What the Louboutin vs Amazon court case means for luxury brands

 

Red soles on high heels can mean one thing: you’re holding a pair of iconic shoes created by coveted fashion designer Christian Louboutin. Unless, of course, they’re fake.

 

Unfortunately, luxury brands like Louboutin face a serious counterfeiting problem. Fake products usually come much cheaper than originals and are available almost everywhere, including trusted e-Commerce platforms like Amazon.

 

But, thanks to the court case of Louboutin vs Amazon, this may be about to change.

 

 

Why Louboutin sued Amazon

Back in 2019, Louboutin filed a lawsuit at the European Court of Justice against Amazon for trademark infringement. According to the reasoning, Louboutin holds Amazon liable for the trademark infringements of third-party sellers on the marketplace and demands damages.

 

 

Screenshot of eu.christianlouboutin.com showcasing the process of creating the iconic Louboutin heels

 

 

The results of this lawsuit have far-reaching consequences for the entire industry. Indeed, the ECJ’s ruling in this case can set a precedent for the responsibilities and liabilities of online marketplaces regarding product listings posted by third-party sellers.

 

| The ECJ’s ruling can set a precedent for the responsibilities and liabilities of online marketplaces

 

The court examined the evidence and issued a ruling in December 2022. The verdict declares that in some instances, Amazon can be held responsible for third-party sellers’ IP infringements.

 

The ECJ explains that in general, Amazon is not liable for the conduct of third parties on the marketplace, including potential IP infringements. (Earlier lawsuits, like that of Coty vs Amazon, came to the same conclusion.)

 

However, due to Amazon’s practice of presenting all product listings in a uniform fashion, as well as its fulfilment services, it’s very hard, if not impossible, for shoppers to distinguish between products offered by Amazon and those sold by third parties.

 

Find out all about the Amazon Buy Box!

 

Moreover, the use of Amazon’s logo throughout the marketplace indicates the company’s involvement in all offers, which could lead consumers to believe that Amazon is behind a specific product listing.

 

 

Implications for e-Commerce providers

The court ruled that Amazon can be held responsible for IP infringements conducted by third-party sellers in case the product listing in question can be mistaken for one of Amazon’s own offers. This verdict has far-reaching consequences for online marketplaces and has the power to influence their long-term marketing strategies.

 

Related topics

The rise of non-branded products on Amazon

 

What is a third party seller?

 

The end of illegal offers on eBay?

 

Shoppers tend to trust established e-Commerce providers like Amazon and eBay. Recognising this phenomenon, platforms may choose to underplay the role of third-party sellers. Amazon certainly doesn’t make it easy for shoppers to discover who the actual seller of their product is, and where the shipment is coming from.

 

However, the verdict in the Louboutin case may cause them to rethink their strategy. Being liable for third parties’ IP infringements and paying hefty damages is not a desirable outcome, which may prompt Amazon (and other providers) to clearly mark who the actual seller of a product is.

 

 

Increased IP protection measures?

In addition, platforms may choose to ramp up their protection measures against IP infringements. While many online marketplaces, Amazon included, employ some kind of measures to combat the influx of infringing product listings, the ruling may encourage platforms to strengthen their measures and make them more visible to rights holders.

 

Similarly, working with rights holders and brand protection experts to curb infringing offers may be a good strategy for marketplaces. In this regard, globaleyez can report that we have an excellent cooperation with Amazon (and countless other online marketplaces worldwide) to ensure that any content infringing on our clients’ IP rights is eliminated as swiftly as possible.

 

Discover our work with Indonesian marketplace Tokopedia’s IP platform!

 

After all, the only thing better than winning a lawsuit is not being sued in the first place.

 

 

Implications for luxury brands

Thanks to the favourable outcome of the Louboutin lawsuit, luxury brands all over the world may start rethinking their IP protection strategies.

 

 

Increased IP rights monitoring and enforcement

First of all, brands can see that monitoring the internet to detect any IP violations is of essential importance. In this regard, taking a proactive approach is quite necessary; nobody else is going to notice potential infringements for you. That is, unless you set up a partnership with online brand protection experts like globaleyez.

 

It’s our job to search the internet and discover all kinds of infringing content, including product listings. Our marketplace monitoring service does just that: we detect listings that violate your IP rights on over 150 marketplaces worldwide. The next step in the process is to remove those offers, which we’ll be happy to do via our enforcement service.

 

 

Strategic lawsuits

Taking large scale infringing sellers to court is often worth it for brands to receive damages. However, the Louboutin case shows that there’s a next step: taking online marketplaces to court.

 

Not only can you gain monetary compensation, but you can contribute to a shifting paradigm in the industry which calls marketplaces to take more responsibility over the content appearing on their platforms. Moreover, such a case can ensure larger publicity and higher rewards.

 

While we don’t provide legal services, we’re happy to contribute to the success of your lawsuit by gathering court-admissible evidence and much more.

 

Find out how we can assist your IP legal case!

 

 

Tighter distribution strategies

Besides outright forgeries, your genuine products can also hurt your brand when sold outside of your authorised distribution channels. This phenomenon is called a grey market, and it often comes about when your business partners (distributors, suppliers, etc.) don’t hold themselves to your agreement.

 

This is exactly why we created our partner compliance service. We discreetly check if your business partners comply with their contracts and how they represent your brand. Compliant partners and tighter distribution channels can help prevent leaks that would ultimately lead to the creation of disruptive grey markets.

 

 

Conclusion

Your IP rights are invaluable assets for your brand. They hold years, if not decades of hard work, know-how, material and immaterial investments that communicate the essence of your brand and your products. Letting fraudsters abuse them is a hard blow for your image as well as your bottom line.

 

The ECJ court ruling is a step in the right direction. It shows that brands can and should fight back against all actors that facilitate or contribute to the infringement of their invaluable IP rights.

 

But court rulings can only go so far; the rest depends on you.  

 

Set up a comprehensive online brand protection programme to quickly discover and eliminate potential infringements on marketplaces, fake shops, social media and anywhere else on the internet.

 

Contact us and let’s protect your IP rights together.