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July 7th, 2008 | Cheryl

eBay’s $61,3 Million Payout to Louis Vuitton

The world’s largest and seemingly invincible auction site, eBay, has at last been taken down a peg. A battle between two powerhouses, eBay was hit with a lawsuit last September by the world’s largest luxury goods conglomerate, LVMH (Moët Hennessy Louis Vuitton) who own more than fifty prized high-end brands in everything from wine to wristwatches.

Buoyed by France’s strict anti-counterfeiting laws, the case was filed in Paris and as a response to eBay’s inactivity when it came to preventing the sale of counterfeit goods on its online marketplace. LVMH is no stranger to suing formerly unassailable Internet giants, winning a French case against Google for promoting sites selling fakes. That case saw LVMH victorious, and this one is no different. eBay was sentenced to pay a staggering $61,3 million, and ordered to cease the sale of LVMH’s affiliate brands such as Christian Dior, Kenzo, and Givenchy Parfums else they face a $79,000 a day fine. eBay has bravely decided to appeal this decision, and will continue to sell the brands.

This court case has not gone unnoticed, and already Tiffany & Co. has joined in the fun, slapping a subpeona on eBay in Manhattan for the same reasons. Has Moët Hennessy Louis Vuitton started a dangerous trend that will see the eventual downfall of eBay? On the plus side, it would finally put a stop to those annoying daily mailers I get that seem impossible to unsubscribe from.

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Topics: Fashion Scoops, Features

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14 Responses to “eBay’s $61,3 Million Payout to Louis Vuitton”

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