EcommerceBytes-NewsFlash, Number 1833 - July 14, 2008     4 of 4

eBay Must Ban LVMH Designer Items

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The LVMH Group issued a press release on Friday announcing the Paris Court of Appeal's decision to confirm the charges against eBay of the Paris Commercial Court. The French Commercial Court had ordered eBay to pay almost 40 million euros to LVMH for "negligence" and "illicit sales" over the sale of counterfeit goods on its online auction site. Through an injunction, the court also ordered eBay to cease selling perfumes and cosmetics bearing the Dior, Guerlain, Givenchy and Kenzo brand names, failing which eBay would incur penalty payments of Euro 50,000 per day. The Commercial Court had also ruled that eBay should prevent its members from using those brand names.

Fortune's Roger Parloff had analyzed what the appeals court ruling would mean for eBay in a July 9 column. Parloff quotes an expert saying the case is not just about counterfeiting, but about restricting sales to traditional, authorized distribution channels.


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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