Fashion Law Re-Cap: LVHM and eBay Settle their 6-year lawsuit

Just last month, eBay and LVHM finally got around to settling their lengthy lawsuit over counterfeit goods. The agreement called for eBay and French luxury goods maker, LVHM to repair the troubles that came from fake goods leaking into the online marketplace. The dispute began in 2008, when LVHM sued the auctioneer site for circulating counterfeit version of its products. The court ruled in LVHM’s favor and ruled that eBay had to pay the luxury giant 3.5 million euros ($52.1 million US dollars) originally but later on reduced the amount to 5.7 million euros.

The decision got appealed back in 2012, when a French appeal court ruled that a lower court can only have jurisdiction over French and British sites not eBay’s U.S. website. The two companies are now executing collaborative efforts in an attempt to protect intellectual property rights and fight against counterfeiters.

“Thanks to our joint efforts, consumers will enjoy a safer digital environment globally,” the companies, said in a joint statement, without giving detail on the measures.

Companies such as LVHM, L’Oreal, and Tiffany & Co. have all attested to eBay’s careless behavior when it came to counterfeiters selling fake goods on their site through the years. The question is, can eBay really keep up in this race against the virtual and harsh world of cybersquatters? In 2010, a Paris court ruled against eBay in lawsuit that charged the company with using keywords on its site that hurt French fashion house, Louis Vuitton’s name.

Despite the fact that the feud between LVHM and eBay has finally been resolved, how long can this union last? As counterfeiting is such a profitable market, let’s hope this newfound companionship can endure more than just each other. Details of the settlement have not been revealed, nor did the companies explain how they will be moving forward. Stay tuned for more updates!

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