American luxury goods manufacturer Coach Inc is suing a garment market in Shanghai for allowing its stall holders to sell counterfeit items.

It is the second time since July that Coach has sued markets in the city over selling bogus goods carrying the famous brand name.

Coach, best known for leather bags and accessories, is seeking 500,000 yuan (US$73,190) in compensation from Shanghai Longhua Garment and Accessory Market Managing Co Ltd.

Representatives of Coach, which registered its trademark on the Chinese mainland in 1999, found that several stall holders in the Longhua-controlled market were selling fake items with the company's trademark attached.

The company contacted the operator in a bid to stop the infringements, but still found fakes sold in the market a month later.

Luwan District People's Court has accepted the suit.

On July 14, Coach sued Shanghai Xingwang International Garment City Managing Co Ltd, which operates on Qipu Road, for the same reason and seeking the same amount of compensation.

Many sellers on Qipu Road have been spooked by the legal moves and have removed fakes from public display.

They are reportedly still selling bogus goods secretly via phone or catalogues.

(Shanghai Daily August 22, 2009)