By  on June 30, 2008

PARIS — LVMH Moet Hennessy Louis Vuitton today won a landmark victory against eBay for allowing the sale of counterfeit goods.

A French court ordered eBay to pay the luxury goods giant around 40 million euros, or $63.2 million at current exchange, for selling counterfeit items on its online auction site, and for selling genuine products outside their desired retail channel.

Announcing the decision after a two-year legal process, Paris’s Tribunal de Commerce cited “grave errors” on eBay’s part.

Louis Vuitton received the lion’s share and was awarded 19.3 million euros, or $30.5 million; Christian Dior Couture received 17.4 million euros, or $27.5 million, and Parfums Christian Dior, Parfums Kenzo, Guerlain and Parfums Givenchy, were awarded around 3 million euros, or $4.7 million.

EBay was ordered to stop selling fragrances and cosmetics from those brands immediately, or face a fine of 50,000 euros, or $79,000, a day.

For complete coverage, see Tuesday's WWD.

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