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Deckers Wins Two Court Cases Against Online Counterfeiters in China

Federal court awards the Goleta-based company $686 million in damages

Deckers Outdoor Corp. has won two cases against Chinese-based websites selling counterfeit UGG Australia products.

Deckers, which owns brands such as Sanuk, Teva and UGG Australia, took on 3,007 overseas sites, and an Illinois federal court awarded the Goleta-based company $686 million in damages. The court ordered a permanent injunction and restrained funds in hundreds of financial accounts linked to the websites.

“Websites selling counterfeit UGG products look very convincing because they use Deckers images and offer products at believable sale prices,” said Leah Evert-Burks, Deckers director of brand protection. “These sites not only divert consumers attempting to purchase genuine UGG products but also supply counterfeit product to on-the-ground operations located in the U.S.”

During the investigation, the court allowed Deckers to redirect each domain to a site that warned users of its counterfeit identity. Since 2011, Deckers transferred more than 6,000 and froze more than $1 million in linked financial accounts after six lawsuits.

The company also sends cease-and-desist orders, removes links from search engines and shuts down accounts such as PayPal. It has sued more than 23,000 sites and removed 19,000 links.

The counterfeit sites are sometimes difficult to track because they proliferate so quickly, Evert-Burks said.

Click here to use a search function to verify that it is an authorized UGG dealer.

Deckers’ totaled $246.3 million on net sales in the first quarter, which is a 20.2 percent jump year-to-date. UGG Australia brand net sales rose 6.5 percent to $158.1 million.

Noozhawk staff writer Alex Kacik can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @NoozhawkBiz, @noozhawk and @NoozhawkNews. Connect with Noozhawk on Facebook.

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