Jeantet scores LVMH victory against Ebay
French firm Jeantet Associés has scored a €40m win for retailer LVMH after a French court ruled that auction site Ebay failed to block the sale of counterfeit LVMH goods.
French firm Jeantet Associés has scored a €40m (£31m) win for luxury goods retailer LVMH, after a French court ruled that online auction site Ebay failed to block the sale of counterfeit LVMH goods.
Ebay will appeal the controversial ruling. The decision could damage its business model by suggesting the company is responsible for the counterfeit goods that appear on its website. The company issued a strongly-worded statement following the decision.
“If counterfeits appear on our sites we take them down swiftly, but today’s ruling is not about our fight against counterfeit, today’s ruling is about an attempt by LVMH to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers everyday.”
Name partner of Alain Bensoussan Avocats and internet specialist Alain Bensoussan acted for Ebay. The company said that it invests more than $20m (£10m) each year to ensure counterfeit goods are found and removed, but that it is not legally obliged to do so.
The decision from the Tribunal de Commerce comes weeks after another French court ordered Ebay to pay €20,000 (£15,000) to luxury goods group Hermès in a similar dispute.
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Readers' comments (21)
Anonymous | 2-Jul-2008 4:12 pm
French court
It's a French court so you know where their sympathies are
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IP Expert | 2-Jul-2008 4:35 pm
No chance
I don't think this will stand up in an EU court. This looks like to me a that LVMH is carrying on with its restrictive trade practices. There's no special treatment for things like handbags and perfume in EU competition law.
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French partner | 2-Jul-2008 4:54 pm
Big money
It's very interesting. I think the decision in the appeal courts will be very closely followed by IP practitioners here just for the amounts at stake.
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Anonymous | 2-Jul-2008 5:51 pm
The inevitable
Don't confuse the issue of fakes moving through eBay with LV's selective distribution networks. They are distinct. In terms of fakes, ask yourself a simple question - have we as a society deemed their sale illegal? Given that answer, should eBay be allowed to sit back and force brand owners to purge fakes from eBay's marketplace via the VeRO programme? Or should eBay take a pro-active role in purging fakes itself from its marketplace? Of course it should. In that respect, the French decision should be welcome in a society that has said no to selling fakes.
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Anonymous | 2-Jul-2008 10:09 pm
no chance...
IP expert.. last time I checked Dior and others in the same area had already had their Selective Distribution Agreements considered and accepted by the Commission.
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IP partner | 3-Jul-2008 9:38 am
Animal Farm
Ebay is a bit like Animal Farm if you look at their business ethics. Everyone is equal, no-one has any responsibility. What a wonderful world we would live in were that true!
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Anonymous | 3-Jul-2008 9:48 am
IP Farm
Some are more equal than others.
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French partner | 3-Jul-2008 10:33 am
Commercial Court
This is the Tribunal de Commerce. The judges are not professional judges - they are merchants. A president of a small company can be a judge but they won't have legal training. There are many rumours that they are more favourable to French companies.
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intheknow | 3-Jul-2008 10:44 am
controversial ruling
Come on, it's not a "controversial" ruling and not about French courts. Ebay received several warnings, top legal minds should be able to understand the fact that the current Ebay website business model contributes to increase counterfeit. Many countries should follow this French ruling for a change.
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Anonymous | 3-Jul-2008 10:45 am
The inevitable
Have to agree with "the inevitable". Yes, there is protection under the E-commerce regs until the ISP is aware of the infringement, but surely if the ISP knows of blatant, longstanding infringement then it should take greater steps to check the legitimacy of the sales. I suspect that the L'Oreal case in the UK will be unsuccessful - it'll be the Tiffany case in the US that will sort it.
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