Wine Industry Report

In a landmark ruling handed down in Paris on 30 June, the giant internet bidding site eBay have been judged negligent in protecting the goodwill and brands of the group LVMH in an action brought by Louis Vuitton Malletier and Christian Dior Couture. This may have a significant impact for the potential sale of counterfeit wines in the future both on internet sites and through more established outlets.

A Paris judge held that by accepting the sale of counterfeit products on its site without taking the necessary steps to ensure that they were authentic eBay was judged guilty of negligence and liable to pay substantial damages. Moreoever, the fact that certain perfumes were sold on their site outside the agreement made between selective outlets made them a party to illicit sales - Christian Dior, Guerlain, Givenchy and Kenzo. The judged ordered eBay to pay 19,280 millions euros to Louis Vuitton Malletier, 16,4 millions d’euros to Christian Dior, including 3,192 millions d’euros in respect of the various brands. The decision was to take immediate effect. Moreover eBay was told to publish the decision in English and French on all its sites and in three French and/or international newspapers. This is the first decision in France which governs that French auction internet sites must ensure that their operations are not illicit in any way. The Tribunal dismissed the idea that only eBay’s clients could know whether the products were legitimate or not. It also dismissed the notion that eBay acted as a ‘hébergeur’¹ rather than a ‘courtier’².

1. hoster [↩]
2. someone who solicits [↩]