L’Oréal Paris and eBay Inc. have finally settled their long-time feud over counterfeit goods being sold on the e-market earlier this year on January 2014. The two companies have released a public statement ultimately closing the battle with an undisclosed settlement to L’Oréal from eBay and with eBay agreeing that it will continue to fight against intellectual property infringement.
Backtracking to 2007, L’Oréal’s case against eBay reached international courts levying suits in France, Belgium, Germany, Spain and the United Kingdom (the brand’s major distribution networks). The issue was that certain L’Oréal products were sold on eBay’s marketplace that weren’t meant for resale outside of the EU or were counterfeit. Screening of bidding items by eBay were lax and unintentionally propelled infringement when offending parties were allowed to pay for their spotty product to show up as “top results” through the marketplace’s “paid keywords” option. The eBay marketplace did not take extra precaution for these infringements, says L’Oréal. In 2009, the United Kingdom High Court ruled in favor of eBay; however, the online powerhouse did not get away scot-free for they were required to set up anti-counterfeit measures by a 2011 ruling from the European Court of Justice (ECJ).
News Source: WSJ