EBay to pay Louis Vuitton £31 million

The French Tribunal de Commerce has ruled that eBay must pay £31 million pounds to luxury goods maker Louis Vuitton Moet Hennessy (LVMH) for failing to block sales of counterfeit LVMH products.

eBay has also been ordered to block sales of genuine LVMH perfumes under the brands Christian Dior, Kenzo, Guerlain and Givenchy and these brands alone were awarded £2.5m. This ruling follows another order from a French court to pay 20,000 euros to Hermes for offering counterfeit bags for sale.

eBay has stated that they will appeal the ruling and a spokesperson claimed that LVMH were attempting to “protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers every day.” However, they also stated that they were investing over $20 million a year to tackle counterfeiting. LVMH welcomed the ruling as a way to protect brands from “parasitical practices”

ACID has previously had feedback from its members concerning copied products being offered for sale through eBay and welcomes the award to LVMH. Both eBay and YouTube claim protection from the Digital Millennium Copyright Act, which protects companies from claims of IP theft as long as they identify fake items and remove them from the site. ACID applauds these major luxury brands for taking action against the increasing problem of counterfeiting and this new ruling would appear to suggest that internet companies need to be far more proactive in monitoring for illegal activity and counterfeit products.

To read the full press release from LVMH click here

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