Le Tribunal de Commerce ruled against eBay last week, fining the company 56 million dollars for allowing the sale of knock off Louis Vuitton purses and other replica purses and designer goods.  On top off this, eBay was ordered to pay $5 million dollars for selling brand name products without consent. The ruling marks a shift towards the protection of intellectual property rights above protection of freedom in the online marketplace. 

If the ruling is upheld, it will mean that online retailers will be liable for the fraudulent sale of knock off or replica designer goods such as perfumes, jewelry or purses.  It could also mean that websites like eBay will be unable to sell authentic Louis Vuitton purses or other brand name goods if the manufacturing company states that the product is only for sale via authorized outlets.

For companies like Louis Vuitton, this means that they can have more control over the sale of their designer purses since online markets will be legally restricted from selling their goods.  If knock off purses cannot be sold online, due to fear of legal recourse, and if designer good manufacturers are able to restrict sales, companies like Louis Vuitton will have more control of how their product is sold.  They will also be able to curb the sale of knock off Louis Vuitton purses and handbags.

It could be hard times for eBay, who will need to crack down on the sellers of fake goods.  But for Louis Vuitton, the decrease in knock off and replica purses will surely be welcomed.