Tuesday 1 July 2008

LVMH wins compensation from eBay

PARIS (Reuters) - A French court ordered eBay to pay 38.6 million euros (30.6 million pounds) to luxury goods group LVMH for allowing the sale of fake merchandise, in a ruling immediately appealed by the online auction website.

Monday's decision, a month after eBay was ordered by another French court to pay handbag maker Hermes 20,000 euros for allowing the sale of counterfeits, is the latest episode in a long fight between luxury goods makers and the world's biggest online auctioneer.

"We will fight all these decisions in the name of eBay users, and we have decided to appeal," eBay said in a statement.

"If counterfeit goods are put up for sale on our site, we scrap them as soon as possible," it said.

EBay accused LVMH of having a hidden agenda.

"Today's decisions are not about fighting counterfeiting. It's about LVMH's desire to protect commercial practices that exclude all competition," it said.

LVMH claimed damages of about 50 million euros because it said eBay's French arm had not done enough to prevent sales of counterfeit items.

Monday's ruling decided separate cases by several different LVMH brands -- LVMH and Dior Couture as well as perfume brands Dior, Guerlain, Givenchy and Kenzo.

Source: GOogle news

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.