European luxury fashion companies Burberry, Chanel, Gucci, Prada and Louis Vuitton won the first copyright infringement case against Xiushui Haosen Clothing Market Co, the operator of Beijing¡¯s famous "Silk Alley" market, over the sale of pirated products on the company's premises.

In December 2005, the Beijing 2nd Intermediate Court ordered Xiushui Haosen to pay the plaintiffs $13,000 (€11,000) in a landmark ruling that found the company had not done enough to prevent the sale of fake luxury products at the market.

In spring last year, the five luxury companies had sued Silk Alley asking for $300,000 in compensation.

Louis Vuitton's parent LVMH described the outcome as a 'symbolic rather than historical success'.

The ruling, however, is the first time a Chinese court found a shopping centre operator liable for pirated goods sold by private vendors.

A ruling on Xiushui's appeal is expected for February or March. Following repeated complaints from western companies, Silk Alley market was demolished last year and rebuilt as a shopping centre, which continued to sell pirated goods.