Ebay Ordered to Pay Damages
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Released 17 January 2008
eBay was ordered last week to pay €39.83 million compensation to a French
manufacturer of French luxury goods. The Judgement ordered ebay to pay
significant damages as it failed to adequately protect the rights holder from
having counterfeit products sold on ebay's auction website.
The decision comes as no surprise as last month eBay lost a similar case
against Hermes, another luxury brand, and was ordered to pay €20,000.
LVMH demanded €50 million in damages. The counterfeit goods included Louis
Vuitton-branded handbags, perfumes and sunglasses and LVMH told the court that
in 2006 90 per cent of the LVMH-branded goods for sale on eBay were fakes.
Louis Vuitton Malletier, the group's handbag and luggage section, and
clothing brand Christian Dior Couture accused eBay of "negligence" in allowing
illegal copies of their goods to be sold in online auctions.
While the French system has no precedence over the english system it does
still serve as a reminder to ebay to carefully police the content of their
website. Sooner rather than later it is believed that a claim will be filed
against ebay. An ebay spokesman said "We will fight this ruling on their behalf;
we will be seeking leave to appeal.”
So watch this space.
Michael Coyle is a
solicitor advocate who specialises in information technology law and
intellectual property law.
About the Author
Lawdit Solicitors offer services and
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agreements. We are experts in commercial law with a heavy emphasis on
Intellectual Property, Internet and e-commerce law. Lawdit is a member of the
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Article Published/Sorted/Amended on Scopulus 2008-07-13 15:04:18 in Legal Articles