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Chronicles

The story behind the story

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French luxury group Kering, owner of Gucci, drops 2015 lawsuit against Alibaba over counterfeit goods, says the companies will work together to combat fakes

Paul Mozur / New York Times :

New York Times Paul Mozur

Context & Ripple Effects

Kering's pivot from plaintiff to partner closes a two-year arc: the Gucci owner sued Alibaba in US court in May 2015 over counterfeit goods sold on its platforms, and pressure kept building after the US put Taobao back on its counterfeiters blacklist in late 2016.

That blacklist episode already forced a concession — Alibaba responded by proposing an advisory board with international brands to tackle fakes. Dropping the lawsuit converts that defensive gesture into an actual working relationship with one of luxury's most litigious critics.

First-order effects

  • Kering trades an uncertain, years-long US litigation for direct operational influence over how Alibaba polices listings affecting Gucci and its other brands.
  • Alibaba sheds its highest-profile Western counterfeit lawsuit and gains a marquee luxury name inside its brand-cooperation framework, blunting the reputational line that its platforms are hostile to premium labels.

Second-order effects

  • Other luxury houses weighing suits against Alibaba lose their strongest precedent case and face pressure to join the advisory-board route instead, concentrating brand leverage inside Alibaba's own forum.
  • The deal hands Alibaba a template for resolving brand disputes cooperatively, which it can point to the next time regulators or trade bodies weigh platform blacklisting.

Third-order effects

  • If the pattern holds, counterfeit disputes between global brands and Chinese platforms shift from courtroom confrontation to negotiated governance, with access to the platform — not damages — becoming the currency brands bargain for.
  • Regulators and trade bodies retain the decisive lever: the blacklist cycle shows external pressure, not litigation, is what moves platforms toward brand accommodation.

The trend: Luxury brands are moving from suing Chinese e-commerce platforms over fakes to negotiating anti-counterfeiting partnerships with them, with US blacklist pressure setting the terms.