua bl e , posse ssi n g str on g se con da r y
me a n i n g a mon g con sume r s.
GUCCI
61. Gucci i s the own e r of the r i ght, ti tl e a n d i n te r e st i n a n d to, i si te r a l i a , the f ol l owi n g
f e de r a l l y r e gi ste r e d tr a de ma r ks a n d/ or se r v i ce ma r ks:
Mark
Reg./ S eri al Date of Regi s trati on
No.
GUCCI
876,292 09/ 09/ 1969
959,338 05/ 22/ 1973
972,078 10/ 30/ 1973
1,168,477 09/ 08/ 1 981
1,200,991 07/ 13/ 1982
1,321,864 02/ 26/ 1985
1,340,599 06/ 11 / 1985
1,169,019 09/ 15/ 1981
4,407,149 09/ 24/ 2013
1,202,802 07/ 27/ 1982
GUCCI
3,061,918 02/ 28/ 2006
4,555,556 06/ 24/ 2014
NON-INTERLOCKING GG 1,106,722 11/ 21/ 1978
MONOGRAM
1,107,311 11 / 28/ 1978
3,378,755 02/ 05/ 2008
GUCCI CRES T
1,097,483 07/ 25/ 1978
1,097,555 07/ 25/ 1978
`"
~ ~ ~
1,112,601
1,132,675
02/ 06/ 1979
04/ 08/ 1980
~ j 3,660,040 07/ 28/ 2009
GREEN- RED- GREEN S TRIPE 1,122,780 07/ 24/ 1979
1,123,224 07/ 31/ 1979
I' ~
1,483,526 04/ 05/ 1988
,~ .
~ ; ,` ,
~ ~ ~
25
INTERLOCKING FACING GG 1,158,170 06/23/1981
DESIGN
1,464,522 11/10/1987
3,376,129 O l /29/2008
3,391,739
05/4/2008
4,454,342 12/24/2013
INTERLOCKING NON- 3,039,629 01/10/2006
FACING GG DESIGN 3,039,630 01/10/2006
3,039,631 O1 /10/2006
4,407,197 09/24/2013
3,470,140 07/22/2008
SQUARE G
2,042,805 03/11/1997
3,037,082 01/3/2006
~~~
2,234,272 03/23/1999
REPEATING GG DESIGN 2,680,237 01/28/2003
3,072,549
03/28/2006
3,072,547 03/28/2006
~, r;
~~1 ~r~
~{1
I.J~
REPEATING GG DESIGN 4,229,081 10/23/2012
4,230,191 10/23/2012
~,~ 4,349,908 06/11/2013
~~
4,399,108 09/10/2013
`~ 4,411,218 10/01 /2013
26
HALF HORSEBIT 3,238,962 05/08/2007
- - - -
- ~ ~ ,
~
62. Annexed h er et o a s Exh ibit l a r e t r u e a nd c o r r ec t c o p ies o f t h e Unit ed St a t es
P a t ent a nd Tr a dema r k Offic e ("P TO") r eg is t r a t io n c er t ific a t es evidenc ing Gu c c i's o wner s h ip o f
t h es e t r a dema r ks a nd p r int o u t s fr o m t h e P TO's webs it e s et t ing fo r t h t h e s t a t u s o f t h es e
t r a dema r ks . Ea c h ma r k wa s fir s t u s ed in c o mmer c e o n o r a bo u t t h e fir s t da t e o f u s e s et fo r t h in
Exh ibit 1 . Al l o f t h e r eg is t r a t io ns s et fo r t h in Exh ibit 1 a r e va l id, s u bs is t ing , u nr evo ked, a nd
u nc a nc el l ed. Addit io na l l y , ma ny o f t h es e r eg is t r a t io ns a r e inc o nt es t a bl e. Gu c c i a l s o o wns
c o mmo n l a w r ig h t s in t h e a bo ve a nd o t h er ma r ks fo r u s e in c o nnec t io n wit h t h e Gu c c i P r o du c t s .
Th es e r eg is t er ed a nd c o mmo n l a w t r a dema r ks a r e c o l l ec t ivel y r efer r ed t o a s t h e "Gu c c i Ma r ks ."
63. Th e Gu c c i Ma r ks a r e in fu l l fo r c e a nd effec t . Gu c c i h a s never a ba ndo ned t h e
Gu c c i Ma r ks no r h a s Gu c c i ever a ba ndo ned t h e g o o dwil l o f it s bu s ines s es in c o nnec t io n t h er et o .
Gu c c i int ends t o c o nt inu e t o p r es er ve a nd ma int a in it s r ig h t s wit h r es p ec t t o t h e Gu c c i Ma r ks .
64. Gu c c i's webs it e o ffer s va r io u s t y p es o f p r o du c t s fo r s a l e t o Int er net u s er s ,
inc l u ding bu t no t l imit ed t o ba g s , s h o es , wa t c h es , wa l l et s , bel t s , s u ng l a s s es , a c c es s o r ies , l u g g a g e,
a nd h a t s . As t o it s h a ndba g s , Gu c c i c a t eg o r iz es it s h a ndba g s int o a t l ea s t s even differ ent t y p es :
(1 ) c l u t c h es ; (2) evening ; (3) h o bo ba g s ; (4) s h o u l der ba g s ; (5) t o p h a ndl es ; (6) t o t es ; a nd
(7) exo t ic s . Ea c h t y p e o f h a ndba g h a s a differ ent a p p ea r a nc e, fu nc t io n, a nd p u r p o s e. Sh o wn
bel o w is a t r u e a nd a c c u r a t e s c r eens h o t o f Gu c c i's webs it e a t www.g u c c i.c o m, s h o wing t h e
differ ent t y p es o f h a ndba g s s o l d by Gu c c i.
27
io~m ~ ~.Qa~e aao~~~ ~..~:o ~K~ vv ~ s~oPpi
~j ` C C I wo^x^ nun k id s sol e g l h s icons col k d ions worl d of g uccl
., eareh prod uct
h and bap6 viev~al i h obo/sh oul d er totes top h and l es new a~rW ~l a
cl assics voss bod y d utch es/av~nl nq sal e
65. As to its sh oes, Gucci categ oriz es its women's sh oes al one into at l east seven
d if f erent types: (1) pumps; (2) sand al s; (3) moccasins and l oaf ers; (4) f l ats and bal l et f l ats;
(5) sneak ers; and (6) wed g es. Sh own bel ow is a true and accurate screensh ot of Gucci's website
at www.g ucci.com, sh owing th e d if f erent types of women's sh oes sol d by Gucci.
l og in I Reicf i<COUM ~ wn l ut V I SnOpO~
~j L~ C C ~ women men k id s sal e g l h s icons ml l ed ions .wrl d of g ui
seAr~h vrod ~n
wome~s sh oes ~~o, ., u ~...M, , .i~ ~~~a, m f l ats &bal l ot f l ats w.a9 .s
66. As to its watch es, Gucci categ oriz es its women's watch es al one into at l east seven
d if f erent types: (1) oversiz ed ; (2) d iamond s; (3) ch ronog raph ; (4) stainl ess steel ; (5) d ig ital ;
28
(6) l e a t h e r ; a nd (7) s p o r t . Sh o wn be l o w i s a t r u e a nd a c c u r a t e s c r e e ns h o t o f G u c c i ' s we bs i t e a t
www. gu c c i . c o m, s h o wi ng t h e di ffe r e nt t y p e s o f wo me n' s wa t c h e s s o l d by G u c c i .
/-.
_ y . . , , . . ~ e . e ,. . _ ~ . . . , . _ ,. , . ,. . ,~ , ~ . . ~ ~ ,.
i j l _ ~ ~ C I wo me n me n k i ds s a l e gi N s a wns c o l l e c t i o ns . . o dd o f gu c c i
s e a r c h p r o du c t
wo me n' s wa t c h e s v,e w e l l na w e r t i va l ~ di a mo nds r t a i nl e s a r t e . l T l e s t h e r
o ve nl :~ d c h . o no p no h di p i bl a o o r t
BALEN CIAG A
67. Ba l e nc i a ga i s t h e o wne r o f t h e r i gh t , t i t l e , a nd i nt e r e s t i n a nd t o , i nt e r a l i a , t h e
fo l l o wi ng fe de r a l l y r e gi s t e r e d t r a de ma r k s a nd/o r s e r vi c e ma r k s :
Ma r k
Re ./Se r i a l N o . Da t e o f Re i s t r a t i o n
BALEN CIAG A 3,044,207 O 1/17/2006
3,344,631 11/27/2007
BALEN CIAG A IN
1,018 ,311 08 /12/1975
STYLIZED FORM
BALEN CIAG A
' -------. ' --- -- - -, - - - --
-- 3,257,913 07/03/2007
~ ---
0 0
~ ~
.
De s i n
29
68. Annexed h er et o as Exh ibit 2 ar e t r u e and c o r r ec t c o pies o f t h e PTO r eg ist r at io n
c er t ific at es evidenc ing Balenc iag a's o wner sh ip o f t h ese t r ademar ks and pr int o u t s fr o m t h e PTO's
websit e set t ing fo r t h t h e st at u s o f t h ese t r ademar ks. Eac h mar k was fir st u sed in c o ~ n~ ner c e o n o r
abo u t t h e fir st dat e o f u se set fo r t h in Exh ibit 2. All o f t h e r eg ist r at io ns set fo r t h in Exh ibit 2 ar e
valid, su bsist ing , u nr evo ked, and u nc anc elled. Addit io nally , many o f t h ese r eg ist r at io ns ar e
inc o nt est able. Balenc iag a also o wns c o mmo n law r ig h t s in t h e abo ve and o t h er mar ks fo r u se in
c o nnec t io n wit h t h e Balenc iag a Pr o du c t s. Th ese r eg ist er ed and c o mmo n law t r ademar ks ar e
c o llec t ively r efer r ed t o as t h e "Balenc iag a Mar ks."
69. Th e Balenc iag a Mar ks ar e in fu ll fo r c e and effec t . Balenc iag a h as never
abando ned t h e Balenc iag a Mar ks no r h as Balenc iag a ever abando ned t h e g o o dwill o f it s
bu sinesses in c o nnec t io n t h er et o . Baleneiag a int ends t o c o nt inu e t o pr eser ve and maint ain it s
r ig h t s wit h r espec t t o t h e Balenc iag a Mar ks.
70. In 2008, Balenc iag a lau nc h ed an e-c o mmer c e c o mpo nent t o it s websit e in t h e
Unit ed S t at es. Balenc iag a's websit e o ffer s var io u s t y pes o f pr o du c t s fo r sale t o Int er net u ser s,
inc lu ding bu t no t limit ed t o bag s, sh o es, c lo t h ing , br ac elet s, wallet s, su ng lasses, and fr ag r anc es.
As t o it s bag s, Balenc iag a's websit e c at eg o r iz es it s h andbag s int o at least 5 differ ent t y pes: (1)
bac kpac ks; (2) br iefc ases; (3) c r o ss bo dy bag s; (4) sh o u lder bag s; and (5) t o t es. Eac h t y pe o f
h andbag h as a differ ent appear anc e, fu nc t io n, and pu r po se. S h o wn belo w is a t r u e and ac c u r at e
sc r eensh o t o f Balenc iag a's websit e at www.balenc iag a.c o m, sh o wing t h e differ ent t y pes o f
h andbag s so ld by Balenc iag a.
30
~HO~\+lO.+; E A U SHOP ME N BA LE NCIA GA LOOTBO~i( U MA ISOh~~LtE tlCIA Gd
M1A iIJBA ~~ OVE ~VI E ` ~:
5-~+T=~ ~t-.^ SE LE '_Ti0 ` : ~
r Ovor vlew
C.? a eic
Pc Fit: F. 6'. CO~OR
~.' VtE { ` I A I 1.
'. A LA r .R
HI.U F
RE FINE By CA Tc _ OR'/
A ll
B: ~f : ! (P: r NS
6f iE ~Cf ,5E 5
-. ' CP.CSS ~00'i 0A G5
'' Sf ! GU lC: R 6hGS
... TOTE S
71. A s to its shoes, Ba lenc ia ga c a tegor iz es its women's shoes a lone into a t lea st f ive
dif f er ent typ es: (1) a nkle boots; (2) f la ts; (3) la c e up s; (4) moc c a sins; a nd (5) sa nda ls. Shown
below is a tr ue a nd a c c ur a te sc r eenshot of Ba lenc ia ga 's website a t www.ba lenc ia ga .c om,
showing the dif f er ent typ es of women's shoes sold by Ba lenc ia ga .
SHOP WOME N SHOP t~i~` ! BA L~NCIA GA ! OOK6~OOK to P~ip 150,~l BA : .E ~tiCIA .^ ,A
SHOE S O\'c R` i': ~'N
~.... 3. OJ. S...E .-~....
Over c iew
Ca 59w
Sees... .
R: Fi.'~'E 6Y C~_OR
'~i~`
..
-: : VI: W A LI
CoA 'i ...
Pc f l` ; E E '/ <4iE GCRI'
A ll.
': '. ~" ~viE E OOiS
-: FIHi: :
Li.CE VP':
1dOf .G 55IS
-- SG..tlOnl
~~~ - _
31
BOTTEGA V~NETA
72. Bo t t e g a Ve ne t a i s t h e o wne r o f t h e ri g h t , t i t l e , a nd i nt e re s t i n a nd t o , i nt e r a l i a , t h e
fo l l o wi ng fe de ra l l y re g i s t e re d t ra de m a rk s a nd/ o r s e rv i c e m a rk s :
Ma rk
Re g ./ S e ri a l No . Da t e o f Re g i s t ra t i o n
BOTTEGA VENETA 3 , 4 5 4 , 0 21 0 6/ 24 / 20 0 8
B~TTEGA U ENETA
BOTTEGA VENETA 1 , 0 86, 3 95 0 2/ 28/ 1 978
3 , 20 7, 0 24 0 2/ 1 3 / 20 0 7
4 , 5 27, 3 71 5 / 1 3 / 20 1 4
.~ - ~~, ~
x . ~w, .
t
~~
' ~~ ~, ~ ;
, ` , r
I nt re c c i a t o de s i g n
73 . Anne x e d h e re t o a s Ex h i b i t 3 a re t ru e a nd c o rre c t c o p i e s o f t h e PTO re g i s t ra t i o n
c e rt i fi c a t e s e v i de nc i ng Bo t t e g a Ve ne t a ' s o wne rs h i p o f t h e s e t ra de m a rk s a nd p ri nt o u t s fro m t h e
PTO' s we b s i t e s e t t i ng fo rt h t h e s t a t u s o f t h e s e t ra de m a rk s . Ea c h m a rk wa s fi rs t u s e d i n
c o m m e rc e o n a r a b o u t t h e fi rs t da t e o f u s e s e t fo rt h i n Ex h i b i t 3 . Al l o f t h e re g i s t ra t i o ns s e t fo rt h
i n Ex h i b i t 3 a re v a l i d, s u b s i s t i ng , u nre v o k e d, a nd u nc a nc e l l e d. Addi t i o na l l y , m a ny o f t h e s e
re g i s t ra t i o ns a re i nc o nt e s t a b l e . Bo t t e g a Ve ne t a a l s o o wns c o m m o n l a w ri g h t s i n t h e a b o v e a nd
o t h e r m a rk s fo r u s e i n c o nne c t i o n wi t h t h e Bo t t e g a Ve ne t a Pro du c t s . Th e s e re g i s t e re d a nd
c o m m o n l a w t ra de m a rk s a re c o l l e c t i v e l y re fe rre d t o a s t h e "Bo t t e g a Ve ne t a Ma rk s ."
74 . Th e Bo t t e g a Ve ne t a Ma rk s a re i n fu l l fo rc e a nd e ffe c t . Bo t t e g a Ve ne t a h a s ne v e r
a b a ndo ne d t h e Bo t t e g a Ve ne t a Ma rk s no r h a s Bo t t e g a Ve ne t a e v e r a b a ndo ne d t h e g o o dwi l l o f i t s
3 2
b u s i n e s s e s i n con n e cti on th e r e to. Botte ga Ve n e ta i n te n d s to con ti n u e to p r e s e r v e an d m ai n tai n
i ts r i gh ts wi th r e s p e ct to th e Botte ga Ve n e ta Mar ks .
75. Botte ga Ve n e ta's we b s i te of f e r s v ar i ou s typ e s of p r od u cts f or s al e to I n te r n e t
u s e r s , i n cl u d i n g b u t n ot l i m i te d to b ags , s h oe s , cl oth i n g, b e l ts , wal l e ts , s u n gl as s e s , an d j e we l r y.
As to i ts b ags , Botte ga Ve n e ta cl as s i f i e s i ts h an d b ags i n to at l e as t s i x cate gor i e s : (1) cl u tch e s ; (2)
cr os s b od y b ags ; (3) s h ou l d e r an d h ob o b ags ; (4) top h an d l e b ags ; (5) tote b ags ; an d (6) tr ol l e ys
an d car r y-on b ags . Each typ e of h an d b ag h as a d i f f e r e n t ap p e ar an ce , f u n cti on , an d p u r p os e .
Sh own b e l ow i s a tr u e an d accu r ate s cr e e n s h ot of Botte ga Ve n e ta's we b s i te at
www. Botte gav e n e ta. com , d i s p l ayi n g th e v ar i ou s cate gor i e s of h an d b ags of f e r e d f or s al e b y
Botte ga Ve n e ta.
_ . _ . .
awi . . . ~ .
a
76. As to i ts s h oe s , Botte ga Ve n e ta cate gor i z e s i ts wom e n 's s h oe s al on e i n to at l e as t
th r e e d i f f e r e n t typ e s : (1) b oots an d an kl e b oots ; (2) f l ats ; an d (3) p u m p s an d s an d al s . Sh own
b e l ow i s a tr u e an d accu r ate s cr e e n s h ot of Botte ga Ve n e ta's we b s i te at www. b otte gav e n e ta. com ,
s h owi n g th e d i f f e r e n t typ e s of wom e n 's s h oe s s ol d b y Botte ga Ve n e ta.
33
YSL
77. LGI i s t h e owne r of t h e ri g h t , t i t l e , and i nt e re s t i n and t o, i nt e r al i a, t h e fol l owi ng
fe de ral l y re g i s t e re d t rade m ark s and/ or s e rv i c e m ark s :
Mark
Re ./ Se ri al No. Dat e of Re i s t rat i on
YVES SAINT LAURENT 1 , 71 1 , 1 2 7 09/ 01 / 1 992
YVES SAINT LAURENT
} ~ i ~ E~ AINfLAUfZ ~ NT
1 , 74 5 , 4 8 3 01 / 1 2 / 1 98 3
YVES SAINT LAURENT 901 , 660
1 , 71 2 , 998
1 1 / 03 / 1 978
09/ 08 / 1 992
YSL
1 , 71 2 , 999 09/ 08 / 1 992
78 . Anne xe d h e re t o as Exh i b i t 4 are t ru e and c orre c t c op i e s of t h e PTO re g i s t rat i on
c e rt i fi c at e s e v i de nc i ng LGI's owne rs h i p of t h e s e t rade m ark s and p ri nt ou t s from t h e PTO's
we b s i t e s e t t i ng fort h t h e s t at u s of t h e s e t rade m ark s . Eac h m ark was fi rs t u s e d i n c om m e rc e on or
3 4
about th e f i r s t d ate of us e s e t f or th i n E x h i bi t 4 . A l l of th e r e g i s tr ati on s s e t f or th i n E x h i bi t 4 ar e
v al i d , s ubs i s ti n g , un r e v oke d , an d un c an c e l l e d . A d d i ti on al l y , man y of th e s e r e g i s tr ati on s ar e
i n c on te s tabl e . Th e YSL P l ai n ti f f s al s o own c ommon l aw r i g h ts i n th e abov e an d oth e r mar ks f or
us e i n c on n e c ti on wi th th e YSL P r od uc ts . Th e s e r e g i s te r e d an d c ommon l aw tr ad e mar ks ar e
c ol l e c ti v e l y r e f e r r e d to as th e "YSL Mar ks . "
79. Th e YSL Mar ks ar e i n f ul l f or c e an d e f f e c t. Th e YSL P l ai n ti f f s h av e n e v e r
aban d on e d th e YSL Mar ks n or h av e th e YSL P l ai n ti f f s e v e r aban d on e d th e g ood wi l l of th e i r
bus i n e s s e s i n c on n e c ti on th e r e to. Th e YSL P l ai n ti f f s i n te n d to c on ti n ue to p r e s e r v e an d mai n tai n
th e i r r i g h ts wi th r e s p e c t to th e YSL Mar ks .
80. YSL's we bs i te of f e r s v ar i ous ty p e s of p r od uc ts f or s al e to I n te r n e t us e r s ,
i n c l ud i n g but n ot l i mi te d to bag s , s h oe s , c l oth i n g , be l ts , wal l e ts , s un g l as s e s , an d j e we l r y . A s to
i ts c l oth i n g , YSL c l as s i f i e s i ts me n 's c l oth i n g al on e i n to at l e as t n i n e c ate g or i e s : (1) l e ath e r ; (2)
d e n i m; (3) t- s h i r ts an d p ol os ; (4 ) s we ats h i r ts ; (5) kn i twe ar ; (6) s h i r ts ; (7) bl az e r s ; (8) p an ts ; an d
(9) oute r we ar . E ac h ty p e of me n 's c l oth i n g h as a d i f f e r e n t ap p e ar an c e , f un c ti on , an d p ur p os e .
Sh own be l ow i s a tr ue an d ac c ur ate s c r e e n s h ot of YSL's we bs i te at www. y s l . c om, d i s p l ay i n g th e
v ar i ous c ate g or i e s of me n 's c l oth i n g of f e r e d f or s al e by YSL.
SA I NT LA URE NT
P A RI S
v wr uwc ~ r r wus
uwr uun aur ws ~ c v aa~ c r
wwr uu~ ur c auc c r i p w
s our uuuur s r aac i oc aae
y p p
YE R~ M
~ ~ ~ ~ ~ ~ ~ ~ ~ ~
111E P FP ol WE M Cp l E CTg N
Tg l E Up p wuu
f Ml N1ME R t1
OI Ff F00. XW
~ or r owun
o[r : ~
r s +~ i ms . w v n os
s ~ v v n n* s
wmv r i n
s r ms
ai an v
c 'x r s
a~ ~ ~ n
s x oe s
9E LT6
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81. The Gucci, Balenciaga, Bottega Veneta, and YSL Marks have been widely
promoted, both in the United States and throughout the world. P laintif f s' Marks are among the
world' s most f amous and widely recogniz ed, and the public and consumers have come to
recogniz e that P laintif f s' P roducts originate ex clusively with P laintif f s.
82. P laintif f s each maintain strict q uality control standards f or all of their respective
products. Customers, potential customers, and other members of the public and industry
associate P laintif f s' P roducts with ex ceptional materials, style, and workmanship. P laintif f s'
P roducts are among the most popular lux ury products of f ered f or sale in the United States. On
inf ormation and belief , many consumers purchase P laintif f s' P roducts because of P laintif f s'
reputation f or q uality.
83. P laintif f s' P roducts are displayed in their respective advertising and promotional
materials. To date, P laintif f s have spent hundreds of millions of dollars on advertising and
promoting their respective marks and products, and P laintif f s, their predecessors- in-interest, and
their af f iliated companies have enjoyed billions of dollars in sales.
84. P laintif f s' continuous and broad use of their respective marks has ex panded their
renown and enabled P laintif f s to achieve f ame and celebrity in their various product markets.
P laintif f s' reputations are a direct result of their ex tensive advertising and promotion,
concomitant widespread sales, the care and skill utiliz ed in the manuf acturing of their products,
the unif orm high q uality of such products sold under or in connection with P laintif f s' Marks, and
the public acceptance thereof . P laintif f s have created invaluable goodwill throughout the United
States and elsewhere by selling products of dependable q uality. Based on the ex tensive sales of
the P laintif f s' P roducts and the wide popularity of such products, P laintif f s' Marks have
developed a secondary meaning and signif icance in the minds of the purchasing public, and the
36
s e r v i c e s and pr oduc ts uti l i z i ng and/ or b e ar i ng s uc h mar ks and name s ar e i mme di ate l y i de nti f i e d
w i th P l ai nti f f s b y the pw -c has i ng pub l i c .
I I . Counte r f e i ti ng and the I nte r ne t
85. P e r haps the s i ng l e g r e ate s t thr e at to b r and ow ne r s s uc h as P l ai nti f f s i s the g l ob al
c ounte r f e i ti ng tr ade .
86. Re por ts i ntr oduc e d i nto the Cong r e s s i onal Re c or d i ndi c ate that c ounte r f e i ti ng
c os ts U. S. b us i ne s s e s b e tw e e n $200 and $250 b i l l i on e v e r y ye ar and r e s ul ts i n 750,000 l os t
j ob s . 4 2 Cong r e s s has r e c og ni z e d that c ounte r f e i ts not onl y pr e s e nt "`g r av e r i s ks to the he al th and
s af e ty of c ons ume r s of the s e ar ti c l e s ," b ut hav e a "`di r e e f f e c t on the e c onomy"' as w e l l . S. Re p.
No. 104-177, at 2 (1995) (quoti ng H. R. Re p. 98-997, at 5-6 (1984 )).
87. The I nte r ne t has b e c ome an i nc r e as i ng l y popul ar w ay to mar ke t c ounte r f e i t
pr oduc ts f r om Chi na to c ons ume r s g l ob al l y and i n the Uni te d State s b y pr ov i di ng i nc r e as e d
ac c e s s to c us tome r s and al l ow i ng the i nf r i ng i ng g oods to b e s hi ppe d i n s ma11 quanti ti e s to b e tte r
e v ade de te c ti on b y c us toms and othe r l aw e nf or c e me nt or g ans . The l ur e of the I nte r ne t i s e as y to
unde r s tand f r om the c ounte r f e i te r s ' pe r s pe c ti v e : the r e i s a mi ni mal c os t f or ope r ati ng a w e b s i te ,
a de c r e as e d r i s k of pr os e c uti on and, i f the c ounte r f e i te r s ar e f or c e d to s hut dow n one onl i ne s tor e ,
the y c an s i mpl y ope n anothe r .
I I I . De f e ndants ' Bus i ne s s
88. Al i b ab a. c om i s a g l ob al onl i ne w hol e s al e mar ke tpl ac e ow ne d and ope r ate d b y the
Al i b ab a Gr oup. I t w as f ounde d i n Hang z hou, Chi na i n 1999 b y Jac k Ma and s e v e nte e n par tne r s .
Al i b ab a. c om i s anEng l i s h-l ang uag e w hol e s al e mar ke tpl ac e that c onne c ts e x por te r s i n Chi na
4 2
S. Re p. Nn. 104-177, at 2.
37
with g l o b a l b u y e r s . ' The we b s ite wa s fo u nde d "to he l p s ma l l e x p o r te r s e ng a g e d in
ma nu fa ctu r ing a nd tr a ding , p r ima r il y l o ca te d in China , to r e a ch g l o b a l b u y e r s ."4 4 I n 2013,
Al ib a b a . co m wa s China ' s l a r g e s t g l o b a l o nl ine who l e s a l e ma r ke tp l a ce b y r e v e nu e . 4 S
89. The Al ib a b a De fe nda nts a l s o o p e r a te the g l o b a l o nl ine r e ta il ma r ke tp l a ce s Ta o b a o
Ma r ke tp l a ce a nd Al iE x p r e s s . co m. 4 6 De p icte d b e l o w is a g r a p hic ta ke n fr o m Al ib a b a Gr o u p ' s
Fo r m F- 1 r e p r e s e nting the Al ib a b a De fe nda nt' s v a r io u s b u s ine s s e s .
4 3
F- 1 a t 74 .
a s
I d.
a s
F- 1 a t 1.
4 ~ F- 1 a t 1.
90. Taobao Marketplace i s acons umer- to-cons umer ("C2C") onli ne marketplace and
th e larg es t onli ne s h oppi ng platf orm i n Ch i na."
91. Ali Expres s i s a g lobal onli ne cons umer marketplace th at enables cons umers
worldwi de to purch as e products di rectly f rom manuf acturers and wh oles alers i n Ch i na "at
attracti v e pri ces ."4 8 Ali Expres s ' merch ants are pri mari ly s mall and medi um- s i z ed bus i nes s es i n
Ch i na. Ali Expres s i s an Eng li s h-lang uag e s i te; i t als o operates two local lang uag e s i tes i n Rus s i a
and B raz i l. I n th e th ree month s endi ng March 31, 2014 , Ali Expres s ' mos t acti v e buy ers were
f rom th e Uni ted S tates , Rus s i a, and B raz i l
a9
92. S et f orth below i s a g raph i c of th e Ali baba Def endants ' onli ne marketplaces , as
depi cted i n th e Ali baba Group Form F- 1.
~~~~~~~~ Retai l marketplaces
Wh oles ale
Retai l s ellers marketplaces
wno~6e~
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4 7 F- 1 at 1, 7 4 .
4 8 F- 1 at 14 6.
4 9
F- 1 at 166.
B upng -- ~ a S elllnp
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39
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93. The Alibaba Defendants have employees in the U nited S tates and their online
platfor ms r eac h I nter net u ser s wor ldwide, inc lu ding I nter net u ser s loc ated in the U nited S tates.so
94. The Alibaba Defendants have developed what they desc r ibe as an "ec osystem"
ar ou nd their online and mobile platfor ms that "inc lu des bu yer s, seller s, thir d- par ty ser vic e
pr ovider s, str ateg ic allianc e par tner s, and investee c ompanies."s' I n its 2014 For m F- 1, Alibaba
Gr ou p states that it believes this "ec osystem dr ives the livelihood of many of the seller s and
thir d- par ty pr ovider s, and as a r esu lt the inter ests of these par tic ipants ar e alig ned with [ the
Alibaba Defendants' inter ests] to ensu r e the c ontinu ed su c c ess of [ their ] ec osystem."5 2 S et for th
below is a g r aphic of the Alibaba Defendants' "ec osystem," as depic ted in the Alibaba Gr ou p
For m F- 1.
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Link edI n Online Mar k eting Manag er , Taobao I nter national, Job Desc r iption, available at
https://www.link edin.c om/jobs2/view/ 10396095?_mS plash=l.
5 1 F- 1 at 1.
5 2
F- 1 at 142.
95. The Alibaba Defendants der iv e r ev enue p r im ar ily fr om : (1) the online m ar keting
ser v ic es offer ed thr ough their p r op r ietar y m ar keting p latfor m , Alim am a; (2) c om m issions
c har ged for online tr ansac tions; and (3) fees c har ged for their p r ov ision of online ser v ic es.
Additional sour c es of r ev enue ar e m em ber ship fees and fees c har ged for both c loud c om p uting
and v alue-added ser v ic es. In the nine m onths ending Dec em ber 3l , 2013, Alibaba Gr oup
gener ated $6.5 billion in r ev enue and $2.9 billion in net inc om e, and was the lar gest online and
m obile c om m er c e c om p any in the wor ld by gr oss m er c handise v olum e in 2013.~ ~ In the twelv e
m onths ended Dec em ber 31, 2013, the Alibaba Mar ketp lac es gener ated a c om bined $248 billion
in GMV, whic h is m or e than the c om bined GMV of Am azon.c om , Inc . and eBay Inc ,S a
96. In addition to op er ating their online and m obile p latfor m s, the Alibaba Defendants
p lay a c r iC ic al r ole in c onnec ting online m er c hants and c onsum er s ac r oss the globe and "m aking
it p ossible for them to do business any tim e and any wher e."' S The Alibaba Defendants p r ov ide
the nec essar y web-based and m obile infr astr uc tur e to sup p or t their p latfor m s and m er c hants'
businesses, as well as m ar keting ser v ic es to sup p or t their m er c hants' businesses thr ough their
p r op r ietar y online m ar keting p latfor m , Alim am a. The Alibaba Defendants also p r ov ide a
logistic s p latfar m and infor m ation sy stem to help fac ilitate the r eliable deliv er y of their online
m er c hants' p r oduc ts to c onsum er s.5` ' In addition, the Alibaba Defendants p r ov ide loan financ ing
to their m er c hants' businesses thr ough their m ic r o-financ e p r ogr am s'
~ ~ F-1 at 1, 132.
~ ` ~ F-1 at 1; P eater E av is, "Big P r ofits at Alib~ iba, but Filing has Gap s," NY Tim es (May 6, 2014).
55
] C ~ .
~ ~ ' F-1 at 2, 7.
~ ~ F-1 at 38.
41
97. The Alibaba Group's relat ed company, Alipay, provid es payment and escrow
services t o merchant s and consumers across t he Alibaba Defend ant s' online and mobile
plat forms.
98. Alipay provid es " subst ant ially all of t he payment processing and escrow services"
for buyers and sellers on Alibaba's plat farms.5 ` ~
99. Alimama is Alibaba's propriet ary online market ing plat form.5 ' For example and
wit hout limit at ion, Alimama offers pay-for- performance (" P4P" ) services " where sellers bid for
keyword s t hat mat ch prod uct or service list ings appearing in search or browser result s on a cost -
per- click (" CPC" ) basis." ` '" Alimama also offers d isplay marking, where online merchant s bid
for d isplay posit ions on Alibaba's market places " at fixed prices or prices est ablished by a real-
t ime bid d ing syst em on acost -per-t housand impression" (" CPM" ) basis." Alimama ut iliz es
" cloud - based d eep learning ext ensively t o enhance t he consumer t arget ing efficiency" of t he
Alibaba Defend ant s' market ing services.` ''
IV. The Sale of Count erfeit Prod uct s Through t he Alibaba Market places
100. Mass q uant it ies of Count erfeit Prod uct s are offered for sale on t he Alibaba
Market places.
101. Alibaba Group offers t he following self-serving language in it s Form F- 1:
" Alt hough we have ad opt ed measures t o verify t he aut hent icit y of prod uct s sold on our
market places and minimiz e pot ent ial infringement of t hird - part y int ellect ual propert y right s
5 x F- I at 25 .
~ ~ F- 1 at 148.
6 0 F- 1 at 89.
~ ~ F- 1 at 89.
~ '~ F- 1 aC 182.
42
through our i n te l l e c tua l prope rty i n fri n ge me n t c ompl a i n t a n d ta ke-down proc e dure s, the se
me a sL l re s ma y n ot a l wa ys be suc c e ssful . We ma y be subj e c t to a l l e ga ti on s of c i v i l or c ri mi n a l
l i a bi l i ty for un l a wful a c ti v i ti e s c a rri e d out by thi rd pa rti e s through our on l i n e ma rke tpl a c e s.
Whe n we re c e i v e c ompl a i n ts or a l l e ga ti on s re ga rdi n g i n fri n ge me n t or c oun te rfe i t goods, we
fol l ow c e rta i n proc e dure s to v e ri fy the n a ture of the c ompl a i n t a n d the re l e v a n t fa c ts. We be l i e v e
the se proc e dure s a re i mporta n t to e n sure c on fi de n c e i n our ma rke tpl a c e a mon g buye rs a n d
se l l e rs; howe v e r, the se proc e dure s c oul d re sul t i n de l a ys i n de l i sti n gs of a l l e ge dl y i n fri n gi n g
produc t l i sti n gs. In the e v e n t tha t a l l e ge d c oun te rfe i t or i n fri n gi n g produc ts a re l i ste d or sol d on
our ma rke tpl a c e s or our othe r se rv i c e s, we c oul d fa c e c l a i ms for suc h l i sti n gs, sa l e s or a l l e ge d
i n fri n ge me n t or for our fa i l ure to a c t i n a ti me l y or e ffe c ti v e ma n n e r to re stri c t or l i mi t suc h sa l e s
or i n fri n ge me n t. We ma y i mpl e me n t furthe r me a sure s i n a n e ffort to prote c t a ga i n st the se
pote n ti a l l i a bi l i ti e s tha t c oul d re q ui re us to spe n d substa n ti a l a ddi ti on a l re sourc e s a n d/ or
e xpe ri e n c e re duc e d re v e n ue s by di sc on ti n ui n g c e rta i n se rv i c e offe ri n gs. In a ddi ti on , the se
c ha n ge s ma y re duc e the a ttra c ti v e n e ss of our ma rke tpl a c e s a n d othe r se rv i c e s to buye rs, se l l e rs
or othe r use rs." ` ~
102. The Al i ba ba De fe n da n ts a re we l l a wa re tha t: (1) C oun te rfe i t Produc ts a re be i n g
sol d through the Al i ba ba Ma rke tpl a c e s; (2) the i r ta ke down proc e dure s a re un ti me l y a n d
i n e ffe c ti v e ; a n d (3) more e ffe c ti v e proc e dure s woul d l e a d to the Al i ba ba De fe n da n ts'
ma rke tpl a c e s be i n g l e ss a ttra c ti v e to the se l l e rs a n d buye rs of C oun te rfe i t Produc ts, hurti n g the
Al i ba ba De fe n da n ts' bottom l i n e .
~ ~ F-1 a t 33.
43
A. Alibaba.com
103. Alibaba.com, "an English-language marketplace f or global trad e,"` ' ~ knowingly
prov id es a marketplace f or wholesale sellers of C ounterf eit Prod ucts and materials used in
manuf acturing or packaging C ounterf eit Prod ucts.
104. The Alibaba Def end ants v erif y that certain merchants on Alibaba.com are "Gold
S uppliers." I n ord er to become a "Gold S upplier," a merchant must pass the Alibaba
Def end ants' onsite check and pay a membership f ee. Once a merchant becomes a "Gold
S upplier," it receiv es authoriz ation to d isplay the "Gold S upplier" icon in the Alibaba
Marketplace so that Alibaba.com can v ouch f or the merchant' s alleged authenticity and
communicate to consumers that it has inv estigated the merchant and conf irmed that good s sold
by the merchant are lawf ul and legitimate. Accord ing to the Alibaba Group Form F- 1,
"[r]ev enue f rom our global wholesale marketplace is primarily generated f rom the sale of our
"Gold S upplier" memberships on Alibaba.com, which allow wholesalers to host premium
storef ronts, with prod uct listings on the marketplace, as well as v alue ad d ed serv ices, such as
prod uct showcase, custom clearance, v alue- ad d ed tax , or VAT, ref und and other import/ ex port
business solutions."~ ' ~
105. C ertain merchants on Alibaba.com are listed as "Assessed S uppliers." "Assessed
S uppliers" are "Gold S uppliers" that hav e been inspected onsite by a third - party inspection
company. "Assessed S uppliers" of f er inf ormation obtained f rom their f actory aud its, assessment
reports, v erif ied v id eos, and v erif ied main prod ucts. Alibaba.com uses the d esignation
~ 4 F- I at 74.
~ ' ~ F- 1 at 90.
"Assessed S u p p l i er s" t o co mmu ni cat e t o co nsu mer s t h at i t h as i nv est i g at ed su ch mer ch ant s and
t o co nfi r m t h at g o o ds so l d by "Assessed S u p p l i er s" ar e l aw fu l and l eg i t i mat e.
1 0 6 . D esp i t e t h ei r "Go l d S u p p l i er " and "Assessed S u p p l i er " l abel s, "Go l d S u p p l i er "
mer ch ant s and/ o r "Assessed S u p p l i er " mer ch ant s o n Al i baba. co m ar e sel l i ng C o u nt er fei t
P r o du ct s and/ o r o ffer i ng mat er i al s fo r u se i n t h e manu fact u r e o r p ackag i ng o f C o u nt er fei t
P r o du ct s.
1 0 7 . As o f Ju ne 4- 6 , 20 1 4, t h er e w er e at l east 290 sel l er s o ffer i ng co u nt er fei t Gu cci
p r o du ct s o n Al i baba. co m.
1 0 8 . Fo r examp l e, sh o w n bel o w i s an i mag e o f an au t h ent i c Gu cci "o r i g i nal GG canv as
di ap er bag t o t e, " w h i ch r et ai l s fo r $7 95. Th e p r o du ct di sp l ayed bel o w bear s Gu cci ' s feder al l y
r eg i st er ed t r ademar k name, r ep eat i ng "GG" desi g n, and g r een-r ed- g r een st r i p e. S ee Ex. 1 (U. S .
Reg . No s. 8 7 8 , 292; 4, 229, 0 8 1 ; 1 , 1 22, 7 8 0 ) .
1 0 9. I n co mp ar i so n, set fo r t h bel o w i s an i mag e o f a C o u nt er fei t P r o du ct o ffer ed fo r
sal e t o t h e p u bl i c t h r o u g h Al i baba. co m by Hang zh o u Yanbei Tr adi ng C o . , L t d. ("Hang zh o u
Yanbei") , a mer ch ant l i st ed o n Al i baba. co m as bo t h a "Go l d S u p p l i er " and an "Assessed
S u p p l i er , " and w h o l i st s No r t h Amer i ca as o ne o f t h e mai n mar ket s i n w h i ch i t sel l s i t s g o o ds.
Th e p r i ce o f t h e bag i s $2$5 p er u ni t , and t h e sel l er i s o ffer i ng a mi ni mu m o f 2, 0 0 0 u ni t s and u p
45
t o 50,000 u n i t s . The merchan t n o t es t hat t he bag i s "Hi gh Q u al i t y L eat her, PU, cl o t h et c. " an d
"o t her mat eri al s p er cl i en t ' s req u es t " an d t hat "Bu y er' s l o go s/ s i z e/ co l o r are accep t ed, bu y er' s
des i gn i s wel co me. " Al t ho u gh i t i s o bvi o u s t hat Han gz ho u Yan bei i s s el l i n g who l es al e q u an t i t i es
o f C o u n t erfei t Pro du ct s fro m i t s el ect ro n i c s t o re, t he C o u n t erfei t Pro du ct mi mi cs t he des i gn o f
t he han dl es an d o rn amen t at i o n o n t he au t hen t i c Gu cci han dbag s ho wn abo ve an d bears an ex act
co p y o f Gu cci ' s federal l y regi s t ered t rademark n ame, rep eat i n g "GG" des i gn , an d green - red-
green s t ri p e. The C o u n t erfei t Pro du ct i s i n t en ded t o co n fu s e bo t h t he u l t i mat e ret ai l co n s u mer
an d p ers o n s o bs ervi n g t he u l t i mat e co n s u mer i n t o bel i evi n g t hat i t i s a gen u i n e Gu cci p ro du ct .
chy
chy
l 1 0. As a res u l t o f havi n g i n s p ect ed Han gz ho u Yan bei ' s bu s i n es s an d t he fact t hat t he
merchan t s el l s mas s q u an t i t i es o f "Gu cci " bags u s i n g "mat eri al s as p er cl i en t ' s req u es t " fo r
whi ch "bu y er' s des i gn i s wel co me" fo r $2$5 p er p i ece wi t h a 2,000 p i ece mi n i mu m, t he
Al i baba Defen dan t s kn ew t hat t hi s merchan t was s el l i n g C o u n t erfei t Pro du ct s o n Al i baba. co m.
The Al i baba Defen dan t s n evert hel es s co n t i n u ed t o l i s t Han gz ho u Yan bei as a Go l d s u p p l i er an d
an As s es s ed s u p p l i er. The Al i baba Defen dan t s co n t i n u ed t o s u p p l y t he Merchan t Defen dan t wi t h
t he market p l ace, advert i s i n g, an d o t her cru ci al s u p p o rt fo r t he s al e o f t he C o u n t erfei t Pro du ct s i n
vi o l at i o n o f t he L an ham Act .
46
111. F u r t h e r , sh own be low i s an au t h e nt i c Gu c c i "soh o lar g e r e d le at h e r c osme t i c bag , "
wh i c h r e t ai ls f or $380. Th e p r od u c t d i sp lay e d be low be ar s Gu c c i 's f e d e r ally r e g i st e r e d
t r ad e mar k i nt e r loc ki ng non-f ac i ng "GG" d e si g n. Se e Ex. 1 (U.S. Re g . No. 3, 039 , 6 30) .
112. I n c omp ar i son, se t f or t h be low i s an i mag e of a C ou nt e r f e i t Pr od u c t of f e r e d f or
sale t o t h e p u bli c t h r ou g h Ali baba.c om by Yi wu Bot h wi ne r F ash i on Ac c e ssor y C o., L t d . ("Yi wu
Bot h wi ne r") , a me r c h ant li st e d on Ali baba.c om as bot h a "Gold Su p p li e r " and an "Asse sse d
Su p p li e r ." Th e p r i c e of t h e c osme t i c bag i s $3.50$11.00 p e r u ni t , and t h e se lle r i s of f e r i ng a
mi ni mu m of 500 u ni t s and u p t o 10, 000 u ni t s p e r mont h . Th e c osme t i c bag i s mad e of "PU, " or
sy nt h e t i c le at h e r . Th e me r c h ant not e s t h at i t s mai n mar ke t i s Nor t h Ame r i c a and t h at t h e br and
name i s "[ c ] u st omi z e d ." Alt h ou g h i t i s obvi ou s t h at Yi wu Bot h wi ne r i s se lli ng wh ole sale
q u ant i t i e s of C ou nt e r f e i t Pr od u c t s f r om i t s e le c t r oni c st or e , t h e C ou nt e r f e i t Pr od u c t mi mi c s t h e
d e si g n of t h e z i p p e r and t h e or name nt at i on on t h e au t h e nt i c Gu c c i c osme t i c bag sh own above
and be ar s an e xac t c op y of Gu c c i 's f e d e r ally r e g i st e r e d t r ad e mar k i nt e r loc ki ng non-f ac i ng "GG"
d e si g n. Th e C ou nt e r f e i t Pr od u c t i s i nt e nd e d t o c onf u se bot h t h e u lt i mat e r e t ai l c onsu me r and
p e r sons obse r vi ng t h e u lt i mat e c onsu me r i nt o be li e vi ng t h at i t i s a g e nu i ne Gu c c i p r od u c t .
47
1 ~
1 1 3. As a r e su l t of having insp e c t e d Yiwu Bot hwine r 's b u sine ss and t he fac t t hat t he
me r c hant se l l s mass q u ant it ie s of sy nt he t ic l e at he r "Gu c c i" (or "c u st omize d " b r and ) c osme t ic
b ags for $3.50$1 1 .00 p e r p ie c e wit h a c ap ac it y of 1 0,000 p ie c e s p e r mont h, t he Al ib ab a
De fe nd ant s kne w t hat t his me r c hant was se l l ing C ou nt e r fe it P r od u c t s on Al ib ab a.c om. The
Al ib ab a De fe nd ant s ne ve r t he l e ss c ont inu e d t o l ist Yiwu Bot hwine r as a Gol d S u p p l ie r and an
Asse sse d S u p p l ie r . The Al ib ab a De fe nd ant s c ont inu e d t o su p p l y t he Me r c hant De fe nd ant wit h
t he mar ke t p l ac e , ad ve r t ising, and ot he r c r u c ial su p p or t for t he sal e of t he C ou nt e r fe it P r od u c t s in
viol at ion of t he Lanham Ac t .
1 1 4. F u r t he r , shown b e l ow is an au t he nt ic Gu c c i "Le at he r Zip Ar ou nd W al l e t ," whic h
r e t ail s for $495. The p r od u c t d isp l ay e d b e l ow b e ar s Gu c c i's fe d e r al l y r e gist e r e d t r ad e mar k
r e p e at ing "GG" d e sign. S e e Ex. 1 (U.S . Re g. No. 4,2 2 9,08 1 ).
1 1 5. I n c omp ar ison, se t for t h b e l ow is an image of a C ou nt e r fe it P r od u c t offe r e d for
sal e t o t he p u b l ic t hr ou gh Al ib ab a.c om b y De fe nd ant Gu angzhou Yongxing Le at he r Good s Mfg
.
("Guangzhou Yongxing") , a merchant l is ted on Al ibaba.com as both a "Gol d S up p l ier" and an
"As s es s ed S up p l ier." Guangzhou Yongxing is of f ering a minimum of 300 units and up to
50, 000 units p er month. I n ad d ition, the merchant notes that its main market is North America.
Al though it is obvious that Guangzhou Yongxing is s el l ing w hol es al e q uantities of C ounterf eit
Prod ucts f rom its el ectronic s tore, the C ounterf eit Prod uct mimics the d es ign of the zip p er and
ornamentation on the authentic Gucci w al l et s how n above and bears an exact cop y of Gucci' s
f ed eral l y regis tered trad emark rep eating "GG" d es ign. The C ounterf eit Prod uct is intend ed to
conf us e both the ul timate retail cons umer and p ers ons obs erving the ul timate cons umer into
bel ieving that it is a genuine Gucci p rod uct.
116. As a res ul t of having ins p ected Guangzhou Yongxing' s bus ines s and the f act that
the merchant is of f ering to s up p l y up to 50, 000 units of "Gucci" w al l ets p er month s ourced by
"D irect C hines e f actory, " the Al ibaba D ef end ants knew that this merchant w as s el l ing
C ounterf eit Prod ucts on Al ibaba.com. The Al ibaba D ef end ants neverthel es s continued to l is t
Guangzhou Yongxing as a Gol d S up p l ier and an As s es s ed S up p l ier. The Al ibaba D ef end ants
continued to s up p l y the Merchant D ef end ant w ith the marketp l ace, ad vertis ing, and other crucial
s up p ort f or the s al e of the C ounterf eit Prod ucts in viol ation of the Lanham Act.
117. In a d d i t i o n, t h e Ali ba ba De fe nd a nt s kno w me rch a nt s li st e d a s bo t h "Go ld
S u p p li e rs" a nd "Asse sse d S u p p li e rs" o n Ali ba ba .co m a re o ffe ri ng fo r sa le ma t e ri a ls a d v e rt i se d
fo r u se i n ma ki ng C o u nt e rfe i t Pro d u ct s a nd t h e Ali ba ba De fe nd a nt s se ll Pla i nt i ffs' Ma rks a s
ke ywo rd s t o su ch Me rch a nt De fe nd a nt s.
118. Fo r e xa mp le , a se a rch fo r "Gu cci " o n t h e Ali ba ba .co m we bsi t e g e ne ra t e d a li st o f
re su lt s, wh i ch i nclu d e d De fe nd a nt Do ng g u a n Hu a wa ng Le a t h e r C o ., Lt d . ("Do ng g u a n
Hu a wa ng") , a me rch a nt re co g ni ze d a s bo t h a "Go ld S u p p li e r" a nd a n "Asse sse d S u p p li e r" o n
Ali ba ba .co m. Do ng g u a n Hu a wa ng , wh o li st s No rt h Ame ri ca a s o ne o f t h e ma i n ma rke t s i n
wh i ch i t se lls i t s g o o d sli st s 46 i t e ms a d v e rt i se d a s "le a t h e r fo r Gu cci ba g s, be lt s a nd sh o e s."
S e t fo rt h be lo w a re i ma g e s o f Do ng g u a n Hu a wa ng ' s li st i ng s o n Ali ba ba .co m o n o r a bo u t Ma y
22, 2014, a d v e rt i si ng "t o p q u a li t y be a u t i fu l o st ri ch p u le a t h e r fo r g u cci ba g s, " "h i g h q u a li t y &
fa sh i o n p u le a t h e r fo r g u cci ba g s, " a nd "fa sh i o n p u sh o e li ni ng ma t e ri a l fo r g u cci ."
2014 t o p q u a li t y be a t i fu l o st ri ch p u
le a t h e r fo r g u cci ba g s
ro [ sp ~ ~ ~ ~ e : u si z -srr~ e ~ mi i .wcv .m.
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l A p~ . O r t l er O u a n 1 1 1 1 . 5~ 0 V f l r d/ YU~ E s
~ PP~ y ~ ~ ~ I ~ Y' 90000 Ya r t l / V a r ~ s p_r Da y
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FO B Pi l ce: US S2 - 5 I l ~ t er ~ a et Let e~ t Pr i ce
NkeO r dei O u a n l l l y . 500 h b l er 7Ms l er s
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P~ SHE NZHE N
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1 1 9. A s a r es u l t o f t h e A l i b a b a Def en da n t s ' i n s pect i o n o f Do n ggu a n Hu a wa n g's
b u s i n es s a n d t h e f a ct t h a t Do n ggu a n Hu a wa n g i s o f f er i n g 4 6 di f f er en t t y pes o f " a r t i f i ci a l l ea t h er "
o r o t h er f a b r i c " f o r gu cci b a gs ," t h e A l i b a b a Def en da n t s kn ew t h a t t h i s mer ch a n t wa s o f f er i n g
ma t er i a l s u s ed t o ma ke Co u n t er f ei t Pr o du ct s . Th e A l i b a b a Def en da n t s n ever t h el es s co n t i n u ed t o
l i s t Do n ggu a n Hu a wa n g a s a Go l d Su ppl i er a n d A s s es s ed Su ppl i er . Th e A l i b a b a Def en da n t s
co n t i n u ed t o s u ppl y t h e Mer ch a n t Def en da n t wi t h t h e ma r ket pl a ce, a dver t i s i n g, a n d o t h er cr u ci a l
s u ppo r t f o r t h e s a l e o f t h e Co u n t er f ei t Pr o du ct s i n vi o l a t i o n o f t h e La n h a m A ct .
51
120. The Alibaba Defendants use keyword searc hes and other marketing strategies to
direc t c onsumers to the C ounterfeiC Produc ts, as we11 as to the materials and pac kaging used in
c onnec tion with the manufac ture and sale of the C ounterfeit Produc ts.
121. For example, the Alibaba Defendants and/ or their systems and algorithms are
intentionally designed to c ause c onsumers to be offered C ounterfeit Produc ts when they searc h
for brand names ( inc luding Plaintiffs' trademark names) using the searc h func tionality of the
Alibaba Defendants' websites. For example, when the term "Guc c i" is used in a searc h on
Alibaba.eom, the website displays seller listings that offer predominantly C ounterfeit Produc ts.
I t is c lear that the Alibaba Defendants intended these results bec ause they inserted the keyword
"Guc c i" into the metadata on the HTML c ode of web pages generated by suc h searc hes
alongside the additional keywords "synthetic leather."
122. When the term "replic a," a known euphemism for "c ounterfeit," was used as a
searc h term, the word "wristwatc hes" was added by the Alibaba Defendants to the metadata for
that searc h. This c aused sellers of c ounterfeit watc hes bearing the Plaintiffs' Marks to be
displayed in the searc h results.
123. When the term "knoc koff," another c ommon desc ription for c ounterfeit or
infringing goods, was used as a searc h term, the word "handbags" was added by the Alibaba
Defendants to the metadata.
124. These extra keywords and phrases are added using an internal database that
rec ogniz es the keyword searc hed and plac es it deliberately into a c ategory predetermined by the
Alibaba Defendants. Eac h time a searc h results page is generated, a new page is c reated that is
subj ec t to being c rawled and preserv ed by Google and other external searc h engines. Ev ery
searc h results page that Alibaba.c om generates prov ides another opportunity for the searc h to be
52
preserved by Google and ot h er ex t ernal search engines and u lt im at ely fou nd by a consu m er, as
t h e m et adat a on a webpage is a com ponent of t h e algorit h m s u sed by search engines t o locat e
relevant pages for consu m ers.
125. Th e insert ion of addit ional keywords by t h e Alibaba Defendant s represent s an
int ent ional at t em pt t o direct consu m ers t o part icu lar cat egories of, int er alia, C ou nt erfeit
Produ ct s.
126. By way of ex am ple, as not ed above, m erch ant s on Alibaba.com are selling
" art ificial leat h er" advert ised for u se in m anu fact u ring " Gu cci" h andbags and t h e search for
" Gu cci" over Alibaba.co~n will t h u s resu lt in h it s for t h ese m erch ant s. Th e Alibaba Defendant s
are deliberat ely adding t h e keyword ph rase " art ificial leat h er" t o search es for " Gu cci" t o assist
Merch ant Defendant s in finding cu st om ers for t h e art ificial leat h er t h ey are selling for u se in
m aking cou nt erfeit " Gu cci" bags.
127. By way of fu rt h er ex am ple, as not ed above, wh en a u ser t ypes t h e t erm " replica,"
int o t h e search bar on Alibaba.com , Alibaba.com adds t h e t erm " wrist wat ch ," resu lt ing in
nu m erou s h it s for " replica" wat ch es. Th ese m erch ant s of " replica" wrist wat ch es inclu de
m erch ant s selling blat ant ly cou nt erfeit " Gu cci" wrist wat ch es.
128. One su ch list ing, displayed on or abou t Ju ne 6, 2014, was ent it led " Japan m ovt
qu art z wat ch wh olesale replica wat ch es." Th e seller is an Alibaba.com " Gold Su pplier" and
" Assessed Su pplier" m erch ant , Defendant Sh en Zh en Aiers Wat ch C o., Lt d. (" Sh en Zh en
Aiers" ) , offering for sale " Gu cci" wrist wat ch es inclu ding t h e wrist wat ch sh own below, bearing
an ex act copy of Gu cci's federally regist ered t radem ark int erlocking non-facing " GG" design.
Th e wrist wat ch depict ed below is offered by Sh en Zh en Aiers at $0- 100 per piece for a m inim u m
of 500 pieces per order, and t h e sellers offers t o su pply u p t o 30,000 pieces per m ont h .
53
f a s h i o n w a t c h e s ; p r i n c e s s f a s h i o n q u a r t
U Add t o t n c u .y c s t 'Add t o Al y F a Y a r i t e s s n i
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129. T h e a u t h e n t i c Gu c c i w a t c h , de p i c t e d be l o w , r e t a i l s f o r $990. T h e p r o du c t
di s p l a ye d be l o w be a r s Gu c c i 's f e de r a l l y r e g i s t e r e d t r a de ma r k GUCCI n a me a n d i n t e r l o c ki n g
n o n-f a c i n g "GG" de s i g n . Se e Ex. 1 (U.S. Re g . No s . 959,338; 3,4 7 0,14 0) . Al t h o u g h i t i s o bvi o u s
t h a t Sh e n Zh e n Ai e r s i s s e l l i n g w h o l e s a l e q u a n t i t i e s o f Co u n t e r f e i t Pr o du c t s f r o m i t s e l e c t r o n i c
s t o r e , t h e Co u n t e r f e i t Pr o du c t mi mi c s t h e de s i g n o f t h e a u t h e n t i c Gu c c i w r i s t w a t c h s h o w n be l o w
a n d be a r s a n e xa c t c o p y o f Gu c c i 's f e de r a l l y r e g i s t e r e d i n t e r l o c ki n g n o n-f a c i n g "GG" de s i g n .
T h e Co u n t e r f e i t Pr o du c t i s i n t e n de d t o c o n f u s e bo t h t h e u l t i ma t e r e t a i l c o n s u me r a n d p e r s o n s
o bs e r vi n g t h e u l t i ma t e c o n s u me r i n t o be l i e vi n g t h a t i t i s a g e n u i n e Gu c c i p r o du c t .
130. As a r e s u l t o f t h e Al i ba ba D e f e n da n t s ' i n s p e c t i o n o f Sh e n Zh e n Ai e r s ' bu s i n e s s ,
a n d t h e f a c t t h a t Sh e n Zh e n Ai e r s u s e s t h e t e r m "r e p l i c a " t o a dve r t i s e i t s w r i s t w a t c h e s a n d i s
o f f e r i n g t e n s o f t h o u s a n ds o f "Gu c c i " w a t c h e s f o r l e s s t h a n $100 p e r p i e c e , t h e Al i ba ba
D e f e n da n t s kn e w t h a t t h i s me r c h a n t w a s s e l l i n g c o u n t e r f e i t w r i s t w a t c h e s u s i n g t h e Gu c c i Ma r ks .
54
D e s p i t e t h i s knowle dge , t h e Ali baba D e fe ndant s c ont i nu e d t o li s t Sh e n Zh e n Ai e r s as a Gold
Su p p li e r and an As s e s s e d Su p p li e r . Th e Ali baba D e fe ndant s c ont i nu e d t o p r ov i de t h e
m ar ke t p lac e , adv e r t i s i ng, and ot h e r e s s e nt i al s e r v i c e s t o t h e Me r c h ant D e fe ndant , i nc lu di ng t h e
p aym e nt p r oc e s s i ng s e r v i c e s t h at allow Sh e n Zh e n Ai e r s t o c ont i nu e t o s e ll i t s c ou nt e r fe i t
"Gu c c i " wat c h e s .
131. I n addi t i on, t h e Ali baba D e fe ndant s , on i nfor m at i on and be li e f, s old t h e ke ywor d
"r e p li c a" t o Sh e n Zh e n Ai e r s and adde d t h e t e r m "wr i s t wat c h e s " t o s e ar c h e s for "r e p li c a" t o
di r e c t I nt e r ne t br ows e r s t o m e r c h ant s s e lli ng r e p li c a wr i s t wat c h e s , i nc lu di ng c ou nt e r fe i t
wr i s t wat c h e s be ar i ng t h e Gu c c i Mar ks .
132. Anot h e r r e p li c a wr i s t wat c h m e r c h ant , D e fe ndant Sh e nzh e n Me i ge e r Wat c h Co. ,
L t d. ("Sh e nzh e n Me i ge e r") , als o a "Gold Su p p li e r " and "As s e s s e d Su p p li e r ," offe r s t h e
followi ng c ou nt e r fe i t wr i s t wat c h be ar i ng an e xac t c op y of Gu c c i 's fe de r ally r e gi s t e r e d t r ade m ar k
i nt e r loc ki ng non-fac i ng "GG" de s i gn and gr e e n-r e d- gr e e n s t r i p e , at $10$80 p e r p i e c e wi t h a
m i ni m u m of 300 p i e c e s p e r or de r and 200,000 p i e c e s p e r m ont h .
MEGI R
Sh e nzh e n Me i ge e r Wat c h Co. , L t d.
NOOw Pr oEUCi Gt p on~s ~ Com p any ~~~~~~~ ConL Cb
I kn~ + RodxlCaL gv ~ V < ~~i . n. _ ~i I J l ~l~i nl~~I e e ~bar p 4 c Ae i n ~dv e M1~i q wr i s t v ld
All s t ai nle s s s t e e l be np le c h ai n e dv e r t i s i r
~~. u awa 5. [i ~w.
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133. Th e au t h e nt i c "u- p lay c olle c t i on Gu c c i wat c h , de p i c t e d be low, r e t ai ls for $960.
Th e p r odu c t di s p laye d be low be ar s Gu c c i 's fe de r ally r e gi s t e r e d t r ade m ar k GUCCI nam e ,
i nt e r loc ki ng non-fac i ng "GG" de s i gn, and gr e e n-r e d- gr e e n s t r i p e . Se e Ex. 1 (U. S. Re g. Nos .
959,338; 3,4 7 0 ,1 4 0 ; 1 ,1 2 3,2 2 4 ) . Although i t i s obvi ous tha t Shenzhen Mei geer i s s elli ng
w holes a le q ua nti ti es of C ounterfei t P rod uc ts from i ts elec troni c s tore, the C ounterfei t P rod uc t
mi mi c s the d es i gn of the a uthenti c Guc c i w ri s tw a tc h s how n below a nd bea rs a n ex a c t c opy of
Guc c i ' s fed era lly regi s tered tra d ema rk i nterloc ki ng non-fa c i ng "GG" d es i gn a nd green-red- green
s tri pe. The C ounterfei t P rod uc t i s i ntend ed to c onfus e both the ulti ma te reta i l c ons umer a nd
pers ons obs ervi ng the ulti ma te c ons umer i nto beli evi ng tha t i t i s a genui ne Guc c i prod uc t.
1 34 . Moreover, i n res pons e to a q uery from a n I nternet us er a s ki ng a bout a "repli c a
Guc c i w a tc h" Shenzhen Mei geer res pond ed : "Are you looki ng for the Guc c i repli c a w a tc h,
ri ght. I t ha ppen tha t our fa c tory ha ve s uc h mod els a s a tta c hed pi c ture. P lea s e c hec k tha t i f you
li ke them or not. " Shenzhen Mei geer a tta c hed i ma ges of d i gi ta l w a tc hes bea ri ng the Guc c i
Ma rks , i nc lud i ng the pi c ture below , a nd s old P la i nti ffs ' i nves ti ga tor a s a mple of the w a tc h
d epi c ted below for $1 30 plus tra ns fer fees on or a bout June 2 6, 2 0 1 4 , for s hi pment to New York.
The s eller noted tha t "ma s s ord er pri c e w i ll be $63. 5 us d . " Shenzhen Mei geer a ls o opera tes a
w ebs i te, w w w . brepli c a . c om, i n w hi c h i t boa s ts tha t "HK Bea la n I nterna ti ona l I nd us tri a l C o. ,
Ltd , es ta bli s hed i n Ja nua ry 2 0 0 7 , s pec i a li zi ng i n d evelopi ng a nd ma nufa c turi ng the bra nd of
Rolc x , C a rti er, LV, P a nera i , Omega , Guc c i , Bvlga ri , Brei tli ng, Ta g Heuer, P a tek P hi li ppe, Ra d o,
56
Mont Blanc, A.Lange & Sohne, P i aget, Vacheron C ons tanti n, Franck Muller and s o on. To the
s ty les of each brand, we can make 98% of them, and all watches are wi th refi ned q uali ty and
wholes ale p ri ce."
135. The authenti c " I- gucci collecti on watch," dep i cted below, retai ls for $ 1,4 95.
136. On or about June 26, 2014 , P lai nti ffs ' i nv es ti gator p urchas ed a s amp le of the
counterfei t watch from Shenzhen Mei geer for s hi p ment to the Uni ted States .
137. As a res ult of the Ali baba Defendants ' i ns p ecti on of Shenzhen Mei geer' s bus i nes s
and the fact that Shenzhen Mei geer us es the term " rep li ca" to adv erti s e i ts wri s twatches and i s
57
o f f e r i n g mass q u an t i t i e s o f "Gu cci " wat che s f o r l e ss t han $100 pe r pi e ce , t he Al i baba De f e n dan t s
kn e w t hat She n zhe n Me i g e e r was se l l i n g co u n t e r f e i t wr i st wat che s be ar i n g t he Gu cci Mar ks.
De spi t e t hi s kn o wl e dg e , t he Al i baba De f e n dan t s co n t i n u e d t o l i st She n zhe n Me i g e e r as a Go l d
Su ppl i e r an d an Asse sse d Su ppl i e r . The Al i baba De f e n dan t s co n t i n u e d t o pr o vi de t he
mar ke t pl ace , adve r t i si n g , an d o t he r e sse n t i al se r vi ce s t o t he Me r chan t De f e n dan t , i n cl u di n g t he
payme n t pr o ce ssi n g se r vi ce s t hat al l o w She n zhe n Me i g e e r t o co n t i n u e t o se l l i t s co u n t e r f e i t
"Gu cci " wat che s.
138. I n addi t i o n , t he Al i baba De f e n dan t s, o n i n f o r mat i o n an d be l i e f , so l d t he ke ywo r d
"r e pl i ca" t o She n zhe n Me i g e e r , an d adde d t he t e r m "wr i st wat che s" t o se ar che s f o r "r e pl i ca" t o
di r e ct I n t e r n e t br o wse r s t o me r chan t s se l l i n g r e pl i ca wr i st wat che s, i n cl u di n g co u n t e r f e i t
wr i st wat che s be ar i n g t he Gu cci Mar ks.
139. De f e n dan t She n zhe n Babyl o n Wat ch Co ., Lt d. ("She n zhe n Babyl o n") i s an o t he r
r e pl i ca wr i st wat ch me r chan t t hat appe ar s i n t he se ar ch r e su l t s whe n a br o wse r se ar che s "r e pl i ca"
o n Al i baba.co m. She n zhe n Babyl o n , a "Go l d Su ppl i e r " wi t h an "o n si t e che ck, " o f f e r s
co u n t e r f e i t "Lu xu r y wat e r pr o o f hi g h q u al i t y r e pl i ca wat che s, " i n cl u di n g t he wat ch de pi ct e d
be l o w, whi ch be ar s an e xact co py o f Gu cci 's f e de r al l y r e g i st e r e d r e pe at i n g "GG" de si g n
t r ade mar k. She n zhe n Babyl o n i s o f f e r i n g t he co u n t e r f e i t Gu cci wat ch di spl aye d be l o w f o r $I S
$28 pe r pi e ce , wi t h a mi n i mu m o f 500 pi e ce s pe r o r de r an d u p t o 20, 000 pi e ce s pe r mo n t h.
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140. The a u t hen t i c Gu c c i wa t c h, d ep i c t ed below, r et a i ls f or $895. The p r od u c t
d i s p la y ed below bea r s Gu c c i ' s f ed er a lly r eg i s t er ed t r a d ema r k GUCCI n a me a n d r ep ea t i n g "GG"
d es i g n . See Ex. 1 (U.S. Reg . Nos . 959,338; 4,2 2 9,081) .
141. As a r es u lt of t he Ali ba ba Def en d a n t s ' i n s p ec t i on of Shen zhen Ba by lon ' s bu s i n es s
a n d t he f a c t t ha t Shen zhen Ba by lon u s es t he t er m "r ep li c a " t o a d v er t i s e i t s wr i s t wa t c hes a n d i s
of f er i n g ma s s q u a n t i t i es of "Gu c c i " wa t c hes f or les s t ha n $100 p er p i ec e, t he Ali ba ba Def en d a n t s
kn ew t ha t Shen zhen Ba by lon wa s s elli n g c ou n t er f ei t wr i s t wa t c hes bea r i n g t he Gu c c i Ma r ks .
Des p i t e t hi s kn owled g e, t he Ali ba ba Def en d a n t s c on t i n u ed t o li s t Shen zhen Ba by lon a s a Gold
Su p p li er . The Ali ba ba Def en d a n t s c on t i n u ed t o p r ov i d e t he ma r ket p la c e, a d v er t i s i n g , a n d ot her
es s en t i a l s er v i c es t o t he Mer c ha n t Def en d a n t , i n c lu d i n g t he p a y men t p r oc es s i n g s er v i c es t ha t
a llow Shen zhen Ba by lon t o c on t i n u e t o s ell i t s c ou n t er f ei t "Gu c c i " wa t c hes .
142 . In a d d i t i on , t he Ali ba ba Def en d a n t s , on i n f or ma t i on a n d beli ef , s old t he key wor d
"r ep li c a " t o Shen zhen Ba by lon , a n d a d d ed t he t er m "wr i s t wa t c hes " t o s ea r c hes f or "r ep li c a " t o
d i r ec t In t er n et br ows er s t o mer c ha n t s s elli n g r ep li c a wr i s t wa t c hes , i n c lu d i n g c ou n t er f ei t
wr i s t wa t c hes bea r i n g t he Gu c c i Ma r ks .
59
1 ~3. These " r ep l i c a " mer c ha nts a r e r ep r esenta ti v e of numer ous si mi l a r mer c ha nts
offer i ng for sa l e w r i stw a tc hes b ea r i ng P l a i nti ffs' Ma r ks on Al i b a b a .c om w i th the Al i b a b a
Defenda nts' a c tua l know l edg e.
1 44. I n a ddi ti on to steer i ng c onsumer s to sel l er s of C ounter fei t P r oduc ts a nd ma ter i a l s
used to ma nufa c tur e suc h p r oduc ts thr oug h the use of sea r c hes i nc or p or a ti ng keyw or ds c hosen
for thei r sp ec i fi c a ssoc i a ti ons w i th suc h c ounter fei t g oods on Al i b a b a .c om, the r ep r esenta ti v es of
the Al i b a b a Defenda nts a l so di r ec tl y eng a g e w i th p r osp ec ti v e p ur c ha ser s to a ssi st them i n
c onnec ti ng w i th the mer c ha nts sel l i ng C ounter fei t P r oduc ts on Al i b a b a .c om.
1 45. When a p r osp ec ti v e p ur c ha ser ma kes a r eq uest to a mer c ha nt on Al i b a b a .c om, the
r eq uest for m c onta i ns a b ox to c hec k i f the p ur c ha ser w a nts to b e noti fi ed of other sel l er s of the
sa me p r oduc t. Thi s b ox i s a tool used b y the Al i b a b a Defenda nts to ma tc h p r osp ec ti v e
p ur c ha ser s of C ounter fei t P r oduc ts w i th sel l er s offer i ng suc h C ounter fei t P r oduc ts. By w a y of
exa mp l e, w hen one I nter net user l oc a ted i n New Yor k r ea c hed out to a mer c ha nt sel l i ng b r a nded
p a c ka g i ng , mi ni mum 1 000 p er or der , on Al i b a b a .c om, l ea v i ng the noti fi c a ti on b ox c hec ked, the
sa me I nter net user w a s l a ter c onta c ted b y a r ep r esenta ti v e of the Al i b a b a Defenda nts, a n
" Al i sour c eP r o Rep ," offer i ng to p a i r hi m w i th other mer c ha nts sel l i ng ma ss q ua nti ti es of si mi l a r
b r a nded p a c ka g i ng . On i nfor ma ti on a nd b el i ef, Al i b a b a ' s " Al i sour c eP r oRep s" r eg ul a r l y a ssi st i n
p a i r i ng b uyer s w i th sel l er s of C ounter fei t P r oduc ts, a nd ma ter i a l s used to ma nufa c tur e or sel l the
C ounter fei t P r oduc ts.
1 46. Mor eov er , Al i b a b a .c om a l so a c ti v el y sug g ests mer c ha nts to i ts c ustomer s b a sed
on keyw or ds the c ustomer s ha v e p r ev i ousl y sea r c hed, i nc l udi ng sug g esti ng mer c ha nts sel l i ng
C ounter fei t P r oduc ts.
.1
147. For example and w i t h ou t li mi t at i on, t h e Ali baba Defendant s su g g est ed t h at
P lai nt i ffs' i nv est i g at or mi g h t be i nt erest ed, based on pri or keyw ord searc h es on Ali baba.c om, i n
t h e Ali baba.c om merc h ant selli ng t h e w at c h depi c t ed below ( beari ng Gu c c i ' s federally reg i st ered
t rademark i nt erloc ki ng non-fac i ng "GG" desi g n) at $2.33$5.21 per pi ec e, for a mi ni mu m order
of 500 pi ec es and u p t o 8, 000, 000 per mont h .
B. Taobao.c om
148. Onli ne merc h ant s are req u i red t o v eri fy t h ei r i dent i t y before li st i ng t h ei r produ c t s
and serv i c es on i ndi v i du al st orefront s w i t h i n t h e Taobao M arket plac e.~ b A bu si ness t h at i nt ends
t o open a st orefront i n t h e Taobao M arket plac e mu st prov i de c orporat e doc u ment s and an
i ndi v i du al mu st prov i de a ph ot og raph sh ow i ng , h i s or h er fac e and an ID c ard t o open a st orefront
i n t h e Taobao M arket plac e.
149. N ot w i t h st andi ng t h e Ali baba Defendant s' assert ed c ont rols and v eri fi c at i on of
sellers' i dent i t i es, t h e sale of c ou nt erfei t g oods beari ng P lai nt i ffs' M arks i s rampant i n t h e
Taobao M arket plac e.
150. As of Ju ne 4- 6 , 2014, t h ere w ere at least 6 97 sellers of "Gu c c i " produ c t s on
Taobao.c om w h ose li st i ng s openly ac know ledg ed t h at t h e produ c t s w ere c ou nt erfei t , offeri ng for
sale more t h an 1, 400 C ou nt erfei t P rodu c t s u si ng t h e Gu c c i M arks w i t h ou t au t h ori z at i on.
6 6
F- 1 at 153.
6 1
151. As of June 4- 6 , 2014, t h er e wer e a t l ea st 707 sel l er s of "Bot t ega Venet a " p r od uc t s
on Ta oba o.c om wh ose l i st i ngs op enl y a c knowl ed ged t h a t t h e p r od uc t s wer e c ount er fei t , offer i ng
for sa l e mor e t h a n 4, 6 00 C ount er fei t Pr od uc t s usi ng t h e Bot t ega Venet a Ma r ks wi t h out
a ut h or i z a t i on.
152. Ac c or d i ng t o one r ep or t , on Ap r i l 22, 2013, mor e t h a n 2, 000 sh op s on
Ta oba o.c om wer e i d ent i fi ed a s sel l i ng fa ke Guc c i ba gs. Dur i ng t h e t h i r t y- d a y p er i od bet ween
Ma r c h 22, 2013 a nd Ap r i l 22, 2013, mor e t h a n 37, 000 fa ke Guc c i ba gs wer e sol d i n t h e Ta oba o
Ma r ket p l a c e by a t l ea st 1300 sh op s i n t h e Ta oba o Ma r ket p l a c e.
153. Ac c or d i ng t o t h e sa me r ep or t , on Ap r i l 22, 2013, t h er e wer e 2, 000 sh op s on
Ta oba o.c om i d ent i fi ed a s sel l i ng fa ke Guc c i sh oes. Dur i ng t h e t h i r t y- d a y p er i od bet ween Ma r c h
22, 2013 a nd Ap r i l 22, 2013, mor e t h a n 26 , 000 fa ke Guc c i p a i r s of sh oes wer e sol d on
Ta oba o.c om by a t l ea st 1400 sh op s i n t h e Ta oba o Ma r ket p l a c e.
154. Dur i ng t h e p er i od bet ween Ma y 16 , 2014 a nd June 16 , 2014, mor e t h a n 37, 000
c ount er fei t Guc c i ba gs wer e sol d on Ta oba o.c om. 2, 731 d i ffer ent vend or s offer i ng c ount er fei t
Guc c i ba gs wer e i d ent i fi ed i n t h e Ta oba o Ma r ket p l a c e d ur i ng t h e sa me p er i od .
I55. Dur i ng t h e p er i od bet ween Ma y 16 , 2014 a nd June 16 , 2014, mor e t h a n 7, 000
p a i r s of c ount er fei t Guc c i sh oes wer e sol d on Ta oba o.c om. 1, 342 d i ffer ent vend or s offer i ng
c ount er fei t Guc c i sh oes wer e i d ent i fi ed i n t h e Ta oba o Ma r ket p l a c e d ur i ng t h e sa me p er i od .
156 . Pl a i nt i ffs h a ve not i fi ed t h e Al i ba ba Defend a nt s on numer ous oc c a si ons t h r ough
Ta oba o.c om's not i c e a nd t a ked own p r oc ed ur es of t h e p r esenc e of mer c h a nt s sel l i ng C ount er fei t
Pr od uc t s on t h e websi t e.
157. On a ver a ge, i t t ook Ta oba o Ma r ket p l a c e 10- 15 d a ys t o r emove a n i nfr i ngi ng
l i st i ng, i f i t d i d so a t a l l . Typ i c a l l y, i f Ta oba o Ma r ket p l a c e d i d r emove t h e i nfr i ngi ng sel l er 's
6 2
l i s t i n g , t h e s ame s e l l e r woul d s oon r e ap p e ar on t h e Taobao Mar ke t p l ace of f e r i n g C oun t e r f e i t
Pr oduct s f or s al e .
158. Si n ce Fe br uar y 2014, r e p r e s e n t at i v e s of Gucci f i l e d n ot i ce s con ce r n i n g at l e as t
n i n e di f f e r e n t me r ch an t s s e l l i n g C oun t e r f e i t Pr oduct s on Taobao. com wh o con t i n ue d t o s e l l s uch
p r oduct s we e ks or mon t h s f ol l owi n g Gucci 's f i l i n g of t h e n ot i ce s . Si n ce Mar ch 2014, Bot t e g a
Ve n e t a f i l e d n ot i ce s con ce r n i n g at l e as t e i g h t di f f e r e n t me r ch an t s s e l l i n g coun t e r f e i t Bot t e g a
Ve n e t a bag s wh o con t i n ue d t o s e l l s uch p r oduct s we e ks or mon t h s f ol l owi n g Bot t e g a Ve n e t a's
f i l i n g of t h e n ot i ce s .
159. For e xamp l e an d wi t h out l i mi t at i on , De f e n dan t VANC S Wh e r e Bouxi que was
of f e r i n g f ox s al e C oun t e r f e i t Pr oduct s , n ame l y f oot we ar , be ar i n g t h e Gucci Mar ks . On or ar oun d
May 21, 2014, Pl ai n t i f f s ' r e p r e s e n t at i v e s af t e r i n s p e ct i n g VANC S Wh e r e Bout i que 's p r oduct s
an d v e r i f yi n g t h at t h e me r ch an t was s e l l i n g C oun t e r f e i t Pr oduct s n ot i f i e d t h e Taobao
Mar ke t p l ace t h at VANC S Wh e r e Bout i que was of f e r i n g C oun t e r f e i t Pr oduct s f or s al e t h r oug h
Taobao. com. Taobao Mar ke t p l ace cl ai me d t h at i t coul d n ot con f i r m t h e i n f r i n g e me n t be caus e
t h e s e l l e r 's l i n k was n o l on g e r act i v e . Non e t h e l e s s , VANC S Wh e r e Bout i que con t i n ue d t o
mar ke t i t s C oun t e r f e i t Pr oduct s t h r oug h Taobao. com. On Jun e 2, 2014, Pl ai n t i f f s ' i n v e s t i g at or
p ur ch as e d coun t e r f e i t s h oe s f r om VANC S Wh e r e Bout i que t h r oug h Taobao. com f or s h i p me n t t o
Ne w Yor k. Pl ai n t i f f s ' i n v e s t i g at or p ai d f or t h e or de r us i n g a Vi s a cr e di t car d an d t h e t r an s act i on
was p r oce s s e d t h r oug h Al i p ay. Th e coun t e r f e i t s h oe s , de p i ct e d be l ow, be ar Gucci 's f e de r al l y
r e g i s t e r e d r e p e at i n g "GG" de s i g n t r ade mar k, . s e e Ex. 1 (U. S. Re g . No. 4, 229, 081) , an d ar e be i n g
of f e r e d f or s al e by VANC S Wh e r e Bout i que f or 268 RMB, wh i ch i s ap p r oxi mat e l y $40 a p ai r .
I n addi t i on , on or about Jun e 18, 2014, Pl ai n t i f f s ' r e p r e s e n t at i v e s i n s p e ct e d p r oduct s r e ce i v e d
63
from VANCS Where Boutique and v erified that the merchant is s el l ing counterfeit s hoes b earing
the Gucci Marks .
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1 60. The Al ib ab a Defendants know that VANCS Where Boutique is s el l ing
Counterfeit Products not onl y b ecaus e of repeated s al es at patentl y unreal is tic prices
( approximatel y $40 for a pair of s hoes that retail s for cl os e to $500), b ut for the v ery s impl e
reas on that Gucci tol d them that the products VANCS Where Boutique was s el l ing were
counterfeit. The Al ib ab a Defendants enab l ed this known s el l er of counterfeits to effectuate s al es
of Counterfeit Products b y prov iding the marketpl ace, adv ertis ing , and other s erv ices to the
Merchant Defendant, incl uding payment proces s ing s erv ices .
1 61 . VANCS Where Boutique is b y no means the onl y known counterfeiter ab out
whom the Taob ao Marketpl ace was expres s l y notified b y Pl aintiffs throug h Taob ao.com' s
notice and takedown procedures yet whom the Al ib ab a Defendants continued to as s is t in
s el l ing Counterfeit Products throug h Taob ao.com.
1 62. Defendant Spring Rain Leather Goods was al s o s el l ing Counterfeit Products to
I nternet us ers throug h Taob ao.com. On April 1 8, 201 4, Pl aintiffs ' repres entativ es after
ins pecting Spring Rain Leather Goods ' products and v erifying that the merchant was s el l ing
Counterfeit Productsnotified the Taob ao Marketpl ace that Spring Rain Leather Goods was
offering Counterfeit Products for s al e throug h Taob ao.com. Nonethel es s , Spring Rain Leather
Goods continued to market Counterfeit Products throug h Taob ao.com. On June 2, 201 4,
approximately one month af ter P laintif f s ' repres entativ es notif ied Taobao Marketplace that
Spring Rain Leather Good s ' online s toref ront was of f ering C ou nterf eit P rod u cts , Spring Rain
Leather Good s s old a cou nterf eit bag to P laintif f s ' inv es tigator throu gh Taobao.com f or s hipment
to New York. P laintif f s ' inv es tigator paid f or the ord er u s ing a Vis a cred it card and the
trans action was proces s ed throu gh Alipay. The bag, d epicted below, bears Gu cci' s f ed erally
regis tered repeating "GG" d es ign trad emark, s ee Ex. 1 (U.S. Reg. No. 4 , 2 2 9 , 0 8 1 ) , and is of f ered
f or s ale by Spring Rain Leather Good s f or 1 30 RMB, which is approximately $2 1 . On or abou t
Ju ne 1 9 , 2 0 1 4 , P laintif f s ' repres entativ es ins pected prod u cts receiv ed f rom Spring Rain Leather
Good s and v erif ied that the merchant is s elling cou nterf eit bags bearing the Gu cci Marks . The
Alibaba Def end ants enabled this known s eller of cou nterf eits to ef f ectu ate s ales of its C ou nterf eit
P rod u cts by prov id ing the marketplace, ad v ertis ing, and other cru cial s erv ices to the Merchant
Def end ant, inclu d ing payment proces s ing s erv ices .
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m F 3 ~ I ~ i L. ~ ~ ~ ' 6 ~ ~ P 4 f 3
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1 6 3. Def end ant C elebrity Shoe was als o s elling C ou nterf eit P rod u cts to I nternet u s ers
throu gh Taobao.com, and on April 2 5, 2 0 1 4 , P laintif f s ' repres entativ es af ter ins pecting
C elebrity Shoe' s prod u cts and v erif ying that the merchant was s elling C ou nterf eit P rod u cts
notif ied the Taobao Marketplace of that f act. Nonetheles s , C elebrity Shoe continu ed to market
C ou nterf eit P rod u cts throu gh Taobao.com. On Ju ne 2 , 2 0 1 4 , approximately one month af ter
P laintif f s ' repres entativ es notif ied Taobao Marketplace that C elebrity Shoe' s online s toref ront
6 5
was o f f e r i n g C o u n t e r f e i t P r o d u c t s, C e l e b r i t y Sho e so l d c o u n t e r f e i t sho e s t o P l ai n t i f f s'
i n v e st i g at o r t hr o u g h Tao b ao .c o m f o r shi pme n t t o Ne w Yo r k. P l ai n t i f f s' i n v e st i g at o r pai d f o r t he
o r d e r u si n g a Vi sa c r e d i t c ar d an d t he t r an sac t i o n was pr o c e sse d t hr o u g h A l i pay . The sho e s,
d e pi c t e d b e l o w, b e ar Gu c c i ' s f e d e r al l y r e g i st e r e d r e pe at i n g "GG" d e si g n an d g r e e n-r e d- g r e e n
st r i pe mar ks, se e Ex. 1 (U.S. Re g . No s. 1 , 4 8 3 , 5 2 6 ; 4 , 2 2 9 , 0 8 1 ) , an d ar e o f f e r e d f o r sal e b y
C e l e b r i t y Sho e f o r 3 0 0 RMB, whi c h i s appr o xi mat e l y $4 8 , a pai r . On o r ab o u t Ju n e 1 7 , 2 0 1 4 ,
P l ai n t i f f s' r e pr e se n t at i v e s i n spe c t e d pr o d u c t s r e c e i v e d f r o m C e l e b r i t y Sho e an d v e r i f i e d t hat t he
me r c han t i s se l l i n g c o u n t e r f e i t sho e s b e ar i n g t he Gu c c i Mar ks. The A l i b ab a De f e n d an t s e n ab l e d
t hi s kn o wn se l l e r o f c o u n t e r f e i t s t o e f f e c t u at e sal e s o f i t s C o u n t e r f e i t P r o d u c t s b y pr o v i d i n g t he
mar ke t pl ac e , ad v e r t i si n g , an d o t he r c r u c i al se r v i c e s t o t he Me r c han t De f e n d an t , i n c l u d i n g
pay me n t pr o c e ssi n g se r v i c e s.
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1 6 4 . De f e n d an t Ji n l o n g L u xu r y C i t y was al so se l l i n g C o u n t e r f e i t P r o d u c t s t o In t e r n e t
u se r s t hr o u g h Tao b ao .c o m, an d o n May 2 1 , 2 0 1 4 , P l ai n t i f f s' r e pr e se n t at i v e saf t e r i n spe c t i n g
Ji n l o n g L u xu r y C i t y ' s pr o d u c t s an d v e r i f y i n g t hat t he me r c han t was se l l i n g C o u n t e r f e i t
P r o d u c t sn o t i f i e d t he Tao b ao Mar ke t pl ac e o f t hat f ac t . No n e t he l e ss, Ji n l o n g L u xu r y C i t y
c o n t i n u e d t o mar ke t C o u n t e r f e i t P r o d u c t s t hr o u g h Tao b ao .c o m. On Ju n e 2 , 2 0 1 4 , Ji n l o n g
L u xu r y C i t y so l d c o u n t e r f e i t sho e s t o P l ai n t i f f s' i n v e st i g at o r t hr o u g h Tao b ao .c o m f o r shi pme n t
t o Ne w Yo r k. P l ai n t i f f s' i n v e st i g at o r pai d f o r t he o r d e r u si n g a Vi sa c r e d i t c ar d an d t he
t r a n s a c t i o n wa s p r o c e s s e d t h r o u g h A l i p a y . Th e s h o e s , d e p i c t e d be l o w, be a r G u c c i ' s f e d e r a l l y
r e g i s t e r e d r e p e a t i n g "G G " d e s i g n a n d g r e e n -r e d- g r e e n s t r i p e ma r ks , s e e Ex. 1 (U. S. Re g . No s .
1 , 4 8 3 , 5 2 6 ; 4 , 2 2 9 , 0 8 1 ) , a n d a r e o f f e r e d f o r s a l e by J i n l o n g Lu xu r y C i t y f o r 3 5 0 RMB, wh i c h i s
a p p r o xi ma t e l y $5 6 , p e r p a i r . On o r a bo u t J u n e 1 7 , 2 0 1 4 , P l a i n t i f f s ' r e p r e s e n t a t i v e s i n s p e c t e d
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s h o e s be a r i n g t h e G u c c i Ma r ks . Th e A l i ba ba De f e n d a n t s e n a bl e d t h i s kn o wn s e l l e r o f
c o u n t e r f e i t s t o e f f e c t u a t e s a l e s o f i t s C o u n t e r f e i t P r o d u c t s by p r o v i d i n g t h e ma r ke t p l a c e ,
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u s e r s t h r o u g h Ta o ba o . c o m, a n d o n Ma y 7 , 2 0 1 4 , P l a i n t i f f s ' r e p r e s e n t a t i v e sa f t e r i n s p e c t i n g
G u c c i Fa s h i o n Sh o p ' s p r o d u c t s a n d v e r i f y i n g t h a t t h e me r c h a n t wa s s e l l i n g C o u n t e r f e i t
P r o d u c t sn o t i f i e d t h e Ta o ba o Ma r ke t p l a c e o f t h a t f a c t . No n e t h e l e s s , G u c c i Fa s h i o n Sh o p
c o n t i n u e d t o ma r ke t C o u n t e r f e i t P r o d u c t s t h r o u g h Ta o ba o . c o m. On J u n e 2 , 2 0 1 4 , a p p r o xi ma t e l y
o n e mo n t h a f t e r P l a i n t i f f s ' r e p r e s e n t a t i v e s n o t i f i e d Ta o ba o Ma r ke t p l a c e t h a t G u c c i Fa s h i o n
Sh o p ' s o n l i n e St o r e f r o n t wa s o f f e r i n g C o u n t e r f e i t P r o d u c t s , G u c c i Fa s h i o n Sh o p s o l d a p a i r o f
c o u n t e r f e i t s h o e s t o P l a i n t i f f s ' i n v e s t i g a t o r t h r o u g h Ta o ba o . c o m f o r s h i p me n t t o Ne w Yo r k.
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p r o c e s s e d t h r o u g h Al i p a y. Th e s h o e s , d e p i c t e d be l o w, be a r Gu c c i ' s f e d e r a l l y r e g i s t e r e d
r e p e a t i n g "GG" d e s i g n a n d g r e e n -r e d- g r e e n s t r i p e ma r ks , s e e Ex. 1 (U.S. Re g . No s . 1 ,4 8 3 ,5 2 6 ;
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a p p r o xi ma t e l y $5 3 , p e r p a i r . On o r a bo u t Ju n e 1 8 , 2 0 1 4 , P l a i n t i f f s ' r e p r e s e n t a t i v e s i n s p e c t e d
p r o d u c t s r e c e i v e d f r o m Gu c c i Fa s h i o n Sh o p a n d v e r i f i e d t h a t t h e me r c h a n t i s s e l l i n g c o u n t e r f e i t
s h o e s be a r i n g t h e Gu c c i Ma r ks . Th e Al i ba ba De f e n d a n t s e n a bl e d t h i s kn o wn s e l l e r o f
c o u n t e r f e i t s t o e f f e c t u a t e s a l e s o f i t s C o u n t e r f e i t P r o d u c t s by p r o v i d i n g t h e ma r ke t p l a c e ,
a d v e r t i s i n g , a n d o t h e r c r u c i a l s e r v i c e s t o t h e Me r c h a n t De f e n d a n t , i n c l u d i n g p a yme n t p r o c e s s i n g
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u s e r s t h r o u g h Ta o ba o .c o m, a n d o n Ap r i l 1 6 , 2 0 1 4 , P l a i n t i f f s ' r e p r e s e n t a t i v e s a f t e r i n s p e c t i n g
Hu i mi n g L e a t h e r Ma l l ' s p r o d u c t s a n d v e r i f yi n g t h a t t h e me r c h a n t wa s s e l l i n g C o u n t e r f e i t
P r o d u c t s n o t i f i e d t h e Ta o ba o Ma r ke t p l a c e o f t h a t f a c t . No n e t h e l e s s , Hu i mi n g L e a t h e r Ma l l
c o n t i n u e d t o ma r ke t C o u n t e r f e i t P r o d u c t s o n Ta o ba o .c o m. On Ju n e 1 9 , 2 0 1 4 , l e s s t h a n t wo
mo n t h s a f t e r P l a i n t i f f s ' r e p r e s e n t a t i v e s n o t i f i e d Ta o ba o Ma r ke t p l a c e t h a t Hu i mi n g L e a t h e r
Ma l l ' s o n l i n e s t o r e f r o n t wa s o f f e r i n g C o u n t e r f e i t P r o d u c t s , Hu i mi n g L e a t h e r Ma l l s o l d a
c o u n t e r f e i t "Gu c c i " ba g t o P l a i n t i f f s ' i n v e s t i g a t o r t h r o u g h Ta o ba o .c o m f o r s h i p me n t t o Ne w
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York. P l a i n t i f f s ' i n v e s t i g a t or p a i d f or C h e ord e r u s i n g a Vi s a c re d i t c a rd a n d t h e t ra n s a c t i on wa s
p roc e s s e d t h rou g h A l i p a y . Th e C ou n t e rf e i t P rod u c t wa s re c e i v e d on or a bou t Ju n e 27, 2014.
Th e ba g , d e p i c t e d be l ow, be a rs Gu c c i ' s f e d e ra l l y re g i s t e re d i n t e rl oc ki n g n on -f a c i n g "GG" d e s i g n
t ra d e ma rk, s e e Ex. 1 (U.S. Re g . No. 3 ,03 9 ,6 3 0) , a n d i s of f e re d f or s a l e by Hu i mi n g Le a t h e r Ma l l
f or 13 00 RMB, wh i c h i s a p p roxi ma t e l y $209 . P l a i n t i f f s ' re p re s e n t a t i v e s i n s p e c t e d t h e be l ow
i t e m s ol d by Hu i mi n g Le a t h e r Ma l ] a n d h a v e d e t e rmi n e d t h a t t h e ba g i s c ou n t e rf e i t .
16 7. De f e n d a n t Hon g Kon g Lon g i t u d e a n d La t i t u d e I n t e rn a t i on a l Tra d i n g wa s a l s o
s e l l i n g C ou n t e rf e i t P rod u c t s t o I n t e rn e t u s e rs t h rou g h Ta oba o.c om, a n d on Fe bru a ry 24, 2014,
P l a i n t i f f s ' re p re s e n t a t i v e s a f t e r i n s p e c t i n g Hon g Kon g Lon g i t u d e a n d La t i t u d e I n t e rn a t i on a l
Tra d i n g ' s p rod u c t s a n d v e ri f y i n g t h a t t h e me rc h a n t wa s s e l l i n g C ou n t e rf e i t P rod u c t s n ot i f i e d
Ta oba o Ma rke t p l a c e of t h a t f a c t . Non e t h e l e s s , Hon g Kon g Lon g i t u d e a n d La t i t u d e I n t e rn a t i on a l
Tra d i n g c on t i n u e d t o ma rke t C ou n t e rf e i t P rod u c t s on Ta oba o.c om. On Ju n e 19 , 2014, l e s s t h a n
f ou r mon t h s a f t e r P l a i n t i f f s ' re p re s e n t a t i v e s n ot i f i e d t h e Ta oba o Ma rke t p l a c e t h a t Hon g Kon g
Lon g i t u d e a n d La t i t u d e I n t e rn a t i on a l Tra d i n g ' s on l i n e s t ore f ron t wa s of f e ri n g C ou n t e rf e i t
P rod u c t s , Hon g Kon g Lon g i t u d e a n d La t i t u d e I n t e rn a t i on a l Tra d i n g s ol d a c ou n t e rf e i t "Gu c c i "
ba g t o P l a i n t i f f s ' i n v e s t i g a t or t h rou g h Ta oba o.c om f or s h i p me n t t o Ne w York. P l a i n t i f f s '
i n v e s t i g a t or p a i d f or t h e ord e r u s i n g a Vi s a c re d i t c a rd a n d t h e t ra n s a c t i on wa s p roc e s s e d t h rou g h
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A l i p a y . The c o u n t er f ei t ba g wa s d el i v er ed t o New Yo r k. The ba g, d ep i c t ed bel o w, bea r s
Gu c c i 's f ed er a l l y r egi st er ed r ep ea t i n g "GG" d esi gn t r a d em a r k, see Ex. 1 (U. S. Reg. No .
4 ,2 2 9 ,0 8 1 ) , a n d i s o f f er ed f o r sa l e by Ho n g Ko n g Lo n gi t u d e a n d La t i t u d e I n t er n a t i o n a l Tr a d i n g
f o r 1 2 55 RMB, whi c h i s a p p r o xi m a t el y $2 0 2 . On o r a bo u t Ju n e 1 7, 2 0 1 4 , P l a i n t i f f s'
r ep r esen t a t i v es i n sp ec t ed p r o d u c t s r ec ei v ed f r o m Ho n g Ko n g Lo n gi t u d e a n d La t i t u d e
I n t er n a t i o n a l Tr a d i n g a n d v er i f i ed t ha t t he m er c ha n t i s sel l i n g c o u n t er f ei t ba gs bea r i n g t he Gu c c i
Ma r ks. The A l i ba ba Def en d a n t s en a bl ed t hi s kn o wn sel l er o f c o u n t er f ei t s t o ef f ec t u a t e sa l es o f
i t s C o u n t er f ei t P r o d u c t s by p r o v i d i n g t he m a r ket p l a c e, a d v er t i si n g, a n d o t her c r u c i a l ser v i c es t o
t he Mer c ha n t Def en d a n t , i n c l u d i n g p a y m en t p r o c essi n g ser v i c es.
1 68 . Def en d a n t C o c o Fa shi o n St y l e wa s a l so sel l i n g C o u n t er f ei t P r o d u c t s t o I n t er n et
u ser s t hr o u gh Ta o ba o . c o m . On A p r i l 2 5, 2 0 1 4 , P l a i n t i f f s' r ep r esen t a t i v esa f t er i n sp ec t i n g
C o c o Fa shi o n St y l e's p r o d u c t s a n d v er i f y i n g t ha t t he m er c ha n t wa s sel l i n g C o u n t er f ei t
P r o d u c t sn o t i f i ed t he Ta o ba o Ma r ket p l a c e t ha t C o c o Fa shi o n St y l e wa s o f f er i n g c o u n t er f ei t
Bo t t ega Ven et a ba gs a n d wa l l et s t o I n t er n et u ser s t hr o u gh Ta o ba o . c o m . Nev er t hel ess, C o c o
Fa shi o n St y l e c o n t i n u ed t o m a r ket C o u n t er f ei t P r o d u c t s o n Ta o ba o . c o m . On Ju n e 1 9 , 2 0 1 4 , l ess
t ha n t wo m o n t hs a f t er P l a i n t i f f s' r ep r esen t a t i v es n o t i f i ed Ta o ba o Ma r ket p l a c e t ha t C o c o Fa shi o n
St y l e's o n l i n e st o r ef r o n t wa s o f f er i n g C o u n t er f ei t P r o d u c t s, C o c o Fa shi o n St y l e so l d a
c o u n t er f ei t Bo t t ega Ven et a wa l l et t o P l a i n t i f f s' i n v est i ga t o r t hr o u gh Ta o ba o . c o m f o r shi p m en t t o
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New York. P l a i n t i f f s ' i n v es t i g a t or p a i d f or t h e ord er u s i n g a Vi s a c red i t c a rd a n d t h e t ra n s a c t i on
wa s p roc es s ed t h rou g h A l i p a y . Th e c ou n t erf ei t wa l l et , d ep i c t ed bel ow, bea rs B ot t eg a Ven et a ' s
f ed era l l y reg i s t ered i n t rec c i a t o d es i g n t ra d em a rk, s ee Ex. 3 (U.S. Reg . No. 4 , 5 2 7 , 37 1 ) , a n d wa s
p u rc h a s ed a f t er Ta oba o Ma rket p l a c e wa s p u t on n ot i c e t h a t Coc o Fa s h i on St y l e wa s s el l i n g
Cou n t erf ei t Good s . Th e p rod u c t d i s p l a y ed bel ow i s of f ered f or s a l e by Coc o Fa s h i on St y l e f or
2 5 8 RMB , wh i c h i s a p p roxi m a t el y $4 2 . P l a i n t i f f s ' rep res en t a t i v es i n s p ec t ed p rod u c t s rec ei v ed
f rom Coc o Fa s h i on St y l e a n d v eri f i ed t h a t t h e m erc h a n t i s s el l i n g c ou n t erf ei t ba g s a n d wa l l et s
bea ri n g t h e B ot t eg a Ven et a Ma rks , i n c l u d i n g B ot t eg a Ven et a ' s reg i s t ered t ra d em a rk n a m e. Th e
A l i ba ba Def en d a n t s en a bl ed t h i s kn own s el l er of c ou n t erf ei t s t o ef f ec t u a t e s a l es of i t s Cou n t erf ei t
P rod u c t s by p rov i d i n g t h e m a rket p l a c e, a d v ert i s i n g , a n d ot h er c ru c i a l s erv i c es t o t h e Merc h a n t
Def en d a n t , i n c l u d i n g p a y m en t p roc es s i n g s erv i c es .
1 69. Th e A l i ba ba Def en d a n t s a s s i s t ed t h es e kn own s el l ers of c ou n t erf ei t s i n c on t i n u i n g
t o s el l t h ei r Cou n t erf ei t P rod u c t s by p rov i d i n g t h e m a rket p l a c e, a d v ert i s i n g , a n d ot h er c ri t i c a l
s erv i c es t o t h e Merc h a n t Def en d a n t s , i n c l u d i n g p a y m en t p roc es s i n g s erv i c es , a f t er rec ei v i n g
exp res s n ot i f i c a t i on f rom P l a i n t i f f s t h a t t h e s el l ers were of f eri n g Cou n t erf ei t P rod u c t s .
1 7 0. Th e A l i ba ba Def en d a n t s c on t i n u ed t o p rov i d e t h es e Merc h a n t Def en d a n t s wi t h t h e
m a rket p l a c e t o s el l t h e Cou n t erf ei t P rod u c t s a f t er rec ei v i n g exp res s n ot i f i c a t i on f rom P l a i n t i f f s
t h a t t h e m erc h a n t s were s el l i n g Cou n t erf ei t P rod u c t s . Th e A l i ba ba Def en d a n t s p rov i d ed
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a d d i t i o n a l s u b s t a n t i a l a s s i s t a n c e t o t h e Me rc h a n t De fe n d a n t s s e l l i n g t h e C o u n t e rfe i t Pro d u c t s
d e s c ri b e d a b o ve , i n c l u d i n g , wi t h o u t l i m i t a t i o n , o n l i n e m a rk e t i n g , pa ym e n t pro c e s s i n g , a n d
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De fe n d a n t s we re o ffe ri n g C o u n t e rfe i t Pro d u c t s . Be l o w a re e xa m pl e s o f pro d u c t s re c e n t l y
pu rc h a s e d fro m s e l l e rs o n Ta o b a o . c o m fo r s h i pm e n t t o Ne w Yo rk . Al t h o u g h i t i s c l e a r fro m t h e
l i s t i n g s t h a t t h e pro d u c t s a re c o u n t e rfe i t b a s e d o n t h e pa t e n t l y u n re a l i s t i c pri c e po i n t s a n d o t h e r
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re g i s t e re d Ba l e n c i a g a t ra d e m a rk n a m e . Se e Ex. 2 (U. S. Re g . No . 1,018 ,311) .
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an d the f act that the merchan t s ells "Balen ci aga" s hoes f or approxi mately $52 per pai r, the
Ali baba D ef en dan ts kn ew that thi s merchan t was s elli n g coun terf ei t s hoes beari n g the Balen ci aga
Marks . D es pi te thi s kn owledge, the Ali baba D ef en dan ts con ti n ued to provi de the marketplace,
adverti s i n g, an d other es s en ti al s ervi ces to the Merchan t D ef en dan t, i n cludi n g the paymen t
proces s i n g s ervi ces that allow Ladyli dy Shop to con ti n ue to s ell i ts coun terf ei t "Balen ci aga"
s hoes .
73
Case 1:14-cv-05119-PKC Document 9-1 Filed 07/24/14 Page 1 of 72
176. As a r e su l t of t h e combinat ion of t h e p at e nt l y fal se p r ice p oint s of t h e se it e ms
w it h t h e bl at ant u se of P l aint iffs' Mar ks and ot h e r infor mat ion know n t o t h e Al ibaba De fe ndant s
abou t t h e se Me r ch ant De fe ndant s and t h e p r odu ct s t h at t h e y offe r for sal e , t h e Al ibaba
De fe ndant s kne w t h at t h e goods de scr ibe d above w e r e C ou nt e r fe it P r odu ct s, know ingl y al l ow e d
t h e Me r ch ant De fe ndant s t o offe r t h e C ou nt e r fe it P r odu ct s on t h e Taobao Mar ke t p l ace , and
p r ovide d addit ional se r vice s incl u ding onl ine mar ke t ing, p ay me nt p r oce ssing, and sh ip p ing
se r vice s t o t h e cou nt e r fe it e r s.
177. On infor mat ion and be l ie f, t h e Al ibaba De fe ndant s al so know t h at some or al l of
t h e Me r ch ant De fe ndant s de scr ibe d above and ot h e r simil ar l y sit u at e d me r ch ant s ar e se l l ing
C ou nt e r fe it P r odu ct s be cau se P l aint iffs or ot h e r br and ow ne r s h ave p r e viou sl y r e p or t e d su ch
me r ch ant s or t h e ir bu sine ss p ar t ne r s t o t h e Al ibaba De fe ndant s.
C . Al iExp r e ss.com
178. Al iExp r e ss.com, a " gl obal consu me r mar ke t p l ace t h at e nabl e s e xp or t e r s in C h ina
t o r e ach and dir e ct l y t r ansact w it h consu me r s ar ou nd t h e w or l d," ~ ' al so know ingl y p r ovide s a
mar ke t p l ace for me r ch ant s e ngage d in t h e sal e of t h e C ou nt e r fe it P r odu ct s.
179. As of Ju ne 4-6 2014, t h e r e w e r e at l e ast 131 me r ch ant s se l l ing cou nt e r fe it Gu cci
p r odu ct s on Al iExp r e ss.com.
180. As of Ju ne 4-6, 2014, t h e r e w e r e at l e ast 1, 000 me r ch ant s se l l ing cou nt e r fe it
Bot t e ga Ve ne t a p r odu ct s on Al iExp r e ss.com.
181. Sh ow n be l ow is an image of an au t h e nt ic YSL T-sh ir t , w h ich r e t ail s for $295.
Th e p r odu ct disp l ay e d be l ow be ar s YSL' s fe de r al l y r e gist e r e d t r ade mar k YSL name . Se e Ex. 4
(U.S. Re g. Nos. 1, 712, 999; 1, 711, 127) .
~ ' ' F-1 at 7~ 1.
74
182. I n comparison , se t f ort h be low is an image of a C ou n t e rf e it Produ ct of f e re d f or
sale t o t h e pu blic t h rou gh AliExpre ss.com by De f e n dan t Fash ion Zon e L t d. ("Fash ion Zon e") .
Th e price of t h e T- sh irt is $14.99 pe r pie ce . Alt h ou gh it is appare n t t h at Fash ion Zon e is se llin g
C ou n t e rf e it Produ ct s f rom it s e le ct ron ic st ore , t h e C ou n t e rf e it Produ ct mimics t h e logo an d
de sign of t h e au t h e n t ic YSL T- sh irt sh own above an d be ars an e xact copy of YSL 's f e de rally
re gist e re d t rade mark n ame . Th e C ou n t e rf e it Produ ct is in t e n de d t o con f u se bot h t h e u lt imat e
re t ail con su me r an d pe rson s obse rvin g t h e u lt imat e con su me r in t o be lie vin g t h at it is a ge n u in e
YSL produ ct .
183. Th e C ou n t e rf e it Produ ct above was pu rch ase d f rom De f e n dan t Fash ion Zon e
t h rou gh AliExpre ss by Plain t if f s' in ve st igat or on or abou t Ju n e 1, 2014, f or sh ipme n t t o Ne w
York. Plain t if f s' in ve st igat or paid f or t h e orde r u sin g a Visa cre dit card an d t h e t ran sact ion was
proce sse d t h rou gh Alipay. Th e T- sh irt was re ce ive d on or abou t Ju n e 23, 2014. Plain t if f s'
re pre se n t at ive s in spe ct e d t h e T- Sh irt sold by Fash ion Zon e an d con f irme d t h at it is cou n t e rf e it .
75
184. As a r e su l t of t h e fac t t h at Fash ion Zone offe r e d a $295 T- S h ir t for $14.99 and
ot h e r infor m at ion known t o t h e Al ibaba De fe nd ant s abou t Fash ion Zone and t h e p r od u c t s t h at it
offe r s for sal e , t h e Al ibaba De fe nd ant s kne w t h at Fash ion Zone was se l l ing C ou nt e r fe it P r od u c t s,
knowing l y al l owe d t h e m e r c h ant t o offe r it s C ou nt e r fe it P r od u c t s on Al iE x p r e ss, and p r ov id e d
ad d it ional c r it ic al se r v ic e sinc l u d ing onl ine m ar ke t ing , p aym e nt p r oc e ssing , and sh ip p ing
se r v ic e st o t h e Me r c h ant De fe nd ant t h at al l ow Fash ion Zone t o c ont inu e t o se l l it s C ou nt e r fe it
P r od u c t s.
185. Fu r t h e r , sh own be l ow is an im ag e of an au t h e nt ic Gu c c i " O r ig inal GG C anv as
Diap e r Bag Tot e , " wh ic h r e t ail s for $795. Th e p r od u c t d isp l aye d be l ow be ar s Gu c c i' s fe d e r al l y
r e g ist e r e d t r ad e m ar k GUC C I nam e , r e p e at ing " GG" d e sig n, and g r e e n-r e d - g r e e n st r ip e . S e e E x .
1 (U.S . Re g . Nos. 878, 292; 4, 229, 0 81; 1, 122, 780 ) .
186. In c om p ar ison, se t for t h be l ow is an im ag e of a C ou nt e r fe it P r od u c t offe r e d
wh ol e sal e t o t h e p u bl ic t h r ou g h Al iE x p r e ss.c om by De fe nd ant S t ar Fac t or y. Th e p r ic e of t h e
h and bag is $9.90 . Al t h ou g h it is ap p ar e nt t h at S t ar Fac t or y is se l l ing C ou nt e r fe it P r od u c t s fr om
it s e l e c t r onic st or e , t h e C ou nt e r fe it P r od u c t m im ic s t h e d e sig n of t h e h and l e s and or nam e nt at ion
of t h e au t h e nt ic Gu c c i h and bag sh own abov e and be ar s an e x ac t c op y of Gu c c i' s fe d e r al l y
r e g ist e r e d t r ad e m ar k nam e , r e p e at ing " GG" d e sig n, and g r e e n-r e d - g r e e n st r ip e . Th e C ou nt e r fe it
76
Product i s i n te n de d to con fus e b oth th e ul ti m a te re ta i l con s um e r a n d p e rs on s ob s e rv i n g th e
ul ti m a te con s um e r i n to b e l i e v i n g th a t i t i s a g e n ui n e Gucci p roduct.
1 8 7 . Th e C oun te rfe i t Product a b ov e wa s p urch a s e d from De fe n da n t S ta r F a ctory
th roug h A l i E x p re s s b y Pl a i n ti ffs ' i n v e s ti g a tor on or a b out Jun e 1 , 201 4, a n d wa s s h i p p e d to th e
Un i te d S ta te s a n d re ce i v e d on or a b out Jun e 1 2, 201 4. Pl a i n ti ffs ' i n v e s ti g a tor p a i d for th e orde r
us i n g a Vi s a cre di t ca rd a n d th e tra n s a cti on wa s p roce s s e d th roug h A l i p a y . Pl a i n ti ffs '
re p re s e n ta ti v e s i n s p e cte d th e a b ov e i te m s ol d b y S ta r F a ctory a n d con fi rm e d th a t th e b a g i s
coun te rfe i t.
1 8 8 . A s a re s ul t of th e fa ct th a t S ta r F a ctory offe re d a $7 95 h a n db a g for $9. 90 a n d
oth e r i n form a ti on kn own to th e A l i b a b a De fe n da n ts a b out S ta r F a ctory a n d th e p roducts th a t i t
offe rs for s a l e , th e A l i b a b a De fe n da n ts kn e w th a t S ta r F a ctory wa s s e l l i n g C oun te rfe i t Products ,
kn owi n g l y a l l owe d th e m e rch a n t to offe r th e C oun te rfe i t Products on A l i E x p re s s , a n d p rov i de d
a ddi ti on a l cri ti ca l s e rv i ce s i n cl udi n g on l i n e m a rke ti n g , p a y m e n t p roce s s i n g , a n d s h i p p i n g
s e rv i ce s th a t a l l ow S ta r F a ctory to con ti n ue to s e l l i ts C oun te rfe i t Products .
1 8 9. On i n form a ti on a n d b e l i e f, th e A l i b a b a De fe n da n ts a l s o kn ow th a t s om e or a l l of
th e Me rch a n t De fe n da n ts de s cri b e d a b ov e a n d oth e r s i m i l a rl y s i tua te d m e rch a n ts a re s e l l i n g
C oun te rfe i t Products b e ca us e Pl a i n ti ffs or oth e r b ra n d own e rs h a v e p re v i ous l y re p orte d s uch
m e rch a n ts or th e i r b us i n e s s p a rtn e rs to th e A l i b a b a De fe n da n ts .
7 7
190. AliExpress.com su g g est s keywords desig n ed t o st eer con su mers t o t h e C ou n t erf eit
P rodu ct s. For example, t ypin g t h e search t erm "Gu cci" resu lt s in su g g est ed keywords "cu cci,"
"cu cci b ag s," "g u ch i," "g u ch i b ag s," an d similar. Th e sellers u sin g t h ese misspellin g s in t h eir
list in g s are sellin g produ ct s u sin g copies of P lain t if f s' reg ist ered t rademarks.
~C+n ~pp~,Y Ylt n ~b er.~~
~., i.: y,y a u ,~,
~~ coca caos
- * ..n
qu Ox
a
owv wa emr. is esm
7~ ~
wn t ro ~~n ~
qu N~ wa~w eh w~ It l ~mab
a rvi9 ~leN 1prw~h
WC t l wOf IM
a~,m eat
eOOM EQrt a1b
.mn ~a rc.n ,
q,.an eren ewiza~re.~
191. A search perf ormed on or arou n d Ju n e 6, 2014, u sin g t h e keyword "g u ch i"
yielded 211 resu lt s, in clu din g sellers of f erin g g oods b earin g t h e Gu cci Marks. Below is on e su ch
example of a seller, a merch an t u sin g t h e n ame Xiaoh u i Jin ' s S t ore, of f erin g C ou n t erf eit
P rodu ct s an d describ in g t h e it ems as "as g ood as t h e orig in al on es, b u t n ot as dear as orig in al
on es in you r cou n t ry."
Free S h ippin g ~~~~~~~~h an db ag g u ch i In C rossb ody Bag s
as same as orig in al do.
N"~ US 5128.90 ~P ~
g a r. P ricy
` - +h ~oP ~~9
FrN !h ippin g M Un rt et l S t it es via C h n a P ost An IAad
Deliw~- 1 S 78 days (z~ios ou t N~t Ain 7 day: )
C Oior i
an al 1 : pet s
Tola~Rf ce C epen OS On ln e v~eC Ut l o~oDe~Aes you aet ed
below.
192. Xiaohui J in ' s S t or e als o of f er s p r od uc t s ad v er t is ed as B ot t eg a Ven et a, as s hown
~ myc n t p p m~c ls t wr a n ~oap aYwW
I NMl~p s qr f wen
L~ W 11~
0141
4VNB .
f V~t w IM iaN
. FT86!
lMVw
IbVI' In e bi
C3[~
r n il r l
1~r 1 N11ef ~1 GOAf C 1iY111
. aVV.at .~r Me
!~.t ~
....' _ ..
N~wl
~~:J
OHe~f ~ N~~~ ~~~~~ ~,J /n eg
f uM1iM
Q G]IIGt l MPr
~ ~a0 w awn uu ~
Hhmq
.._ _ . _ '
193. The Xiaohui J in ' s S t or e web p ag e in c lud es lan g uag e below t he Coun t er f eit
Pr od uc t s in d ic at in g t he p r od uc t s ar e " r ep lic as ."
79
these i tem a r e n o t so go o d. I n stea d. they a r e a s go o d a s the o r i gi n a l o n es, b u t n o t a s dea r a s o r i gi n a l o n es m y o u r
c o u n tr y .
i f y o u wa n t to tel l the di f f er en c e b e~ r f een A u then ti c a n d O E A ~ 1 f o r m Ho n g Ko n g, a m a gn i f y i n g gl a ss i s n ec essa r y .
To b e b r i ef , o u r i tem s ha ve hi gh q u a l i ty a n d l o w p r i c e b u t the hi ghest c o st p er f o r m a n c e! Yo u c a n b u y thi s k i n d o f sp ec i a l
o f f er f r o m u s a t a l o w p r i c e du e to Chi n a a s Wo r l d Ma n u f a c to r y a n d ha ve p o v~ er deb a se p r i c e b u t k eep hi gh q u a l l t/ .' N e
ha ve a dep a r tm en t sto r e i n N a n j i n g r o a d i n Sha n gha i a n d a n o ther sto r e i n E Ba y . A l tho u gh we c o m e to a l i ex p r ess n o t
ver y l o n g ti m e, y o u Su i tt r em em b er the X i a o hu l J i n a t Br st dea l wi th u s. I N e o f f er b i g di sc o u n t to who l esa l er ! We del ete the
i tem c l o se o u t I so c hr o n o u s, so ever y I tem di sp l a y y o u c a n see i s i n sto c k , Yo u c a n see i t. y o u c a n b u y I t a n d y o u c a n get
i t. So even we a r e n o t o n l i n e. y o u c a n b u y i t n o w. When y o u see y o u r i tem s, y o u m u st l i k e i t. I i o u r sto r e ha s n o t wha t
y o u wa n t, y o u c a n l ea ve a m essa ge a t a n y I tem b el o w. We wi l l sto c k the i tem y o u ha ve a sk ed b ef o r e a s so c n a s
p o ssi b l e.
1 94. X i a o hu i J i n ' s Sto r e i s c l ea r l y en ga ged i n vi o l a ti o n s o f the La n ha m A c t a s sho wn
b y i ts u se o f P l a i n ti f f s' Ma r k s a n d i ts l a n gu a ge a dm i tti n g the go o ds a r e n o t a u then ti c . The
A l i b a b a Def en da n ts k n ew tha t X i a o hu i J i n ' s Sto r e wa s sel l i n g Co u n ter f ei t P r o du c ts a s a r esu l t o f
thi s a dm i ssi o n . The A l i b a b a Def en da n ts en a b l ed thi s sel f -p r o c l a i m ed sel l er o f c o u n ter f ei ts to
ef f ec tu a te sa l es o f the Co u n ter f ei t P r o du c ts b y p r o vi di n g the m a r k etp l a c e a n d o ther ser vi c es,
i n c l u di n g p a y m en t p r o c essi n g ser vi c es.
1 95. I n a ddi ti o n , the sea r c h r esu l ts f o r the k ey wo r d "Gu c c i " i n c l u de m er c ha n ts u si n g
the ter m "Gu c c i " i n thei r sel l er l i sti n g, b u t o f f er i n g f o r sa l e p r o du c ts b ea r i n g P l a i n ti f f s' Ma r k s.
1 96. I n ten ti o n a l m i ssp el l i n gs su c h a s "gu c hi " a n d "c u c c i " a r e del i b er a tel y su ggested to
web b r o wser s o f A l i E x p r ess.c o m b y the A l i b a b a Def en da n ts, a n d a r e desi gn ed to a l l o w the
m er c ha n t to eva de detec ti o n b y b r a n d o wn er s. They sho w tha t the A l i b a b a Def en da n ts k n ew the
Mer c ha n t Def en da n ts wer e sel l i n g c o u n ter f ei ts b u t c o n ti n u ed to p r o vi de the m a r k etp l a c e f o r the
sa l e o f Co u n ter f ei t P r o du c ts a n d to sel l k ey wo r ds to the c o u n ter f ei ter s.
1 97. Mo r eo ver , A l i E x p r ess.c o m a l so a c ti vel y su ggests m er c ha n ts to i ts c u sto m er s
b a sed o n the c u sto m er s' r ec en t o r der s, i n c l u di n g m er c ha n ts sel l i n g Co u n ter f ei t P r o du c ts.
A l i E x p r ess.c o m c l a i m s tha t i t r ec o m m en ds "so m e o f [ i ts] b est su p p l i er s" to "hel p [ c o n su m er s]
tr a de m o r e sa f el y ."
:1
198. For example and w i t h ou t li mi t at i on, Ali Express.com su g g est ed, b ased on
P lai nt i f f s' i nv est i g at or' s prev i ou s pu rch ases, t h at P lai nt i f f s' i nv est i g at or mi g h t b e i nt erest ed i n an
Ali Express.com merch ant selli ng t h e b ag depi ct ed b elow ( b eari ng Gu cci ' s f ederally reg i st ered
t rademark name, repeat i ng "GG" desi g n, and g reen-red- g reen st ri pe) , of f ered at $ 15 .7 1.
V. Th e Ali b ab a Def endant s' Unau t h ori zed Sale of P lai nt i f f s' Marks as
Key w ords
199. A key w ord i s a part i cu lar w ord or ph rase t h at i s desi g ned t o lead I nt ernet u sers t o
a part i cu lar Web pag e or search resu lt . Key w ords g enerally act as sh ort cu t s or t ri g g ers t h at cau se
speci f i c t y pes of search resu lt s t o appear i n response t o a search t h at i s b ei ng condu ct ed t h rou g h
a w eb si t e' s search f u nct i on. I n many cases, key w ords are li nked t o speci f i c resu lt s, or w eb
pag es, t h rou g h t h e met adat a t h at su ch pag es or resu lt s u se t o h elp search eng i nes mat ch a pag e
w i t h a correspondi ng search q u ery . Th u s, i n t h e case of an onli ne market place su ch as t h e
Ali b ab a Market places, i f a merch ant w ant s t o at t ract people w h o search f or a t erm li ke "g u cci , "
h e or sh e may reg i st er or pu rch ase t h e key w ord "Gu cci " so t h at h i s or h er Web pag e or li st i ng
w i ll appear i n response t o t h e search . I n part i cu lar, t h e Ali b ab a Def endant s' w eb si t es of t en
"sell" ri g h t s t o u se t rademark t erms li ke "Gu cci " so t h at t h ei r cou nt erf ei t er cli ent s can make su re
t h at I nt ernet u sers w h o search t h e t erm "Gu cci " w i ll see a li st of search resu lt s t h at i nclu des t h e
seller' s of f er of cou nt erf ei t Gu cci produ ct s.
200. The Alibaba Defendants der iv e sig nific ant r ev enue fr om the sale of keywor ds to
mer c hants on the Alibaba Mar ketplac es.
201. Thr oug h Alimama's P4P ser v ic es, Alibaba Mar ketplac e mer c hants c an bid for
keywor ds that appear in sear c h or br owser r esults in c onnec tion with their pr oduc t or ser v ic e
listing s on ac ost-per-c lic k basis.` '`
202. Thr oug h their pr opr ietar y mar keting platfor m Alimama, the Alibaba Defendants
sell Plaintiffs' Mar ks and wor ds suc h as "c uc c i" and "g uc hi" that ar e desig ned to mimic
Plaintiffs' Mar ks as keywor ds for use on the Alibaba Mar ketplac es, ther eby c ommunic ating to
c onsumer s that they c an pur c hase items bear ing the Plaintiffs' Mar ks thr oug h the Alibaba
Mar ketplac es.
203. For example and without limitation, the following is a list of sear c h r esults
tr ig g er ed by typing Plaintiffs' Mar ks into the sear c h eng ine on Taobao.c om obtained on or
ar ound June 26, 2014:
a. Guc c i: 119 , 000listing s
b. Balenc iag a: 17 , 000listing s
c . Botteg a Veneta: 42, 3001isting s
d. YSL: 23, SO O listing s
e. Yv es Saint Laur ent: 2, 543 listing s
204. For example and without limitation, the following is a list of sear c h r esults
tr ig g er ed by typing Plaintiffs' Mar ks into the sear c h bar on Alibaba.c om on or ar ound June 26,
2014.
a. Guc c i: 9 8 41isting s
~ '" F-1 at 8 9 .
b . B a l e n c i a g a : 2 7 1 i s t i n g s
c . B ot t e g a Ve n e t a : 2 7 l i s t i n g s
d . YSL: 7 , 9 3 7 1 i s t i n g s
e . Yve s Sa i n t La u r e n t : 2 6 1 i s t i n g s
2 05. A s i g n i f i c a n t p or t i on of t h e s e s e a r c h r e s u l t s a r e s e l l e r s wh o a r e n ot s e l l i n g
a u t h e n t i c P l a i n t i f f s ' P r od u c t s , b u t r a t h e r a r e e i t h e r s e l l i n g C ou n t e r f e i t P r od u c t s or ma ki n g ot h e r
i n f r i n g i n g u s e s of P l a i n t i f f s ' Ma r ks .
2 06 . Th e Al i b a b a De f e n d a n t s s e l l t h e r i g h t t o u s e P l a i n t i f f s ' Ma r ks a s ke ywoi d s t o
me r c h a n t s t h a t t h e Al i b a b a De f e n d a n t s kn ow a r e e n g a g e d i n t h e s a l e of C ou n t e r f e i t P r od u c t s .
2 07 . P l a i n t i f f s d i d n ot a u t h or i z e t h e Al i b a b a De f e n d a n t s t o s e l l P l a i n t i f f s ' Ma r ks a s
ke ywor d s .
2 08. I n a d d i t i on t o t h e i r u n a u t h or i z e d s a l e of t h e P l a i n t i f f s ' Ma r ks a s ke ywor d s , t h e
Al i b a b a De f e n d a n t s a l s o s u g g e s t r e l a t e d ke ywor d s c on t a i n i n g c on f u s i n g l y s i mi l a r ma r ks t o
I n t e r n e t b r ows e r s t h a t a r e i n t e n d e d t o s t e e r t h os e b r ows e r s t o t h e Me r c h a n t De f e n d a n t s s e l l i n g
C ou n t e r f e i t P r od u c t s .
2 09 . Th e Al i b a b a De f e n d a n t s a n d t h e i r a l g or i t h ms a n d d a t a s ys t e ms a r e s op h i s t i c a t e d
e n ou g h t o kn ow t h a t c e r t a i n t e r ms a r e c on f u s i n g l y s i mi l a r t o t r a d e ma r k t e r ms l i ke "Gu c c i . "
Th u s , t h e Al i b a b a De f e n d a n t s u n d e r s t a n d t h a t i f t h e i r s ys t e ms a r e d e s i g n e d t o "s u g g e s t " s u c h
c on f u s i n g l y s i mi l a r t e r ms t o I n t e r n e t u s e r s , t h e n a s i g n i f i c a n t n u mb e r of I n t e r n e t u s e r s e i t h e r wi l l
mi s t a ke n l y s e a r c h t h e c on f u s i n g l y s i mi l a r t e r m or u n d e r s t a n d t h a t i t i s t h e b e s t wa y t o e n d
C ou n t e r f e i t P r od u c t s . For e xa mp l e , a s n ot e d a b ove , Al i Exp r e s s . c om s u g g e s t s t h e t e r ms "c oc c i , "
a n d "g u c h i " e i t h e r t o s t e e r c u s t ome r s t o C ou n t e r f e i t P r od u c t s or t o c on f u s e t h e c u s t ome r s wh o
ma y b e l i e ve t h e y a r e b e i n g p r e s e n t e d wi t h g e n u i n e Gu c c i P r od u c t s .
VI. Alipay's Processing of Counterfeit Sales Through the Alibaba
Marketplaces
210. The Alibaba Defendants could not have sold the Counterfeit Products through
their online retail marketplaces without Alipay's payment processing and escrow services. The
Alibaba Defendants rely on Alipay to conduct " substantially all of the payment processing and
escrow services" on their online marketplaces.` ` '
21 l . The Alibaba Group established Alipay in 2004 to provide " security, trust, and
convenience" to its buyers and sellers on its retail marketplaces, including the Taobao
Marketplace, and certain other sites." '
212. Alipay facilitates transactions within the Alibaba Marketplaces through its
payment processing services, which provide convenience and ease to consumers. The Alibaba
Marketplaces' consumers have the option of paying for purchases with personal Alipay accounts,
credit cards, or transfers from online banks. Purchases made with personal Alipay accounts,
credit cards, or bank transfers are settled through Alipay's escrow and payment processing
services. Thus, Alipay is critically involved in the maj ority of purchases made through the
Alibaba Marketplaces.
213. Alipay also facilitates transactions within the Alibaba Marketplaces through its
escrow services, which provide security and trust to consumers. When an Alibaba Marketplace
consumer makes a purchase, Alipay transfers the consumer's funds into an escrow account.
Alipay releases the funds from escrow to the merchant seller when the consumer either confirms
receipt of the goods purchased in satisfactory condition or fails to obj ect to the release of funds
~ ` ' r- 1 at 25.
7 0 F- 1 at 2.
:~
w i t h i n a s p e c i f i e d p e ri od of t i me ." Th e e s c row f un c t i on i s c ri t i c al t o t h e s al e of good s on t h e
Al i baba Marke t p l ac e s be c aus e i t e l i mi n at e s un c e rt ai n t y i n maki n g p urc h as e s ove r t h e I n t e rn e t .
214. Th e re i s s ubs t an t i al c ommon ow n e rs h i p of Al i p ay an d t h e ot h e r Al i baba
De f e n d an t s . Jac k Ma, t h e f oun d e r of Al i baba Group , h as a c on t rol l i n g p os i t i on i n bot h Al i p ay
an d t h e ot h e r Al i baba De f e n d an t s .
215. Th e ot h e r Al i baba De f e n d an t s be n e f i t e c on omi c al l y f rom Al i p ay t h rough t h e
c on t rac t ual arran ge me n t s w i t h "p re f e re n t i al t e rms " t o t h e ot h e r Al i baba De f e n d an t s .' ' - Th e
Al i baba Group d e ri ve s re ve n ue t h rough c ommi s s i on s f or t ran s ac t i on s s e t t l e d t h rough Al i p ay ."
For e xamp l e an d w i t h out l i mi t at i on , t h e p ri mary re ve n ue f rom i n t e rn at i on al c omme rc i al re t ai l
marke t p l ac e s , i n c l ud i n g Al i Exp re s s , i s d e ri ve d f rom c ommi s s i on sge n e ral l y 5 ~ 0 of gros s
me rc h an d i s e vol umef or t ran s ac t i on s s e t t l e d t h rough Al i p ay .' a Th e Al i baba Group al s o
re c e i ve s roy al t y f e e s an d s of t w are t e c h n ol ogy s e rvi c e f e e s f rom Al i p ay .7 5
27 6. Th e Al i baba De f e n d an t s al s o be n e f i t f rom Al i p ay ' s p rovi s i on of val uabl e
c on s ume r d at a, f re e of c h arge , t h at t h e ot h e r Al i baba De f e n d an t s us e f or t h e i r "d at a man age me n t
p l at f arm, aud i e n c e t arge t i n g, c re d i t an al y s i s , an d d e t e c t i n g, mon i t ori n g an d i n ve s t i gat i n g t raf f i c
h i j ac ki n g an d f raud ul e n t ac t i vi t i e s .""
' ~ F- I at 17 8.
' ~ F- I at 17 8, 224.
' ~ F- 1 at 89.
' ` ~ F- 1 at 90 .
7 5 F- ] at 10 7 .
~ ~ F- 1 aC 225.
.~
217. Alipay is admittedly " c r ir ic al" to the Alibaba Mar ketplac es ," and to the " s uc c es s
and the develo pment o f [ the Alibaba Defendants '] ec o s ys tem." '~ Alipay is a " key dr iver " o f the
Alibaba Defendants ' s uc c es s ."
218. In lig ht o f the abo ve-des c r ibed c o nnec tio ns and the j o int and c o mmo n o wner s hip
between the Alibaba Defendants and Alipay (inc luding but no t limited to Alibaba CEO Ma), the
Alibaba Defendants have effec tive, pr ac tic al, and benefic ial c o ntr o l o f Alipay, and Alipay
o per ates as an integ r ated par t o f the Alibaba " ec o s ys tem."
219. Eac h o f the pur c has es o f the Co unter feit Pr o duc ts made by c r edit c ar d fr o m the
Mer c hant Defendants dis c us s ed abo ve was pr o c es s ed by Alipay.
220. Mer c hant Defendants s elling the Co unter feit Pr o duc ts thr o ug h the Alibaba
Mar ketplac es wo uld be unable to c o mplete s uc h s ales witho ut the financ ial s er vic es pr o vided by
Alipay.
221. As a PRC r eg ulated financ ial ins titutio n, Alipay is s ubj ec t to r eg ulatio ns r eq uir ing
it to pr event mo ney launder ing , " inc luding the ado ptio n o f pr ec autio nar y and s uper vis o r y
meas ur es , es tablis hment o f var io us s ys tems fo r c lient identific atio n, pr es er vatio n o f c lients '
identific atio n info r matio n and tr ans ac tio ns r ec o r ds , and r epo r ts o n blo c k tr ans ac tio ns and
s us pic io us tr ans ac tio ns ." ` ~ "
222. Additio nally, bec aus e Alipay s ettles c r edit c ar d tr ans ac tio ns , it is s ubj ec t to
r eg ulatio ns impo s ed by the c r edit c ar d as s o c iatio ns . As explained by the Feder al Financ ial
Ins titutio ns Examinatio n Co unc il (" FFIEC" ), a mer c hant mus t be s po ns ar ed by an ac q uir ing
" F-1 at 25.
~ x
Ic t.
~ ~ Lees a Shr ader , " Mic r o financ e, ~ -Co mmer c e, Big Data and Chiva: The Alibaba Slo r y," CLAP (Oc t. 11, 2013).
" 0 F-1 at 199.
bank t h at i s a member of t h e c red i t c ard as s oc i at i on i n ord er t o ac c ep t Vi s a or Mas t erCard
p ay ment s . ` ' Ali p ay t h u s ei t h er i t s elf q u ali fi es as an ac q u i ri ng bank or h as a t h i rd p art y
relat i ons h i p w i t h a bank t h at ac t s as ac q u i ri ng bank i n all t rans ac t i ons s eCt led by Ali p ay .
223. Th e c red i t c ard net w orks req u i re t h e ac q u i ri ng bank t o be t h e ri s k- c ont rolli ng
ent i t y t h rou g h ou t t h e c red i t c ard p roc es s . Th i s means t h at t h e ac q u i ri ng bank i s res p ons i ble for
"c h arg ebac ks"c u s t omer d i s p u t es of c red i t c ard c h arg es as "t h e ac q u i ri ng bank bears t h e
fi nanc i al obli g at i on i f t h e merc h ant fai ls t o p ay ."x ~ Th e ac q u i ri ng bank i s als o res p ons i ble for
c red i t and frau d ri s ks p res ent ed by merc h ant ac c ou nt s ac q u i red t h rou g h t h i rd p art i es . x ~ Th e
FFIEC rec ommend s t h at "[ f] or onli ne merc h ant s , t h e s c reeni ng p roc es s s h ou ld i nc lu d e a revi ew
of Web s i t e c ont ent " and onli ne merc h ant s "s h ou ld be moni t ored c los ely t o ens u re no i lleg al or
h i g h - ri s k bu s i nes s ac t i vi t y i s bei ng c ond u c t ed ."~ 4
224 . Ac c ord i ng ly , Ali p ay h as an obli g at i on t o t h e c ard net w orks (and/ or t o t h e t h i rd
p art y ac q u i ri ng bank t h rou g h w h i c h i t c ont rac t s t o g ai n ac c es s t o t h e c red i t c ard net w orks ) , and a
s t rong fi nanc i al i nc ent i vebec au s e i t i s u lt i mat ely req u i red by t h e c red i t c ard as s oc i at i ons t o
refu nd c h arg ebac ks t o c u s t omers t o p erform t h e ap p rop ri at e level of d i li g enc e on i t s merc h ant s
t h at w ou ld ent ai l d et ermi ni ng w h et h er a merc h ant i s s elli ng i lleg al g ood s .
225. As a res u lt of Ali p ay ' s ex t ens i ve know led g e of i t s onli ne s ales t rans ac t i ons and
t h e d i li g enc e i t i s req u i red t o p erform on i t s merc h ant s , Ali p ay h as ac t u al know led g e t h at i t i s
p rovi d i ng p ay ment p roc es s i ng s ervi c es t o merc h ant s s elli ng Cou nt erfei t P rod u c t s .
~ ~ FFIEC IT Ex ami nat i on Hand book Infobas e, Au d i t , "Merc h anC Ac q u i ri ng ," at 1 .
` ~ ~ Id . at 4 .
~ ~ I~ l. a[ 5.
~ 4 Id . at 4 .
~ ~
VII. The Alibaba Defendants Are an Indispensable Part of the Enterprise
to S ell the Counterfeit Products, Resulting in Consumer Confusion and Harm to
Plaintiffs
226. The Merchant Defendants could not have sold Counterfeit Products through the
Alibaba Marketplaces but for the Alibaba Defendants' operation of online marketplaces and
other sites, as w ell as the Alibaba Defendants' role connecting online consumers to online
merchants selling the Counterfeit Products.~ 5
227. The Alibaba Defendants have provided, and continue to provide, essential
services to online merchants engaged in the sale of Counterfeit Products.
228. The Alibaba Defendants have been indispensable participants in the sale of the
Merchant Defendants' Counterfeit Products. The Alibaba Defendants provided the marketplaces
for the sales of Counterfeit Products and facilitated the financing and commercial operaCions of
the merchants selling Counterfeit Products by providing marketing services that direct buyers to
the Counterfeit Products, including selling Plaintiffs' Marks as keyw ords, offering its merchants
micro loans, processing online payment transactions for the Counterfeit Products, and shipping
the Counterfeit Products to consumers.
229. The Alibaba Defendants knew they w ere facilitating the Merchant Defendants'
sale of Counterfeit Products.
230. The Alibaba Defendants use marketing and data collection servicesnamely,
"data intelligence" and "deep learning"to direct consumers to the Counterfeit Products offered
for sale through their marketplaces.`
~ 5 F- 1 at 1 .
~ `f' F- 1 aC 1 45 .
a . The Aliba ba Defenda nts use their da ta ma na gement p la tfo r m to wo r k with their
o nline mer cha nts in o r der to "enha nce under sta nding o f their custo mer da ta a nd to
dir ect ta r geted ma r keting to a br o a der ba se o f co nsumer s with simila r a ttr ibutes.""'
Indeed, in its Fo r m F- 1 , Aliba ba Gr o up a ckno wledges tha t the "da ta fr o m
co nsumer beha vio r a nd tr a nsa ctio ns co mp leted o n [ its] ma r ketp la ces a nd
inter a ctio ns a mo ng p a r ticip a nts in [ its] eco system" p r o vide the Aliba ba
Defenda nts with "va lua ble insight" to help the Aliba ba Defenda nts a nd their
o nline mer cha nts "imp r o ve the buyer exp er ience,""" "ta r get a nd a cq uir e
custo mer s,"~ ` ' a nd "incr ea se the r a te o f co nver sio n fr o m visits to tr a nsa ctio ns.""'
b. The Aliba ba Defenda nts use co nsumer beha vio r da ta to cr ea te a better sho p p ing
exp er ience fo r their co nsumer s "by p er so na liz ing sea r ch r esults a nd sho p p ing
r eco mmenda tio ns."` " Indeed, in its Fo r m F- 1 , Aliba ba Gr o up sta tes tha t the
Aliba ba Defenda nts "ma ke p r edictio ns o f click thr o ugh r a tes a nd co nver sio n r a tes
o f o nline ma r keting messa ges" ba sed o n "deep lea r ning" a nd "r ich co nsumer
da ta " gener a ted fr o m their China r eta il ma r ketp la ces. ` '
c. The Aliba ba Defenda nts inser t sp ecific keywo r ds into their meta da ta in a n effo r t
to co nnect co nsumer s to the typ es o f p r o ducts tha t the Aliba ba Defenda nts believe
their co nsumer s a r e sea r ching fo r , ba sed o n the sea r ch ter ms tha t they use in their
sea r ches, a nd the Aliba ba Defenda nts inser t a dditio na l ter ms a nd p hr a ses into
` ~ ' F- 1 a t 1 4 4 .
"~ F- 1 a t 7.
"~ F- 1 a t 1 4 4 .
` 70 F- 1 1 t 1 4 5 .
' ~ F- 1 a t 1 4 4 .
` ' ~ F- 1 a t l 82.
t h e i r me t adat a i n or de r t o di r e c t c on sume r s t o p ar t i c ul ar c at e g or i e s of c oun t e r fe i t
g oods.
231. Th e Al i baba De fe n dan t s al so p r ovi de subst an t i al assi st an c e i n t h e for m of
i n fr ast r uc t ur e sup p or t an d fi n an c i n g t o t h e i r on l i n e me r c h an t s se l l i n g C oun t e r fe i t Pr oduc t s.
a. Th e Al i baba De fe n dan t s p r ovi de e sse n t i al sup p or t se r vi c e s t h at e n abl e t h e sal e of
C oun t e r fe i t Pr oduc t s on t h e i r on l i n e p l at for ms, i n c l udi n g "We b-base d an d mobi l e
i n t e r fac e s t o man ag e l i st i n g s, or de r s, an d c ust ome r r e l at i on sh i p s, an d c l oud
c omp ut i n g se r vi c e s" for t h e i r e n t e r p r i se r e sour c e p l an n i n g an d c l i e n t r e l at i on sh i p s
man ag e me n t .`'
b. Th e Al i baba De fe n dan t s ar r an g e sh i p p i n g an d de l i ve r y se r vi c e s t h at e n abl e t h e
Me r c h an t De fe n dan t s t o p r ovi de buy e r s wi t h C oun t e r fe i t Pr oduc t s. Th e Al i baba
Gr oup 's 4 8 l o-own e d affi l i at e , C h i n a Smar t L og i st i c s (Zh e ji an g C ai n i ao Sup p l y
C h ai n Man ag e me n t C o., L t d.) , op e r at e s a c e n t r al l og i st i c s i n for mat i on sy st e m t h at
wor ks wi t h t h i r d-p ar t y l og i st i c s an d de l i ve r y c omp an i e s. Th r oug h t h i s affi l i at e ,
De fe n dan t s ar e abl e t o ar r an g e for t h e sh i p p i n g an d de l i ve r y of, i n t e r al i a,
C oun t e r fe i t Pr oduc t s.`'
c . Th e Al i baba De fe n dan t s fi n an c e c e r t ai n on l i n e me r c h an t s, i n c l udi n g , on
`~ ~ F-1 at 14 8 .
'4 F-1 al l 00.
i n for mat i on an d be l i e f, Me r c h an t De fe n dan t s t h at se l l C oun t e r fe i t Pr oduc t s, by
p r ovi di n g mi c r o l oan s t o smal l an d me di um-si z e d e n t e r p r i se s ("SME") t h at se l l on
bot h t h e i r wh ol e sal e an d r e t ai l mar ke t p l ac e s an d oft e n h ave t r oubl e ac c e ssi n g
90
c r e d i t fr om l a r g e b a n k s . ` ' S The l oa n s r a n g e fr om 7 t o 360 d a ys a n d a r e e xt e n d e d
b a s e d on " t r a n s a c t i on a l a n d b e ha v i or a l d a t a fr om s e l l e r s " us e d t o a s s e s s t he i r
c r e d i t- w or t hi n e s s . ` " The l oa n s a r e un s e c ur e d a n d me r c ha n t s a r e r e q ui r e d t o
e n g a g e i n t hr e e mon t hs of a c t i v i t y on t he Al i b a b a 1 V l a r k e t p l a c e s i n or d e r t o
q ua l i fy." ' As of De c e mb e r 31 , 201 3, t he S ME l oa n b us i n e s s ha d ov e r 342,000
b or r ow e r s a n d a t ot a l out s t a n d i n g l oa n b a l a n c e , n e t of a l l ow a n c e for " d oub t ful
a c c oun t s ," o~ $2 b i l l i on . ` '
d . The . Al i b a b a De fe n d a n t s ' p r ov i s i on of un s e c ur e d l oa n s t o a n on l i n e me r c ha n t i s
b a s e d on a n un d e r s t a n d i n g of t he s e l l e r ' s b us i n e s s t ha t w oul d i n d i c a t e w he n a
s e l l e r i s e n g a g e d i n t he s a l e of C oun t e r fe i t Pr od uc t s a n d , on i n for ma t i on a n d
b e l i e f, t he Al i b a b a De fe n d a n t s k n ow i n g l y p r ov i d e s uc h l oa n s t o Me r c ha n t
De fe n d a n t s s e l l i n g C oun t e r fe i t Pr od uc t s .
e . De fe n d a n t Al i p a y p r ov i d e s " s ub s t a n t i a l l y a l l " p a yme n t p r oc e s s i n g a n d e s c r ow
s e r v i c e s for t r a n s a c t i on s ma d e t hr oug h t he Al i b a b a Ma r k e t p l a c e s , a n d p r oc e s s e d
e a c h p ur c ha s e of t he C oun t e r fe i t Pr od uc t s ma d e b y c r e d i t c a r d a s d e s c r i b e d i n t hi s
C omp l a i n t .
f. The Al i b a b a De fe n d a n t s d i s c l os e i n t he i r For m F- 1 t ha t " [ o] ur a b i l i t y t o ma i n t a i n
our p os i t i on a s a t r us t e d p l a t for m for on l i n e a n d mob i l e c omme r c e i s b a s e d i n
~~ F- 1 a t 38; Le e s a S hr a d e r , " Mi c r ofi n a n c e , E-C omme r c e , Bi g Da t a a n d C hi n a : The Al i b a b a S t or y," C GAP (Oe t .
1 1 , 201 3).
` x, l i t .
` ' ~ I ~l .
' x
I d .
91
l a r g e p a r t up on our a b i l i t y t o p r ovi de r e l i a b l e a nd t r us t e d p a y me nt a nd e s cr ow
s e r vi ce s t hr oug h our a r r a ng e i ~ ne nt s wi t h our r e l a t e d comp a ny Al i p a y ." ` ' ` '
232. The Al i b a b a De fe nda nt s ha ve de r i ve d s ub s t a nt i a l p r ofi t s fr om t he s a l e of
C ount e r fe i t Pr oduct s t hr oug h t he Al i b a b a Ma r ke t p l a ce s .
a . Tn t he y e a r e nde d Ma r ch 31, 2014, t he Al i b a b a De fe nda nt s g e ne r a t e d $8.4 b i l l i on
i n r e ve nue a nd $3.7 b i l l i on i n ne t i ncome ." " ' The r e ve nue fr om t he i r i nt e r na t i ona l
r e t a i l b us i ne s s i ncr e a s e d t wo- fol d fr om t he s a me p e r i od i n 2012, dne t o a
s ub s t a nt i a l i ncr e a s e i n g r os s me r cha ndi s e vol ume t r a ns a ct e d on Al i Exp r e s s .com,
p r i ma r i l y fr om t r a ns a ct i ons wi t h b uy e r s i n t he Uni t e d S t a t e s , Rus s i a , a nd B r a z i l .101
b . The Al i b a b a De fe nda nt s de r i ve r e ve nue p r i ma r i l y fr om t he i r onl i ne ma r ke t i ng
` ' ` ' F- 1 a t 22.
~ 00 F- 1 a t 16, 17.
101 F- 1 a t 105.
~ 02 F- 1 a t 89.
s e r vi ce s , i ncl udi ng t he i r P4P s e r vi ce t ha t a l l ows onl i ne me r cha nt s t o b i d fa r
ke y wor ds t ha t di r e ct b uy e r s t o, i nt e r a l i a , C ount e r fe i t Pr oduct s , a nd commi s s i ons
r e ce i ve d for e a ch s a l e of a C ount e r fe i t Pr oduct s e t t l e d t hr oug h Al i p a y .10` The
Al i b a b a De fe nda nC s ha ve g e ne r a t e d s ub s t a nt i a l p r ofi t s fr om t he s a l e of ke y wor ds
t ha t i ncor p or a t e Pl a i nt i ffs ' Ma r ks or confus i ng l y s i mi l a r va r i a t i ons of Pl a i nt i ffs '
Ma r ks . The Al i b a b a De fe nda nt s a l s o de r i ve r e ve nue fr om s ub s cr i p t i on a nd
me mb e r s hi p fe e s , t he i r cl oud comp ut i ng a nd I nt e r ne t i nfr a s t r uct ur e s e r vi ce s , a nd
t he i r S ME l oa n b us i ne s s , a l l of whi ch s e r ve t o fa ci l i t a t e C ount e r fe i t S a l e s t hr oug h
t he Al i b a b a Ma r ke t p l a ce s . The Al i b a b a De fe nda nt s ha ve g e ne r a t e d s ub s t a nt i a l
p r ofi t s fr om s a l e s of C ount e r fe i t Pr oduct s . I n a ddi t i on, t he Al i b a b a De fe nda nt s
92
generate revenue from th ei r " i nternati onal commerce retai l marketpl aces,
pri mari l y Al i Express, th rough commi ssi ons, wh i ch are general l y 5% of gross
merch andi se vol ume for transacti ons settl ed th rough Al i pay ." 1 0 3 Al i Express h as
generated sub stanti al revenue from th e sal e of C ounterfei t Products.
c. Defendant Al i pay deri ves revenue from each pay ment transacti on for wh i ch i t
provi des processi ng and/ or escrow servi ces, i ncl udi ng such servi ces provi ded i n
connecti on wi th th e sal e of th e C ounterfei t Products made th rough th e Al i b ab a
Marketpl aces.
VIII. Th e Al i b ab a Defendants' Unwi l l i ngness to Refrai n from Trademark
Infri ngement
23 3 . Th e Al i b ab a Defendants h ave recei ved numerous compl ai nts th at, th rough th ei r
marketpl aces, i tems i nfri ngi ng th i rd- party copy ri gh ts, trademarks, patents or oth er i ntel l ectual
property ri gh ts h ave b een offered far sal e or sol d.1 0 ~
23 4. Al i b ab a h as b een sub j ect to PRC and oth er forei gn government i nq ui ri es and
i nvesti gati ons regardi ng, i nter c~ l i c~ , i ts web si te content and cl ai ms of i ntel l ectual property
i nfri ngement.1 0 5
23 5. Th e Al i b ab a Defendants purport to h ave i mpl emented certai n measures i n an
attempt to prevent counterfei t goods from b ei ng offered for sal e th rough th e Al i b ab a
Marketpl aces, i ncl udi ng: (1 ) i denti fy i ng and i ssui ng warni ngs and taki ng down counterfei t
products; (2) provi di ng an onl i ne compl ai nt pl atform for th e reporti ng of i nfri ngements;
(3 ) conducti ng random ch ecks b y usi ng th i rd parti es to purch ase suspected counterfei t goods on
1 0 ~ F- 1 at 89.
1 0 4 F- 1 at 3 2.
1 ~ F- 1 ae 3 5.
93
t h e Alibaba Marke t place s; and (4) e nh ancing communicat ions wit h gove rnme nt aut h orit ie s about
e radicat ing t h e source s of count e rfe it goods.""'
236. More spe cifically , some t ime aft e r August 2013, t h e Alibaba De fe ndant s updat e d
t h e ir "count e rfe it ing punish me nt rule s" for t h e Taobao Marke t place wit h t h e st at e d purpose of
e st ablish ing a "Progre ssive Pe nalt y Sy st e m for count e rfe it " (h e re inaft e r, t h e "Progre ssive Pe nalt y
Sy st e m"). Th e Progre ssive Pe nalt y Sy st e m se e ks t o "se parat e count e rfe it from ot h e r
infringe me nt , " and purport s t o "focus[] on re pe at offe nde rs."""
237. Th e Progre ssive Pe nalt y Sy st e m t arge t ing se lle rs of count e rfe it goods on t h e
Taobao Marke t place ope rat e s in a "4 St rike s" st ruct ure : (1) warning; (2) pe nalt ie s accumulat e d;
(3) h e avie r pe nalt ie s wit h re pe at e d offe nde rs; and (4) se ve re pe nalt ie s."' ~ Pe nalt ie s are me asure d
in "point s, " wh ich are accumulat e d by an I nt e rne t me rch ant base d on t h e following crit e ria:
a. 2 point s pe r link if t h e it e m sold is suspe ct e d t o be fake ("Suspicious
count e rfe it");
b. 12 point s pe r link if t h e it e m is confirme d t o be fake t h rough purch asing or any
ot h e r me t h od ("Confirme d count e rfe it");
c. 24 point s pe r link for a se rious sit uat ion of count e rfe it ing ("Se rious sit uat ion");
and
d. A8 point s pe r link for a part icularly se rious sit uat ion of count e rfe it ing
("Part icularly se rious sit uat ion")."' ` '
10~ F- 1 at 180.
107 Alibaba Group, Updat e s ort Taobao I P prot e ct ion, at 3.
10~ Alibaba Group, Updat e s on Taobao I P prot e ct ion, at 4.
10~ Alibaba Group, Upcic~ t e s on T~ ~ obao I P prot e ct ions, at 3.
238. This Progressive Penalty System is not designed to prevent the sale of C ou nterfeit
Produ cts.
a. Althou gh an I nternet merchant who receives pu nishment of between 24 and 47
points in one year will not be "cleared" at the end of that year, that merchant
who, according to the Alibaba Defendants' own labeling system, perpetrated a
"Seriou s situ ation" of cou nterfeitingwill be allowed to continu e to sell produ cts
on the Alibaba Marketplaces in the following year (the merchant simply starts the
new year with half of the pu nishment points it received in the prior year) . Despite
these procedu res, the Alibaba Defendants rou tinely refu se to prohibit I nternet
merchants who receive pu nishment in excess of 24 points.
b. Althou gh the store of an I nternet merchant who receives 24 points fora "Seriou s
situ ation" of cou nterfeiting is deleted, the merchant is only blocked from the
website for 21 days. "" Similarly, the store of an I nternet merchant who receives a
12 point dedu ction is only blocked from the website for 14 days."'
c. An accou nt is only permanently closed, and delivery limited, if a merchant
reaches 48 points."`
239. I n addition, Alibaba.com and AliExpress.com u pdated their I ntellectu al Property
Rights Protection Policy on or abou t Febru ary 10, 2014."~ Alibaba.com and AliExpress.com's
~ 10 Taobao I PR Enforcement Policy.
~ ~ ~ Taobao I PR Enforcemene Policy.
~ ~~ Taobao I PR Enforcement Policy.
~ ~~ I ntellectu al Pro ire Ri hts I PR Polic p' y g ( y) , available at
http:// www.alibaba.eom/ help/ safety secu rity~olicies ru les/ I PR/ 002.htm1.
P o l i c y p u r p o r t s t h a t " [ 1 ] i s t i n g s o f c o u n t e r fe i t s , r e p l i c a s , o r o t h e r u n a u t h o r i z e d i t e ms a r e
p r o h i b i t e d o n [ t h e i r s i t e s ] s t r i c t l y ." 1 4
240. Un d e r t h e P o l i c y , Al i b a b a . c o m a n d Al i Exp r e s s . c o m a wa r d p e n a l t y p o i n t s t o
me r c h a n t s o ffe r i n g i n fr i n g i n g p r o d u c t s a n d t a k e c e r t a i n e n fo r c e me n t a c t i o n s b a s e d o n t h e n u mb e r
o f p e n a l t y p o i n t s a wa r d e d . Bo t h Al i b a b a . c o m a n d Al i Exp r e s s . c o m a wa r d 6 p e n a l t y p o i n t s p e r
i n fr i n g e me n t wh e n t h e i n t e l l e c t u a l p r o p e r t y r i g h t o wn e r i s t h e c o mp l a i n a n t . ' ` s
241 . Al i b a b a . c o m t a k e s t h e fo l l o wi n g e n fo r c e me n t a c t i o n s a g a i n s t me r c h a n t s b a s e d o n
t h e fo l l o wi n g n u mb e r o f p e n a l t y p o i n t s i n c u r r e d :
a . 6 p o i n t s : i s s u a n c e o f a s e v e r e wa r n i n g .
b . 1 2 p o i n t s : p r o h i b i t i o n o f p r o d u c t p o s t i n g fo r 7 d a y s .
c . 24 p o i n t s : b l o c k i n g o f s e a r c h r e s u l t s fo r 7 d a y s a n d r e s t r i c t i o n o f Re qu e s t fo r
Q u o t a t i o n (RFQ ) fo r 1 mo n t h .
d . 36 p o i n t s : b l o c k i n g o f s e a r c h r e s u l t s fo r 1 4 d a y s a n d r e s t r i c t i o n o f Re qu e s t fo r
Q u o t a t i o n (RFQ ) fo r 3 mo n t h s .
e . 48 p o i n t s : t e r mi n a t i o n o f me mb e r s h i p ." ~
242. Al i Exp r e s s . c o m t a k e s t h e fo l l o wi n g e n fo r c e me n t a c t i o n s a g a i n s t me r c h a n t s b a s e d
o n t h e fo l l o wi n g n u mb e r o f p e n a l t y p o i n t s i n c u r r e d :
a . 2 p o i n t s : s e v e r e wa r n i n g .
b . 6 p o i n t s : p r o d u c t l i s t i n g o p e r a t i o n s r e s t r i c t e d fo r 3 d a y s .
, i a
Id
" s Al i b a b a . c o m En fo r c e me n t Ac t i o n s fo r In t e l l e c t u a l P r o p e r t y Ri g h t In fr i n g e me n t Cl a i ms , a v a i l a b l e a t
h t t p ://www. a l i b a b a . c o m/h e l ~/s a fe t y s e c u r i t yp o l i c i e s r u l e s/IP R/O O ~. h t ml ; Al i Exp r e s s En fo r c e me n t Ac t i o n s fo r
In t e l l e c t u a l P r o p e r t y Ri g h t In fr i n g e me n t Cl a i ms , a v a i l a b l e a t h t t p : //h e l p .a l i e xp r e s s. c o m/i p r _ p e n a l t y . h t ml .
" ~ Al i b a b a . c o m En fo r c e me n t Ac t i o n s fo r In t e l l e c t u a l P r o p e r t y Ri g h t In fr i n g e me n t Cl a i ms , a v a i l a b l e a t
h t t p ://www. a l i b a b a . c o m/h e l p/s a fe t y s e c u r i t y p o l i c i e s r u l e s/IP R/003. h t m1 .
~
c . 12 p o i n t s : p ro duc t l i s t i n g o p e ra t i o n s re s t ri c t e d fo r 7 da ys .
d. 24 p o i n t s : p ro duc t l i s t i n g o p e ra t i o n s re s t ri c t e d fo r 14 da ys .
e . 36 p o i n t s : p ro duc t l i s t i n g o p e ra t i o n s re s t ri c t e d fo r 30 da ys .
f. 48 p o i n t s : a c c o un t t e rm i n a t e d. "'
243. Al i ba ba . c o m a n d ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~I n t e l l e c t ua l Pro p e rt y Ri g ht s Pro t e c t i o n Po l i c y
i s a l s o n o t de s i g n e d t o p re ve n t t he s a l e o f C o un t e rfe i t Pro duc t s .
a . Al t ho ug h a m e rc ha n t i s a wa rde d 6 p o i n t s p e r i n fri n g e m e n t , t he Po l i c y m a ke s i t
di ffi c ul t fo r m e rc ha n t s t o i n c ur m o re t ha n 6 p o i n t s fro m o n e c o m p l a i n a n t . Al l
c o m p l a i n t s re c e i ve d fro m a c o m p l a i n a n t wi t hi n fi ve da ys o f t he fi rs t c o m p l a i n t
c o un t a s o n e i n fri n g e m e n t a n d t he fi ve da ys i s t o l l e d un t i l t he fi rs t c o m p l a i n t ha s
be e n p ro c e s s e d. Thus , i t c o ul d be we e ks be fo re a m e rc ha n t i n c urs a ddi t i o n a l
p o i n t s fo r o ffe ri n g fo r s a l e a n d s e l l i n g C o un t e rfe i t Pro duc t s ."~
b. I n a ddi C i o n , a m e rc ha n t 's m e m be rs hi p i s n o t t e rm i n a t e d un t i l i t i n c urs 48 p o i n t s ,
o r un t i l a c o m p l a i n a n t ha s c o m p l a i n e d a n d Al i ba ba ha s p ro c e s s e d t he c o m p l a i n t
e i g ht t i m e s . '
c . F urt he r, Al i ba ba . c o m 's p e n a l t y p o i n t s a re o n l y o n re c o rd fo r 365 da ys . A
m e rc ha n t t ha t ha s be e n p un i s he d fo r s e l l i n g C o un t e rfe i t Pro duc t s up t o s e ve n
t i m e s i n o n e ye a r wi l l be a l l o we d t o c o n t i n ue t o s e l l p ro duc t s t he n e xt ye a r. 120
~ ~~ Al i Exp re s s En fo rc e m e n t Ac t i o n s fo r I i ~t e l l e c t i ~a l Pro p e rt y Ri g ht I ufri n g e m ~n t C l a i m s , a va i l a bl e a C
ht t p : / / he l p .a l i e xp re s s . c o m/ i p r_ p e n a l t y. hhn l .
~ ~" Al i ba ba . c o m En fo rc e m e n t Ac t i o n s fo r I n t e l l e c t ua l Pro p e rt y Ri g ht I n fri n g e m e n t C l a i m s , a va i l a bl e a t
ht t p :// www. a l i ba ba . c o m/ he l p / s a fe t y_ s e c uri t y/ p o l i e i e s _ r~i l e s/ I PR/ 003. ht m 1; Al i Exp re s s En fo rc e m e n t Ac t i o n s fo r
Tn t e l l e c t ua l Pro p e rt y Ri g ht I n fri n g e m e n t C l a i m s , a va i l a bl e a t ht t p : / / he l p .a l i e xp ~ ~ ~ ~ ~ ~ ~ ~ ~/ i p t _ p e n a l t y. ht m l .
~ ~ ` ' I c l .
120 Al i ba ba . c o m En fo rc e m e n t Ac t i o n s To r I n t e l l e c t ua l Pro p e rl y Ri g hC I n fri n g e m e n t C l a i m s , a va i l a bl e a t
ht t p :// www. a l i ba ba . c o m/ he m/ s a fe t y s e c uri t y/ p o l i c i e s rul e s/ i PR/ 003. ht m 1.
97
244. On or about June 16, 2014, th e Alibaba Defendants issued a p ress release stating
th at th ey would transition to a " th ree strik es" p olic y on Alibaba.c om and AliExp ress.c om for
merc h ants selling C ounterfeit Produc ts. After th e first strik e, th e merc h ant would rec eiv e a
warning . After th e sec ond strik e, all p roduc t listing s would be remov ed from th e merc h ant's
store front and all listing s would be remov ed from searc h results for 7 days. After th e th ird
strik e, th e merc h ant would be banned from th e site.'` '
245. Th e new " th ree strik e" p olic y is not desig ned to p rev ent merc h ants from offering
c ounterfeit g oods on th e Alibaba.c om and AliExp ress sites (and notably does not ev en ap p ly to
Taobao.c om).
246. Indeed, th e Alibaba Defendants h av e entered into ag reements with oth er brands in
wh ic h th e Alibaba Defendants h av e ag reed to do more to c ombat c ounterfeiting . Howev er, th ose
ag reements h av e not resulted in any ap p rec iable differenc e in th e number of c ounterfeit g oods
offered for sale on th e Alibaba Defendants' websites.
247. On or around Dec ember 2013, th e Alibaba Defendants also up dated th eir
" strateg y to monitor alleg edly online infring ing listing s" on th e Taobao Mark etp lac e (h ereinafter,
th e " L isting Monitoring S trateg y" ).''` ~ Wh ereas th e p rev ious strateg y for remov ing infring ing
listing s admittedly suffered from a " lac k of sig nific ant, long -lasting results," and " [ d] iffic ulty
finding direc t solutions," th e new strateg y p urp orts to: (1) monitor on a brand and item-sp ec ific
basis; (2) ev aluate searc h results; (3) targ et p roduc ts th at c an be easily found by c onsumers; and
(4) inc rease c osts assoc iated with selling c ounterfeit p roduc ts.12~
~ ~ ~ h ttp : / / www.aliz ila.c om/ wh ~ alibabac om-aud-aliex~ ess-are-tig h tening -anti-c ounterfeit- p olic ies.
` Alibaba G ro~ ~ p , Up dntes on Taof~ ao IP p rotec tion, al 6.
~ ~ ~ ` Alibaba G roup , Up dates on. Taoba~ lP p rotec tion., at 6.
~
248. The Alibaba Defendants have intentio nally designed this L isting Mo nito ring
S trategy such that it do es no t effectively p revent co unterfeiters fro m selling C o unterfeit
P ro ducts. The p retex tual nature o f the L isting Mo nito ring S trategy is illustrated by the numero us
rep eat infringers who are currently still active o n the Alibaba Marketp laces, and the numero us
"Go ld S up p liers" and "Assessed S up p liers" currently o ffering fo r sale C o unterfeit P ro ducts o n
the Alibaba Marketp laces.
249. The Alibaba Defendants have the ability to refrain fro m making infringing uses o f
p ro p rietary marks as p art o f their P 4P o nline marketing p ro gram. S p ecifically , the Alibaba
Defendants co uld reaso nably p revent P laintiffs' Marks and terms co nfusingly similar thereto
fro m being used as key wo rds that match p ro duct o r service listings ap p earing in search o r
bro wser results. Ho wever, the Alibaba Defendants currently sell sp ecific trademarks, including,
o n info rmatio n and belief, P laintiffs' Marks, as key wo rds that generate results fo r merchants
selling C o unterfeit P ro ducts and revenue fo r the Alibaba Defendants.
250. The takedo wn p ro cedures emp lo y ed by the Alibaba Defendants are designed to
give the false ap p earance that they are resp o nsive to brand o wners' co ncerns while the Alibaba
Defendants co ntinue their intentio nal ho sting o f the Merchant Defendants selling C o unterfeit
P ro ducts thro ugh the Alibaba Marketp laces.
251. The Alibaba Defendants also assist I nternet merchants in evading takedo wn
no tices and enfo rcement o f trademark rights by delay ing unreaso nably in resp o nding to
co mp laints that are filed by a brand o wner and by taking insufficient o r no nresp o nsive step s in
resp o nse. Fo r ex amp le, by way o f illustratio n, while co mp laints to o ther o nline sho p p ing sites
"usually result in listings remo ved within 24 ho urs, it so metimes takes weeks fo r the [Alibaba
Marketp laces] sites] to react because the co mp laints o ften get rej ected by their sy stem
99
a u t o m a t i c a l l y ." ' ' 4 As d e sc r i b e d m o r e f u l l y a b o ve , t h e Al i b a b a De f e nd a nt s h a ve c o nt i m i e d t o
a l l o w nu m e r o u s Me r c h a nt De f e nd a nt s t o se l l C o u nt e r f e i t Pr o d u c t s f o l l o wi ng sp e c i f i c c o m p l a i nt s
b y Pl a i nt i f f s' r e p r e se nt a t i ve s t h a t t h e se Me r c h a nt De f e nd a nt s we r e se l l i ng C o u nt e r f e i t Pr o d u c t s.
IX. C o nsu m e r C o nf u si o n a nd Ha r m t o Pl a i nt i f f s
A. Pl a i nt i f f s' Ma r ks As Ke y wo r d s
252. Th e Al i b a b a De f e nd a nt s o f f e r Pl a i nt i f f s' Ma r ks, a s we l l a s t e r m s t h a t a r e
c o nf u si ngl y si m i l a r t o Pl a i nt i f f s' Ma r ks, f o r sa l e t o t h e i r o nl i ne m e r c h a nt s a s ke y wo r d s t o m a t c h
t h e m e r c h a nt s' p r o d u c t a nd se r vi c e l i st i ngs t h a t a p p e a r i n se a r c h o r b r o wse r r e su l t s.
253. Wh e n a n o nl i ne c o nsu m e r e nt e r s o ne o f Pl a i nt i f f s' t r a d e m a r k na m e s i nt o a we b
se a r c h t o o l b a r f e a t u r e d o n o ne o f t h e Al i b a b a Ma r ke t p l a c e s' we b si t e s, h e a r sh e wi l l r e c e i ve a l i st
o f p r o d u c t s a va i l a b l e f o r p u r c h a se t h r o u gh o ne o f t h e Al i b a b a Ma r ke t p l a c e s. Ma ny o nl i ne
c o nsu m e r s wi l l vi e w su c h l i st i ngs i n t h e b e l i e f t h a t t h e p r o d u c t s o f f e r e d f o r sa l e a r e , i n f a c t ,
Pl a i nt i f f s' Pr o d u c t s p r e c i se l y b e c a u se t h e y h a ve se a r c h e d f o r Pl a i nt i f f s' t r a d e m a r k na m e s. Th e
Al i b a b a De f e nd a nt s, i n f a c t , d i sp l a y se a r c h r e su l t s i n a f o r m a t t h a t i s l i ke l y t o a nd a p p e a r s
d e si gne d t o c o nf u se c o nsu m e r s i nt o b e l i e vi ng t h a t t h e r e su l t i ng l i st i ngs o f f e r a u t h e nt i c Pl a i nt i f f s'
Pr o d u c t s a nd/ o r a r e a f f i l i a t e d wi t h , sp o nso r e d b y , o r e nd o r se d b y Pl a i nt i f f s.
254 . Ma ny o nl i ne c o nsu m e r s wh o a r e p r e se nt e d wi t h su c h a l i st o f p r o d u c t s a r e no t
a wa r e t h a t t h e o nl i ne m e r c h a nt s se l l i ng t h e p r o d u c t s m a y h a ve no a f f i l i a t i o n wi t h Pl a i nt i f f s
a nd/ o r m a y b e o f f e r i ng C o u nt e r f e i t Pr o d u c t s. Th e Al i b a b a De f e nd a nt s' m i sa p p r o p r i a t i o n o f
Pl a i nt i f f s' Ma r ks a s ke y wo r d t r i gge r s a nd t h e Al i b a b a De f e nd a nt s' u se o f t e r m s c o nf u si ngl y
si m i l a r t o Pl a i nt i f f s' Ma r ks a r e t h e r e f o r e l i ke l y t o c a u se c o nf u si o n i n t h e m a r ke t p l a c e f o r l u xu r y
go o d s.
~ ~ ~ NPR, Kno c ko f f s A He c t c l a c h e f o r / PO-B o u n. ~ l Al i b a b a , a t p g. 3 ( i nC e r u a l c i t l t i o t ~ s o m i t C e d ) .
1 1 ~
255. Even i f web u s er s r ea l i z e t h a t a gi ven o nl i ne mer ch a nt i s no t a f f i l i a t ed wi t h
P l a i nt i f f s , t h e d a ma ge t o P l a i nt i f f s h a s a l r ea d y been d o ne. A s t a t i s t i ca l l y s i gni f i ca nt p er cent a ge
o f co ns u mer s a r e l i k el y t o ei t h er p u r ch a s e C o u nt er f ei t P r o d u ct s o r el ect no t t o p u r ch a s e
P l a i nt i f f s ' P r o d u ct s . Web u s er s ma y a l s o a s s o ci a t e t h e q u a l i t y o f t h e C o u nt er f ei t P r o d u ct s
o f f er ed t h r o u gh t h e Al i ba ba Ma r k et p l a ces wi t h t h o s e o f f er ed by P l a i nt i f f s , a nd i f d i s s a t i s f i ed
wi t h s u ch go o d s , ma y d eci d e t o a vo i d P l a i nt i f f s ' P r o d u ct s i n t h e f u t u r e.
256. Al t h o u gh t h e a bo ve exa mp l es a r e i l l u s t r a t i ve o f t h e p r o bl ems cr ea t ed by t h e
Al i ba ba Def end a nt s , t h ey by no mea ns d es cr i be a l l t h e wa y s i n wh i ch t h e Al i ba ba Def end a nt s '
u s es o f P l a i nt i f f s ' Ma r k s a s k ey wo r d s i n t h e Al i ba ba Ma r k et p l a ces a r e l i k el y t o co nf u s e
co ns u mer s . Beca u s e o f t h e na t u r e o f t h e wa y t h e Al i ba ba Def end a nt s u s e P l a i nt i f f s ' Ma r k s a nd
d i s p l a y p r o d u ct o f f er i ngs t h a t i nco r p o r a t e t h o s e ma r k s wi t h t er ms a s s o ci a t ed wi t h C o u nt er f ei t
P r o d u ct s ( e.g., i ns er t i ng t h e t er m " s y nt h et i c l ea t h er " i nt o t h e met a d a t a o n Al i ba ba .co m a l o ngs i d e
t h e k ey wo r d " Gu cci " i n o r d er t o d i r ect co ns u mer s t o C o u nt er f ei t P r o d u ct s wh en t h ey t y p e
" Gu cci " i nt o Al i ba ba .co m' s s ea r ch t o o l ba r ) , t h e Al i ba ba Def end a nt s a r e ei t h er mi s l ea d i ng o r wi l l
mi s l ea d co ns u mer s i n i nnu mer a bl e d i f f er ent wa y s . Acco r d i ngl y , i t i s i mp o s s i bl e f o r P l a i nt i f f s t o
cu r e t h i s p r o bl em mer el y by p u r s u i ng r emed i es a ga i ns t t h e o nl i ne mer ch a nt s o f f er i ng C o u nt er f ei t
P r o d u ct s f o r s a l e t h r o u gh t h e Al i ba ba Ma r k et p l a ces a l o ne.
257. Amo ng o t h er t h i ngs , t h e f o l l o wi ng f a ct s a nd ci r cu ms t a nces s u p p o r t t h e co ncl u s i o n
t h a t t h e Al i ba ba Def end a nt s ' u s e i n co mmer ce o f P l a i nt i f f s ' Ma r k s i s l i k el y t o ca u s e co ns u mer
co nf u s i o n:
a . P l a i nt i f f s ' Ma r k s h a ve a cq u i r ed excep t i o na l l y s t r o ng s eco nd a r y mea ni ng o ver t h e
co u r s e o f t h e l a s t cent u r y .
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b . The Alib ab a Defendants use P laintiffs' Marks or terms c onfusing ly similar thereto
as key word trig g ers and disp lay searc h results that are likely to c onfuse
c onsumers into b eliev ing that the merc hants who p urc hase suc h key words are
selling authentic P laintiffs' P roduc ts or are affiliated with, sp onsored b y , or
endorsed b y P laintiffs.
c . Alib ab a Marketp lac e merc hants who p urc hase P laintiffs' Marks or terms
c onfusing ly similar thereto as key words g enerally sell p roduc ts c losely related to
P laintiffs' P roduc ts.
d. Online c onsumers hav e ac tually b een c onfused as a result of the Alib ab a
Defendants' c onduc t.
e. The Alib ab a Defendants b eg an using P laintiffs' Marks or terms v ery similar to
P laintiffs' Marks after they were reg istered and after they b ec ame famous and
distinc tiv e. The Alib ab a Defendants did so with full knowledg e of P laintiffs'
rig hts in P laintiffs' Marks. I n fac t, it is the Alib ab a Defendants' sp ec ific intent to
use P laintiffs' Marks as set forth in this Comp laint to p rofit from online
c onsumers' assoc iation of P laintiffs' Marks with P laintiffs' P roduc ts.
258. Many of the online merc hants to whom the Alib ab a Defendants sell or offer the
rig ht or ab ility to use P laintiffs' Marks or terms c onfusing ly similar thereto, ar on whose b ehalf
the Alib ab a Defendants use suc h marks or terms, do not use suc h marks or terms to identify or
desc rib e P laintiffs or their P roduc ts.
B. Sales of P roduc ts Bearing P laintiffs' Marks
259. Online merc hants, inc luding the Merc hant Defendants, are using the Alib ab a
Marketp lac es to sell and/ or offer for sale Counterfeit P roduc ts that b ear P laintiffs' Marks and
c op y the desig ns, p atterns, and c olor sc hemes assoc iated with P laintiffs' P roduc ts.
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260. The Alibaba Defendants knowingly provide the use of the Alibaba Marketplaces,
online mai keting services, and financing and shipping services to the Merchant Defendants that
sell C ounterfeit Products through the Alibaba Marketplaces, and thereby participate in and/ or
facilitate the offering for sale and/ or sale of such C ounterfeit Products.
261. Alipay knowingly provides payment processing and escrow services to online
merchants and consumers engaged in transactions for C ounterfeit Products made through the
Alibaba Marketplaces, and provides the Alibaba Defendants with data concerning such
merchants and consumers, and thereby participates in and/ or facilitates the sales of such
C ounterfeit Products.
262. When online consumers see, on the Alibaba Marketplaces, listings for C ounterfeit
Products bearing Plaintiffs' Marks and copying the designs, patterns, and color schemes
associated with Plaintiffs' Products, many of those consumers will view such listings in the
belief that the products offered for sale are, in fact, Plaintiffs' Products.
263. C ertain online consumers who purchase those C ounterfeit Products from the
Alibaba Marketplaces' websites are not aware that the products have no affiliation with
Plaintiffs. And even if web users realiz e that the C ounterfeit Products are not affiliated with
Plaintiffs, they may associate the q uality of the C ounterfeit Products offered through the Alibaba
Marketplaces with those offered by Plaintiffs, and if dissatisfied with such goods, may decide to
avoid Plaintiffs' Products in the future.
264. C ertain online consumers purchase large q uantities of the C ounterfeit Products at
wholesale for resale. Because the C ounterfeit Products are designed as exact copies of Plaintiffs'
Products but of lower q uality, the retail consumers of C ounterfeit Products purchased wholesale
from the Alibaba Marketplaces will be confused as to the origin of the goods.
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265. The Alibaba Defendants' p ar tic ip atio n in and fac ilitatio n o f c o u nter feiter s' sale o f
C o u nter feit Pr o du c ts thr o u gh the Alibaba Mar ketp lac es is ther efo r e likely to c au se c o nfu sio n in
the mar ketp lac e fo r lu xu r y go o ds.
266. Online c o nsu mer s have ac tu ally been c o nfu sed as a r esu lt o f Defendants' c o ndu c t.
267. Defendants' ac tio ns have also c r eated p o st- sale c o nfu sio n amo ng c o nswner s
exp o sed to the C o u nter feit Pr o du c ts. As a r esu lt o f the widesp r ead availability o f the C o u nter feit
Pr o du c ts, c o nsu mer s ar e likely to c o me in c o ntac t with the C o u nter feit Pr o du c ts and may
asso c iate the q u ality o f the C o u nter feit Pr o du c ts o ffer ed thio u gh the Alibaba Mar ketp lac es with
the au thentic p r o du c ts o ffer ed by Plaintiffs.
268. Defendants' ac tio ns have c au sed, and will c o ntinu e to c au se, ir r ep ar able har m to
Plaintiffs and an inc alc u lable lo ss o f go o dwill and damages.
FIRST C AUSE OF AC TION
AGAINST ALL DEFENDANTS
(Tr ademar k Infr ingement Under Sec tio ns 32 and 43(a)
o f the Lanham Ac t, 15 U.S.C . 1 ] 14, 1125(a))
269. Plaintiffs r ep eat and r eallege eac h and ever y allegatio n in the fo r ego ing
p ar agr ap hs as tho u gh fu lly set fo r th her ein.
270. Plaintiffs' Mar ks ar e valid, feder ally r egister ed tr ademar ks entitled to p r o tec tio n
u nder the Lanham Ac t.
271. Plaintiffs' Mar ks and the go o dwill o f the bu sinesses asso c iated with them in the
United States and thr o u gho u t the wo r ld ar e o f gr eat and signific ant valu e, ar e highly distinc tive
and ar bitr ar y , and have bec o me u niver sally asso c iated in the p u blic mind with p r o du c ts and
ser vic es o f the ver y highest q u ality and r ep u tatio n.
1.04
272. Defendants were knowing and wil l fu l p artic ip ants and c o-v entu rers in th e
marketing and sal e of C ou nterfeit Produ c ts desc rib ed ab ov e, making th em j ointl y and sev eral l y
l iab l e for th e marketing and sal e of su c h C ou nterfeit Produ c ts. As set forth in greater detail
ab ov e, th e Al ib ab a Defendants th emsel v es make c onfu sing u ses of th e Pl aintiffs' Marks b y
sel l ing Pl aintiffs' Marks as key words to th ird p arties wh o are not affil iated with Pl aintiffs and b y
c reating a searc h sy stem and resp onse p ages th at are designed to c onfu se c onsu mers into
inc orrec tl y b el iev ing th at th e Al ib ab a Defendants' merc h ant c l ients offer l egitimate Pl aintiffs'
Produ c ts or are oth erwise affil iated with , endorsed b y , or sp onsored b y Pl aintiffs. Th e sal e of
wh ol esal e q u antities of th e C ou nterfeit Produ c ts wh ic h are u l timatel y resol d to retail c onsu mers
c au ses c onfu sion among c onsu mers seeking au th entic Pl aintiffs' Produ c ts. Defendants' ac tions
al so c au se p ost- sal e c onfu sion among c onsu mers wh o c ome in c ontac t with th e C ou nterfeit
Produ c ts and assoc iate th eir inferior q u al ity with Pl aintiffs' Marks.
273. Defendants' ac tions desc rib ed ab ov e h av e c au sed and are l ikel y to c au se
c onfu sion and mistake and to dec eiv e p otential c u stomers and th e general p u rc h asing p u b l ic as to
th e sou rc e, origin, or sp onsorsh ip of th eir C ou nterfeit Produ c ts, and are l ikel y to dec eiv e th e
p u b l ic into b el iev ing th at th e C ou nterfeit Produ c ts sol d th rou gh th e Al ib ab a Marketp l ac es
originate from, are assoc iated with , or are oth erwise au th oriz ed b y Pl aintiffs, al l to th e damage
and detriment of Pl aintiffs' rep u tation, goodwil l , and sal es.
274. Defendants' infringement of Pl aintiffs' Marks is wil l fu l and refl ec ts Defendants'
intent to ex p l oit th e goodwil l and strong b rand rec ognition assoc iated with Pl aintiffs' Marks.
275. Defendants' p artic ip ation in th e u nau th oriz ed u se of Pl aintiffs' Marks c onstitu tes
trademark infringement of federal l y -registered Pl aintiffs' Marks, th e fu l l ex tent of wh ic h is
p resentl y u nknown b u t th e known amou nt is su b stantial . For ex amp l e and with ou t l imitation,
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Defendants have been u nj u stl y enr i c hed thr ou gh thei r u nl awfu l and u nau thor i z ed sal es of
C ou nter fei t Pr odu c ts that ar e c onfu si ngl y si m i l ar to Pl ai nti ffs' Pr odu c ts or that other wi se bear ,
c ontai n, di sp l ay , or u ti l i z e any of Pl ai nti ffs' Mar ks. Thi s has c au sed dam age to Pl ai nti ffs and the
su bstanti al bu si ness and goodwi l l sy m bol i z ed by Pl ai nti ffs' Mar ks i n vi ol ati on of S ec ti ons 32
and 43(a) of the Lanham Ac t, 15 U.S .C . 1114, 1125(a).
276. Defendants' ac ti ons desc r i bed above, i nc l u di ng the u nau thor i z ed u se of Pl ai nti ffs'
Mar ks i n i nter state c om m er c e, have c au sed, and u nl ess r estr ai ned wi l l c onti nu e to c au se, gr eat
and i r r ep ar abl e i nj u r y to Pl ai nti ffs, to Pl ai nti ffs' Mar ks, and to the bu si ness and goodwi l l
r ep r esented ther eby , l eavi ng Pl ai nti ffs wi th no adequ ate r em edy at l aw.
S EC OND C AUS E OF AC TION
AGAINS T ALL DEFENDANTS
(Tr adem ar k C ou nter fei ti ng Under S ec ti ons 32, 34, and 35
of the Lanham Ac t, 15 U.S .C . 7114(1)(b), 1116(d), & l l 17(b)- (c ))
277. Pl ai nti ffs r ep eat and r eal l ege eac h and ever y al l egati on i n the for egoi ng
p ar agr ap hs as thou gh fu l l y set for th her ei n.
278. Wi thou t Pl ai nti ffs' au thor i z ati on or c onsent, and havi ng knowl edge of Pl ai nti ffs'
wel l- known and p r i or r i ghts i n Pl ai nti ffs' Mar ks, Defendants have knowi ngl y and wi l l fu l l y
fac i l i tated, fi nanc ed, and p ar ti c i p ated i n the di str i bu ti on, adver ti sem ent, offer i ng for sal e, and/ or
sal e of C ou nter fei t Pr odu c ts to the c onsu m i ng p u bl i c i n di r ec t c om p eti ti on wi th Pl ai nti ffs, i n or
affec ti ng i nter state c om m er c e, and/ or ac ted wi th r ec kl ess di sr egar d to the r i ghts of Pl ai nti ffs i n
Pl ai nti ffs' Mar ks i n p ar ti c i p ati ng i n su c h ac ti vi ti es.
279. The C ou nter fei t Pr odu c ts that ar e offer ed and sol d to the p u bl i c by way of the
Al i baba Mar ketp l ac es and other ser vi c es r ep r odu c e, c ou nter fei t, c op y , and c ol or abl y i m i tate the
Pl ai nti ffs' Mar ks or di sp l ay sp u r i ou s desi gnati ons that ar e i denti c al wi th, or su bstanti al l y
i ndi sti ngu i shabl e fr om , Pl ai nti ffs' Mar ks. Defendants have thu s c au sed r ep r odu c ti ons,
106
c o u n t e r f e i t s , c o p i e s , an d c o l ar ab l e i m i t at i o n s o f P l ai n t i f f s ' Mar ks t o b e ap p l i e d t o l ab e l s an d
adv e r t i s e m e n t s t o b e u s e d i n c o m m e r c e i n c o n n e c t i o n w i t h t h e s al e an d di s t r i b u t i o n o f
C o u n t e r f e i t P r o du c t s t h r o u gh t h e Al i b ab a Mar ke t p l ac e s , w h i c h i s l i ke l y t o c au s e c o n f u s i o n , t o
c au s e m i s t ake , o r t o de c e i v e .
280. De f e n dan t s ' p ar t i c i p at i o n , f i n an c i n g, an d/ o r f ac i l i t at i o n o f t h i s u n au C h o r i z e d u s e
o f P l ai n t i f f s ' Mar ks o n o r i n c o n n e c t i o n w i t h t h e C o u n t e r f e i t P r o du c t s w as do n e w i t h n o t i c e an d
f u l l kn o w l e dge t h at s u c h u s e w as n o t au t h o r i z e d o r l i c e n s e d b y P l ai n t i f f s . De f e n dan t s ' ac t i o n s
c o n s t i t u t e w i l l f u l c o u n t e r f e i t i n g o f P l ai n t i f f s ' Mar ks i n v i o l at i o n o f IS U. S. C . 1 l l 4 ( 1 ) ( b ) ,
1 1 1 6( d) , an d 1 ~ I 1 7( b )- ( c ) .
281 . As a di r e c t an d p r o xi m at e r e s u l t o f De f e n dan t s ' c o n du c t , P l ai n t i f f s h av e s u f f e r e d
dam age t o t h e i r v al u ab l e Mar ks , an d o t h e r dam age s i n an am o u n t t o b e p r o v e d at t r i al .
282. P l ai n t i f f s do n o t h av e an ade qu at e r e m e dy at l aw , an d w i l l c o n t i n u e t o b e
dam age d b y De f e n dan t s ' f ac i l i t at i o n o f an d p ar t i c i p at i o n i n t h e s al e o f C o u n t e r f e i t P r o du c t s
u n l e s s t h i s C o u r t e n j o i n s De f e n dan t s f r o m s u c h f r au du l e n t b u s i n e s s p r ac t i c e s .
THIRD C AUSE OF AC TION
AGAINST THE ALIBABA DEFENDANTS
( C o n t r i b u t o r y Tr ade m ar k In f r i n ge m e n t an d C o u n t e r f e i t i n g Un de r t h e Lan h am Ac t )
283. P l ai n t i f f s r e p e at an d r e al l e ge e ac h an d e v e r y al l e gat i o n i n t h e f o r e go i n g
p ar agr ap h s as t h o u gh f u l l y s e t f o r t h h e r e i n .
284 . P l ai n t i f f s ' Mar ks ar e v al i d, f e de r al l y r e gi s t e r e d t r ade m ar ks e n t i t l e d t o p r o t e c t i o n
u n de r t h e Lan h am Ac t .
285. P l ai n t i f f s ' Mar ks an d t h e go o dw i l l o f t h e b u s i n e s s e s as s o c i at e d w i t h t h e m i n t h e
Un i t e d St at e s an d t h r o u gh o u t t h e w o r l d ar e o f gr e at an d s i gn i f i c an t v al u e , ar e h i gh l y di s t i n c t i v e
1 07
and ar b i t r ar y , and have b ecome u ni ver s al l y as s oci at ed i n t he p u b l i c hi nd w i t h t he p r odu ct s and
s er vi ces of t he ver y hi g hes t q u al i t y and r ep u t at i on.
286. Wi t h fu l l know l edg e of P l ai nt i ffs ' r i g ht s i n P l ai nt i ffs ' Mar ks , t he Al i b ab a
Defendant s have p r ovi ded t he Al i b ab a Mar ket p l aces , t hei r onl i ne mar ket i ng , fi nanci ng , s hi p p i ng ,
p ay ment p r oces s i ng , and/ ar es cr ow s er vi ces t o, and g ener at ed i ncome fr om, t he Mer chant
Defendant s w ho s el l C ou nt er fei t P r odu ct s b ear i ng P l ai nt i ffs ' Mar ks t hr ou g h t he Al i b ab a
Mar ket p l aces . Bas ed on t he al l eg at i ons s et for t h i n g r eat er det ai l ab ove, t he Al i b ab a Defendant s
ei t her had or have cont emp or aneou s know l edg e t hat t he g oods b ear i ng P l ai nt i ffs ' Mar ks b ei ng
offer ed far s al e t hr ou g h t he Al i b ab a Mar ket p l aces ar e or w er e, i n fact , cou nt er fei t or w er e
w i l l fu l l y b l i nd t o t he fact t hat s u ch p r odu ct s w er e cou nt er fei t .
287. The Al i b ab a Defendant s , b y offer i ng onl i ne mar ket i ng , fi nanci ng , s hi p p i ng ,
p ay ment p r oces s i ng , and/ or es cr ow s er vi ces t o t he Mer chant Defendant s t hat al l ow ed t he
Mer chant Defendant s t o i nfr i ng e u p on P l ai nt i ffs ' Mar ks , ai ded, faci l i t at ed, p ar t i ci p at ed i n, and
mat er i al l y cont r i b u t ed t o t he s al e of C ou nt er fei t P r odu ct s i n vi ol at i on of t he Lanham Act , 15
U. S. C . ] 114, 1116(d), 1117(b )- (c), and 1125(a). For examp l e and w i t hou t l i mi t at i on,
Defendant Al i p ay p ar t i ci p at ed i n t he s al es of C ou nt er fei t P r odu ct s b y accep t i ng t he cr edi t car d
nu mb er s for t he s al es t r ans act i ons of C ou nt er fei t P r odu ct s t hr ou g h t he Al i b ab a Mar ket p l aces ,
p r oces s i ng t he t r ans act i ons and p ay i ng t he p r oceeds of t he s al es of t he C ou nt er fei t P r odu ct s t o
t he cou nt er fei t er Mer chant Defendant s . Fu r t her , and w i t hou t l i mi t at i on, t he Al i b ab a
Mar ket p l aces p ar t i ci p at ed i n t he s al es of C ou nt er fei t P r odu ct s b y know i ng l y al l ow i ng I nt er net
mer chant s t o offer C ou nt er fei t P r odu ct s for s al e t o cons u mer s , i ncl u di ng t hr ou g h t he u s e of
mar ket i ng t echni q u es t hat i nfr i ng ed u p on P l ai nt i ffs ' Mar ks .
1'
288. By providing c riC ic a l onl ine ma rketing, s h ipping, f ina nc ing, pa yment proc es s ing,
a nd/ or es c row s ervic es to th e Merc h a nt Def enda nts , th e Al iba ba Def enda nts s u ppl ied th e
nec es s a ry ma rketpl a c e f or th e s a l e of C ou nterf eit Produ c ts , a nd th e Al iba ba Def enda nts rec eived
a direc t f ina nc ia l benef it f or providing s u c h s ervic es .
289. Th e Al iba ba Def enda nts ex erc is ed c ontrol over th e mea ns of th e inf ringement a nd
c ou nterf eiting des c ribed a bove. Th e Al iba ba Def enda nts knowingl y provided es s entia l s ervic es
to merc h a nts s el l ing C ou nterf eit Produ c ts th rou gh th e Al iba ba Ma rketpl a c es . For ex a mpl e a nd
with ou t l imita tion:
a . Def enda nt Al ipa y h a ndl ed th e pa yment tra ns a c tions f or th e inf ringing s a l es .
Knowing th a t merc h a nts u s ed Al ipa y's pa yment proc es s ing a nd es c row s ervic es
to f a c il ita te th e s a l e of C ou nterf eit Produ c ts th rou gh th e Al iba ba Ma rketpl a c es ,
th e Al iba ba Def enda nts noneth el es s c ontinu ed to provide s u c h merc h a nts with
Al ipa y's s ervic es .
b. Th e Al iba ba Ma rketpl a c es provided th e ma rketpl a c es f or th e s a l es of C ou nterf eit
Produ c ts a nd f a c il ita ted th e f ina nc ing a nd c ommerc ia l opera tions of th e Merc h a nt
Def enda nts s el l ing C ou nterf eit Produ c ts by providing ma rketing s ervic es th a t
direc t bu yers to th e C ou nterf eit Produ c ts , inc l u ding s el l ing Pl a intif f s ' Ma rks a s
keywords , of f ering its merc h a nts mic ro l oa ns , proc es s ing onl ine pa yment
tra ns a c tions f or th e C ou nterf eit Produ c ts , a nd s h ipping th e C ou nterf eit Produ c ts to
c ons u mers .
c . Th e Al iba ba Def enda nts provided onl ine ma rketing s ervic es to th e Merc h a nt
Def enda nts wh om th e Al iba ba Def enda nts knew a nd h a d rea s on to know were
s el l ing C ou nterf eit Produ c ts ba s ed on, inter a l ic ~ , th eir monitoring of th eir "Gol d
109
S u p p l i e r s " and " As s e s s e d S u p p l i e r s " whi ch ar e s e l l i ng C o u nt e r f e i t Pr o du ct s
and/ o r m at e r i al s t hat t he y cl ai m can be u s e d t o m ake Pl ai nt i f f s ' Pr o du ct s , as we l l
as t he i r " dat a m anag e m e nt p l at f ar m , au di e nce t ar g e t i ng , cr e di t anal ys i s , and
de t e ct i ng , m o ni t o r i ng and i nv e s t i g at i ng t r af f i c hi j acki ng and f r au du l e nt act i v i t i e s . "
d. The Al i baba De f e ndant s co nt r o l who m ay s e l l p r o du ct s o n t he i r p l at f o r m s , and
o nl i ne m e r chant s ar e r e q u i r e d t o v e r i f y t he i r i de nt i t y be f o r e t he y ar e al l o we d t o
l i s t t he i r p r o du ct s and s e r v i ce s o n t he Al i baba Mar ke t p l ace s .
290. The Al i baba De f e ndant s ' act i o ns de s cr i be d abo v e hav e cau s e d and ar e l i ke l y t o
cau s e co nf u s i o n and m i s t ake and t o de ce i v e p o t e nt i al cu s t o m e r s and t he g e ne r al p u r chas i ng
p u bl i c as t o t he s o u l ce , o r i g i n, o r s p o ns o r s hi p o f t he C o u nt e r f e i t Pr o du ct s , and ar e l i ke l y t o
de ce i v e t he p u bl i c i nt o be l i e v i ng t hat t he C o u nt e r f e i t Pr o du ct s s o l d t hr o u g h t he Me r chant
De f e ndant s , whi ch r e ce i v e s e r v i ce s f r o m t he Al i baba De f e ndant s , o r i g i nat e f r o m , ar e as s o ci at e d
wi t h, o r ar e o t he r wi s e au t ho r i z e d by Pl ai nt i f f s , al l t o t he dam ag e and de t r i m e nt o f Pl ai nt i f f s '
r e p u t at i o ns , g o o dwi l l , and s al e s .
291. The Al i baba De f e ndant s ar e t he r e f o r e co nt r i bu t o r i l y l i abl e f o r t he i nf r i ng e m e nt
and co u nt e r f e i t u s e o f Pl ai nt i f f s ' Mar ks by t he Me r chant De f e ndant s who o p e r at e by m e ans o f
t he Al i baba De f e ndant s ' o nl i ne m ar ke t i ng , f i nanci ng , s hi p p i ng , p aym e nt p r o ce s s i ng , and/ o r
e s cr o w s e r v i ce s i n co nne ct i o n wi t h t he i r s al e o f C o u nt e r f e i t Pr o du ct s .
292. Pl ai nt i f f s hav e be e n dam ag e d by t he Al i baba De f e ndant s ' co nt r i bu t o r y
i nf r i ng e m e nt i n an am o u nt t o be de t e r m i ne d at t r i al . Fo r e xam p l e and wi t ho u t l i m i t at i o n, t he
Al i baba De f e ndant s hav e be e n u nj u s t l y e nr i che d t hr o u g h t he Al i baba Mar ke t p l ace s ' m e r chant s '
u nl awf u l and u nau t ho r i z e d s al e s o f C o u nt e r f e i t Pr o du ct s , f o r whi ch t he Al i baba De f e ndant s
r e ce i v e i nco m e and/ o r t r ans act i o n f e e s .
110
293. P l a i n t i f f s ha ve been , a n d a bs en t i n j u n c t i ve r el i ef w i l l c o n t 7 n u e t o be, i r r ep a r a bl y
ha r med by Def en da n t s ' a c t i o n s .
294. P l a i n t i f f s ha ve n o a dequ a t e r emedy a t l a w f o r t he f o r ego i n g w r o n gf u l c o n du c t .
FOURTH CAUSE OF ACTION
( Fa l s e Rep r es en t a t i o n Un der Sec t i o n 43( a )
o f t he La n ha m Ac t , 15 U.S.C. 1125( a ))
295. P l a i n t i f f s r ep ea t a n d r ea l l ege ea c h a n d ever y a l l ega t i o n i n t he f o r ego i n g
p a r a gr a p hs a s t ho u gh f u l l y s et f o r t h her ei n .
296. As a r es u l t o f t he ex p er i en c e, c a r e, a n d s er vi c e o f P l a i n t i f f s i n p r o du c i n g a n d
p r o vi di n g P l a i n t i f f s ' P r o du c t s , t hes e p r o du c t s ha ve bec o me w i del y kn o w n a n d ha ve a c qu i r ed a
w o r l dw i de r ep u t a t i o n f o r ex c el l en c e. Mo r eo ver , P l a i n t i f f s ' Ma r ks ha ve bec o me a s s o c i a t ed w i t h
P l a i n t i f f s ' P r o du c t s , a n d ha ve c o me t o s y mbo l i ze t he r ep u t a t i o n f o r qu a l i t y a n d ex c el l en c e
a s s o c i a t ed w i t h P l a i n t i f f s a n d a u t hen t i c p r o du c t s p r o du c ed by P l a i n t i f f s . As s u c h, P l a i n t i f f s '
Ma r ks ha ve a t t a i n ed s ec o n da r y mea n i n g. P l a i n t i f f s ' Ma r ks a r e a l s o i n her en Cl y di s t i n c t i ve.
297 . Def en da n t s ' u s e o f P l a i n t i f f s ' Ma r ks o n a r i n c o n n ec t i o n w i t h t he Co u n t er f ei t
P r o du c t s , a s a l l eged a bo ve, i s l i kel y t o c o n f u s e, mi s l ea d, o r dec ei ve c u s t o mer s , p u r c ha s er s , a n d
member s o f t he gen er a l p u bl i c a s t o t he o r i gi n , s o u r c e, s p o n s o r s hi p , o r a f f i l i a t i o n o f t he
Co u n t er f ei t P r o du c t s , a n d i s l i kel y t o c a u s e s u c h p eo p l e t o bel i eve i n er r o r t ha t t he Co u n t er f ei t
P r o du c t s ha ve been a u t ho r i zed, s p o n s o r ed, a p p r o ved, en do r s ed, o r l i c en s ed by P l a i n t i f f s , o r t ha t
Def en da n t s a r e i n s o me w a y a f f i l i a t ed w i t h P l a i n t i f f s .
298. Def en da n t s ' a c t i o n s , i n c l u di n g bu t n o t l i mi t ed t o t hei r u n a u t ho r i zed u s e i n
c o mmer c e o f P l a i n t i f f s ' Ma r ks , c o n s t i t u t e a f a l s e des i gn a t i o n o f o r i gi n , f a l s e a n d mi s l ea di n g
des c r i p t i o n s o f f a c t , a n d f a l s e a n d mi s l ea di n g r ep r es en t a t i o n s o f f a c t , w hi c h ha ve c a u s ed, a n d a r e
111
l i k e l y t o c a u s e , c o n f u s i o n , m i s t a k e , a n d de c e p t i o n , i n v i o l a t i o n o f S e c t i o n 43(a ) o f t h e La n h a m
Ac t , 15 U.S .C. l 12 5(a ).
2 99. De f e n da n t s ' a c t i o n s a s de s c r i b e d a b o v e , i n c l u di n g t h e i r u n a u t h o r i z e d, f a l s e , a n d
m i s l e a di n g u s e i n c o m m e r c e o f P l a i n t i f f s ' Ma r k s o n Co u n t e r f e i t P r o du c t s a n d o t h e r u s e s o f
P l a i n t i f f s ' Ma r k s i n i n t e r s t a t e c o i m n e r c e , h a v e c a u s e d, a n d u n l e s s r e s t r a i n e d w i l l c o n t i n u e t o
c a u s e , g r e a t a n d i r r e p a r a b l e i n j u r y t o P l a i n t i f f s , a n d t o t h e b u s i n e s s a n d g o o dw i l l r e p r e s e n t e d b y
P l a i n t i f f s ' Ma r k s i n a n a m o u n t t h a t c a n n o t p r e s e n t l y b e a s c e r t a i n e d, l e a v i n g P l a i n t i f f s w i t h n o
a de qu a t e r e m e dy a t l a w .
FIFTH CAUS E OF ACTION
AGAINS T ALL DEFENDANTS
(Tr a de m a r k Di l u t i o n Un de r S e c t i o n 43(c )
o f t h e La n h a m Ac t , 15 U.S .C. 112 5(c ))
300. P l a i n t i f f s r e p e a t a n d r e a l l e g e e a c h a n d e v e r y a l l e g a t i o n i n t h e f o r e g o i n g
p a r a g r a p h s a s t h o u g h f u l l y s e t f o r t h h e r e i n .
301. P l a i n t i f f s ' Ma r k s a r e f a m o u s w i t h i n t h e m e a n i n g o f t h e Tr a de m a r k Di l u t i o n
Re v i s i o n Ac t o f 2 006. Am o n g o t h e r t h i n g s : (1) P l a i n t i f f s ' Ma r k s h a v e a h i g h de g r e e o f i n h e r e n t
di s t i n c t i v e n e s s ; (2 ) P l a i n t i f f s ' Ma r k s h a v e b e e n u s e d c o n t i n u o u s l y f o r de c a de s t h r o u g h o u t t h e
Un i t e d S t a t e s t o p r o m o t e m a n y g o o ds a n d s e r v i c e s ; (3) P l a i n t i f f s a n d t h e i r a u t h o r i z e d l i c e n s e e s
h a v e a dv e r t i s e d a n d p u b l i c i z e d P l a i n t i f f s ' Ma r k s c o n t i n u o u s l y f o r de c a de s t h r o u g h o u t t h e Un i t e d
S t a t e s ; (4) P l a i n t i f f s h a v e u s e d t h e i r r e s p e c t i v e t r a de m a r k s i n a t r a di n g a r e a o f b r o a d
g e o g r a p h i c a l s c o p e e n c o m p a s s i n g a l l o f t h e s t a t e s a n d t e r r i t o r i e s o f t h e Un i t e d S t a t e s ;
(5) P l a i n t i f f s ' Ma r k s a r e a m o n g t h e p r e e m i n e n t m a r k s i n t h e l u xu r y g o o ds m a r k e t ; (6) P l a i n t i f f s '
Ma r k s h a v e a n e xt r e m e l y h i g h de g r e e o f r e c o g n i t i o n a m o n g c o n s u m e r s ; (7) t h e r e a r e n o
t r a de m a r k s s i m i l a r t o t h o s e o f P l a i n t i f f s ; a n d (8) m a n y o f P l a i n t i f f s ' Ma r k s a r e t h e s u b j e c t o f
v a l i d a n d s u b s i s t i n g r e g i s t r a t i o n s u n de r t h e La n h a m Ac t o n t h e P r i n c i p a l Re g i s t e r .
112
302. Because P l ai n t i f f s' P roduct s have gai n ed a rep ut at i on f or sup eri or q ual i t y an d
ex cel l en ce, P l ai n t i f f s' Marks have gai n ed sub st an t i al ren own an d rep ut at i on .
303. Def en dan t s' use of P l ai n t i f f s' Marks i s l i kel y t o cause b l urri n g t o an d of
P l ai n t i f f s' Marks an d i mp ai r t he di st 7 n ct i ven ess of P l ai n t i f f s' Marks. Con sumers are l i kel y t o
associ at e Def en dan t s' uses of P l ai n t i f f s' Marks wi t h t he P l ai n t i f f s' Marks t hemsel ves b ecause of
t he si mi l ari t y b et ween Def en dan t s' use of P l ai n t i f f s' Marks an d P l ai n t i f f s' Marks t hemsel ves. I n
p art i cul ar, t he f ol l owi n g f act ors make di l ut i on b y b l urri n g l i kel y : (1) Def en dan t s are maki n g
uses of P l ai n t i f f s' Marks t hemsel ves; (2) P l ai n ri f f s' Marks have acq ui red t remen dous
di st i n ct i ven ess t hrough P l ai n t i f f s' con t i n uous p romot i on an d uses of P l ai n t i f f s' Marks;
(3) P l ai n t i f f s' Marks have b ecome f amous an d achi eved a hi gh l evel of recogn i t i on amon g t he
con sumi n g p ub l i c; (4) P l ai n t i f f s' commerci al use of P l ai n t i f f s' Marks i s sub st an t i al l y ex cl usi ve
t o P l ai n t i f f s an d i t s agen t s an d l i cen sees; (5) Def en dan t s i n t en d t o creat e an associ at i on b et ween
Def en dan t s' uses of P l ai n t i f f s' Marks an d P l ai n t i f f s' Marks t hemsel ves; an d (6) on i n f ormat i on
an d b el i ef , man y con sumers act ual l y associ at e Def en dan t s' uses of P l ai n t i f f s' Marks con f usi n gl y
si mi l ar t heret o wi t h P l ai n t i f f s' Marks t hemsel ves.
304. Def en dan t s' con duct as al l eged ab ove i s al so l i kel y t o cause t arn i shmen t amon g
P l ai n t i f f s' Marks t hat harms t he rep ut at i on of P l ai n t i f f s b ecause of t he si mi l ari t y b et ween
Def en dan t s' uses of P l ai n t i f f s' Marks an d P l ai n t i f f s' Marks t hemsel ves. I n p art i cul ar, t he
Coun t erf ei t P roduct s sol d, of f ered f or sal e, an d/ or di st ri b ut ed b y Def en dan t s di sp l ay P l ai n t i f f s'
Marks i n a man n er t hat i s con f usi n gl y si mi l ar t o P l ai n t i f f s' P roduct s an d t heref ore mi sl ead
con sumers t o b el i eve t hat P l ai n t i f f s' P roduct s are of l ow q ual i t y .
305. Def en dan t s' con duct descri b ed ab ove di l ut es, b l urs, t arn i shes, an d whi t t l es away
at t he di st i n ct i ven ess of P l ai n t i f f s' Marks, an d has caused act ual di l ut i on an d has det ract ed f rom
113
t h e d i s t i n c t i v e n e s s of t h e famous P l ai n t i ffs ' Marks wi t h c on s e que n t d amage t o P l ai n t i ffs an d t o
t h e s ub s t an t i al b us i n e s s an d good wi l l s ymb ol i ze d b y P l ai n t i ffs ' Marks i n v i ol at i on of t h e Fe d e ral
Trad e mark D i l ut i on Ac t , 15 U.S.C. 112 5( c ) .
306. D e fe n d an t s ' ac t s of t rad e mark d i l ut i on h av e c aus e d an d , un l e s s re s t rai n e d wi l l
c on t i n ue t o c aus e , gre at an d i rre p arab l e i n j ury t o P l ai n t i ffs , t o P l ai n t i ffs ' Marks , an d t o t h e
s ub s t an t i al b us i n e s s an d good wi l l re p re s e n t e d t h e re b y, i n an amoun t t h at c an n ot b e p re s e n t l y
as c e rt ai n e d , l e av i n g P l ai n t i ffs wi t h n o ad e quat e re me d y at l aw.
307. D e fe n d an t s ' c on d uc t h as b e e n un d e rt ake n wi t h a wi l l ful i n t e n t t o t rad e on t h e
re p ut at i on of P l ai n t i ffs an d t o c aus e d i l ut i on of t h e famous P l ai n t i ffs ' Marks , an d t h i s c on d uc t
e n t i t l e s P l ai n t i ffs t o d amage s an d t h e ot h e r re me d i e s av ai l ab l e p urs uan t t o 15 U.S.C.
112 5( c ) ( 2 ) .
SIXTH CAUSE OF ACTION
AGAINST ALL D EFEND ANTS
( V i ol at i on s of Rac ke t e e r In fl ue n c e d an d Corrup t Organ i zat i on s Ac t ("RICO")
18 U.S.C. ~ 1962 ( c ) )
308. P l ai n t i ffs re p e at an d re al l e ge e ac h an d e v e ry al l e gat i on i n t h e fore goi n g
p aragrap h s as t h ough ful l y s e t fort h h e re i n .
309. At al l re l e v an t t i me s , e ac h P l ai n t i ff i s a p e rs on wi t h i n t h e me an i n g of 18 U.S.C.
1961( 3) an d 1962 ( c ) .
310. At al l re l e v an t t i me s , e ac h D e fe n d an t i s a p e rs on wi t h i n t h e me an i n g of 18 U.S.C.
1961( 3) an d 1962 ( c ) .
Th e RICO En t e rp ri s e
311. Th e D e fe n d an t s an d t h e i r c o-c on s p i rat ors c on s t i t ut e an as s oc i at i on -i n-fac t
e n t e rp ri s e wi t h i n t h e me an i n g of 18 U.S.C. 1961( 4) an d 1962 ( c ) , re fe rre d t o h e re i n as t h e
"En t e rp ri s e ." Eac h of t h e D e fe n d an t s p art i c i p at e d i n t h e op e rat i on or man age me n t of t h e
114
E n t e r p r i s e be caus e t he y e n gage d i n act s t hat t he y kn e w would f ur t he r t he s che me t o s e ll an d
p r of i t f r om t he s ale of coun t e r f e i t goods , an d t hat t he y f ur t he r i n t e n de d t o f ur t he r t hat s che me ,
an d e x e r ci s e d s ubs t an t i al di s cr e t i on i n doi n g s o.
312. The E n t e r p r i s e con s i s t s of t he Ali baba De f e n dan t s , t he Me r chan t De f e n dan t s , an d
un i de n t i f i e d co-con s p i r at or s us i n g t he Ali baba Mar ke t p lace s who have j oi n e d t oge t he r t o f or m an
e n t e r p r i s e i n f act whos e p ur p os e i s t o s e ll an d p r of i t f r om t he s ale of coun t e r f e i t goods . The
Me r chan t De f e n dan t s kn owi n gly man uf act ur e an d s e ll, amon g ot he r coun t e r f e i t goods ,
C oun t e r f e i t Pr oduct s be ar i n g Plai n t i f f s ' Mar ks , us i n g t he Ali baba Mar ke t p lace s an d t he Ali baba
De f e n dan t s ' s e r vi ce s t o e f f e ct s uch s ale s . The Ali baba De f e n dan t s kn owi n gly p r ovi de t he
Me r chan t De f e n dan t s wi t h t he on li n e mar ke t p lace s an d ot he r s e r vi ce s t o f aci li t at e t he s ale of
coun t e r f e i t goods , i n cludi n g mar ke t i n g, s hi p p i n g, f i n an ci n g, an d p ayme n t an d/ or e s cr ow s e r vi ce s
t hat allow t he Me r chan t De f e n dan t s t o t r an s act t he i r i lle gal s ale s of t he C oun t e r f e i t Pr oduct s , an d
t he Ali baba De f e n dan t s de r i ve s ubs t an t i al p r of i t s f r om s uch s ale s .
313. De f e n dan t s an d t he i r co-con s p i r at or s , i . e . , t he man uf act ur e r s an d s e lle r s of
coun t e r f e i t goods t hr ough t he Ali baba Mar ke t p lace s , ar e a gr oup of p e r s on s as s oci at e d t oge t he r
i n f act f or t he common p ur p os e of car r yi n g out an on goi n g cr i mi n al e n t e r p r i s e , as de s cr i be d i n
t he f or e goi n g p ar agr ap hs of t hi s C omp lai n t ; n ame ly, t hr ough a s ys t e mat i z e d op e r at i on t o s e ll an d
p r of i t f r om t he s ale of coun t e r f e i t goods i n cludi n g C oun t e r f e i t Pr oduct s be ar i n g Plai n r i f f s '
Mar ks . The s e De f e n dan t s an d t he i r co-con s p i r at or s have or gan i z e d t he i r act i vi t i e s i n t o a
cohe s i ve gr oup wi t h s p e ci f i c an d as s i gn e d r e s p on s i bi li t i e s an d di vi s i on of t as ks , op e r at i n g i n t he
Un i t e d S t at e s , C hi n a, an d e ls e whe r e . Me r chan t s i n cludi n g t he Me r chan t De f e n dan t s
man uf act ur e t he goods f or whole s ale an d r e t ai l di s t r i but i on t hr ough t he Ali baba Mar ke t p lace s .
The Ali baba De f e n dan t s have de ve lop e d t he i r s e lf -de s cr i be d "e cos ys t e m" comp r i s i n g var i ous
115
e n t i t i e s r e s p o n s i b l e f o r d a t a c o l l e c t i o n a n d o n l i n e ma r ke t i n g, f i n a n c i n g, s h i p p i n g, a n d p a yme n t
p r o c e s s i n g s e r v i c e s t o p r o mo t e a n d f a c i l i t a t e t h e s a l e o f c o u n t e r f e i t go o d s . Wh i l e t h e
me mb e r s h i p o f t h i s E n t e r p r i s e h a s c h a n ge d o v e r t i me , a n d i t s me mb e r s ma y h a v e h e l d d i f f e r e n t
r o l e s a t d i f f e r e n t t i me s , t h e E n t e r p r i s e h a s ge n e r a l l y b e e n s t r u c t u r e d t o o p e r a t e a s a u n i t i n o r d e r
t o a c c o mp l i s h t h e go a l s o f t h e c r i mi n a l s c h e me , p r o f i t i n g f r o m t h e p r o mo r i o n a n d s a l e o f
c o u n t e r f e i t go o d s , i n c l u d i n g t h r o u gh t h e f o l l o wi n g a c t s :
a . Th e Al i b a b a De f e n d a n t s h a v e p a r t i c i p a t e d i n t h e o p e r a t i o n a n d ma n a ge me n t o f
t h e E n t e r p r i s e b y kn o wi n gl y f a c i l i t a t i n g t h e s a l e o f c o u n t e r f e i t go o d s a n d
ma t e r i a l s t o ma ke c o u n t e r f e i t go o d s , i n c l u d i n g, i n t e r a l i a , C o u n t e r f e i t Pr o d u c t s
t h a t b e a r Pl a i n t i f f s ' Ma r ks a n d c o p y t h e d e s i gn s , p a t t e r n s , a n d c o l o r s c h e me s
a s s o c i a t e d wi t h Pl a i n t i f f s ' Pr o d u c t s , t h r o u gh t h e Al i b a b a Ma r ke t p l a c e s .
S p e c i f i c a l l y, t h e Al i b a b a De f e n d a n t s kn o wi n gl y p r o v i d e c o u n t e r f e i t e r s wi t h
s t o r e f r o n t s i n t h e Al i b a b a Ma r ke t p l a c e s a n d p e r mi t t h e m t o l i s t t h e i r c o u n t e r f e i t
go o d s f o r s a l e , p e r mi t kn o wn c o u n t e r f e i t e r s t o c o n t i n u e s e l l i n g c o u n t e r f e i t s o n t h e
Al i b a b a Ma r ke t p l a c e s ' we b s i t e s , s e l l f e d e r a l l y-r e gi s t e r e d ma r ks a s ke ywo r d s i n
o r d e r t o a t t r a c t c o n s u me r s t o c o u n t e r f e i t go o d s o f f e r e d f o r s a l e b y t h e Me r c h a n t
De f e n d a n t s , a n d i n s e r t a d d i t i o n a l t e r ms a n d p h r a s e s i n t o t h e me t a d a t a f o r s e a r c h e s
p e r f o r me d o n Al i b a b a .c o m i n o r d e r t o d i r e c t c o n s u me r s t o p a r t i c u l a r c o u n t e r f e i t
go o d s o f f e r e d f o r s a l e . I n a d d i t i o n , t h e Al i b a b a De f e n d a n t s h a v e d i r e c t e d o t h e r
c o n s p i r a t o r s t o t a ke a c t i o n s n e c e s s a r y t o a c c o mp l i s h t h e o v e r a l l a i ms o f t h e
c r i mi n a l e n t e r p r i s e n a me l y, p r o c e s s i n g p a yme n t s f o r t h e s a l e o f c o u n t e r f e i t
go o d s , o f f e r i n g l o a n a n d e s c r o w s e r v i c e s t o c o u n t e r f e i t e r s a n d t h e i r c u s t o me r s ,
a n d p r o v i d i n g s h i p p i n g a n d d e l i v e r y s e r v i c e s f o r c o u n t e r f e i t go o d s p u r c h a s e d
116
through the Alibaba Marke tplace s. The re can be no doubt that this is w illf ul and
inte ntional. The Alibaba De f e ndants' know le dge is de monstrate d by the
obviously counte rf e it nature of many of the goods sold on the Alibaba
Marke tplace s, P laintif f s' re pe ate d notif ications to De f e ndants re garding the
pre se nce of C ounte rf e it P roducts on the Alibaba Marke tplace s, the Alibaba
De f e ndants' ine f f e ctive take dow n proce dure s, the ir sale of ke yw ords to
counte rf e ite rs re sulting in prospe ctive purchase rs be ing dire cte d to counte rf e ite rs'
store f ronts in the Alibaba Marke tplace s in re sponse to spe cif ic ke yw ords, the
association of spe cif ic me tadata w ith ke yw ords to dire ct prospe ctive purchase rs to
store f ronts se lling counte rf e it me rchandise , the f acilitation of the purchase and
sale of counte rf e it goods through "Alisource P ro" re pre se ntative s that match
buye rs and se lle rs of counte rf e it goods, and the ir ce rtif ication of spe cif ic se lle rs of
counte rf e it me rchandise , including the Me rchant De f e ndants, as "Gold" and
"Asse sse d" supplie rs, re f le cting an inspe ction of such se lle rs' manuf acturing
f acilitie s by the Alibaba De f e ndants or a third party authoriz e d by the Alibaba
De f e ndants f or that purpose , and thus know le dge that such se lle rs w e re
manuf acturing and se lling counte rf e it goods.
b. De f e ndant Alipay has also participate d in the ope ration and manage me nt of the
E nte rprise by proce ssing the transactions f or the sale of counte rf e it goods,
conducting substantially all of the online payme nt proce ssing f or counte rf e it
goods purchase d through the Alibaba Marke tplace s and providing e scrow se rvice s
to consume rs w ho purchase counte rf e it goods through the Alibaba Marke tplace s,
117
i n c l u d i n g t h e C o u n t e r f e i t Pr o d u c t s d e sc r i b e d i n t h e f o r e g o i n g par ag r aph s o f t h i s
C o mpl ai n t .
c . Th e Me r c h an t De f e n d an t s h ave al so par t i c i pat e d i n t h e o pe r at i o n an d man ag e me n t
o f t h e E n t e r pr i se b y man u f ac t u r i n g an d d i st r i b u t i n g c o u n t e r f e i t g o o d s, an d
o f f e r i n g f o r sal e t h o se c o u n t e r f e i t g o o d s i n t h e Al i b ab a Mar ke t pl ac e s. Th e
Me r c h an t De f e n d an t s' kn o wl e d g e an d i n t e n t i s d e mo n st r at e d b y t h e i r kn o wi n g
an d c o n sc i o u s man u f ac t u r e an d/ o r sal e o f c o u n t e r f e i t g o o d s t h r o u g h t h e o n l i n e
Al i b ab a Mar ke t pl ac e s, an d t h e i r r e pe at e d sh i pme n t o f su c h g o o d s t o t h e Un i t e d
S t at e s an d e l se wh e r e .
d . Un i d e n t i f i e d c o -c o n spi r at o r s h ave b e e n i n t e g r al l y i n vo l ve d i n var i o u s st ag e s o f
t h e De f e n d an t s' c r i mi n al e n t e r pr i se , d i r e c t i n g , c o n t r o l l i n g , r at i f yi n g , f ac i l i t at i n g ,
o r o t h e r wi se par t i c i pat i n g i n t h e man u f ac t u r e , d i st r i b u t i o n , sal e , an d ad ve r t i se me n t
o f c o u n t e r f e i t g o o d s t h r o u g h t h e Al i b ab a Mar ke t pl ac e s.
314. At al l r e l e van t t i me s, t h e E n t e r pr i se was e n g ag e d i n , an d i t s ac t i vi t i e s af f e c t e d ,
i n t e r st at e an d f o r e i g n c o mme r c e wi t h i n t h e me an i n g o f 18 U.S .C . 19 6 2 ( c ) , b e c au se De f e n d an t s
h ave so l d an d c o n t i n u e t o se l l a su b st an t i al vo l u me o f c o u n t e r f e i t g o o d s i n t o t h e Un i t e d S t at e s,
c au si n g h ar m t o Pl ai n t i f f s i n t h e i r b u si n e ss an d pr o pe r t y.
Pat t e r n o f Rac ke t e e r i n g Ac t i vi t y
315. Th e De f e n d an t s c o n d u c t e d o r par t i c i pat e d , d i r e c t l y o r i n d i r e c t l y, i n t h e c o n d u c t ,
man ag e me n t , o r o pe r at i o n o f t h e E n t e r pr i se 's af f ai r s t h r o u g h a " pat t e r n o f r ac ke t e e r i n g ac t i vi t y"
wi t h i n t h e me an i n g o f 18 U.S .C . 19 6 1( 5) an d i n vi o l at i o n o f 18 U.S .C . 19 6 2 ( c ) . Th i s pat t e r n
i n c l u d e d mu l t i pl e i n st an c e s o f mo n e y l au n d e r i n g i n vi o l at i o n o f 18 U.S .C . 19 56 , t r af f i c ki n g i n
c o u n t e r f e i t g o o d s i n vi o l at i o n o f 18 U.S .C . 2 32 0 ( a) ( 1) , an d mai l an d wi r e f r au d i n vi o l at i o n o f
18 U.S .C . 1341, 1343. Th e se pr e d i c at e ac t s ar e al l r e l at e d t o e ac h o t h e r an d t o t h e
118
E n t e r p r i s e ' s p ur p os e of s e l l i n g an d p r ofi t i n g fr om t h e s al e of c oun t e r fe i t g oods . Mor e ove r , t h i s
p at t e r n h as be e n on g oi n g an d w i l l l i k e l y c on t i n ue i n t o t h e fut ur e . In de e d, t h e r e ar e at l e as t
h un dr e ds , i f n ot t h ous an ds , of s t or e fr on t s on t h e Al i baba Mar k e t p l ac e s n ow offe r i n g c oun t e r fe i t
g oods for s al e . E ac h s al e of C oun t e r fe i t P r oduc t s , an d e ac h t r an s fe r of fun ds i n p ay me n t for t h e
p ur c h as e of C oun t e r fe i t P r oduc t s , c aus e s n e w i n j ur y t o P l ai n t i ffs i n t h e for m of br an d di l ut i on ,
l os s of g oodw i l l an d l os t s al e s , as s e t for t h be l ow , i n j ur i e s t h at P l ai n t i ffs w oul d n ot h ave s uffe r e d
but for t h e c on duc t of t h e E n t e r p r i s e .
P at t e r n of Rac k e t e e r i n g Ac t i vi t y : Nume r ous In s t an c e s of Tr affi c k i n g i n C oun t e r fe i t
Goods i n V i ol at i on of 18 U.S.C . 2320(a)(1)
316. At al l t i me s mat e r i al t o t h i s C omp l ai n t , P l ai n t i ffs w e r e e n g ag e d i n i n t e r s t at e an d
for e i g n c omme r c e an d i n an i n dus t r y t h at affe c t s i n t e r s t at e an d for e i g n c omme r c e .
317. As de s c r i be d h e r e i n , De fe n dan t s h ave e n g i n e e r e d an or g an i ze d op e r at i on t o s e l l
an d p r ofi t fr om t h e s al e of c oun t e r fe i t g oods t h r oug h t h e Al i baba Mar k e t p l ac e s by , amon g ot h e r
t h i n g s , mak i n g , di s t r i but i n g , adve r t i s i n g , an d s e l l i n g g oods up on w h i c h or i n c on n e c t i on w i t h
w h i c h c oun t e r fe i t mar k smar k s t h at ar e i de n t i c al t o, ar s ubs t an t i al l y i n di s t i n g ui s h abl e fr om,
fe de r al l y r e g i s t e r e d mar k s , t h e us e of w h i c h i s l i k e l y t o c aus e c on fus i on , mi s t ak e , or t o de c e i ve
ar e us e d.
318. In fur t h e r an c e of t h e i r s c h e me , an d as de s c r i be d h e r e i n , De fe n dan t s t r an s p or t e d,
t r an s fe r r e d, or ot h e r w i s e di s p os e d ofan d at t e mp t e d t o t r an s p or t , t r an s fe r , or ot h e r w i s e di s p os e
ofc oun t e r fe i t g oods s ol d t h r oug h t h e Al i baba Mar k e t p l ac e s t o t h e i r on l i n e p ur c h as e r s i n
e xc h an g e for mon e y , an d/ or made or obt ai n e d c on t r ol of t h e c oun t e r fe i t g oods w i t h i n t e n t t o s o
t r an s p or t , t r an s fe r , or di s p os e of. Suc h c oun t e r fe i t g oods t h at De fe n dan t s t r an s p or t e d,
t r an s fe r r e d, or ot h e r w i s e di s p os e d of, or made or obt ai n e d c on t r ol of w i t h i n t e n t t o s o t r an s p or t ,
t r an s fe r , or di s p os e of, i n c l ude , but ar e n ot l i mi t e d t o, C oun t e r fe i t P r oduc t s be ar i n g P l ai n t i ffs '
119
Marks and copying t h e de signs, pat t e rns, and col or sch e me s associat e d wit h P l aint if f s' P rodu ct s.
Wh il e P l aint if f s cont e nd t h at De f e ndant s' sal e and t ransport of su ch C ou nt e rf e it P rodu ct s is v ast
in v ol u me and wil l be re v e al e d by discov e ry in t h is act ion, su ch sal e s and t ransport t o t h e Unit e d
S t at e s incl u de at l e ast t h e f ol l owing inst ance s:
a. S al e of a cou nt e rf e it "Gu cci" wat ch f or sh ipme nt t o t h e Unit e d S t at e s by Al ibaba
me rch ant S h e nzh e n Me ige e r, pu rch ase d by P l aint if f s' inv e st igat or on or abou t
Ju ne 26, 2014, t h rou gh Al ibaba. com.
b. S al e and sh ipme nt t o Ne w York of a cou nt e rf e it "YS L" T- sh irt by Al ibaba
me rch ant Fash ion Zone , pu rch ase d by P l aint if f s' inv e st igat or on or abou t Ju ne 1,
2014, t h rou gh Al iE x pre ss. col n.
c. S al e and sh ipme nt t o t h e Unit e d S t at e s of a cou nt e rf e it "Gu cci" bag by Al ibaba
me rch ant S t ar Fact ory, pu rch ase d by P l aint if f s' inv e st igat or on or abou t Ju ne 1,
2014, t h rou gh Al iE x pre ss. com.
d. S al e of a pair of cou nt e rf e it "Bal e nciaga" sandal s f or sh ipme nt t o Ne w York by
Al ibaba me rch ant Ladyl idy S h op, pu rch ase d by P l aint if f s' inv e st igat or on or
abou t May 31, 2014, t h rou gh Taobao. com.
e . S al e and sh ipme nt t o Ne w York of a cou nt e rf e it "Gu cci" bag by Al ibaba
me rch ant Hong Kong Longit u de and Lat it u de I nt e rnat ional Trading, pu rch ase d by
P l aint if f s' inv e st igat or on or abou t Ju ne 19, 2014, t h rou gh Taobao. com.
S al e of a cou nt e rf e it "Bot t e ga Ve ne t a" wal l e t f or sh ipme nt t o Ne w York by
Al ibaba me rch ant C oco Fash ion S t yl e , pu rch ase d by P l aint if f s' inv e st igat or on or
abou t Ju ne 19, 2014, t h rou gh Taobao. com.
120
g . S a l e a nd shipme nt to Ne w Yo rk o f a c o u nte rfe it "Gu c c i" ba g by Al iba ba
me rc ha nt Hu iming Le a the r Ma l l , pu rc ha se d by P l a intiffs' inv e stig a to r o n o r a bo u t
Ju ne 19, 2014, thro u g h Ta o ba o . c o m.
h. S a l e o f a pa ir o f c o u nte rfe it "Gu c c i" sho e s fo r shipme nt to Ne w Yo rk by Al iba ba
me rc ha nt Gu c c i Fa shio n S ho p, pu rc ha se d by P l a intiffs' inv e stig a to r o n o i a bo u t
i. S a l e o f a pa ir o f c o u nte rfe it "Gu c c i" sho e s fo r shipme nt to Ne w Yo rk by Al iba ba
me rc ha nt VANCS Whe re Bo u tiqu e , pu rc ha se d by P l a intiffs' inv e stig a to r o n o r
a bo u t Ju ne 2, 2014, thro u g h Ta o ba o . c o m.
j . S a l e o f a c o u nte rfe it "Gu c c i" ba g fo r shipme nt to Ne w Yo rk by Al iba ba me rc ha nt
S pring Ra in Le a the r Go o ds, pu rc ha se d by P l a intiffs' inv e stig a to r o n o r a bo u t Ju ne
2, 2014, thro u g h Ta o ba o . c o m.
k. S a l e o f a pa ir o f c o u nte rfe it "Gu c c i" sho e s fo r shipme nt to Ne w Yo rk by Al iba ba
me rc ha nt Ce l e brity S ho e , pu rc ha se d by P l a intiffs' inv e stig a to r o n o r a bo u t Ju ne 2,
2014, thro u g h Ta o ba o . c o m.
1. S a l e o f a pa ir o f c o u nte rfe it "Gu c c i" sho e s fo r shipme nt to Ne w Yo rk by Al iba ba
me rc ha nt Jinl o ng Lu xu ry City, pu rc ha se d by P l a intiffs' inv e stig a to r o n o r a bo u t
319. De fe nda nts pa rtic ipa te d in the sc he me kno wing fu 11 we l l tha t the g o o ds the y we re
(1) tra nspo rting , tra nsfe rring , o r o the rwise dispo sing o f; (2) a tte mpting to tra nspo rt, tra nsfe r, o r
o the rwise dispo se o f; a nd/ o r (3) ma king o r o bta ining c o ntro l o f with inte nt to so tra nspo rt,
tra nsfe r, o r dispo se o f we re c o u nte rfe it. De fe nda nts a re e ng a g e d in a wide -ra ng ing sc he me to
121
s e l l and p r o f i t f r o m t h e s al e o f go o ds up o n wh i ch o r i n co nne ct i o n wi t h wh i ch co unt e r f e i t mar ks
ar e kno wi ngl y us e d.
320. Mo r e o ve r , De f e ndant s ' p ar t i ci p at i o n i n t h e s ch e me was i nt e nt i o nal De f e ndant s
i nt e nde d C o (1) t r ans p o r t , t r ans f e r , ar o t h e r wi s e di s p o s e o f ; (2) at t e mp t t o t r ans p o r t , t r ans f e r , o r
o t h e r wi s e di s p o s e o f ; and/ ar (3) make o r co nC r o l go o ds kno wn by t h e m t o be co unt e r f e i t .
321. Acco r di ngl y, De f e ndant s h ave unl awf ul l y t r af f i cke d and at t e mp t e d t o t r af f i c, as
t h at t e r m i s de f i ne d i n 18 U. S. C . 2320(e )(2), i n go o ds up o n wh i ch o r i n co nne ct i o n wi t h wh i ch
co unt e r f e i t mar ks , as t h at t e r m i s de f i ne d i n 18 U. S. C . 2320(f ~ (1), we r e us e d, i n vi o l at i o n o f
18 U. S. C . 2320(x )(1).
Pat t e r n o f Racke t e e r i ng Act i vi t y: Mul t i p l e Ins t ance s o f Mo ne y Launde r i ng i n
Vi o l at i o n o f 18 U. S. C . 1956
322. As de s cr i be d h e r e i n, t h e E nt e r p r i s e h as e ngage d i n a s ch e me t o s e l l and p r o f i t
f r o m t h e s al e o f co unt e r f e i t go o ds t h r o ugh t h e Al i baba Mar ke t p l ace s by, amo ng o t h e r t h i ngs ,
maki ng, di s t r i but i ng, adve r t i s i ng, and s e l l i ng co unt e r f e i t go o ds t o p e r s o ns i n t h e U. S. and
e l s e wh e r e . In f ur t h e r ance o f t h i s s ch e me , t h e E nt e r p r i s e h as e ngage d i n mul t i p l e co unt s o f
mo ne y l aunde r i ng i n vi o l at i o n o f 18 U. S. C . 1956(a)(2)(A).
323. De f e ndant Al i p ay h as o n mul t i p l e o ccas i o ns , act i ng i n i t s i ndi vi dual cap aci t y and
as age nt f o r t h e Al i baba De f e ndant s , kno wi ngl y caus e d t h e t r ans p o r t at i o n, t r ans mi s s i o n, and/ o r
t r ans f e r o f f unds t o and f r o m t h e Uni t e d St at e s t o i t s e l f and t o t h e Al i baba De f e ndant s , t h e
Me r ch ant De f e ndant s , and o t h e r e nt i t i e s , i n f ur t h e r ance o f t h e s ch e me t o s e l l and p r o f i t f r o m t h e
s al e o f co unt e r f e i t go o ds , and wi t h t h e i nt e nt t h at t h o s e f unds be us e d t o p r o mo t e and f ur t h e r t h e
s ch e me t o t r af f i c i n co unt e r f e i t go o ds , wi t h t h e i nt e nt t h at t h o s e f unds be us e d t o p r o mo t e t h e
car r yi ng o n o f unl awf ul act i vi t y, i n vi o l at i o n o f 18 U. S. C . ~ 1956(a)(2)(A). Th i s unl awf ul
act i vi t y i ncl ude s but i s no t l i mi t e d t o t h e f o r e go i ng vi o l at i o ns o f 18 U. S. C . 1341, 1343, and
122
2 3 2 0 ( a ) ( 1 ) , i n c l u d i n g b u t n ot l i m i t e d t o f u r t h e r i n g a c t s of c ou n t e r f e i t i n g a n d m a i l a n d wi r e f r a u d ,
s u c h a s t h e r e c e i p t a n d p r oc e s s i n g of p a ym e n t s m a d e f or c ou n t e r f e i t g ood s p u r c h a s e d t h r ou g h t h e
Al i b a b a Ma r ke t p l a c e s . Wh i l e P l a i n t i f f s c on t e n d t h a t t h e r e a r e a v a s t n u m b e r of v i ol a t i on s of 1 8
U.S.C. 1 956( a ) ( 2 ) ( A) t h a t wi l l b e r e v e a l e d t h r ou g h d i s c ov e r y i n t h i s a c t i on , t h e s e t r a n s m i s s i on s
i n c l u d e p a ym e n t s f r om p u r c h a s e r s of c ou n t e r f e i t m e r c h a n d i s e f r om t h e Al i b a b a Ma r ke t p l a c e s b y
p e r s on s i n t h e U.S., i n c l u d i n g a t l e a s t t h e f ol l owi n g i n s t a n c e s :
a . Sa l e a n d r e c e i p t of p a ym e n t of $1 4.99 b y t h e Al i b a b a m e r c h a n t Fa s h i on Zon e
f r om P l a i n t i f f s ' i n v e s t i g a t or l oc a t e d i n t h e Un i t e d St a t e s b y m e a n s of a Vi s a
c r e d i t c a r d , p r oc e s s e d b y Al i p a y, on or a b ou t Ju n e 1 , 2 0 1 4, f or a c ou n t e r f e i t
"YSL" T- s h i r t t o b e s h i p p e d t o Ne w Yor k.
b . Sa l e a n d r e c e i p t of p a ym e n t of $9.90 b y t h e Al i b a b a m e r c h a n t St a r Fa c t or y f r om
P l a i n t i f f s ' i n v e s t i g a t or l oc a t e d i n t h e Un i t e d St a t e s b y m e a n s of a Vi s a c r e d i t c a r d ,
p r oc e s s e d b y Al i p a y, on or a b ou t Ju n e 1 , 2 0 1 4, f or a c ou n t e r f e i t "Gu c c i " b a g t o b e
s h i p p e d t o t h e Un i t e d St a t e s .
c . Sa l e a n d r e c e i p t of p a ym e n t of a p p r oxi m a t e l y $52 b y t h e Al i b a b a m e r c h a n t
La d yl i d y Sh op f r om P l a i n t i f f s ' i n v e s t i g a t or l oc a t e d i n t h e Un i t e d St a t e s b y m e a n s
of a Vi s a c r e d i t c a r d , p r oc e s s e d b y Al i p a y, on or a b ou t Ma y 3 1 , 2 0 1 4, f or a p a i r of
c ou n t e r f e i t "Ba l e n c i a g a " s a n d a l s t o b e s h i p p e d t o Ne w Yor k.
d . Sa l e a n d r e c e i p t of p a ym e n t of a p p r oxi m a t e l y $2 0 2 b y t h e Al i b a b a m e r c h a n t
Hon g Kon g Lon g i t u d e a n d La t i t u d e I n t e r n a t i on a l Tr a d i n g f r om P l a i n t i f f s '
i n v e s t i g a t or l oc a t e d i n t h e Un i t e d St a t e s b y m e a n s of a Vi s a c r e d i t c a r d , p r oc e s s e d
b y Al i p a y, f or a c ou n t e r f e i t "Gu c c i " b a g , t o b e s h i p p e d t o Ne w Yor k.
1 2 3
e . Sale and r e c e i p t of p ayme nt of ap p r oxi mat e ly $42 by t h e Ali baba me r c h ant Coc o
Fash i on St yle fr om P lai nt i ffs' i nv e st i g at or loc at e d i n t h e Uni t e d St at e s by me ans
of a Vi sa c r e di t c ar d, p r oc e sse d by Ali p ay, on or about June 19, 2014, for a
c ount e r fe i t "Bot t e g a Ve ne t a" w alle t , t o be sh i p p e d t o Ne w Yor k.
f. Sale and r e c e i p t of p ayme nt of ap p r oxi mat e ly $209 by t h e Ali baba me r c h ant
Hui mi ng Le at h e r Mall fr om P lai nt i ffs' i nv e st i g at or loc at e d i n t h e Uni t e d St at e s by
me ans of a Vi sa c r e di t c ar d, p r oc e sse d by Ali p ay, on or about June 19, 2014, for a
c ount e r fe i t "Guc c i " bag , t o be sh i p p e d t o Ne w Yor k.
g . Sale and r e c e i p t of p ayme nt of ap p r oxi mat e ly $53 by t h e Ali baba me r c h ant Guc c i
Fash i on Sh op fr om P lai nt i ffs' i nv e st i g at or loc at e d i n t h e Uni t e d St at e s by me ans
of a Vi sa c r e di t c ar d, p r oc e sse d by Ali p ay, on or about June 2, 2014, for a p ai r of
c ount e r fe i t "Guc c i " sh oe s, t o be sh i p p e d t o Ne w Yor k.
h . Sale and r e c e i p t of p ayme nt of ap p r oxi mat e ly $43 by t h e Ali baba me r c h ant
VANCS Wh e r e Bout i que fr om P lai nt i ffs' i nv e st i g at or loc at e d i n t h e Uni t e d St at e s
by me ans of a Vi sa c r e di t c ar d, p r oc e sse d by Ali p ay, on or about June 2, 2014, for
a p ai r of c ount e r fe i t "Guc c i " sh oe s, t o be sh i p p e d t o Ne w Yor k.
i . Sale and r e c e i p t of p ayme nt of ap p r oxi mat e ly $2l by t h e Ali baba me r c h ant
Sp r i ng Rai n Le at h e r Goods fr om P lai nt i ffs' i nv e st i g at or loc at e d i n t h e Uni t e d
St at e s by me ans of a Vi sa c r e di t c ar d, p r oc e sse d by Ali p ay, on or about June 2,
2014, for a c ount e r fe i t "Guc c i " bag , t o be sh i p p e d t o Ne w Yor k.
j . Sale and r e c e i p t of p ayme nt of ap p r oxi mat e ly $48 by t h e Ali baba me r c h ant
Ce le br i t y Sh oe fr om P lai nt i ffs' i nv e st i g at or by me ans of a Vi sa c r e di t c ar d,
124
processed by Alipay, on or about June 2, 2014, f or a pair of counterf eit "Gucci"
shoes, to be shipped to New York.
Pattern of Racketeering Activ ity: Multiple Instances of Mail Fraud in Violation of
18 U.S.C. ~ 1341
324. As described herein, the E nterprise has engaged in a scheme to sell and prof it
f rom the sale of counterf eit goods through the Alibaba Marketplaces by, among other things,
making, distributing, adv ertising, and selling Counterf eit Products. In f urtherance of this
scheme, the E nterprise has engaged in multiple counts of mail f raud in v iolation of 18 U.S.C.
1341. Specif ically, Def endants' misappropriation of Plaintif f s' intellectual property through
the promotion, sale, and shipment of Counterf eit Products f or prof it, constitutes a "scheme or
artif ice to def raud, or f or obtaining money or property by means of f alse or f raudulent pretenses,
representations, or promises, or to sell, dispose of , loan, exchange, alter, giv e away, distribute,
supply, or f urnish or procure f or unlawf ul use any counterf eit or spurious coin, obligation,
security, or other article, or anything represented to be or intimated or held out to be such
counterf eit or spurious article," within the meaning of Section 1341, and Def endants hav e
knowingly deposited Counterf eit Products f or deliv ery by the U.S. Postal Serv ice, or deliv ery by
other priv ate or commercial interstate carries to locations within the United States, as well as
engaging in other uses of the U.S. mails and priv ate and commercial interstate carriers in
f urtherance of this scheme, as will be rev ealed in discov ery in this action. By means of this
scheme, Def endants hav e (1) obtained money f rom consumers purchasing Counterf eit Products
because of their misappropriation of Plaintif f s' Marks; and (2) wrongf ully obtained the v alue of
Plaintif f s' intellectual property through the sale of Counterf eit Products. This conduct has
directly harmed both consumers and Plaintif f s by sowing conf usion among consumers seeking
I25
a u t h e n t i c P l a i n t i f f s ' P rodu c t s a n d pos t- s a l e c on f u s i on a mon g c on s u me rs wh o c ome i n c on t a c t
wi t h t h e C ou n t e rf e i t P rodu c t s a n d a s s oc i a t e t h e i r i n f e ri or q u a l i t y wi t h P l a i n t i f f s ' Ma rks .
325. As e vi de n c e d by t h e rou t i n e n a t u re of De f e n da n t s ' promot i on a n d s a l e of
C ou n t e rf e i t P rodu c t s a n d t h e vol u me of t ra f f i c e xpe ri e n c e d by t h e Al i ba ba Ma rke t pl a c e s ,
P l a i n t i f f s ' be l i e ve t h a t t h e a c t u a l vol u me of De f e n da n t s ' s a l e s a n d s h i pme n t s of C ou n t e rf e i t
P rodu c t s t o c u s t ome rs i n t h e Un i t e d S t a t e s a n d e l s e wh e re i s va s t a n d wi l l be re ve a l e d i n
di s c ove ry i n t h i s a c t i on , bu t s u c h s a l e s a n d s h i pme n t s i n c l u de a t l e a s t t h e f ol l owi n g s pe c i f i c
i n s t a n c e s :
a . S h i pme n t t o Ne w York of a c ou n t e rf e i t "YS L" T- s h i rt by Al i ba ba me rc h a n t
Fa s h i on Zon e , pu rc h a s e d by P l a i n t i f f s ' i n ve s t i ga t or on or a bou t Ju n e 1 , 201 4, by
me a n s of Expre s s Ma i l S e rvi c e ("EMS") (C h i n a ' s worl dwi de e xpre s s ma i l
s e rvi c e ) a n d t h e U.S . P os t a l S e rvi c e .
b. S h i pme n t t o Te xa s of a c ou n t e rf e i t "Gu c c i " ba g by Al i ba ba me rc h a n t S t a r
Fa c t ory , pu rc h a s e d by P l a i n t i f f s ' i n ve s t i ga t or on or a bou t Ju n e 1 , 201 4, by me a n s
of EMS a n d t h e U.S . P os t a l S e rvi c e .
c . S h i pme n t t o Ne w York of a c ou n t e rf e i t "Gu c c i " ba g by Al i ba ba me rc h a n t Hon g
Kon g Lon gi t u de a n d La t i t u de I n t e rn a t i on a l Tra di n g, pu rc h a s e d by P l a i n t i f f s '
i n ve s t i ga t or on or a bou t Ju n e l 9, 201 4, by me a n s of EMS a n d t h e U.S . P os t a l
S e rvi c e .
d. S h i pme n t t o Ne w York of a c ou n t e rf e i t "Gu c c i " ba g by Al i ba ba me rc h a n t
Hu i mi n g Le a t h e r Ma l l , pu rc h a s e d by P l a i n t i f f s ' i n ve s t i ga t or on or a bou t Ju n e 1 9,
201 4, by me a n s of EMS a n d t h e U.S . P os t a l S e rvi c e .
1 26
326. Defendants p ar ti c i p ated i n th e sc h eme knowi ngly, wi llfu lly, and wi th th e sp ec i fi c
i ntent to sell and p r ofi t fr om th e sale of C ou nter fei t Pr odu c ts and to u se th e U.S. Postal Ser v i c e
and p r i v ate or c ommer c i al i nter state c ar r i er s to effec t th at sc h eme, i n v i olati on of l 8 U.S.C .
1341.
Patter n of Rac keteer i ng A c ti v i ty: Mu lti p le Instanc es of Wi r e Fr au d i n V i olati on of
18 U.S.C . 1343
327. A s desc r i b ed h er ei n, th e E nter p r i se h as engaged i n a sc h eme to sell and p r ofi t
fr om th e sale of c ou nter fei t goods th r ou gh th e A li b ab a Mar ketp lac es b y, among oth er th i ngs,
maki ng, di str i b u ti ng, adv er ti si ng, and selli ng C ou nC er fei t Pr odu c ts. In fu r th er anc e of th i s
sc h eme, th e E nter p r i se h as engaged i n mu lti p le c ou nts of wi r e fr au d i n v i olati on of 18 U.S.C . S
1343. Sp ec i fi c ally, Defendants' mi sap p r op r i ati on of Plai nti ffs' i ntellec tu al p r op er ty th r ou gh th e
p r omoti on, sale, and sh i p ment of C ou nter fei t Pr odu c ts for p r ofi t, c onsti tu tes a "sc h eme or ar ti fi c e
to defr au d, or for ob tai ni ng money or p r op er ty b y means of false or fr au du lent p r etenses,
r ep r esentati ons, or p r omi ses," wi th i n th e meani ng of Sec ti on 1343, and Defendants h av e
knowi ngly tr ansmi tted or c au sed to b e tr ansmi tted b y means of wi r e c ommu ni c ati on i n i nter state
and for ei gn c ommer c e mu lti p le c ommu ni c ati ons for th e p u r p ose of ex ec u ti ng th i s sc h eme,
sp ec i fi c ally th r ou gh th e op er ati on of i nter ac ti v e web si tes u sed to p r omote and sell C ou nter fei t
Pr odu c ts, i nc lu di ng sp ec i fi c ally tar geti ng c onsu mer s i n th e Uni ted States, and b y means of
elec tr oni c c ommu ni c ati ons u sed to fac i li tate and c omp lete su c h sales wi th c onsu mer s i n th e
Uni ted States and elsewh er e. By means of th i s sc h eme, Defendants h av e (1) ob tai ned money
fr om c onsu mer s p u r c h asi ng C ou nter fei t Pr odu c ts b ec au se of th ei r mi sap p r op r i ati on of Plai nti ffs'
Mar ks; and (2) wr ongfu lly ob tai ned th e v alu e of Plai nti ffs' i ntellec tu al p r op er ty th r ou gh th e sale
of C ou nter fei t Pr odu c ts. Th i s c ondu c t h as di r ec tly h ar med b oth c onsu mer s and Plai nti ffs b y
sowi ng c onfu si on among c onsu mer s seeki ng au th enti c Plai nti ffs' Pr odu c ts and p ost- sale
127
confusion among consumers who come in cont act wit h t he C ount erfeit Product s and associat e
t heir inferior q ual it y wit h Pl aint iffs' Marks.
328. As evidenced by t he rout ine nat ure of Defendant s' promot ion and sal e of
count erfeit it ems and t he vol ume of t raffic experienced by t he Al ibaba Market pl aces, Pl aint iffs'
bel ieve t hat t he act ual vol ume of Defendant s' use of t he sal es and shipment s of C ount erfeit
Product s t o cust omers in t he Unit ed S t at es and el sewhere is vast and wil l be reveal ed in
discovery in t his act ion, but such sal es and shipment s incl ude at l east t he fol l owing specific
inst ances:
a. S al e t hrough Al ibaba.com of a count erfeit "Gucci" wat ch t o be shipped t o New
York by Al ibaba merchant S henzhen Meigeer and receipt of pay ment of
approximat el y $130 by means of West ern Union, on or about June 26, 2014.
b. S al e t hrough Al iExpress.com of a count erfeit "YS L" T- shirt t o be shipped t o New
York by Al ibaba merchant Fashion Zone and receipt of pay ment of approximat el y
$14.99 by means of a Visa credit card, processed by Al ipay , on or about June 1,
2014.
c. S al e t hrough Al iExpress.com of a count erfeit "Gucci" bag t o be shipped t o Texas
by Al ibaba merchant S t ar Fact ory and receipt of pay ment of approximat el y $9.90
by means of a Visa credit card, processed by Al ipay , on or about June I , 2014.
d. S al e t hrough Taobao.com of a pair of count erfeit "Bal enciaga" sandal s t o be
shipped t o New York by Al ibaba merchant Lady l idy S hop and receipt of pay ment
t hrough Taobao.com of approximat el y $52 by means of a Visa credit card,
processed by Al ipay , on or about May 31, 2014.
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e . S a l e through Ta oba o. com of a coun te rfe i t "Gucci " ba g, to be shi ppe d to Ne w
York by Al i ba ba me rcha n t Hon g Kon g Lon gi tude a n d La ti tude I n te rn a ti on a l
Tra di n g a n d re ce i pt of pa yme n t through Ta oba o. com of a pproxi ma te l y $202 by
me a n s of a Vi sa cre di t ca rd, proce sse d by Al i pa y, on or a bout Jun e 19, 2014.
f. S a l e through Ta oba o. com of a coun te rfe i t `Botte ga Ve n e ta " wa l l e t to be shi ppe d
to Ne w York by Al i ba ba me rcha n t Coco Fa shi on S tyl e a n d re ce i pt of pa yme n t of
a pproxi ma te l y $202 by me a n s of a Vi sa cre di t ca rd, proce sse d by Al i pa y, on or
a bout Jun e 19 2014.
g. S a l e through Ta oba o. com of a coun te rfe i t "Gucci " ba g to be shi ppe d to Ne w York
by Al i ba ba me rcha n t Hui mi n g Le a the r Ma l l a n d re ce i pt of pa yme n t of
a bout Jun e 19, 2014.
h. S a l e through Ta oba o. com of a pa i r of coun te rfe i t "Gucci " shoe s for shi pme n t to
Ne w York by Al i ba ba me rcha n t Gucci Fa shi on S hop a n d re ce i pt of pa yme n t of
i . S a l e through Ta oba o. com of a pa i r of coun te rfe i t "Gucci " shoe s for shi pme n t to
Ne w York by Al i ba ba me rcha n t VANCS Whe re Bouti que a n d re ce i pt of pa yme n t
of a pproxi ma te l y $43 by me a n s of a Vi sa cre di t ca rd, proce sse d by Al i pa y, on or
j . S a l e through Ta oba o. com of a coun te rfe i t "Gucci " ba g for shi pme n t to Ne w York
by Al i ba ba me rcha n t S pri n g Ra i n Le a the r Goods a n d re ce i pt of pa yme n t of
129
approximately $21 by means of a Visa c red it c ard , proc essed by Alipay, on or
about June 2, 2014.
k . S ale through Taobao.c om of a pair of c ounterfeit "Guc c i" shoes for shipment to
New York by Alibaba merc hant C elebrity S hoe and rec eipt of payment of
about June 2, 2014.
1. S ale through Taobao.c om of a pair of c ounterfeit "Guc c i" shoes for shipment to
New York by Alibaba merc hant Jinlong Luxury C ity and rec eipt of payment of
about June 2, 2014.
329. Defend ants partic ipated in the sc heme k nowingly, willfully, and with the spec ific
intent to sell aild profit from the sale of c ounterfeit good s and to use the wires in interstate and
foreign c ommerc e to effec t this sc heme, in v iolation of 18 U.S .C . 1343.
S ummary of the Pattern of Rac k eteering Ac tiv ity Alleged Against Eac h RIC O Defend ant
330. The Alibaba Defend ants hav e c ommitted numerous c ounterfeiting v iolations
intentionally traffic k ing or c ausing to traffic c ounterfeit good s, c onspiring to traffic c ounterfeit
good s, and aid ing and abetting the traffic k ing of c ounterfeit good sall in furtheranc e of
Defend ants' organized operation to sell and profit from the sale of c ounterfeit good s, inc lud ing
the C ounterfeit Prod uc ts bearing Plaintiffs' Mark s. The Alibaba Defend ants hav e also
c ommitted numerous mail and wire fraud v iolations, in whic h the Alibaba Defend ants used or
c aused to be used the mail or wires in furtheranc e of Defend ants' wid e-spread sc heme to sell and
profit from the sale of c ounterfeit good s.
331. Defend ant Alipay has c ommitted numerous pred ic ate ac ts, inc lud ing mail and
wire fraud and traffic k ing in c ounterfeit good s. Alipay used or c aused to be used the mail or
130
w i r e s i n f i i r t h e r a n c e of De f e n da n t s ' w i de- s p r e a d s c h e me t o s e l l a n d p r of i t f r om t h e s a l e of
c ou n t e r f e i t goods , i n c l u di n g t h e C ou n t e r f e i t Pr odu c t s b e a r i n g Pl a i n t i f f s ' Ma r ks . I n a ddi t i on ,
Al i p a y h a s b ot h c on s p i r e d t o t r a f f i c i n c ou n t e r f e i t goods a n d a i de d a n d a b e t t e d t h e t r a f f i c ki n g of
c ou n t e r f e i t goods i n f u r t h e r a n c e of De f e n da n t s ' or ga n i ze d op e r a t i on t o s e l l a n d p r of i t f r om t h e
s a l e of c ou n C e r f e i t goods .
332. Th e Me r c h a n t De f e n da n t s h a ve c ommi t t e d n u me r ou s c ou n t e r f e i t i n g vi ol a t i on s
i n t e n t i on a l l y t r a f f i c ki n g or c a u s i n g t o t r a f f i c c ou n t e r f e i t goods , c on s p i r i n g t o t r a f f i c c ou n t e r f e i t
goods , a n d a i di n g a n d a b e t t i n g t h e t r a f f i c ki n g of c ou n t e r f e i t goods , i n c l u di n g t h e C ou n t e r f e i t
Pr odu c t s b e a r i n g Pl a i n t i f f s ' Ma r ks , a l l i n f u r t h e r a n c e of De f e n da n t s ' or ga n i ze d op e r a t i on t o s e l l
a n d p r of i t f r om t h e s a l e of c ou n t e r f e i t goods . Th e Me r c h a n t De f e n da n t s h a ve a l s o c ommi t t e d
n u me r ou s ma i l a n d w i r e f r a u d vi ol a t i on s , i n c l u di n g w i t h ou t l i mi t a t i on w e b s i t e p os t i n gs a n d
on l i n e a dve r t i s i n g of c ou n t e r f e i t goods f or s a l e , i n w h i c h t h e Me r c h a n t De f e n da n t s u s e d or
c a u s e d t o b e u s e d t h e ma i l or w i r e s i n f u r t h e r a n c e of De f e n da n t s ' w i de- s p r e a d s c h e me t o s e l l a n d
p r of i t f r om t h e s a l e of c ou n t e r f e i t goods .
333. Ea c h of t h e De f e n da n t s h a s e n ga ge d i n mu l t i p l e p r e di c a t e a c t s , i n c l u di n g
t r a f f i c ki n g i n c ou n t e r f e i t goods , a n d e n ga gi n g i n ma i l a n d w i r e f r a u d a n d mon e y l a u n de r i n g i n
or de r t o e f f e c t u a t e s u c h s a l e s , a s de s c r i b e d i n t h e f or e goi n g p a r a gr a p h s . Th e c on du c t of e a c h of
t h e De f e n da n t s de s c r i b e d i n t h e f or e goi n g p a r a gr a p h s c on s t i t u t e s a p a t t e r n of r a c ke t e e r i n g
a c t i vi t y w i t h i n t h e me a n i n g of 18 U.S.C . 19 6 1( 5 ) .
334. Pl a i n t i f f s h a ve b e e n i n j u r e d i n t h e i r b u s i n e s s e s a n d p r op e r t y b y r e a s on of
De f e n da n t s ' vi ol a t i on s of 18 U.S.C . 19 6 2( c ) . Th e i n j u r i e s t o Pl a i n t i f f s c a u s e d b y r e a s on of t h e
vi ol a t i on s of 18 U.S.C . 19 6 2( c ) i n c l u de b u t a r e n ot l i mi t e d t o da ma ge t o t h e va l u e of Pl a i n t i f f s '
i n t e l l e c t u a l p r op e r t y a n d ot h e r a s s e t s , l os t s a l e s , a n d di r e c t e xp e n s e s f r om Pl a i n t i f f s ' e f f or t s t o
131
s t o p t h e s a l e o f C o u n t e r fe i t Pr o du ct s t h r o u gh t h e Al i ba ba De fe n da n t s ' i n e ffe ct i v e t a ke do wn
p r o ce du r e s . Mo r e s p e ci fi ca l l y , De fe n da n t s ' r a cke t e e r i n g a ct i v i t i e s h a v e ca u s e d da ma ge t o
Pl a i n t i ffs ' r e p u t a t i o n s , go o dwi l l , a n d s a l e s , i n cl u di n g bu t n o t l i mi t e d t o l o s t s a l e s fr o m cu s t o me r s
t h a t wo u l d h a v e p u r ch a s e d ge n u i n e i t e ms bu t fo r t h e a v a i l a bi l i t y o f ch e a p e r co u n t e r fe i t s , a n d
p r o s p e ct i v e cu s t o me r s wh o ch o o s e n o t t o p u r ch a s e Pl a i n t i ffs ' Pr o du ct s be ca u s e o f t h e a v a i l a bi l i t y
o f i n fe r i o r co u n t e r fe i t s . F u r C h e r , t h e s e i n j u r i e s t o Pl a i n t i ffs we r e a di r e ct , p r o xi ma t e , a n d
r e a s o n a bl y fo r e s e e a bl e r e s u l t o f t h e v i o l a t i o n o f l 8 U. S. C . 1 9 6 2 ( c) , a n d De fe n da n t s ' co n du ct i s
t h e di r e ct a n d bu t fo r ca u s e o f t h e s e i n j u r i e s . F u r t h e r mo r e , e a ch n e w s a l e o f C o u n t e r fe i t
Pr o du ct s , a n d e a ch n e w co mmi s s i o n o f o n e o f t h e p r e di ca t e a ct s i de n t i fi e d a bo v e , ca u s e s n e w
i n j u r i e s t o Pl a i n t i ffs .
335. Gi v e n t h e o r ga n i z e d a n d p e r v a s i v e n a t u r e o f t h e E n t e r p r i s e 's p r o mo t i o n a n d s a l e
o f C o u n t e r fe i t Pr o du ct s , a n d t h e E n t e r p r i s e 's co n t i n u e d a n d o n go i n g o p e r a t i o n s , wh i ch a r e l i ke l y
t o e xt e n d i n t o t h e fu t u r e , Pl a i n t i ffs h a v e be e n a n d wi l l co n t i n u e t o be i n j u r e d i n t h e i r bu s i n e s s e s
a n d p r o p e r t y i n a n a mo u n t t o be de t e r mi n e d a t t r i a l .
336 . Pu r s u a n t t o 7 8 U. S. C . 1 9 6 4 ( c) , Pl a i n t i ffs a r e e n t i t l e d t o r e co v e r t r e bl e da ma ge s
p l u s co s t s a n d a t t o r n e y s ' fe e s fr o m De fe n da n t s .
337 . Pl a i n t i ffs a r e fu r t h e r e n t i t l e d t o , a n d s h o u l d be a wa r de d, a p e r ma n e n t i n j u n ct i o n
t h a t e n j o i n s De fe n da n t s , t h e i r a s s i gn e e s , a n d a n y o n e e l s e a ct i n g i n co n ce r t wi t h t h e m fr o m
di r e ct l y o r i n di r e ct l y co n t r i bu t i n g t o , a i di n g, o r a be t t i n g t h e ma r ke t i n g, p r o mo t i o n , o r s a l e o f
C o u n t e r fe i t Pr o du ct s o r a n y u n a u t h o r i z e d o r co u n t e r fe i t p r o du ct s t h a t be a r , co n t a i n , di s p l a y , o r
u t i l i z e a n y o f Pl a i n t i ffs ' Ma r ks , a n y de r i v a t i o n o r co l o r a bl e i mi t a t i o n t h e r e o f, o r a n y ma r k
co n fu s i n gl y s i mi l a r t h e r e t o o r l i ke l y t o di l u t e o r de t r a ct fr o m Pl a i n t i ffs ' Ma r ks .
1 32
SEVENTH CAUSE OF ACTION
(Conspiracy t o Viol at e RICO, 18 U.S.C. 1962(d))
338. P l aint if f s re pe at and re al l e g e e ach and e ve ry al l e g at ion in t he f ore g oing
parag raphs as t houg h f ul l y se t f ort h he re in, and in part icul ar incorporat e as if f ul l y se t f ort h
he re in P l aint if f s' Six t h Cause of Act ion.
339. De f e ndant s have unl aw f ul l y, know ing l y, and w il l f ul l y combine d, conspire d,
conf e de rat e d, and ag re e d t og e t he r and w it h ot he rs t o viol at e 18 U.S.C. 1962(c), as de scribe d
above in P l aint if f s' Six t h Cause of Act ion, in viol at ion of 18 U.S.C. ] 962(d).
340. De f e ndant s kne w t hat t he y w e re e ng ag e d in a conspiracy t o se l l and prof it f rom
t he sal e of count e rf e it g oods, and kne w t hat in t he course of t hat conspiracy, Count e rf e it
P roduct s w oul d be manuf act ure d, promot e d and sol d in t he Al ibaba Marke t pl ace s, w it h t he
assist ance of ke yw ord se arche s and ot he rw ise , t hat f unds w oul d be t ransf e rre d t o and f rom t he
Unit e d St at e s as a re sul t of and in f il rt he rance of t he sal e of count e rf e it g oods, and t hat t he
Count e rf e it P roduct s w oul d be shippe d t o t he Unit e d St at e s and e l se w he re as a re sul t of and in
f urt he rance of such sal e s, in viol at ion of 18 U.S.C. 1341, 1343, 1956, and 2320(a)(1), t o
t raf f ic in count e rf e it g oods and prof it f rom t he sal e of count e rf e it g oods, and t hat t he
part icipat ion and ag re e me nt of e ach of t he m w as ne ce ssary t o al l ow t he commission of t his
pat t e rn of racke t e e ring act ivit y. The y f urt he rmore ag re e d t o e ng ag e in t his sche me t og e t he r as
e vide nce d by t he Al ibaba De f e ndant s' provision of onl ine marke t pl ace s and ot he r se rvice s t o t he
Me rchant De f e ndant s, and support of t he Me rchant De f e ndant s' busine sse s t hroug h t he provision
of many ot he r se rvice s, as se t f ort h in t his Compl aint . This conduct const it ut e s a conspiracy t o
viol at e 18 U.S.C. 1962(c), in viol at ion of 18 U.S.C. 1962(d).
133
341. The Alibaba Defendants' knowledge, intent, and agreement to engage in the
scheme to promote and sell C ou nterfeit Produ cts is demonstrated by the obviou sly cou nterfeit
natu re of many of the goods sold on the Alibaba Marketplaces, Plaintiffs' repeated notifications
to Defendants regarding the presence of C ou nterfeit Produ cts on the Alibaba Marketplaces, the
Alibaba Defendants' ineffective takedown procedu res, their sale of keywords to cou nterfeiters
resu lting in prospective pu rchasers being directed to cou nterfeiters' storefronts in the Alibaba
Marketplaces in response to specific keywords, the association of specific metadata by the
Alibaba Defendants with keywords to direct prospective pu rchasers to storefronts selling
cou nterfeit merchandise, the facilitation of the pu rchase and sale of cou nterfeit goods throu gh
"Alisou rce Pro" representatives that match bu yers and sellers of cou nterfeit goods, and their
certification of specific sellers of cou nterfeit merchandise, inclu ding the Merchant Defendants,
as "Gold" and "Assessed" su ppliers, reflecting an inspection of su ch sellers' manu factu ring
facilities by the Alibaba Defendants or a third party, and thu s knowledge that su ch sellers were
manu factu ring and selling cou nterfeit goods. The Merchant Defendants' knowledge, intent, and
agreement to engage in the promotion and sale of C ou nterfeit Produ cts is demonstrated by their
knowing and consciou s manu factu re and/ or sale of cou nterfeit goods throu gh the online Alibaba
Marketplaces, and their repeated shipment of su ch goods to the United S tates and elsewhere.
342. As a direct and proximate resu lt of Defendants' conspiracy, the acts of
racketeering activity of the E nterprise, the overt acts taken in fu rtherance of that conspiracy, and
violations of 18 U.S .C . 1962(d), Plaintiffs have been inj u red in their bu siness and property,
inclu ding damage to Plaintiffs' repu tation, goodwill, and sales, inclu ding bu t not limited to lost
sales from cu stomers that wou ld have pu rchased genu ine items bu t for the availability of cheaper
cou nterfeits and prospective cu stomers who choose not to pu rchase Plaintiffs' genu ine goods
134
because of t h e av ai l abi l i t y of i n fer i or coun t er fei t s, an d expen ses i n cur r ed by P l ai n t i ffs t o r emov e
C oun t er fei t P r oduct s fr om t h e Al i baba Mar ket pl aces t h r ough t h e Al i baba Defen dan t s' i n effect i v e
t akedown pr ocedur es. F ur t h er , t h ese i n j ur i es t o P l ai n t i ffs wer e a di r ect , pr oxi mat e, an d
r eason abl y for eseeabl e r esul t of t h e v i ol at i on of 18 U. S. C . 19 6 2 ( d) , an d Defen dan t s' con duct i s
t h e di r ect cause of t h ese i n j ur i es. F ur t h er mor e, each n ew sal e of C oun t er fei t P r oduct s, an d each
n ew commi ssi on of on e of t h e pr edi cat e act s i den t i fi ed abov e, causes n ew i n j ur i es t o P l ai n t i ffs.
343. Gi v en t h e or gan i z ed an d per v asi v e n at ur e of t h e E n t er pr i se's pr omot i on an d sal e
of C oun t er fei t P r oduct s, an d t h e E n t er pr i se's con t i n ued an d on goi n g oper at i on s, wh i ch ar e l i kel y
t o ext en d i n t o t h e fut ur e, P l ai n t i ffs h av e been an d wi l l con t i n ue t o be i n j ur ed i n t h ei r busi n esses
an d pr oper t y i n an amoun t t o be det er mi n ed at t r i al .
344. P ur suan t t o 18 U. S. C . 19 6 4( c) , P l ai n t i ffs ar e en t i t l ed t o r ecov er t r ebl e damages
pl us cost s an d at t or n ey s' fees fr om Defen dan t s.
345. P l ai n t i ffs ar e fur t h er en t i t l ed t o, an d sh oul d be awar ded, a per man en t i n j un ct i on
t h at en j oi n s Defen dan t s, t h ei r co-con spi r at or s an d assi gn ees, an d an y on e el se act i n g i n con cer t
wi t h t h em fr om di r ect l y or i n di r ect l y con t r i but i n g t o, ai di n g, or abet t i n g t h e mar ket i n g,
pr omot i on , or sal e of C oun t er fei t P r oduct s or an y un aut h or i z ed or coun t er fei t pr oduct s t h at bear ,
con t ai n , di spl ay , or ut i l i z e an y of P l ai n t i ffs' Mar ks, an y der i v at i on or col or abl e i mi t at i on t h er eof,
or an y mar k con fusi n gl y si mi l ar t h er et o or l i kel y t o di l ut e or det r act fr om P l ai n t i ffs' Mar l cs.
E IGHTH C AUSE OF AC TION
AGAINST ALL DE F E NDANTS
( Tr ademar k In fr i n gemen t Un der New Yor k Law)
346 . P l ai n t i ffs r epeat an d r eal l ege each an d ev er y al l egat i on i n t h e for egoi n g
par agr aph s as t h ough ful l y set for t h h er ei n .
135
347. Defendants' ac ts as desc ribed above c onstitu te trademark infringement u nder
New York state c ommon and/ or statu tory law. N.Y. Gen. Bu s. Law ~ 360- k, 360- 0.
NINTH CAUSE OF ACTION
(Unfair Competition Under New York Law)
348. P laintiffs repeat and reallege eac h and every allegation in the foregoing
paragraphs as thou gh fu lly set forth herein.
349. Defendants' ac ts as desc ribed above c onstitu te u nfair c ompetition u nder New
York State c ommon law, as preserved by N.Y. Gen. Bu s. Law~~' 360- 0.
TENTH CAUSE OF ACTION
(Trademark Dilu tion Under New York Law)
351. Defendants' ac ts as desc ribed above dilu te and detrac t from the distinc tiveness of
the famou s P laintiffs' Marks, resu lting in damage to P laintiffs and the su bstantial bu siness and
goodwill sy mbolized by P laintiffs' Marks in violation of New York's Anti-Dilu tion Statu te, N.Y.
Gen. Bu s. Law 360- 1.
ELEVENTH CAUSE OF ACTION
(Dec eptive Ac ts and P rac tic es Under New York Statu tory Law)
353. Defendants' ac ts as desc ribed above c onstitu te dec eptive ac ts and prac tic es and
false advertising in violation of N.Y. Gen. Bu s. Law 349- 350.
136
WHEREFORE, P l a i n t i f f s r e s p e c t f u l l y r e q u e s t t h a t t h i s Cou r t :
Imme di a t e l y a n d p e r ma n e n t l y e n j oi n t h e Me r c h a n t De f e n da n t s , t h e i r of f i c e r s ,
di r e c t or s , a g e n t s , r e p r e s e n t a t i v e s , s u c c e s s or s or a s s i g n s , a n d a l l p e r s on s a c t i n g i n c on c e r t or i n
p a r t i c i p a t i on w i t h a n y of t h e m f r om:
(a ) ma n u f a c t u r i n g , di s t r i b u t i n g , de l i v e r i n g , s h i p p i n g , i mp or t i n g , e x p or t i n g ,
a dv e r t i s i n g , ma r ke t i n g , p r omot i n g , s e l l i n g , or ot h e r w i s e of f e r i n g f or s a l e
Cou n t e r f e i t P r odu c t s or a n y ot h e r p r odu c t s c on f u s i n g l y s i mi l a r t o
P l a i n t i f f s ' P r odu c t s , or t h a t ot h e r w i s e b e a r , c on t a i n , di s p l a y , or u t i l i z e a n y
of P l a i n t i f f s ' Ma r ks , a n y de r i v a t i on or c ol or a b l e i mi t a t i on t h e r e of , or a n y
ma r k c on f u s i n g l y s i mi l a r t h e r e t o or l i ke l y t o di l u t e or de t r a c t f r om t h e
P l a i n t i f f s ' Ma r ks ;
(b ) p r oc e s s i n g c r e di t c a r d t r a n s a c t i on s or ot h e r w i s e f a c i l i t a t i n g t h e s a l e s of
Cou n t e r f e i t P r odu c t s or a n y ot h e r p r odu c t s c on f u s i n g l y s i mi l a r t o
P l a i n t i f f s ' P r odu c t s , or t h a t ot h e r w i s e b e a r , c on t a i n , di s p l a y , or u t i l i z e a n y
of P l a i n t i f f s ' Ma r ks , a n y de r i v a t i on or c ol or a b l e i mi t a t i on t h e r e of , or a n y
ma r k c on f u s i n g l y s i mi l a r t h e r e t o or l i ke l y t o di l u t e or de t r a c t f r om t h e
P l a i n t i f f s ' Ma r ks ;
(c ) ma ki n g or e mp l oy i n g a n y ot h e r c omme r c i a l u s e of P l a i n t i f f s ' Ma r ks , a n y
de r i v a t i on or c ol or a b l e i mi t a t i on t h e r e of , or a n y ma r k c on f u s i n g l y s i mi l a r
t h e r e t o or l i ke l y t o di l u t e or de t r a c t f r om t h e P l a i n t i f f s ' Ma r ks ;
(d) u s i n g a n y ot h e r f a l s e de s i g n a t i on of or i g i n or f a l s e de s c r i p t i on or
r e p r e s e n t a t i on or a n y ot h e r t h i n g c a l c u l a t e d or l i ke l y t o c a u s e c on f u s i on or
mi s t a ke i n t h e mi n d of t h e t r a de or p u b l i c or t o de c e i v e t h e t r a de or p u b l i c
137
i n t o b e l i e v i n g t h a t De fe n da n t s' pro duct s o r a ct i v i t i e s a re i n a n y wa y
spo n so re d, l i ce n se d o r a ut h o ri z e d b y o r a ffi l i a t e d o r co n n e ct e d wi t h
P l a i n t i ffs; a n d
(e ) do i n g a n y o t h e r a ct s o r t h i n g s ca l cul a t e d o r l i k e l y t o ca use co n fusi o n o r
mi st a k e i n t h e mi n d o f t h e pub l i c o r t o l e a d purch a se rs o r co n sume rs o r
i n v e st o rs i n t o t h e b e l i e f t h a t t h e pro duct s o r se rv i ce s pro mo t e d, o ffe re d, o r
spo n so re d b y De fe n da n t s co me fro m P l a i n t i ffs o r t h e i r l i ce n se e s, a r a re
so me h o w l i ce n se d, spo n so re d, e n do rse d, o r a ut h o ri z e d b y, o r o t h e rwi se
a ffi l i a t e d o i co n n e ct e d wi t h P l a i n t i ffs; a n d
(~ mo v i n g , re t urn i n g , o r o t h e rwi se di spo si n g o f, i n a n y ma n n e r, a n y
C o un t e rfe i t P ro duct s o r a n y o t h e r pro duct s co n fusi n g l y si mi l a r t o
P l a i n t i ffs' P ro duct s, o r t h a t o t h e rwi se b e a r, co n t a i n , di spl a y, o r ut i l i z e a n y
o f P l a i n t i ffs' Ma rk s, a n y de ri v a t i o n o r co l o ra b l e i mi t a t i o n t h e re o f, o r a n y
ma rk co n fusi n g l y si mi l a r t h e re t o o r l i k e l y t o di l ut e o r de t ra ct fro m t h e
P l a i n t i ffs' Ma rk s; a n d
(g ) se cre t i n g , de st ro yi n g , a l t e ri n g , re mo v i n g , o r o t h e rwi se de a l i n g wi t h t h e
un a ut h o ri z e d pro duct s o r a n y b o o k s o r re co rds wh i ch co n t a i n a n y
i n fo rma t i o n re l a t i n g t o t h e i mpo rt i n g , ma n ufa ct uri n g , pro duci n g ,
di st ri b ut i n g , ci rcul a t i n g , se l l i n g , ma rk e t i n g , o ffe ri n g fo r sa l e , a dv e rt i si n g ,
pro mo t i n g , re n t i n g , o r di spl a yi n g o f a l l un a ut h o ri z e d pro duct s wh i ch
i n fri n g e P l a i n t i ffs' Ma rk s; a n d
(h ) furt h e r di l ut i n g a n d i n fri n g i n g a l l P l a i n t i ffs' Ma rk s a n d da ma g i n g
P l a i n t i ffs' g o o dwi l l ; a n d
138
( i ) o t h e r w i s e co mpe t i ng u nf a i r l y w i t h P l a i nt i f f s o r a ny o f t h e i r a u t h o r i z e d
l i ce ns e e s i n a ny ma nne r ; a nd
( j ) a s s i s t i ng, a i d i ng, o r a b e t t i ng a ny o t h e r pe r s o n o r b u s i ne s s e nt i t y i n
e nga gi ng i n o r pe r f o r mi ng a ny o f t h e a ct i v i t i e s r e f e r r e d t o i n t h e a b o v e
s u b pa r a gr a ph s ( a ) t h r o u gh ( i ) , o r e f f e ct i ng a ny a s s i gnme nt s o r t r a ns f e r s ,
f o r mi ng ne w e nt i t i e s o r a s s o ci a t i o ns , o r u t i l i z i ng a ny o t h e r d e v i ce f o r t h e
pu r po s e o f ci r cu mv e nt i ng o r o t h e r w i s e a v o i d i ng t h e pr o h i b i t i o ns s e t f o r t h
i n s u b pa r a gr a ph s ( a ) t h r o u gh ( i ) .
2 . P e r ma ne nt l y e nj o i n t h e Al i b a b a De f e nd a nt s , t h e i r o f f i ce r s , d i r e ct o r s , a ge nt s ,
r e pr e s e nt a t i v e s , s u cce s s o r s o r a s s i gns , a nd a l l pe r s o ns a ct i ng i n co nce r t a r i n pa r t i ci pa t i o n w i t h
a ny o f t h e m f r o m:
( a ) ma nu f a ct u r i ng, d i s t r i b u t i ng, d e l i v e r i ng, s h i ppi ng, i mpo r t i ng, e x po r t i ng,
a d v e r t i s i ng, ma r ke t i ng, pr o mo t i ng, s e l l i ng, o r o t h e r w i s e o f f e r i ng f o r s a l e
C o u nt e r f e i t P r o d u ct s a r a ny o t h e r pr o d u ct s co nf u s i ngl y s i mi l a r t o
P l a i nt i f f s ' P r o d u ct s , o r t h a t o t h e r w i s e b e a r , co nt a i n, d i s pl a y , o r u t i l i z e a ny
o f P l a i nt i f f s ' Ma r ks , a ny d e r i v a t i o n o r co l o r a b l e i mi t a t i o n t h e r e o f , o r a ny
ma r k co nf u s i ngl y s i mi l a r t h e r e t o o r l i ke l y t o d i l u t e o r d e t r a ct f r o m t h e
P l a i nt i f f s ' Ma r ks ;
( b ) pr o ce s s i ng cr e d i t ca r d t r a ns a ct i o ns o r o t h e r w i s e f a ci l i t a t i ng t h e s a l e s o f
C o u nt e r f e i t P r o d u ct s o r a ny o t h e r pr o d u ct s co nf u s i ngl y s i mi l a r t o
P l a i nt i f f s ' P r o d u ct s , o r t h a t o t h e r w i s e b e a r , co nt a i n, d i s pl a y , o r u t i l i z e a ny
o f P l a i nt i f f s ' Ma r ks , a ny d e r i v a t i o n o r co l o r a b l e i mi t a t i o n t h e r e o f , o r a ny
139
mark c o n f u s i n g l y s i mi l ar t h e re t o o r l i ke l y t o d i l u t e o r d e t rac t f ro m t h e
P l ai n t i f f s ' Marks ;
(c ) maki n g o r e mpl o y i n g an y o t h e r c o mme rc i al u s e o f P l ai n t i f f s ' Marks , an y
d e ri v at i o n o r c o l o rab l e i mi t at i o n t h e re o f , o r an y mark c o n f u s i n g l y s i mi l ar
t h e re t o o r l i ke l y t o d i l u t e o r d e t rac t f ro m t h e P l ai n t i f f s ' Marks ;
(d ) u s i n g an y o t h e r f al s e d e s i g n at i o n o f o ri g i n o r f al s e d e s c ri pt i o n o r
re pre s e n t at i o n o r an y o t h e r t h i n g c al c u l at e d o r l i ke l y t o c au s e c o n f u s i o n o r
mi s t ake i n t h e mi n d o f t h e t rad e o r pu b l i c o r t o d e c e i v e t h e t rad e o i pu b l i c
i n t o b e l i e v i n g t h at De f e n d an t s ' pro d u c t s o r ac t i v i t i e s are i n an y way
s po n s o re d , l i c e n s e d o r au t h o ri z e d b y o r af f i l i at e d o r c o n n e c t e d wi t h
P l ai n t i f f s ; an d
(e ) d o i n g an y o t h e r ac t s o r t h i n g s c al c u l at e d o r l i ke l y t o c au s e c o n f u s i o n o r
mi s t ake i n t h e mi n d o f t h e pu b l i c o r t o l e ad pu rc h as e rs o r c o n s u me rs o r
i n v e s t ars i n t o t h e b e l i e f t h at t h e pro d u c t s o r s e rv i c e s pro mo t e d , o f f e re d , o r
s po n s o re d b y De f e n d an t s c o me f ro m P l ai n t i f f s o r t h e i r l i c e n s e e s , o r are
s o me h o w l i c e n s e d , s po n s are d , e n d o rs e d , o r au t h o ri z e d b y , o r o t h e rwi s e
af f i l i at e d o r c o n n e c t e d wi t h P l ai n t i f f s ; an d
(t ) mo v i n g , re t u rn i n g , o r o t h e rwi s e d i s po s i n g o f , i n an y man n e r, an y
C o u n t e rf e i t P ro d u c t s o r an y o t h e r pro d u c t s c o n f u s i n g l y s i mi l ar t o
P l ai n t i f f s ' P ro d u c t s , o r t h at o t h e rwi s e b e ar, c o n t ai n , d i s pl ay , o r u t i l i z e an y
o f P l ai n t i f f s ' Marks , an y d e ri v at i o n o r c o l o rab l e i mi t at i o n t h e re o f , o r an y
mark c o n f u s i n g l y s i mi l ar t h e re t o o r l i ke l y t o d i l u t e o r d e t rac t f ro m t h e
P l ai n t i f f s ' Marks ; an d
140
(g) s e c r e t i n g, d e s t r o y i n g, a l t e r i n g, r e mo vi n g, o r o t h e r w i s e d e a l i n g w i t h t h e
u n a u t h o r i z e d p r o d u c t s o r a n y bo o ks o r r e c o r d s w h i c h c o n t a i n a n y
i n f o r ma t i o n r e l a t i n g t o t h e i mp o r t i n g, ma n u f a c t u r i n g, p r o d u c i n g,
d i s t r i bu t i n g, c i r c u l a t i n g, s e l l i n g, ma r ke t i n g, o f f e r i n g f o r s a l e , a d ve r t i s i n g,
p r o mo t i n g, r e n t i n g, o r d i s p l a y i n g o f a l l u n a u t h o r i z e d p r o d u c t s w h i c h
i n f r i n ge P l a i n t i f f s ' Ma r ks ; a n d
(h ) f u r t h e r d i l u t i n g a n d i n f r i n gi n g a l l P l a i n t i f f s ' Ma r ks a n d d a ma gi n g
P l a i n t i f f s ' go o d w i l l ; a n d
(i ) o t h e r w i s e c o mp e t i n g u n f a i r l y w i t h P l a i n t i f f s o r a n y o f t h e i r a u t h o r i z e d
l i c e n s e e s i n a n y ma n n e r ; a n d
(j ) a s s i s t i n g, a i d i n g, o r a be t t i n g a n y o t h e r p e r s o n o r bu s i n e s s e n t i t y i n
e n ga gi n g i n o r p e r f o r mi n g a n y o f t h e a c t i vi t i e s r e f e r r e d t o i n t h e a bo ve
s u bp a r a gr a p h s (a ) t h r o u gh (i ), o r e f f e c t i n g a n y a s s i gn me n t s o r t r a n s f e r s ,
f o r mi n g n e w e n t i t i e s o r a s s o c i a t i o n s , o r u t i l i z i n g a n y o t h e r d e vi c e f o r t h e
p u r p o s e o f c i r c u mve n t i n g o r o t h e r w i s e a vo i d i n g t h e p r o h i bi t i o n s s e t f o r t h
i n s u bp a r a gr a p h s (a ) t h r o u gh (i ).
Exe r c i s e t h e C o u r t ' s i n h e r e n t e q u i t a bl e a u t h o r i t y a n d i t s s t a t u t o r y e q u i t a bl e
a u t h o r i t y u n d e r 15 U. S. C . 1116 t o d i r e c t De f e n d a n t s t o a c c o u n t t o P l a i n t i f f s f o r t h e p r o f i t s
o bt a i n e d t h r o u gh t h e u n l a w f u l a c t i vi t i e s a l l e ge d h e r e i n a n d u n j u s t e n r i c h me n t o bt a i n e d t h r o u gh
t h e u n a u t h o r i z e d u s e o f P l a i n t i f f s ' Ma r ks .
4 . Or d e r t h a t t h e P l a i n t i f f s r e c o ve r t h e i r d a ma ge s a r i s i n g o u t o f t h e a c t s o f d e c e p t i o n
a n d i n f r i n ge me n t d e s c r i be d a bo ve , a n d a s u m e q u a l t o t h r e e t i me s s u c h p r o f i t s o r d a ma ge s
(w h i c h e ve r i s gr e a t e r ), p u r s u a n t t o I S U. S. C . 11 ] 7(a ) a n d (b);
14 1
5. Award P l ai n t i f f s s t at u t o ry damages i n an amo u n t t o be det ermi n ed rep res en t i n g
$2 mi l l i o n p er c o u n t erf ei t mark p er t y p e o f go o ds o r s erv i c es s o l d, o f f ered f o r s al e, o r di s t ri bu t ed,
p u rs u an t t o 15 U.S.C. 7117(c );
6. Award P l ai n t i f f s t rebl e damages i n an amo u n t t o be det ermi n ed p l u s c o s t s an d
at t o rn ey s ' f ees f ro m Def en dan t s p u rs u an t t o l 8 U.S.C. 1964(c ).
7. Award P l ai n t i f f s p u n i t i v e damages p u rs u an t t o New Yo rk St at e c o mmo n l aw (as
p res erv ed by N.Y. Gen . Bu s . Law 360-0) o n ac c o u n t o f Def en dan t s ' gro s s , wan t o n , wi l l f u l , an d
mal i c i o u s c o n du c t ;
8. Di rec t Def en dan t s t o rec al l an d remo v e f ro m al l webs i t es , o n l i n e market s , o r o t h er
c h an n el s o f c o mmerc e an y Co u n t erf ei t P ro du c t s o r an y o t h er p ro du c t s c o n f u s i n gl y s i mi l ar t o
P l ai n t i f f s ' P ro du c t s , o r t h at o t h erwi s e bear, c o n t ai n , di s p l ay , o r u t i l i z e an y o f P l ai n t i f f s ' Marks ,
an y deri v at i o n ar c o l arabl e i mi t at i o n t h ereo f , o r an y mark c o n f u s i n gl y s i mi l ar t h eret o o r l i kel y t o
di l u t e o r det rac t f ro m t h e P l ai n t i f f s ' Marks , t h at are i n Def en dan t s ' p o s s es s i o n o r c o n t ro l , an d al l
mean s o f maki n g t h e s ame;
9. Di rec t Def en dan t s t o del i v er u p f o r des t ru c t i o n al l Co u n t erf ei t P ro du c t s ar an y
o t h er p ro du c t s c o n f u s i n gl y s i mi l ar t o P l ai n t i f f s ' P ro du c t s , o r t h at o t h erwi s e bear, c o n t ai n , di s p l ay
o r u t i l i z e an y o f P l ai n t i f f s ' Marks , an y deri v at i o n o r c o l o rabl e i mi t at i o n t h ereo f , o r an y mark
c o n f u s i n gl y s i mi l ar t h eret o o r l i kel y t o di l u t e o r det rac t f ro m t h e P l ai n t i f f s ' Marks , t h at are i n
Def en dan t s ' p o s s es s i o n o r c o n t ro l , an d al l mean s o f maki n g t h e s ame, i n ac c o rdan c e wi t h 15
U.S.C. ~ 1118;
10. Di rec t Def en dan t s t o del i v er u p f o r des t ru c t i o n an y an d al l gu aran t ees , c i rc u l ars ,
p ri c e l i s t s , l abel s , s i gn s , p ri n t s , p ac kages , wrap p ers , p o u c h es , rec ep t ac l es , adv ert i s i n g mat t er,
p ro mo t i o n al , an d o t h er mat eri al s i n t h e p o s s es s i o n o r c o n t ro l o f Def en dan t s beari n g an y o f
142
P l a i n t i f f s ' Ma rks , a n y d e ri v a t i o n o r c o l o ra b l e i m i t a t i o n t h e re o f , a r a n y m a rk c o n f u s i n g l y s i m i l a r
t h e re t o a r l i ke l y t o d i l u t e o r d e t ra c t f ro m P l a i n t i f f s ' Ma rks , i n a c c o rd a n c e w i t h 15 U.S.C. 1 ' 1 l 8;
11. D i re c t D e f e n d a n t s t o s u ppl y P l a i n t i f f s w i t h a c o m pl e t e l i s t o f e n t i t i e s f ro m w h o m
t h e y c o l l e c t e d a n d t o w h o m t h e y d i s t ri b u t e d a n d/ o r s o l d Co u n t e rf e i t P ro d u c t s o r a n y o t h e r
pro d u c t s c o n f u s i n g l y s i m i l a r t o P l a i n t i f f s ' P ro d u c t s , o r t h a t o t h e rw i s e b e a r, c o n t a i n , d i s pl a y o r
u t i l i z e a n y o f P l a i n t i f f s ' Ma rks , a n y d e ri v a t i o n o r c o l o ra b l e i m i t a t i o n t h e re o f , o r a n y m a rk
c o n f u s i n g l y s i m i l a r t h e re t o o r l i ke l y t o d i l u t e o r d e t ra c t f ro m P l a i n t i f f s ' Ma rks , a n d t o pro v i d e
d o c u m e n t a t i o n o f t h e m a n n e r t h ro u g h w h i c h t h e Co u n t e rf e i t P ro d u c t s o r o t h e r pro d u c t s w e re
pa i d , i n c l u d i n g a n y b a n k a c c o u n t s t o , t h ro u g h , o r f ro m w h i c h f u n d s w e re w i re d ;
12 . D i re c t D e f e n d a n t s t o f i l e w i t h t h e Co u rt a n d s e rv e o n c o u n s e l f o r P l a i n t i f f s w i t h i n
t h i rt y (30) d a ys a f t e r e n t ry o f a n y i n j u n c t i o n i s s u e d b y t h e Co u rt i n t h i s a c ri o n , a s w o rn w ri t t e n
s t a t e m e n t pu rs u a n t t o 15 U.S.C. 1116(a ) s e t t i n g f o rt h i n d e t a i l t h e m a n n e r a n d f o rm i n w h i c h
D e f e n d a n t s h a v e c o m pl i e d w i t h a n y i n j u n c t i o n w h i c h t h e Co u rt m a y e n t e r i n t h i s a c t i o n ;
13. Aw a rd P l a i n t i f f s t h e i r re a s o n a b l e a t t o rn e ys ' f e e s a l o n g w i t h t h e c o s t s a n d
d i s b u rs e m e n t s i n c u rre d h e i e i n a s a re s u l t o f D e f e n d a n t s ' i n t e n t i o n a l a n d w i l l f u l i n f ri n g e m e n t ,
pu rs u a n t t o 15 U.S.C. 1117 a n d N.Y. Ge n . Bu s . La w 34 9 (h );
14 . Ord e r t h a t t h e Me rc h a n t D e f e n d a n t s ' a s s e t s b e re s t ra i n e d a n d f ro z e n pe n d i n g t h e
o u t c o m e o f t h i s a c t i o n s o t h a t P l a i n t i f f s ' ri g h t t o a n a c c o u n t i n g a n d d i s g o rg e m e n t o f t h e
Me rc h a n t D e f e n d a n t s ' i l l i c i t pro f i t s a s s e t f o rt h i n t h i s Co m pl a i n t i s n o t l a t e r re n d e re d
m e a n i n g l e s s ; a n d
14 3
1 5 . Award P l ai n t i f f s s uch o t he r an d f urt he r re l i e f as t he Co urt de e ms j us t an d p ro p e r.
DEMAND FOR JURY TRIAL
1 6 . P urs uan t t o Rul e 38 o f t he Fe de ral Rul e s o f Ci v i l P ro ce dure , P l ai n t i f f s de man d a
j ury t ri al o n al l i s s ue s s o t ri ab l e .
Dat e d: Ne w Yo rk, Ne w Yo rk
Jul y 9, 201 4
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At t o rn e y s f o r P l ai n t i f f s Gucci Ame ri ca, In c. ,
Bal e n ci aga S . A. , Bal e n ci aga Ame ri ca, In c. , Bo t t e ga
Ve n e t a S . A. , Bo t t e ga Ve n e t a In c. , Yv e s S ai n t
Laure n t Ame ri ca, In c. , Luxury Go o ds In t e rn at i o n al
(L. G. I. ) S . A. , an d Ke y i n g S . A.
1 44

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