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 2025

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

To mark the EUIPO having processed five million EUTM and REUD applications, Managing IP speaks to the most prolific representatives to uncover how they stay at the top of their game
The merger marks Rouse’s second M&A deal within a month, and will provide access to Arnold & Siedsma’s UPC offering
Simon Tønners explains why IP provides the chance to work with some of the most passionate, risk-taking, and emotionally invested clients
The co-leaders of the firm’s new SEP practice group say the team will combine litigation and prosecution expertise to guide clients through cross-border challenges
Boasting four former Spruson & Ferguson leaders and with offices in Hong Kong and Singapore, the IP firm aims to provide fast, practical advice to clients
Partners at three law firms explain why trade secrets cases are rising, and how litigation is giving clients a market advantage
Delegates at a conference unpicking the UK’s relationship with the UPC are hopeful of strengthened UK involvement – so should we all be
News of a litigation funder suing its co-founder and a law firm over trade secrets infringement, and a strategic hire by Womble Bond Dickinson were also among the top talking points
Managing IP’s parent company, LBG, will acquire The Lawyer, a leading news, intelligence, and data-driven insight provider for the legal industry, from Centaur Media
In major recent developments, a team of partners broke away from Taylor Wessing to form their own firm, while Kilburn & Strode made a strategic UPC hire
Gift this article