Score another victory over industry counterfeiters, and the people who sell them. A French court has ruled that eBay must pay 80,000 euros (or around $117,000) to LVMH for allowing fakes of their fragrances to be auctioned on the site. This summer, LVMH scored a huge victory and has since put eBay on alert, and their lawyers working some major hours on the cases, according to WWD. But the rulings are still going both ways. The auction site had to pay damages to Hermès, but won a case that stated they weren't responsible for fake Tiffany & Co merchandise being sold. I guess this could be a product of different courts in different countries but I would hope eBay would at least try to monitor to to the best of their abilities. Because you can't stop every phony, but we all know how much it sucks to get your eBay purchase and find out it's not the real deal. The worst.
Hermes Wins a Round in Its Battle With LVMH
Today, France's stock-market regulator told the Hermes family that they could legally pool their holdings in order to fend off a takeover by LVMH. As we're sure you're aware, LVMH has bought 20.21% of Hermes' shares over the last few months. Although the Hermes family has kept over 70% of the company private, they still fear a hostile takeover by the luxury conglomerate, which views Hermes as what could be the final jewel in its crown. (If LVMH gets a hold of at least 33% of Hermes' shares, French law says that they must launch a bid for the rest of the shares, although there are exceptions to the rule.) To create a separate holding company that controls over 50% of Hermes' shares--and that will be immune to LVMH's advances--the family brand needed to get permission from French regulators. The regulator has agreed to Hermes' conditions, but it's likely an association that defends minority shareholders--which in this case includes LVMH--will appeal the decision. Despite this small victory, it's looking more and more likely that LVMH will someday control Hermes.