When Tenants Sell Counterfeit Goods, Landlords Pay

Courts have made it very clear that a landlord who allows a tenant to sell counterfeit goods on its property can be liable for “contributory infringement.” Not satisfied with prosecuting small-fry retailers, Louis Vuitton, Coach, and the makers of Ray Bans and Omega watches have gone after the landlords of properties where tenants sold counterfeits of their luxury goods—and each walked away with seven-figure awards. So even if you have no direct involvement in a tenant’s illicit sales, you could end up paying millions of dollars in damages.