News
Read about the latest developments at Shepherd and Wedderburn - as well as updates on the law. There are also details of our latest deals, and our media centre for journalists.
Media Releases
2008
02 July
2008
Brand owners need to police their portfolio more vigilantly, lawyers warn
‘90% of designer goods on eBay are fake’, French court is told in LVMH case
Legal experts today warned that brand owners need to protect their portfolios following a ruling on Monday in a French Court. The Court found against eBay in a dispute with LVMH, the luxury brands group whose portfolio includes TAG Heuer, Louis Vuitton, Kenzo Parfums and Donna Karen.
LVMH alleged that items for sale on eBay included fake Christian Dior, Guerlain, Givenchy and Kenzo perfumes. eBay argued that it spends $20m annually and employs 2,000 people to police the sale of counterfeit goods to no avail. LVMH was awarded £30.6m.
LVMH argued before the Court that 90% of designer goods sold on eBay are fakes. eBay has said that it will appeal the ruling.
Paul Carlyle, heading the media and technology group at Shepherd and Wedderburn LLP said:
‘This is a slightly surprising decision. French courts have not traditionally been seen as sympathetic to the needs of brand owners. Previous decisions have been more orientated toward the impact on the consumer.
This decision provides brand owners with an incentive to review the way in which they enforce the intellectual property protection which their brands enjoy. Counterfeiters take a free ride on the advertising and marketing spend of luxury brands and have a direct, demonstrable impact on profits. In a tighter economic climate where luxury brand purchases are ever less impulsive, the temptation for the consumer to buy a cheap imitation is high.
This ruling has the potential to fundamentally alter the way that online auction sites do business. With the finding in one EU member state that eBay’s Verified Rights Owner programme is inadequate, it is more likely that courts in other jurisdictions may make similar findings.
There is a very real possibility that other luxury brand owners will initiate claims either in their home jurisdiction or in France following this ruling. Brand managers who think that counterfeit versions of their brands are sold on online auction sites should, at the very least, take advice from their Group General Counsel.’
« Back to Press Releases
Latest news
Shepherd and Wedderburn strengthens litigation practice
28 July 2008
How to avoid getting into hot water over hot weather
24 July 2008
Shepherd and Wedderburn tees up success for new golf and sports centre
11 July 2008
Shepherd and Wedderburn acts for BAE Systems’
04 July 2008
Brand owners need to police their portfolio more vigilantly, lawyers warn
02 July 2008
Latest industry news
UK economy "faces recession in 2008", BCC reports
18 August 2008
TUC campaigns against 'sexist' female footwear rules
15 August 2008
British Energy chief hints EDF takeover is still on
15 August 2008
CBRE reports falling retail property returns
15 August 2008
Britain is facing recession, Bank of England acknowledges
14 August 2008
