Birkenstock (BIRK) initiated an infringement lawsuit in India, leading to court-ordered raids on small-scale factories producing suspected counterfeit footwear, Reuters reported Sunday, citing people familiar with the matter.

The inspections were ordered after Birkenstock filed an infringement case in May with the Delhi High Court against four traders, four factories, and two unnamed individuals. The company's complaint claimed an internal investigation that uncovered counterfeit products being manufactured in rural areas near the tourist hub of Agra and sold both domestically and overseas, the report said.

The court confidentially authorized factory inspections and seizures of suspected counterfeit Birkenstock products. The inspections have since been completed, and confidential reports were submitted to the court, sources told Reuters, adding that the next hearing for the case is scheduled for Oct. 6.

Birkenstock did not reply to Reuters' inquiries, and its legal representatives Lall and Sethi declined to provide a statement.

Neither Birkenstock nor Lall and Sethi immediately responded to requests for comment by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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