Alibaba faces lawsuit in U.S. over counterfeit Squishmallows

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A U.S. judge has rejected Alibaba’s request to dismiss a lawsuit involving merchants accusing it of selling counterfeit Squishmallows children’s toys on its platform.

The judge said Kelly Toys reasonably alleged that Alibaba knew about and assisted merchants in copyright and trademark infringement. Kelly Toys said counterfeit goods are still being sold on its platform despite multiple lawsuits filed by Alibaba, which ignores its “three strikes” policy. Representatives for Alibaba and Kelly Toys did not immediately respond to requests for comment.

(Source: Reuters Image source: freepik)

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