After a long battle in courts, French luxury giant, Louis Vuitton Moët Hennessy, LVMH, and online auction site, eBay, have finally settled out of court. The two powerhouse companies released a joint statement, stating, “eBay and LVMH today announced a cooperative effort to protect intellectual property rights and combat counterfeits in online commerce. Thanks to the cooperation measures put in place, the companies have settled ongoing litigation.”
This ends a litigation struggle that started in 2006, when LVMH sued eBay for not controlling the prolific knockoffs that appeared for sale on its site. LVMH argued that most of the products sold on the site that bore LVMH brands, such as Louis Vuitton, Christian Dior, Givenchy, Guerlain, and more, were counterfeit products. The luxury conglomerate also claimed that sales of the knockoffs on eBay hurt its brands’ sales, thus damaging the brands and LVMH.