Luxury fashion retailer Louis Vuitton is taking legal action against the landlords of a Toronto-area flea market over counterfeit goods in one of the first cases of its kind in Canada.
The multinational designer is seeking damages from Dr. Flea’s Flea Market, located in Etobicoke, Ont., for copyright infringement, negligence and vicarious liability. According to documents filed in Ontario Superior Court, Louis Vuitton says the owner of the building housing the flea market is liable for tenants selling counterfeit goods. The claim alleges that the landlords “knowingly” or “negligently” permitted or facilitated the advertisement of counterfeit Louis Vuitton merchandise, which in turn caused harm to the design house.
Ashlee Froese, a fashion lawyer and trademark agent in Toronto, told CTV News Channel Monday that the case is “precedent setting” and particularly interesting for Canada because it’s looking at vicarious liability against the landlord and not just the alleged counterfeiters.
Froese said it’s too early to tell what Louis Vuitton will have to prove in court because these types of cases haven’t been tried yet in Canada. She said the test will most likely include demonstrating that the landlord had some knowledge of what was taking place or that they exhibited “willful blindness” about it.
The fashion lawyer said Louis Vuitton has had success with these types of lawsuits in the past across the border. Froese said the retailer won another counterfeit case involving a landlord in the U.S. approximately 10 years ago.
According to the court document, Louis Vuitton alleges it’s not the first time Dr. Flea’s Flea Market has faced accusations of selling counterfeit merchandise. In the claim, Louis Vuitton wants the flea market to declare that it was aware of counterfeit merchandise being sold on its premises since 2008, when search warrants were executed and police seized counterfeit items as a result. The luxury designer also cited a 2012 raid, which saw more than $1-million in counterfeit goods seized by police, and a 2015 search that also resulted in seizures.
Glenn Cohen, a lawyer representing Dr. Flea’s Flea Market, declined to comment on the lawsuit.
'A bigger picture'
Froese said the repercussions of counterfeit products can have far-reaching consequences.
“In my mind counterfeiting is a bigger picture than just a pretty purse that’s getting knocked off,” she said.
She pointed to instances of counterfeit pharmaceuticals and airplane parts as examples of when fake goods can threaten the public’s health and safety.
Froese also said counterfeiters can impact the Canadian economy because they’re most likely not filing taxes in the same way a legitimate business would and they’re hurting Canada’s trade reputation abroad. She said the U.S. keeps a consistent watch list for other countries and that Canada has fared quite “poorly” on the trade level because intellectual property laws and enforcement are relatively relaxed in Canada compared to other countries.
Froese said she expects the lawsuit against Dr. Flea’s Flea Market could take up to two to three years to go through the courts.
Lawyers representing Louis Vuitton in the lawsuit did not respond to a request for comment by the time of publication.
None of the allegations against the flea market have been tested in court.
