eBay was ordered to pay over $300,000 for soiling the name of Louis Vuitton

February 12, 2010 - 2:20am

eBay was found liable for misleading customers by using misspelt versions of luxury brand Louis Vuitton as search engine key words to redirect users to Ebay website links. A Paris tribunal on Thursday ordered eBay to repay 200,000 euros ($275,800) in damages and 30,000 euros in legal costs incurred by Louis Vuitton.

Besides, eBay was also demanded to pay 1,000 euros in penalties every time it used search engine key words that "harmed the reputation of the Louis Vuitton brand."

Meantime, the online marketplace company recognized the facts of the case but added that they reflected the workings of a search system it uses.

Every time a certain number of misspelt words similar to Louis Vuitton appeared in the results of the search engine query eBay automatically paid search engines such as Yahoo and Google for having them used as key words directing users to the online auction website.

“We are extremely disappointed by this decision," said Yohan Ruso, head of eBay France. "We recognize the facts but we think the sanction is disproportionate."

On the other hand Louis Vuitton stated that the tribunal had found Ebay liable for "harming the trademark and domain name of Louis Vuitton."

Still, eBay explained away that the words were commercial links used in search engines to redirect consumers to Ebay to buy genuine Louis Vuitton goods.

"This issue is being used by certain rights owners as an excuse to retain total control of what people can buy, where they can buy it from and how much they have to pay," Ebay said in a statement.

Louis Vuitton, which began proceedings against Ebay in December 2006, said it had asked for 600,000 euros in damages.

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