PARIS, France — French luxury goods group Kering has dropped a lawsuit filed in New York against Alibaba and Alipay and agreed instead to co-operate with the two companies to safeguard intellectual property rights and fight counterfeiting.

Chinese e-commerce company Alibaba has faced allegations in the past that its online shopping sites fail to prevent the sale of copyright-infringing goods.

Alibaba has said it is constantly improving its monitoring and enforcement of rules against counterfeits.

"The companies have established a joint task force with the purpose of collaborating fully, exchanging useful information, and working closely with law enforcement bodies to take appropriate action against infringers of Kering's brands identified with Alibaba's advanced technology capabilities," the groups said in a statement on Thursday.

"As part of the agreement, Kering has agreed to dismiss the lawsuit filed against Alibaba and Alipay, an Ant Financial subsidiary, in the US District Court in New York," they said.

In August 2016, A US judge dismissed part of a lawsuit filed by Gucci, Yves Saint Laurent and other luxury brands accusing Alibaba of promoting the sale of counterfeit goods saying their complaint failed to support those claims.

By Sudip Kar-Gupta; editor: Jason Neely.