American luxury goods manufacturer Coach Inc is suing a garment market in Shanghai's Luwan District for reportedly allowing its stall vendors to sell counterfeit items.

It is the second time since July that Coach has sued markets in the city over selling bogus goods carrying the famous brand name.

Coach, best known for leather bags and accessories, is seeking 500,000 yuan in compensation from Shanghai Longhua Garment and Accessory Market Managing Co Ltd.

Representatives of Coach, which registered its trademark in China in 1999, said they discovered that several stall vendors at the Longhua-controlled market were selling fake items bearing the company's trademark.

The company contacted the operator to stop the infringements, but reportedly found fakes still being sold a month later at the market.

(Source: China Daily)