NEW YORK (CNNMoney.com) -- Luxury handbag maker Coach is suing Target Corp., alleging that the discounter sold what it believes is a counterfeit Coach bag in at least one of its stores.
The lawsuit, which was filed in federal court in Manhattan on Friday, said the bag imitated the the signature "C" logo of a genuine Coach bag and copied other features such as the "Coach" tag.
The phony Coach bag sold in a Target store bears the signature "C" logo and other characteristics found in the authentic version. Coach no longer carries the bag for sale, according to a published report.
The suit claims the bag in question was bought from a Target store in Largo, Fla., and appears to be an "exact replica of a genuine Coach handbag."
Target, the No. 2 discounter after Wal-Mart, responded in the filing that it believed the bag was a genuine Coach product.
According to court documents, Coach is seeking $1 million in compensation from Target for alleged trademark infringement.
Coach and Target could not immediately be reached for comment.
Coach's lawsuit comes a few months after another luxury handbag maker, Fendi, sued Wal-Mart of selling knock-offs of its pricey handbags at its Sam's Club warehouse stores.
The suit claims Wal-Mart does not have a purchasing agreement with Fendi or anyone affiliated with the company. Fendi also claimed that Wal-Mart never sought trademark identification.
Wal-Mart has denied the allegation and said the items are authentic.
"You mean that $500 handbag that we're selling for $9.99 isn't authentic? Inconceivable!"