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LVMH, eBay reach settlement over fake goods
LVMH and eBay announced Thursday that they have come to an agreement in their long-running court battle over the sale of counterfeit goods on the online auction site.
New York--LVMH and eBay announced Thursday that they have come to an agreement in their long-running court battle over the sale of counterfeit goods on the online auction site.
The companies released a joint statement about the settlement, saying little other than that they were announcing a “cooperative effort to protect intellectual property rights and combat counterfeits in online commerce.”
They added that “cooperation measures” have been put into place that allowed for the settlement of the ongoing litigation.
Financial terms of the deal were not disclosed. LVMH Moët Hennessy Louis Vuitton was not available for additional information or comment by press time, and eBay declined to comment on the news.
“Thanks to our joint efforts, consumers will enjoy a safer digital environment globally,” said Michael Jacobson, senior vice president and general counsel at eBay, and Pierre Godé, vice president at LVMH, in the statement.
RELATED CONTENT: Report: French court orders eBay to pay LVMH
LVMH’s watch and jewelry brands include TAG Heuer, Zenith, Hublot, Chaumet, Bulgari, De Beers Diamond Jewellers (the retail chain it operates in a joint venture with De Beers) and Fred Joaillier. The company also owns luxury fashion brands including Louis Vuitton, Céline, Givenchy, Fendi and Marc Jacobs.
The luxury goods company sued eBay in 2008, arguing that 90 percent of designer goods sold on the auction site were fakes and that the trading of counterfeit goods damaged the brands involved. That same year, a French court found that eBay did not do enough to prevent the sale of counterfeit goods on its site and ordered the company to pay 38.6 million euros ($60.9 million at the time) in damages to LVMH.
Though eBay appealed that decision and the fine was greatly reduced to 5.7 million euros, the French court still found that the auction site was in the wrong.
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