One of the biggest problems for handbag designers is dealing with counterfeit products, which are sold all over the world. It seems like every other day, there is a new arrest made in the distribution or transportation of massive amounts of knockoff purses being shipped internationally. Designers try to stop this type of crime because it not only costs them lost profits, but it can also make their product look bad.
A Financial Post report has a story about the new team that Coach and eBay have formed to fight off potential counterfeit sellers of the highly popular designer handbag line. However, it may be that the major designer has taken the seriousness of counterfeiting a little too far too quickly:
“The Wall Street Journal reports on something that is quite close to the heart of many of my female friends: Coach handbags. Gina Kim was quite fond of Coach handbags. While traveling in San Francisco, the Seattle woman bought a nice one for $428. However after a few days she decided that it wasn’t the one for her and she decided to sell it on eBay.
Shortly after posting her eBay ad, Ms. Kim received a “cease and desist” letter from Coach’s law firm that accused her of counterfeiting. In addition to threatening her with $2-million in damages, the law firm requested payment of $300 and that she sign an admission of guilt. Ms. Kim’s lawyer wrote back to Coach explaining the situation – then helped her file a complaint in Federal Court against Coach for defamation, breach of the Consumer Protection Act and a variety of other matters.”
The case hasn’t yet been settled yet, but maybe Coach should think about working on more busts of big rings, instead of taking down women who might just not like Coach bags.
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