LVMH - The Paris Court of Appeal Confirms eBay’s Liability

The Paris Court of Appeal has today found eBay liable for selling on its
websites, between 2001 and 2006, counterfeit Louis Vuitton and Christian
Dior products as well as Dior, Guerlain, Givenchy and Kenzo perfumes 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 eBays liability for
engaging in the sale of counterfeit products as well as products
reserved for selective distribution. This decision also dismissed eBays
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.
Todays ruling further orders eBay Inc. and eBay AG to pay penalties
amounting to 5.7 million Euros. It also gives the possibility for the
claimants to seek redress before foreign courts for damages suffered in
their jurisdictions.
LVMH welcomes the establishment of this case-law, which constitutes a
major step in the further protection of consumers.
The Courts ruling helps to clarify the rules applicable to e-commerce
in order to prevent illicit online practices and to ensure greater legal
certainty to the benefit of consumers operating online.
The ruling confirms the importance of selective distribution, which
ensures the authenticity and quality of products for consumers.
Selective distribution also generates numerous jobs and contributes to
the ongoing worldwide success of European luxury goods brands.
About LVMH
LVMH Mot Hennessy Louis Vuitton is the worlds leading luxury goods
group. The Group is represented in Wines and Spirits by a portfolio of
brands that includes Mot & Chandon, Dom Prignon, Veuve Clicquot
Ponsardin, Krug, Ruinart, Chteau dYquem, Hennessy, Glenmorangie,
Ardbeg, Belvedere Vodka, Chopin, 10 Cane, Chandon, Cloudy Bay, Terrazas
de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton.
Its Fashion and Leather Goods division includes Louis Vuitton, the
worlds leading luxury brand, as well as Celine, Loewe, Kenzo, Givenchy,
Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti and
StefanoBi. LVMH is present in the Perfumes and Cosmetics sector with
Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo,
Perfumes Loewe as well as other promising cosmetic companies (BeneFit
Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also
active in selective retailing through DFS, Sephora in Europe and the
United States, Le Bon March, la Samaritaine and Sacks. LVMHs Watches
and Jewelry division comprises TAG Heuer, Chaumet, Christian Dior
Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Limited, a
joint venture created with the worlds leading diamond group.

Source: Business Wire