LVMH wins compensation from eBay over counterfeits

By Thierry Leveque

PARIS (Reuters) - A French court ordered eBay Inc to pay 38.6 million euros ($61 million) to luxury goods group LVMH for allowing the sale of fake merchandise, in a ruling immediately appealed by the online auction website.

Monday's decision, a month after eBay was ordered by another French court to pay handbag and scarves maker Hermes 20,000 euros for allowing the sale of counterfeits, is the latest episode in a long fight between luxury goods makers and the world's biggest online auctioneer.

"We will fight all these decisions in the name of eBay users, and we have decided to appeal," eBay said.

"If counterfeit goods are put up for sale on our site, we scrap them as soon as possible," it said.

EBay accused LVMH of having a hidden agenda.

"Today's decisions are not about fighting counterfeiting. It's about LVMH's desire to protect commercial practices that exclude all competition," it said.

LVMH claimed damages of about 50 million euros because it said eBay's French arm had not done enough to prevent sales of counterfeit items.

"For the first time in France it (the court ruling) clearly states the principle under which auction sites that operate on the web have to ensure that their activities do not permit unlawful dealings," LVMH said.