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EBay to pay Vuitton $316,500

A court said eBay’s practice of planting misspellings of the name Vuitton to lure customers to its website was “parasitic.’’ A court said eBay’s practice of planting misspellings of the name Vuitton to lure customers to its website was “parasitic.’’ (Robert Galbraith/Reuters)
Associated Press / February 12, 2010

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NEW YORK - EBay Inc. will pay about $316,500 to Louis Vuitton Malletier for legal costs and damages and stop using Internet search terms the luxury goods maker protested, following a ruling yesterday by Paris District Court.

The online auction site was found liable for harming the reputation of Louis Vuitton trademarks, the company name, and domain name - all held by LVMH Moet Hennessy Louis Vuitton.

EBay said it will appeal.

EBay had been buying keywords such as “Viton,’’ “Vitton,’’ and “Wuiton’’ so online shoppers entering such misspellings into a search engine would be directed to links promoting eBay. The court called eBay’s actions “parasitic.’’

The auction house must pay Louis Vuitton $275,200 in damages plus $41,300 in legal costs. Louis Vuitton had sought $1.7 million.