Every so often, a luxury item makes the leap from “something enjoyed by those in the know” to a “must-have that you can’t escape.” Whether it be Canada Goose winter coats or the handbag of the season, living in New York City one is constantly confronted by the current, or next, luxury trend. While the isolation imposed by COVID-19 has put a dent in the social interactions that used to lead to a forced education in the luxury items of the moment, there remains no doubt that certain products quickly catapult themselves from fringe products to wardrobe staples, at least in fashion-driven locales. An undisputed entrant into those ranks has been the Ferragamo belt, which seemingly overnight became an ever-present fixture in the pant loops of stylish metropolitan denizens.
As one can imagine, joining the ranks of Ferragamo belt wearers is not a cheap endeavor. (Personally, when it comes to men’s shoes, I am a big believer in paying for quality. But I draw the line at having my waistline turned into a walking advertisement for a European fashion house.) And because Ferragamo belts have been elevated into the ranks of a wardrobe staple for the fashionable, it is unusual to ever find one on sale. Pre-COVID, you could of course fly to Florence and pick one up at a discount at the Ferragamo outlet, though I suspect that would be a bit of overkill for a piece of leather with a metal buckle. In any event, whenever a brand owner has a desirable item that never suffers from being put on sale, that brand owner also has an item that will be attractive to counterfeiters. Because we all know that a big piece of the cost of a Ferragamo belt is the value of the Ferragamo brand, that leaves a lot of profit-taking potential for counterfeiters to exploit.
Considering how much consumer purchasing takes place online, it should be no surprise that one of the prime prospective selling grounds for counterfeit items is online marketplaces — including the granddaddy of ‘em all, Amazon. Recognizing the threat to the integrity of its marketplace, Amazon has made major strides toward reducing sales of counterfeit items, including through the establishment of its Counterfeit Crimes Unit. This internal Amazon task force is charged with eliminating counterfeit listings and prosecuting (through law enforcement) those that are using the Amazon platform to move counterfeit goods, as part of Amazon’s continued effort to convince luxury and well-known consumer brands to sell on Amazon. That effort has faced difficulty in the past, perhaps most prominently with Nike, which pulled out of direct Amazon sales in 2019. But despite such setbacks, Amazon remains undeterred in its efforts to create a safe marketplace — one free of counterfeits — for sellers and consumers. And the company proudly touts that “99.9% of all products viewed by customers on Amazon have not received a valid counterfeit complaint.”
Amazon’s efforts to stop the sale of counterfeit Ferragamo belts are illustrative. Late last week, Amazon joined forces with Ferragamo to file two federal lawsuits against Chinese counterfeiters selling fake Ferragamo belts on its platform. As part of their scheme — and in an effort to avoid detection by Amazon’s anti-counterfeiting algorithms — the counterfeiters assiduously avoided mentioning the Ferragamo brand in their listings. But the pictures for the counterfeit products clearly showed “Ferragamo” buckles, albeit at an impossible to believe 90%-plus “discount” off the price for a legitimate Ferragamo belt. Unsurprisingly, upon investigation it was uncovered that the sellers were operating in some level of concert, including by shipping the fakes from a similar address, or by pricing the counterfeit items identically.
It is hard to imagine, of course, that these counterfeiters will put up much of a fight (if at all), in response to Amazon and Ferragamo’s filings. At the same time, joint anti-counterfeiting actions between Amazon and a leading luxury brand are a high-impact marketing move. One that effectively underscores the message that Amazon will not tolerate attempted sales of counterfeit items on its platform. And that Amazon will stand alongside its luxury brand suppliers to support their anti-counterfeiting initiatives. By doing so, Amazon surely hopes that recalcitrant luxury brands will reconsider any decision not to sell on Amazon. For their part, brands like Ferragamo get to point to a powerful ally in their global fight against counterfeits, one with the resources and reach to cut off counterfeiters at their point of sale.
Ultimately, as long as counterfeiting remains a profitable enterprise, there will be those that will be willing to break the law by selling counterfeit products. For luxury brands like Ferragamo, implementing and executing on a robust anti-counterfeiting program will always be a business necessity, in order to avoid brand dilution and a disgruntled customer base. Likewise, major online retail platforms like Amazon will continue to confront counterfeit activity on their own platforms, using a mix of technology and human surveillance to accomplish its aim of eradicating counterfeit listings. When brands and online retailers combine forces, however, those anti-counterfeiting efforts become turbocharged. Yes, those that think they can get a Ferragamo belt shipped from China for $35 may be disappointed. But the law-abiding public wins when the anti-counterfeit tag team enters the ring.
Please feel free to send comments or questions to me at gkroub@kskiplaw.com or via Twitter: @gkroub. Any topic suggestions or thoughts are most welcome.
Gaston Kroub lives in Brooklyn and is a founding partner of Kroub, Silbersher & Kolmykov PLLC, an intellectual property litigation boutique, and Markman Advisors LLC, a leading consultancy on patent issues for the investment community. Gaston’s practice focuses on intellectual property litigation and related counseling, with a strong focus on patent matters. You can reach him at gkroub@kskiplaw.com or follow him on Twitter: @gkroub.