Ugg awarded $686million in damages in lawsuits against Chinese knock-off websites
17:30 GMT, 2 May 2012
Ugg Australia has received $686million in damages following two counterfeit lawsuits.
Deckers Outdoor Corporation, the U.S. shoe brand's parent company, was awarded the payment after an Illinois court found that 3,007 China-based websites had been selling fake Ugg products.
The payment is more than half of the sheepskin-boot brand's 2011 sales, which totaled $1.2billion.
True blue: The parent company of Ugg was awarded $686million after filing two lawsuits against counterfeit websites. An authentic pair is pictured above
WWD reported that Judge Ronald Guzman of the Northern District of Illinois, also gave Deckers the unspecified amount of funds seized from 'hundreds' of financial accounts that had been linked to the counterfeit sites.
PayPal, the global online transaction company, lost funds after the injunction.
Before the judgment was announced, the court granted temporary restraining orders against each accused counterfeit website, including Uggs-forsale.com and Sparkleuggboots.com.
The orders disabled each site's ability to trade.
Deckers was also given control of each of the fraudulent sites. It meant that when a shopper attempted to click on it, they were automatically redirected to a page that alerted them about the site's counterfeit activity.
The show wear company was given each defendant's name and email address.
After the verdict was delivered, Deckers was given the right to send notices of contempt to the creators of the websites should they implement further infringements.
Real deal: The company admitted the counterfeit websites were clever in their attempts to sell the knock-offs, using authentic images, like above
Leah Evert-Burks, the director of brand protection at Deckers, admitted that many of the websites had proved rather cunning in their fraudulent activity.
She said: 'Websites selling counterfeit Ugg products look very convincing because they use Deckers images and offer products at believable sale prices.'
The two lawsuits come after four previous lawsuits were filed by the company against even more counterfeit websites.
It has resulted in 6,000 domain names being transferred in ownership, as well as the freezing of more than $1million found in associated financial accounts.
Deckers has also removed 19,000 links from various search engines.
As for actual stock, more than 834,000 counterfeit Ugg products were internationally seized last year.
The news comes after the company announced just last month that unusually warm weather had led to a lower-than-normal demand for the popular Ugg boot.
Share values in Deckers dropped as a result.