Tuesday, July 1, 2008

eBay pay up €40m

Ebay has finally paid the price for the countless counterfeit goods that populate the website. A French court has ordered eBay to pay Louis Vuitton €40m. This is a landmark in both online sales and counterfeit goods actions. The LVMH (Moet Hennessey Louis Vuitton) claim was based on eBay not taking proper measures to prevent the sale of counterfeit goods and to continually allow genuine products to be sold outside their proper retail channels.

The case has been with the Paris Tribunal de Commerce for over two years. The actual payment will be split between Louis Vuitton and Christian Dior Couture. The company's fragrance brands were awarded around €3.75m.

Although Ebay will appeal the ruling, and have made a counter claim that LVMH is attempting to "protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers every day", it is doubtful they will receive any leniency.

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