While the settlement amount was small, the case exemplified a growing effort by foreign companies to take managers of such markets to court.
The Beijing Xiushui Clothing Co., which manages the popular Silk Market — a five-floor building popular with tourists — was ordered to stop infringement practices and pay 40,000 yuan (US$5,330; €3,700) in damages and lawsuit fees to North Face, Xinhua News Agency said, citing a ruling from the Beijing No. 2 Intermediate Court.
In September last year, five global luxury brand names — Burberry, Chanel, Gucci, Louis Vuitton and Prada — won 10,000 yuan (US$1,330; €925) in compensation from a joint lawsuit against the same market and five of its tenants, the first case in China to end in such a settlement.
The latest case stems from last last year when North Face found a large number of copies of its products in the market, and took the owner to court demanding 500,000 yuan (US$66,900; €46,500) in compensation, Xinhua said.
Beijing Xiushui did not respond to requests for comment. According to Xinhua, the market management company said the fakes were ordered by individual customers and not for general sale.
North Face's offices in Hong Kong also did not respond to requests for comment.
The Silk Market, as it is known in English, moved into its new location in 2005 from a small open-air street market notorious for cheap knockoffs of designer brands.
On Tuesday, business was brisk in the building, which is full of small individual stalls.
At one stall, a shop assistant was trying to sell what she said was a fake North Face jacket for 200 yuan (US$27; €19). The assistant, who did not want to give her name, said the Gore-tex material in the jacket was genuine. An identical look-a-like with no brand name was starting at half that price.
