09.17.12 5:05 PM ET
Chanel Fined 200,000 euros in Counterfeiting Case
Well, this is awkward. While most luxury fashion labels tend to clean up in counterfeit suits, Chanel has been ordered to pay €200,000 to a former knitwear supplier on charges that Chanel copied one of its crochet patterns. World Tricot originally sued Chanel for €200,000 in 2009 for wrongful termination of a business relationship and counterfeiting. Chanel fired back accusations of “public disparagement” with regards to the counterfeiting charges, and the fashion house ended up winning that battle. But on Friday, a Paris appeals court overturned that ruling and ordered Chanel to pay the original amount for counterfeiting.
The label is obviously none too pleased with the Paris appeals court’s decision, noting that the court dismissed World Tricot’s charges of wrongful termination of a business relationship. “This is the first time we have faced this type of situation, although we work with close to 400 suppliers,” Bruno Pavlovsky, president of Chanel fashion, told Women’s Wear Daily. “This very specific case is in no way a reflection of the quality of our relations with our suppliers.” The suit comes as French manufacturers face hard times as many brands are outsourcing more of their products abroad.