eBay Inc. To Pay Louis Vuitton $316,500 | Ramblings of an e-trader

Saturday, 13 February 2010

eBay Inc. To Pay Louis Vuitton $316,500

eBay has been fined by French court to the tune of US$316,500 in legal costs and damages to Louis Vuitton Malletier for its actions in buying keywords that sounds like Vuitton but spelled wrongly in a hope to redirect search traffic to eBay instead of an official Vuitton website. The court said that such action by eBay is "parasitic".

The Louis Vuitton trademark is held by LVMH Moet Hennessy Louis Vuitton and they claimed that eBay's actions have harmed their reputation. The company had sought $1.7 million in compensation but it looks like they are just going to get a fraction of it. Still eBay announced that they plan to appeal against this ruling.

This looks like a legal tussle between two giants but just because eBay knows the tricks of the internet and what drives search traffic doesn’t mean that what they did are right.

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