What is a 'counterfeit' watch?

Three-year old laCalifornienne has found fans – and stockists – across the globe thanks to its “magnificently, entrancingly bright, colorful, and fun” pieces, as jewelry and watch site JCK describes them. However, one company, in particular, is not keen on laCalifornienne’s creations: the world’s most valuable watch company, Rolex, which filed a strongly-worded suit against the brand and its founders/operators Ms. Ormond and Mr. Garwacki in a California federal court on Friday, calling “Counterfeit!” More here.

Interesting move by Rolex, but I don't see for one moment how the company can win this unless it comes down to the defendant not having enough money to defend itself.