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Apple Files Suit in New York Over Knockoffs

 & Chloe Albanesius Executive Editor, News

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Fake Apple stores are not just a Chinese phenomenon. Apple has filed suit against several New York retailers for selling fake Apple products out of stores in Flushing.

The suit, filed in New York District Court, accuses Janice Po Chiang and 50 other unnamed John Does of selling counterfeit Apple products out of stores called Apple Story and Fun Zone. That includes cases and headphones branded with the Apple logo.

"Apple representatives visited ... Apple Story and Fun Zone stores on multiple occasions over several weeks and purchased an assortment of cases and stereo headsets bearing one or more of the Apple trademarks, but which are not made or authorized by Apple," the filing said.

The cases, for example, include the Apple logo and iPhone mark and include the phrase "Designed by Apple in California. Assembled in China." There are also markings that one would find on the back of genuine Apple products, the lawsuit said.

Apple does not produce or allow anyone to sell iPhone cases with the Apple or iPhone logos or iPod and iPad cases that mimic the back of the MP3 players and tablets, the company said.

Apple said the packaging used in the Flushing stores is "nearly an exact duplicate of genuine Apple packaging and appears to be a color copy of a genuine box, which has resulted in some minor differences in the box that an average purchaser would not notice."

The lawsuit said Apple was "extremely concerned about the irreparable harm that is being caused, and will continue to be caused" by selling fake products and using the Apple Story name. The products will cause confusion, and Chiang and the other defendants were well aware that they were selling fake Apple gear.

Apple wants the court to ban the stores from using Apple's logos and marks, including the Apple Story name. The company also wants all the fake products to be handed over to Apple, at which time they will be destroyed. Apple also wants the accused sellers to hand over a list of their suppliers. The company is also seeking damages and fees.

Those damages will likely be a drop in the bucket for Cupertino. According to Reuters, Apple is now worth as much as the 32 biggest euro zone banks.

Apple might be using some of that dough to expand in New York City. According to Business Insider, Apple signed a 40,000 square-foot lease at 100-104 Fifth Ave, where it already occupies 10,000 square feet for its iAd group. Apple will apparently use the space to "launch new business projects."

Earlier this month, meanwhile, officials in the southwestern Chinese city of Kunming forced 22 fake Apple Stores to stop using the company's trademark after receiving a complaint from Apple. For more, check out photos from a fake Apple store in Chengdu, China. And check out the Six Apple Stores to Visit Before You Die slideshow above.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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