While Ebay was ordered to pay LVMH €40m in a Paris court for failing to prevent the sales of fake goods, over the border in Belgium, L’Oreal lost its case against the online auction house.
Different rulings from neighbours
In France Ebay was not only fined for not doing enough to stop counterfeit sales; it was also ordered to pay €3.19m for selling genuine perfumes without authorisation.
Last week a commercial court in Belgium interpreted European legislation differently ruling in favour of Ebay. The decision took L’Oreal by surprise but was not without precedent.
In the US, Tiffany’s lost its case against Ebay as the court found that the luxury jewellery firm was responsible for policing its own trademark.
Back in Europe, L’Oreal remains baffled by the decision of the Belgium court claiming that it does not hold with European legislation.
“L’Oreal believes that this judgment by the court digresses from the interpretation of the eCommerce Directive provided in recent months by the European Commission,” said a L’Oreal spokesperson.
L’Oreal still has battles to fight against Ebay in four other European nations. So far Europe has not presented a united front giving little indication of how these cases will pan out.
Fighting fakes with software
Irrespective of who holds the responsibility for brand protection, the next step is to find ways of preventing counterfeit sales online.
Software companies are working hard to equip auction sites and brands with the means to overcome the problem.
Businesses eager to avoid the negative impact on brand image of counterfeiting and illegal sales are investing software that enables them to monitor online sales, track unauthorised sellers and take action against illegitimate distributors.