PARIS May 3 French luxury goods company LVMH
suffered a setback in its attempts to stamp out
counterfeit trading on eBay, as a French court
partially overturned a previous ruling against the online
France's highest appeals court found that a lower court did
not have jurisdiction over the San Jose, California-based
company's U.S. website but upheld the earlier ruling as applied
to its French and British sites.
A host of perfume and cosmetic brands under the LVMH
umbrella, including Christian Dior, Givenchy and Guerlain, had
sued eBay claiming that the site allowed trade in counterfeit
LVMH also claimed that the sale of real perfumes through non
approved distribution channels like eBay hurt its business.
In 2008 a lower court in France ordered eBay to pay LVMH
38.5 million euros. A subsequent appeals court reduced the sum
to 5.7 million euros but affirmed that eBay had been in the
The decision on Thursday will likely lead to a reduction in
the existing fine, the court said, once the lower court reviews
the case again.
The court also overturned an injunction banning the trade in
LVMH perfumes on the eBay site, noting that such trade did not
violate the laws governing private commerce.