Luxury handbag and accessory maker Coach Inc. (COH) has sued Target Corp. (TGT), alleging the Minneapolis, Minn., retailer is selling handbags that infringe on its designs.

The New York luxury goods company's Coach Services Inc. unit, in a lawsuit filed in U.S. District Court in Manhattan on Thursday, claims Target is selling handbags that are "confusingly similar" to Coach's Ergo and Signature Patchwork lines of handbags.

"Target is not authorized by Coach to manufacture, distribute, advertise, offer for sale and/or sell merchandise bearing the Ergo designs or the Signature Patchwork designs," the lawsuit said.

The lawsuit includes claims of trademark infringement and unfair competition.

"We are currently looking into this situation and working with our vendor partner," a Target spokeswoman said in a statement Monday. "It always has been - and continues to be - Target's policy to respect the intellectual property rights of others."

-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com