Chanel files suit in Nevada over alleged counterfeit goods

By Steve Green

Friday, March 5, 2010 | 9:05 a.m.

Luxury goods company Chanel Inc. has sued a businesswoman in China and her companies, charging they're operating a "massive illegal operation" selling counterfeit Chanel goods in the United States over the Internet.

The lawsuit was filed in U.S. District Court for Nevada on Thursday against Susan Felum. Attorneys for Chanel said in the lawsuit that Felum is also known as Sandy Ye and Sandy Pan and that she does business as Felum Garment Inc.

Chanel says Felum operates Web sites called www.chanel-vip.com, www.felums.com and www.felumshop.com that sell counterfeit Chanel handbags, wallets, shoes, boots, gloves, outerwear, clothing, keychains, swimwear and jewelry.

The suit alleges trademark counterfeiting and infringement, false designation of origin of the goods and cyberpiracy (use of a Web site name confusingly similar to Chanel's). The suit says Felum has sold her goods in Nevada and other U.S. states.

"Defendants' counterfeit goods bearing and sold under the Chanel marks are virtually identical in appearance to each of Chanel's respective genuine goods," the lawsuit charges. "However, the counterfeit goods are different in quality. Accordingly, the defendants' activities are likely to cause confusion in the trade and among the general public as to at least the origin or sponsorship of the counterfeit goods."

"Defendants' Internet-based Web site businesses amount to nothing more than a massive illegal operation, infringing on the intellectual property rights of plaintiff and others," charged the lawsuit, filed by attorneys with the Las Vegas office of the law firm Wilson, Elser, Moskowitz, Edelman & Dicker LLP.

A request for comment on the allegations was placed with Felum on Friday.

Besides offering Chanel-branded products, one of the Web sites at issue features additional luxury brands such as Coach, Gucci, Burberry, Louis Vuitton, Fendi, Mulberry, Hermes, Versace, Lacoste, Prada, Chloe and Dolce and Gabbana.