Kering SA, the Paris-based maker of luxury brands Yves Saint Laurent, Bottega Veneta, and Balenciaga, withdrew a lawsuit it had filed in New York over Alibaba’s sales of fake versions of its goods after the Chinese retailer agreed to work to stem the practice.
Kering had filed the suit in July, saying that Alibaba was making it easier to sell fakes worldwide.
The suit has only been withdrawn against Alibaba; Kering is continuing with its action against other retailers.
Counterfeit goods of luxury items coming out of China have long been a problem for the legit makers and retailers of the real things. Alibaba’s agreement in this matter could help in cutting down on the practice by depriving makers and sellers of fakes a lucrative outlet.