Rickresource Rickenbacker Forum

UPDATE 1-LVMH, Dior file 37 mln euro damages claim vs eBay
Wed Sep 20, 2006 2:53pm ET165
(Adds LVMH/Dior confirmation, Unifab comment)

PARIS, Sept 20 (Reuters) - French luxury goods firms Louis Vuitton and Dior Couture have filed claims for a total 37 million euros ($47 million) against eBay Inc. (EBAY.O: Quote, Profile, Research) saying the online auction house does not do enough to combat the sale of counterfeit goods.

Le Monde newspaper said the case, lodged with the commercial court of Paris, alleges 90 percent of Dior and Vuitton-branded goods sold via eBay in the second quarter were fakes.

Louis Vuitton is owned by LVMH (LVMH.PA: Quote, Profile, Research). Dior Couture is owned by LVMH's parent company, Christian Dior (DIOR.PA: Quote, Profile, Research). Both are chaired and controlled by French financier Bernard Arnault.

A spokeswoman for LVMH and Dior confirmed cases had been brought against eBay Inc. and its Swiss affiliate eBay AG. She said Vuitton was seeking 20 million euros in damages, while Dior was requesting 17 million euros. She declined further comment.

Marc Antoine Jamet, a senior executive at LVMH, told Reuters last month that French industry association Unifab planned to file a claim versus eBay and other auction sites alleging they did not do enough to combat counterfeiting.

Jamet, who is chairman of Unifab, said on Wednesday the association fully supported the action taken by LVMH and Dior. He said it was possible other Unifab members would take similar action in the future.

EBay says it takes the issue of counterfeiting very seriously. In a letter to Unifab last week, a copy of which has been seen by Reuters, it proposed holding talks about French companies' concerns.

© Reuters 2006. All Rights Reserved.

EBay says it takes the issue of counterfeiting very seriously.