By  on July 1, 2005

NEW YORK — A permanent injunction and final judgment on consent were reached this week involving LVMH Moet Hennessy Louis Vuitton against one group of landlords in Chinatown over counterfeit goods sold by tenants at eight Canal Street locations.

The lawsuit was filed in a Manhattan federal district court in March by Louis Vuitton Malletier, LVMH's fashion and leather goods division. Richard E. Carroll was the lead defendant in the complaint. The lawsuit alleged that Carroll is the head of four other entities named: Mid-Center Equities Associates; Transworld Equities Inc.; EJP Realty Associates LLC; Canal Funding Inc., and Canal Venture Inc. The lawsuit alleged trademark counterfeiting, and trademark and copyright infringement.

The judgment, filed on Monday, reiterated the terms of a temporary injunction issued in April in favor of LVMH. Under the terms of the judgment, the landlords are required to post signs warning potential customers that the sale and purchase of counterfeit Louis Vuitton goods at those store locations is illegal.

For a period of two years, the defendants also have to inform any tenants of the consequences of selling counterfeit goods. LVMH will be provided with copies of leases signed during that time. Under the terms of the agreement, tenants who sell counterfeit Louis Vuitton merchandise must be evicted. Additionally, a monitor will be chosen to conduct weekly searches of the properties for the next year. The costs of the monitor will be split evenly between the manufacturer and the landlords, according to the judgment.

Lawyers for both sides of the case could not be reached for comment at press time.

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