E-commerce giant Alibaba is suing two vendors in China for selling fake Swarovski watches, and seeking RMB 1.4 million ($201,320) in damages for “violation of contract and goodwill”.

Alibaba lodged a case at the Shenzen Longgang People’s District Court against sellers Liu Huajun and Wang Shenyi for using the company’s Taobao online shopping website to sell the fake Swarovski watches, the Chinese e-commerce platform operator announced on their news site, Alzila.

“Selling counterfeits not only violates our service agreement, it also infringes on the intellectual property rights of the brand owner, puts inferior products in the hands of consumers and ruins the hard-earned trust and reputation Alibaba has with our customers,” said Jessie Zheng, Alibaba Group’s chief platform governance officer.

Zheng, who was recently recognised by the Chinese government for her anti-counterfeiting efforts at Alibaba, said the company plans to pursue other vendors trafficking in counterfeit goods and take them to court.

She said Alibaba has added litigation to its IPR enforcement toolbox, hoping jail sentences and crippling fines will remove any incentive for counterfeit sellers to try again.

According to the company’s statement, between April and July last year, they have shut down 417 production lines, made 332 arrests and seized fake goods valued at $205 million.

Swarovski said in a statement it is committed to protecting its brand and consumers from fraudulent selling activity and lauded Alibaba’s efforts to protect brands and its platforms’ integrity.

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