Beijing's Silk Market accused five well-known international fashion companies of entrapment during a court hearing in the capital yesterday, saying the companies sent people to the market to buy fake goods.
Late last year, the market was ordered to pay compensation of 100,000 yuan (US$12,000) to the five international fashion companies who own the Louis Vuitton, Gucci, Burberry, Prada and Chanel brands for selling fakes of their products, according to a judgement handed down by the Beijing No 2 Intermediate People's Court.
The Silk Market appealed to the Beijing High People's Court. The first appeal hearing was held yesterday.
Market manager Wang Zili said yesterday that the five companies maliciously induced the market vendors to sell the fake products.
"There was no open sale of pirated goods at the Silk Market," he said.
Wang said the market is not responsible if pirated goods are sold under the counter, because the market cannot supervise all of its traders all the time.
It regularly checks the products in the outlets and their warehouses, but the market cannot prevent secret and personal trade of fake products, he said.
Wang Yadong, a lawyer representing the five companies, denied the market's charge of "malicious behaviour."
"The Silk Market failed to provide any evidence to prove its charge during the court trial," Wang Yadong said.
But Wang Zili said the market is gathering evidence of entrapment against the five companies.
The market is planning to sue the five companies for damaging its reputation by alleging that fake prestige brands are sold openly there, he said.
Last November, the companies sued the market and its outlets for allegedly selling pirated copies of their products. They demanded 2.5 million yuan (US$310,000) in compensation.
The Silk Market, which rents space to more than 1,500 vendors, is a shopping hotspot for foreigners in Beijing.
(China Daily 04/07/2006 page3)
