The French luxury house accused the auction site of complicity to the sale of counterfeit goods

Jun 5, 2008 16:54 GMT  ·  By

For a very long time, a large number of high-profile cosmetics, accessories and perfumery manufacturers have been at war with auction giant eBay over the very delicate issue of counterfeit goods and the latter's responsibility in helping sell such products via its website. One of the most prominent defenders of brand exclusiveness was prestigious French high fashion house Herm?s, that took eBay to court and has just won a ?20,000 settlement.

The French court ruled that eBay was directly responsible for the sale of two counterfeit bags, which had supposedly been manufactured by Herm?s. The French luxury house argued that eBay was by no means simply an innocent host for counterfeit products, but rather that its involvement in the sale of the goods was much more direct than that.

"We are satisfied that they should be considered counterfeiters. eBay is an active player in the transaction because not only does it offer a number of services to improve the sale, but when it does not work well enough or fast enough, they intervene with the client. They are perfectly informed of the transactions since they take a percentage cut," argued Herm?s lawyer Emmanuel Colomes, who initially claimed ?30,000 in damages for complicity to the sale of counterfeit goods.

Before the court's ruling, other French companies (Louis Vuitton and Christian Dior among them) had filed similar charges against eBay in the Paris commercial court, accusing the auction website of complicity in the sale of counterfeit goods. L'Oreal is also involved in an ongoing court battle with eBay in no less than five European countries over the sale of counterfeit perfume bottles.