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Chanel Fined in World Tricot Case

Paris Court of Appeal ordered brand to pay 200,000 euros, or $258,400 at current exchange, in a long-running counterfeiting suit.

PARIS — Chanel said the Paris Court of Appeal ordered it to pay 200,000 euros, or $258,400 at current exchange, to World Tricot in a long-running counterfeiting suit.

This story first appeared in the September 17, 2012 issue of WWD.  Subscribe Today.

The ruling Friday overturns a 2009 commercial court decision that ordered World Tricot, one of Chanel’s former knitwear suppliers, to pay the Paris fashion house 200,002 euros for “public disparagement” for accusations that Chanel copied one of its crochet designs.

Chanel said it would decide “shortly” if it would appeal the decision to France’s Supreme Court.

The fashion house noted the appeals court dismissed World Tricot’s claim for wrongful termination of the business relationship.

“This is the first time we have faced this type of situation, although we work with close to 400 suppliers. This very specific case is in no way a reflection of the quality of our relations with our suppliers,” said Bruno Pavlovsky, president of Chanel fashion.

The case has been seen in France as a symbol of dark times for apparel manufacturers here. Subcontractors are considered an endangered species, largely due to brands outsourcing production abroad.