Amazon might be held liable for advertising ‘fake’ red-soled shoes, which may infringe the EU trademark of designer Christian Louboutin.
Similar red-soled high heels are advertised on Amazon by unauthorized third-party sellers.
According to the Court of Justice of the European Union (CJEU), Amazon could be held liable for trademark infringement.
Louboutin stated that the platform’s sales approach “misleads the consumer.” Amazon states that it will examine the verdict.
The Luxembourg court’s preliminary verdict paves the path for Amazon to possibly be held accountable for advertisements for any counterfeit products sold on its website.
Amazon and Louboutin, whose high heels generally sell for at least £600, have been embroiled in a long-running spat.
In 2019, Louboutin filed two lawsuits against Amazon in the courts of Belgium and Luxembourg, alleging that Amazon regularly aired advertisements for red-soled shoes on its marketplace without Louboutin’s permission.
The two courts sought guidance from the European Union Court of Justice (CJEU).
Thursday, the CJEU ruled that Amazon might potentially be held liable for suspected intellectual property violations identified in marketing for counterfeit sneakers with the iconic red sole.
The CJEU press office told that users of the platform may be under the idea that Amazon, not the third-party seller, is marketing the product “in its name and on its behalf.”
The Court of Justice of the European Union stated that it was now the responsibility of two national courts in Belgium and Luxembourg to determine if this was the case.
CJEU highlighted that the site also provides “added services to these third-party vendors,” including “storage and shipment of their merchandise.”
“Clarified distinctions”
Louboutin asserts that Amazon has unlawfully utilized the red sole trademark “for identical products” and “insists, in particular, that the contested advertisements are an important component of Amazon’s commercial message”.
The CJEU had studied Louboutin’s arguments “in every detail,” according to the designer’s attorney, Thierry Van Innis.
“Amazon can be held liable for the violations as if it were the vendor,” Mr. Van Innis told the news agency Reuters following the court’s verdict.
Amazon will be compelled to alter its business strategy and cease deceiving the public by combining its own and third-party offerings.
Mr. Van Innis stated that Louboutin was not presently pursuing monetary compensation: “We are not discussing finances at this time. We wish for the breaches to cease “he remarked.
The case contributes to a larger discussion about trademark infringement on online marketplaces and the difficulties for users to identify the real seller.
Mr. Klein stated, “Nothing will change if a platform is only a market without its offerings, such as eBay.”
“However, platforms that combine their goods with third-party offerings should examine, from a trademark standpoint, whether they wish to create a distinct look and feel or other clear distinctions.”
