L’Oréal and eBay settle dispute over online fakes

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

L’Oréal and eBay settle dispute over online fakes

Seven years after L’Oréal sued eBay for not doing enough to counter the sale of fakes on its website, the two companies have settled their litigation, declaring that “cooperation, rather than litigation”, is the way forward in the fight against fakes

The terms of the deal are confidential but in a joint statement L’Oréal said it acknowledges eBay’s commitment in the fight against intellectual property infringement.

L’Oréal filed lawsuits against eBay in France, Belgium, the UK and Spain in 2007. In 2008 the Belgian first instance court dismissed L’Oréal’s claims. One year later, the Paris Tribunal de Grande Instance ruled that eBay had fulfilled its obligation “in good faith” to help prevent fake L’Oréal products from being sold on its website but the judge told the two parties to discuss their dispute with a mediator.

The case filed in the UK was ultimately referred to Europe’s highest court, which in 2011 addressed the liability of internet service providers for counterfeit goods sold online; the legality of sales of goods from outside the EU; and the legitimacy of keyword advertising.

The Court’s ruling said that the operator of an online marketplace cannot be exempted from liability for infringement when it “plays an active role” giving it knowledge of or control over data relating to offers for sale.

At the time, Stefan Krawczyk, senior director and counsel government relations, eBay Europe, told Managing IP that it is still up to the national courts to decide facts. “That still probably leaves 27 or more different interpretations,” he added. “The national court will again come into play: is it proportionate? Does it affect legitimate trade? Judgments will be made in national contexts.”

more from across site and SHARED ros bottom lb

More from across our site

Tech leads at three IP service groups discuss why firms need to move away from off-the-shelf AI products and adopt custom solutions
IP firms say they have been educating some clients on AI use, with ‘knowledge-sharing’ becoming more prevalent
As the US patent system tilts further toward favouring patent owners, firms with a strong patentee focus can get ahead of the game
Amanda Yang and Rachel Tan at Rouse and Landy Jiang at Lusheng Law Firm provide an overview of the draft amendments to China’s trademark law
News of EIP launching an AI platform and a trade secret blow for TCS in the US were also among the top talking points
The four-partner addition includes A&O Shearman’s former co-head of global IP litigation
A settlement involving Disney and another ruling concerning a lawyer’s request for access to documents were also among the big developments
Merchant & Gould's managing partner explains why the firm launched a Boston office and why it brought on board a local boutique
The model covers court-guided settlements, submissions-led determination of infringement and validity issues, and provides leeway for the court to determine a FRAND rate during negotiations
Tie up between Belgium-based firms will create an outfit with almost 30 UPC representatives, and a tier one-ranked patent disputes team
Gift this article