eBay to be liable for counterfeits
ECJ rules in favour of brand owners
The European Court of Justice (ECJ) has ruled that online marketplaces such as eBay will be liable for prosecution from brand owners if they allow the sale of counterfeit goods on their sites.
The ruling means that brands such as L’Oréal, which has been embroiled in a battle with eBay, will now be able to initiate legal proceedings if the sites are aware of the illegal nature of the sales their sites facilitate.
The decision follows years of debate on the subject. In May 2009, the High Court of Justice in England and Wales found in favour of eBay in a landmark ruling in the struggle between L’Oréal and the online marketplace, while later that year a French court ordered eBay to pay LVMH €1.7m for failing to prevent the sale of LVMH products on its website.