EBay found liable in Louis Vuitton case

EBay is to pay about 316,500 dollars to Louis Vuitton Malletier for legal costs and damages and stop using internet search terms to which the luxury goods firm objected, following a ruling by the Paris District Court.

The online auction site was found liable for harming the reputation of Louis Vuitton trademarks, the company name and domain name - all held by LVMH Moet Hennessy Louis Vuitton.

EBay had been buying keywords such as "Viton", "Vitton" and "Wuiton" so online shoppers putting these misspellings into a search engine, along with anyone using the brand's correct spelling, would be directed to links promoting eBay, a Louis Vuitton spokesman said.

The court, which called eBay's actions "parasitic", ordered the company to stop using the keywords. The court said the practice harmed Louis Vuitton's brand.

The online auction house must pay Louis Vuitton 200,000 euros in damages, plus 30,000 euros in legal costs.

In a prepared statement, eBay said it was disappointed but noted that Louis Vuitton was awarded less than the 1.2 million euros it was seeking.

Any future violations will each cost eBay 1,000 euros.

EBay also said the ruling "flies in the face" of a legal victory against Ralph Lauren in an appeal over a similar case in Belgium.