A judge in New York has ruled that Alibaba must face a lawsuit by a U.S. toymaker alleging that the Chinese ecommerce giant’s online platforms were used to sell counterfeit Squishmallows.
Judge Jesse Furman of the Southern District Court of New York refused Alibaba’s request to dismiss the case filed by Kelly Toys Holdings, which makes the popular plush toys.
Kelly Toys is owned by Jazwares, a toy company whose parent company Alleghany Corp. is controlled by billionaire Warren Buffett’s Berkshire Hathaway.
Well, one goes into the pockets of the original inventors who may also have testing/quality control, and one goes into the pockets of some rich dude creating counterfeits that may have extremely questionable quality control.
Ideally and theoretically, yes.
In reality… there’s no quality control, and if the inventor is clever, he’d be selling the counterfeits himself, for the sole purpose of stopping the scavengers from getting that piece of the revenue.