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Paris Appellate Court: eBay Liable in LVMH Case

Confirms June 2008 counterfeit ruling against website.

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By: TOM BRANNA

Editor

The Paris Court of Appeal has found eBay liable for selling counterfeit Louis Vuitton and Christian Dior products as well as Dior, Guerlain, Givenchy and Kenzo perfumes between 2001 and 2006 in violation of the selective distribution networks put in place by these brands.


The ruling confirms the decision by the Paris Commercial Court on June 30, 2008, which established the principle of eBay’s liability for engaging in the sale of counterfeit products as well as products reserved for selective distribution. This decision also dismissed eBay’s claim for exemption on the ground that it was acting as a mere provider of hosting services.

In addition, the Court prohibits eBay from direct or indirect violation of selective distribution networks in the future.

The new ruling further orders eBay Inc. and eBay AG to pay penalties amounting to $7.3 million. It also gives the possibility for the claimants to seek redress before foreign courts for damages suffered in their jurisdictions.

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