EBay to appeal huge French counterfeit ruling
LOS ANGELES, July 1 (Xinhua) -- EBay said on Tuesday that it plans to appeal a 63 million-dollar ruling against it by a French commercial court that found it was liable for facilitating the sale of counterfeit luxury goods.
EBay called the ruling an attempt to "protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers everyday."
"We believe that this ruling represents a loss not only for us but for consumers and small businesses selling online. Therefore we will appeal," eBay said in a statement.
Embroidered patches The ruling stemmed from a claim by LVMH Group, a French luxury firm known for brands like Louis Vuitton, Christian Dior, Marc Jacobs and Givenchy, according to the San Fransisco Chronicle.
LVMH argued that eBay was guilty of gross misconduct and negligence for failing to prevent the sale of counterfeit items on online metal alloy beads stores its online auction site that traded on LVMH's brand names, the report said.
The court also ruled that eBay was not allowed to sell perfumes by Christian Dior, Givenchy, Guerlain and Kenzo, which LVMH mandates must be sold through approved distributors.
The ruling, which is not limited to France, could cause eBay to remove LVMH products from its site. It could also spell even more headaches if courts in America adopt a similar view toward online auctions.
The perfume ruling also calls into question consumers' right to turn around and resell an item they bought legitimately.
The ruling represents a troubling sign for eBay, which had until recently avoided claims that it is responsible for policing the counterfeit goods sold on its site.
LVMH defended the court's decision, saying: "This verdict represents an important step in the protection of brands and designs against parasitic practices."
"The court brings an important contribution to the protection of creative works which make up an important part of our national heritage and generate many jobs in France," LVMH said in a statement.
EBay maintains that it spends more than 20 million dollars a year to combat counterfeit goods, whose listings are immediately taken down when they are identified. The company, the world's largest auction site, employs 2,000 people to police counterfeits and has partnered with 18,000 brand owners to remove fake items.
Ties Gift Set Clothing The company said the ruling is a case of overreaching by the French court, which it said is rewarding LVMH's attempts to remove competition from the marketplace.
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