NEW YORK — Luxury goods suppliers may have a new legal counterattack against counterfeiters.
A federal judge here ruled Thursday that the landlord of a Chinatown building occupied by long-known retailers of counterfeited goods is not immune from lawsuits seeking damages.
Judge Thomas Griesa’s ruling stemmed from a suit brought by Polo Ralph Lauren Corp., Rolex Watch USA and Louis Vuitton.
According to court papers, Griesa determined that the three trademark owners can hold landlords liable for damages resulting from counterfeit merchandise sales. But they can only be liable if the landlords knew tenants were committing these crimes and failed to take action.
Before filing suit, Lauren and the other firms wrote letters to Wen Hao Tang, owner of the building housing the Chinatown Gift Shop. They urged Tang to stop the shop from selling bogus goods.
According to the manufacturers, the landlord took no action, but they did: They filed suit in October 1993. Now Judge Griesa’s ruling will force a trial this year on the merits of the trademark holders’ claims. Tang was not available for comment.
A Ralph Lauren spokesman said that to his knowledge, this suit marked the first time a company has gone after a builder owner in a counterfeiting case. The spokesman said Lauren has successfully sued operators of flea markets where dealers sold counterfeit goods.
A spokesman for the Real Estate Board of New York, a trade group of real estate owners, said Friday it would look into the case, but had not seen the suit and couldn’t comment at this time.