LVMH, EBay Settle Counterfeit Lawsuit

LVMH and eBay have settled their long-running European litigation over counterfeits on the auction site.

As a result of the settlement, the two parties plan an effort to protect intellectual property and combat counterfeits that includes new cooperation measures, a statement said. It did not provide further details about that effort, but declared, “Thanks to our joint efforts, consumers will enjoy a safer digital environment globally.”

Unlike Tiffany’s similar suit against eBay in the United States—which resulted in a series of wins for eBay, even after Tiffany took it all the way to the Supreme Court—LVMH has had much more success pressing its case against the dot-com giant in Europe.

LVMH first sued eBay in 2006, arguing that 90 percent of certain items bearing LVMH brand names sold on the site were fake. In 2008, a French court ruled in its favor, awarding LVMH 38.6 million Euros, or about $61 million, in damages. A subsequent court ruling lowered that amount to 5.7 million Euros, and then another court ruling partially overturned the verdict, reports say.


JCK News Director