Louis Vuitton Wins S$510,000 in Singapore Counterfeit Case

Key facts

• Louis Vuitton awarded S$510,000 in damages from an Instagram seller.
• The damages were more than doubled from an initial S$200,000 award.
• The seller, Ng Hoe Seng, operated under Instagram handles 'emcase_sg' and 'emcrafts_sg'.
• Ng sold counterfeit products including phone cases, passport covers, and spectacle cases.
• The case involved 13 registered Louis Vuitton trademarks across nine categories of goods.
• Ng committed at least 121 instances of trademark infringement.
• The Court of Appeal clarified how trademark damages should be calculated under Singapore law.

Luxury House Secures Landmark Damages

French luxury house Louis Vuitton Malletier has secured S$510,000 (US$403,000) in damages from a Singapore-based Instagram seller found to be peddling counterfeit goods. The nation's highest court, the Court of Appeal, more than doubled an earlier award, delivering a significant victory in the ongoing battle against online trademark infringement. The ruling, issued on May 6, not only increased the financial penalty for the seller but also provided crucial clarification on how statutory damages should be calculated under Singapore's Trade Marks Act. This decision sets a new precedent for intellectual property enforcement in the digital age. The substantial award underscores the seriousness with which courts are treating the proliferation of fake luxury items online, a persistent challenge for global brands.

Seller's Evasive Conduct Escalates Penalty

The seller, identified as Ng Hoe Seng, operated online stores through Instagram under the usernames "emcase_sg" and later "emcrafts_sg." He was found to have sold and advertised a range of counterfeit products, including phone cases, passport covers, and spectacle cases, bearing logos identical to those of Louis Vuitton. Ng's conduct was deemed particularly egregious by the court. He continued to sell and advertise counterfeit items even after an injunction was issued against him. Throughout the legal proceedings, Ng was described as evasive and uncooperative. This behaviour, coupled with the blatant infringement of 13 registered Louis Vuitton trademarks across nine categories of goods, contributed to the court's decision to significantly increase the damages. Louis Vuitton had first issued a cease-and-desist letter to Ng in 2023, following a trap purchase made the previous year. Although Ng temporarily ceased operations under one handle, he soon resumed selling counterfeit items under a different Instagram page.

Court of Appeal Rejects 'Per Mark' Damages

The case reached the Court of Appeal after Louis Vuitton argued that the initial S$200,000 awarded by the High Court was inadequate. The luxury brand contended that damages should be calculated based on every single infringed trademark, a calculation that could have potentially led to millions in compensation. However, the three-judge Court of Appeal disagreed with this interpretation of the Trade Marks Act. In a written judgment delivered by Justice of the Court of Appeal Hri Kumar Nair, the court stated that the law did not explicitly provide for damages to be assessed on a "per mark" basis. The judges indicated that Parliament would have used more direct language if this had been the intention. Instead, the Court of Appeal ruled that damages should be assessed according to each distinct type of counterfeit product involved in the infringement. This approach aims to compensate trademark owners and deter future infringements, without unduly punishing offenders, according to the court's reasoning.

High Court's Default Judgment and Initial Award

The legal process began with Louis Vuitton suing Ng for trademark infringement in 2023, after a second trap purchase confirmed ongoing illicit activity. The High Court had previously ruled in favour of Louis Vuitton in November 2023. Crucially, the judgment was entered by default against Ng, who failed to file a notice of intention to contest the proceedings or appear in court. This meant the court proceeded without Ng actively defending himself. At that stage, the High Court determined that Ng had committed at least 121 instances of trademark infringement. Based on its interpretation of the law, the High Court then awarded Louis Vuitton S$200,000 in statutory damages.

Deterrence and Compensation as Legal Aims

The Court of Appeal's decision to award S$510,000 reflects a serious view of Ng's repeated infringement and evasiveness. While the court clarified that Singapore's statutory damages regime is primarily intended to compensate trademark owners and deter infringement, it also emphasized that the aim is not punitive. The judges noted that the seller's conduct was serious enough to warrant a significantly higher award than what the High Court had initially granted. This suggests a balancing act between compensating the rights holder for losses and deterring future illicit activities, without imposing excessive penalties. The final sum awarded represents a substantial increase, signalling a strong stance against counterfeit operations that leverage online platforms like Instagram.

Future Implications for Online Sellers

This case highlights the significant legal risks faced by individuals and entities engaged in the sale of counterfeit goods online. The clarification of damages calculation by the Court of Appeal provides greater certainty for both trademark holders and the courts. Louis Vuitton's successful appeal demonstrates the willingness of rights holders to pursue legal action vigorously against infringers, regardless of the scale of their operation. The use of trap purchases and the detailed enumeration of infringements were key to building a strong case. Moving forward, online sellers must be acutely aware of the legal boundaries and the potential financial consequences of infringing registered trademarks. The S$510,000 award serves as a stark reminder that intellectual property rights will be robustly defended.

The bottom line

• Louis Vuitton has been awarded S$510,000 in damages from a Singaporean Instagram seller of counterfeit goods.
• The Court of Appeal more than doubled the initial S$200,000 award, citing the seller's evasive conduct.
• The court clarified that damages are assessed per type of counterfeit product, not per infringed trademark.
• The seller, Ng Hoe Seng, operated under 'emcase_sg' and 'emcrafts_sg', selling items like phone and passport cases.
• Ng committed at least 121 instances of infringement involving 13 Louis Vuitton trademarks.
• The ruling emphasizes compensation and deterrence as the primary goals of statutory damages in trademark cases.