Commercial Court of Paris fines eBay Euro 1.7 million for not complying with internet sale injunction

On 30 November 2009, the Commercial Court of Paris has ordered eBay to compensate luxury brand owner LVMH about Euro 1.7 million for not complying with an injunction to ban the sale of some of the group’s perfumes online.

The case dates back to 2006 when LVMH took eBay to court for allegedly breaching its selective distribution system and allowing users to sell counterfeit goods

In June 2008, the Paris Court of Commerce ruled that eBay and eBay International AG were liable for failing to prevent the sale of counterfeit items on its websites that traded on plaintiffs’ brand names and for interfering with the plaintiffs’ selective distribution network. The court awarded LVMH damages worth approximately Euro 38 million in damages and issued an injunction prohibiting all sales of perfumes and cosmetics bearing the Dior, Guerlain, Givenchy and Kenzo brands over all worldwide eBay sites to the extent that they are accessible from France.  Failure to adhere to the injunction could have brought daily fines of up to Euro 50,000.

It appears that the French judges found eBay liable for failing to prevent the sale of counterfeit items on its websites that traded on LVMH’s brand names and for interfering with the LVMH selective distribution network. [Gabriele Accardo]

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