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L'Oreal Bid To Sue Ebay Over Fakes Thrown Out In French Court



PARIS (AFP)--A Paris court dismissed Wednesday an attempt by French cosmetics giant L'Oreal SA (OR.FR) to sue U.S. online auctioneer eBay Inc. (EBAY) for EUR3.5 million for selling counterfeit goods.

The French ruling follows one by a Belgian commercial court, which found in August the world's largest online auctioneer didn't have "a general monitoring obligation" of what was on offer on its site.

L'Oreal has brought cases against eBay in five European countries, accusing the firm of not doing enough to prevent the sale of counterfeit goods posted on its auction and sale sites.

The Paris court said eBay had "fulfilled his duty" and said "preventing the sale of counterfeit goods on the eBay platform encounters major difficulties when it comes to perfumes and cosmetics".

Judges found eBay was only helping people to sell goods and couldn't control the content of its advertisements, and should therefore be considered as a Web host rather than a Web editor.

The court called for close cooperation between L'Oreal and eBay to clamp down on forgery, suggesting a mediator be employed. The companies will discuss that during a new hearing May 25.

Last June, a Paris commercial court ordered eBay to pay nearly EUR40 million in damages to LVMH Moet Hennessy Louis Vuitton (MC.FR) for selling fake luxury goods, in a ruling cheered as a victory for copyright protection.


  (END) Dow Jones Newswires
  05-13-090640ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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