Alibaba: Alibaba’s counterfeit toys ‘problem’ continues in US: What is it
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Alibaba has been facing multiple lawsuits in the US for allowing merchants to sell fake products on its platforms. One such lawsuit alleges that various merchants have been selling counterfeit versions of the popular children’s toy Squishmallows on its online platforms. The Chinese tech major also appealed to dismiss this lawsuit which has been recently dismissed by a US judge.
According to a report by the news agency Reuters, Manhattan’s US District Judge Jesse Furman has said that Kelly Toys, whose parent Jazwares is owned by billionaire Warren Buffett‘s Berkshire Hathaway, has alleged that Alibaba knew about and helped the merchants to infringe on its copyrights and trademarks.
Kelly Toys claims that it has filed six earlier lawsuits to stop the sale of counterfeit products on Alibaba. However, it persisted on the platform and the company has been ignoring its own “three-strike” policies and has even awarded some infringing merchants “Gold Supplier” and “Verified” status.
What Alibaba said about the lawsuit
Alibaba and lawyers for the Chinese e-commerce company haven’t shared an official comment after its plea to dismiss the lawsuit got rejected. However, while seeking a dismissal Alibaba said Kelly Toys has failed to allege its involvement in infringements. The e-tailer also noted that the toy maker was trying to improperly shift the burden of policing its intellectual property by requiring “draconian” measures against sellers.
According to a report by the news agency Reuters, Manhattan’s US District Judge Jesse Furman has said that Kelly Toys, whose parent Jazwares is owned by billionaire Warren Buffett‘s Berkshire Hathaway, has alleged that Alibaba knew about and helped the merchants to infringe on its copyrights and trademarks.
Kelly Toys claims that it has filed six earlier lawsuits to stop the sale of counterfeit products on Alibaba. However, it persisted on the platform and the company has been ignoring its own “three-strike” policies and has even awarded some infringing merchants “Gold Supplier” and “Verified” status.
What Alibaba said about the lawsuit
Alibaba and lawyers for the Chinese e-commerce company haven’t shared an official comment after its plea to dismiss the lawsuit got rejected. However, while seeking a dismissal Alibaba said Kelly Toys has failed to allege its involvement in infringements. The e-tailer also noted that the toy maker was trying to improperly shift the burden of policing its intellectual property by requiring “draconian” measures against sellers.
In November 2022, Kelly Toys sued about 90 merchants. The company accused them of selling counterfeit Squishmallows and two months later obtained an injunction. In March, the company added Alibaba as a defendant.
In April 2020, Jazwares bought a majority stake in Kelly Toys. Later on, in October 2022, Berkshire bought Jazwares’ parent, the insurance holding company Alleghany. Jazwares generated a revenue of $847 million in the first nine months of 2023.
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