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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 advice for litigation, commercial contracts, Intellectual Property and IT legal 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 International Trademark Association, the Solicitors' Association of Higher Court Advocates and we are the appointed Solicitors to the largest webdesign association in the world, the United Kingdom Website Designers Association.

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Article Published/Sorted/Amended on Scopulus 2008-07-13 15:04:18 in Legal Articles

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