LVMH Prevails In Paris Counterfeit Case Against EBay

LVMH Moet Hennessy Louis Vuitton SA (LVMUY) said Friday a French tribunal found eBay Inc. (EBAY) responsible for counterfeiting on its Web site, the latest fight over when sites are responsible for counterfeit items being sold on their domains.

EBay was ordered to pay 80,000 euros ($117,864) and the tribunal said the company will be fined EUR1,000 per future infringement.

LVMH director Pierre Gode said, “The tribunal has ruled that eBay, in using in its advertisements the keywords of some of LVMH’s brands, has committed acts of counterfeiting through reproduction or imitation.”

EBay said it was satisfied that the court rebuked the request for EUR4 million in damages but added that the decision “flies in the face” of its February victory on appeal in Belgium in a similar case involving Polo Ralph Lauren Corp. (RL).

The company has been the subject of numerous lawsuits in Europe, but has generally found itself on the winning side.

A French court ruled in May that eBay couldn’t be held legally accountable for the sale of fake L’Oreal SA (LRLCY) products on its French Web site. A U.K. court made the same ruling against L’Oreal a week later.

Luxury-goods makers have been aggressive in trying to eliminate counterfeits in order to protect their brands’ prestige.

EBay shares were recently up 49 cents at $24.46 in after-hours trading. The stock is up three-quarters this year.