A Collaboration with University of Pittsburgh   

France court orders eBay to pay $63 million for permitting sale of fake goods

[JURIST] A French court Monday ordered Internet auction house eBay [corporate website] to pay $63 million in damages to LVMH Moët Hennessy Louis Vuitton (LVMH) [corporate website], finding that the website failed to prevent the sale of counterfeit luxury goods that infringed on registered designs. LVMH praised the holding as a victory for designers seeking to control the distribution of their merchandise or prevent the sale of "copycat" products. In June, another French court ruled against eBay in a similar lawsuit for failing to prevent the sale of fake Hermès International SCA [corporate website] products. EBay said that it would appeal Monday's decision [press release]. The New York Times has more. Bloomberg has additional coverage.

The ruling comes as part of a growing trend, as European nations tighten restrictions on imitation luxury goods. A German court [Bavarian justice system website, in German] last week ruled [JURIST report] that a sports utility vehicle manufactured in China bore an unacceptable resemblance to a model manufactured by German automaker BMW [corporate website], ordering the SUV's importers to stop sales of the infringing SUV, destroy all remaining cars, and pay compensatory damages to BMW. Last year, DaimlerChrysler threatened to sue Shuanghuan Automobile [Forbes report] over a car it alleged infringed on its designs. The US and the European Commission (EC) announced [US Trade Representative press release; EC press release] plans in 2007 to negotiate an Anti-Counterfeiting Trade Agreement (ACTA) [JURIST report] to promote international enforcement of copyright law [JURIST news archive]. The Agreement is on the agenda for the G-8 summit taking place this month.

Support JURIST

We rely on our readers to keep JURIST running

 Donate now!

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.