A French court recently dealt eBay a blow for selling fake luxury goods, fining the online seller $61M for the sale of fake Louis Vuitton goods sold through the eBay site. However, to date the U.S. has been more lenient towards online retailers.
"Sally Abel, a lawyer who chairs Silicon Valley law firm Fenwick & West's trademark group, said U.S. courts have been siding with a more open, 'buyer-beware' marketplace. She cited recent cases where Google Inc. has prevailed in lawsuits challenging its practice of letting rivals bid for trademarked search terms in its ads."
While the Internet auctioneer's business model is unlikely to change, further legal setbacks could shave its margins. eBay has already upped its spending on people and technology to try to keep counterfeit items off its site.
Click here to read the entire article by Reuters reporter Alexandria Sage.