So it looks like eBay isn’t taking it’s recent HUGE losses (against LVMH and Hermes) in Europe sitting down.

Tod Cohen, (Deputy General Counsel for eBay) has apparently asked the commissioner of Anti-trust issues in the European Union to look into some of these companies that are using tight (and arguably “anti-competitive” and  “abusive”) distribution agreements to keep their products off of eBay.

Cohen contends that these companies’ policies are “manipulating and controlling the markets beyond EU market rules”.

Interesting quote from Neelie Kroes, European Union Competition Commissioner:

 

“There are a number of practices that are being used to restrict cross-border sales, which I think require a closer look.

Like I’ve always said, I back any companies’ efforts to protect their good name and reputation.  eBay bears some responsibility in this- mainly in working closely with Trademark owners in keeping the market clean.  (They could do more- in requiring real verification for all users for starters!)  But they’re doing a ton of what they can do.  What they aren’t good at is combing through all of the listings for fakes.  This is where there needs to be coordination and cooperation with the Brand holders themselves.

The idea that a company can restrict my ability to resell any item that I have legitimately purchased, because they don’t want it sold in an particular venue is just craziness.  I mean, so you buy a Mercedes from an authorized Mercedes dealership, and you are never allowed to resell your vehicle?  Come on!

That’s what LVMH has done in France.  Let’s say that I live in France and get J’Adore Dior perfume (Dior is owned by LVMH) for my birthday.  And let’s just say that I’m also allergic to perfumes.  I am not allowed by LVMH or eBay since the decision earlier this year (unless Mr. Cohen’s efforts prove victorious) to sell that perfume on eBay.

Let’s just hope that at the very least that kind of nonsense doesn’t get worse (more limitations… and more lawsuits), and at best that people will be able have full rights of resale to anything that they legally and lawfully buy with their hard earned money.

Can’t these companies see how limiting resale reduces the value of their luxury brands?

Read more from Retail Week.

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(Photo Credit: AP Photo- Richard Drew) Well, this is fantastic news for us here at FASHIONPHILE- and for others who are just trying to run an honest business on eBay selling luxury brands.  And, hey- chalk one up for the literally thousands of individual- honest sellers of legitimate luxury goods, who just want the ability to post their authentic goods on eBay.

I am always worried when rights owners use trademark arguments to keep such tight reign on their brand distribution that legitimate resale of authentic goods is limited.  This is what happened in France with the LVMH v eBay, resulting in all LVMH perfumes being banned from the site.  And this is what worried me the most about the Tiffany & co. case.No honest seller wants any counterfeits available on eBay.  It hurts all of us.  Even though we only sell authentic luxury bags- when the reputation of eBay is damaged in such a way, that potential buyers associate online sales with only fakes- we lose and eBay loses and the potential buyer loses the opportunity  to purchase an authentic item at a discount.

At this point- at least with highly counterfeited brands like Louis Vuitton, Tiffany & Co, Chanel, etc. eBay has taken specific measures to keep the fakes off.  They do what a gatekeeper can do- make sure that seller’s are legitimate, that they are who they say they are, eliminate one day auctions, deal with second chance offer fraud, etc.   They’ve made great strides since early 2006- and the results are amazing.  The only way to “finish the job” and truly clean up the marketplace is to have rights owners get more involved.

Judge Richard Sullivan said regarding the Tiffany & Co. case…

“Tiffany has failed to demonstrate that eBay knowingly encouraged others to dilute Tiffany’s trademarks.  Rather, to the extent that eBay may have possessed general knowledge of infringement and dilution by sellers on its Web site, eBay did not possess knowledge or a reason to know of specific instances of trademark infringement or dilution as required under the law.”

If you want to read more about it…

New York Times

Reuters

Wall Street Journal

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Un-be-freaking-leavable…

Like I’ve said before… Louis Vuitton is well within its rights to do what it needs to do to get the counterfeits out of here.  And even, to perhaps seek sanctions for past gross negligence… But this is going too far- big time.

Basically, today the Court of Appeals upheld a June 30 ruling that has ordered eBay to stop allowing the listing of any Christian Dior, Kenzo Parfums, Guerlain and Parfums Givenchy fragrances and cosmetics on eBay France.

eBay’s is already appealing the original $63.2 million ruling on negligence in allowing Louis Vuitton counterfeits on the site… But they were trying to get an emergency injunctive order after a review of the part that forbid them from allowing sellers to list authentic LVMH perfumes (that were sold outside of Louis Vuitton’s regular, authorized distribution channels) on the site- or face the unreal DAILY fine of 50,000 euros, or $79,000.

So, the appeals court basically upheld the fine and in fact- upped the ante- ordering eBay to pay an additional $15,736!

Wow.  I mean, what would it do to the value of any luxury good- if it no longer had resale value?   A lot of people buy cars, art, jewelry (and handbags) with their inherent resale value- and even, investment value in mind.    Unreal.

Again… I’m on the egde of my seat to find out what a US Court will say in a similar situation (Tiffany & Co. v. eBay).  Any day now…

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Wow.  This could end up being costly to eBay.

It looks like a French court found eBay guilty of selling three counterfeit Hermes handbags and ordered them (and the woman who listed the bags) to pay $30,000 dollars in damages to Hermes.  Not only that- but (and this is my favorite part of the ruling)… they are required to POST the ruling on the eBay France website for three months!!!

Hermes attorney’s went for it bigtime, and weren’t mincing words.  Attorney Emmanuel Colomes said of eBay,

“We are satisfied that they should be considered counterfeiters”

 And apparently, the court agreed.  The ruling said:

“By selling Hermes bags and branded accessories on the eBay.fr site, and by failing to act within their powers to prevent reprehensible use of the site,” (the woman who listed the fakes and eBay) “committed acts of counterfeiting and imitation of French brand names … to the detriment of Hermes international,”

Hmmm….  This just makes me think of the ongoing Tiffany & Company and Louis Vuitton v. eBay cases.   Tiffany & Co. is a US case, I believe.  But, LV also filed in France.  French courts are MUCH more protective of the rights owners and distribution rights etc. of players in the fashion industry than we are here in the US.

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