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eBay’s Effect towards Luxury Brands

Since the behemoth eBay has taken stronghold of investment auctioning online, many luxury brands are feeling the counterfeit crunch. With minimal screening for products posted online, the counterfeit market found a perfect place to move products in a virtually anonymous way. This is mainly due to the vastness of eBay’s reach. Sellers can come from literally anywhere in the world, making them nearly impossible to locate and even harder to prosecute. 

Recently in the US courts, the iconic fashion mogul Tiffany Co. filed a lawsuit against eBay Inc. for promotion of illegally produced items reflecting their brand name, in other words, trademark fraud. Following an investigation focused in 2004, Tiffany Co. will try to prove that 73% of 186 products offered on eBay where in fact counterfeit. The case has yet to go to court, but if the judgement is in favour of Tiffany Co., you can be sure that many other powerhouse brands will follows suit.   

Luxury items have long been the target of counterfeit. Amongst the most popular to be mimicked are Rolex and Gucci, to name a few. If lawsuits like these successfully pass through the judicial system, counterfeit methods of the 21 century could be stopped dead in their tracks.   

By IC-Academy | March 30, 2006 | News & Trends

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